Heliostar Metals (HSTR.V) has released additional assay results from its expanded drill program on its La Colorada mine in Mexico’s Sonora state. The company has completed in excess of 16,000 meters of drilling (the drill program was expanded from the initial 12,500 meters of drilling). The drill program was designed to follow up on the two high-priority opportunities to grow the reserves, as identified by the company’s technical team. Drilling focused on near-surface extensions of known veins with very little drill data and the mineralization beneath the open pit. The targeted zones consistently exceeded the anticipated cutoff grade of 0.16 g/t gold-equivalent for La Colorada. The bullet points below highlight the most impressive intervals, all assay results can be found in Heliostar’s press release.
The results will now be incorporated into an updated resource and reserve model, and the company hopes to publish an updated technical report in the next few months. Given the exploration success, we also expect an update to the mine plan beyond the current mine plan that’s based on the 377,000 ounces of gold in the probable reserve category.
Heliostar’s attention will now shift towards drill-testing the historical stockpiles and hopefully the company can find a second Junkyard area which could provide low-cost ounces to the mine plan.
Disclosure: The author has a long position in Heliostar Metals. Heliostar is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
