Heliostar Metals’ San Agustin Mine to Restart Production by 2Q25

Canada-based mining company Heliostar Metals announced it will restart mining operations at its San Agustin mine in Durango in 2H25, with initial production in 2Q25. The company will transition from residual leaching to active mining of the mineral reserve.

Heliostar Metals' decision to transition from residual leaching gold extraction to mine San Agustin’s Corner area follows an operations analysis, based on a US$3,000/oz gold price, which supports a post−tax Net Present Value (NPV) of US$35.25 million and an Internal Rate of Return (IRR) of 548%. The restart requires an initial capital expenditure of US$4.2 million and is projected to produce a total of 45,000oz of gold. "Heliostar is pleased to have met its forecast timelines to recommence mining at San Agustin. Mining the Corner Area will produce 45,000oz of gold from the current reserve. It will generate US$40 million in cash flow," said Charles Funk, CEO, Heliostar Metals, adding that the company has approximately US$30 million in cash to fund the required capital.

The restart plan was enabled by the company receiving required approvals in July 2025 for an open-pit expansion, following an application submitted in 4Q24. Preparatory work, including selecting contractors and establishing access roads, will be undertaken in 3Q25 and 4Q25.

Heliostar Metals will immediately begin a drilling program in 2H25. The initial focus will be on near-surface oxide targets to expand the existing reserve, followed by exploration of deeper sulphide targets that the company states share geological characteristics with deposits such as Peñasquito and Camino Rojo in Zacatecas. 

San Agustin Mine’s Features

The San Agustin mine is part of a US$5 million project portfolio that Heliostar Metals acquired from Argonaut Gold on Nov. 8, 2024, comprising the La Colorada, Cerro del Gallo, and San Antonio mines. “This acquisition is transformative for Heliostar.  The company transitions from a single asset developer to a multi-asset producer. The addition of the two producing gold mines provides cash flow to bring new production online,” Funk said at the time. 

The San Agustin mine was formerly known as El Castillo Complex, and consisted of an open-pit heap leach gold mine (San Agustin) and a closed open-pit heap leach gold mine (El Castillo). The property comprises nine titled concessions covering 5,884ha, featuring two crushing plants with a combined capacity of 30,000t/d, conveyors, multi-lift leach pads, a carbon-in-column, and a small Merrill Crowe plant. The San Agustin mine maintains water rights of 1,000,000m³/year from one underground aquifer.