Last week, Heliostar Metals (HSTR.V) released assay results from the Truckshop stockpile. This originally was a waste dump in the nineties, located just 400 meters from the La Colorada mine’s crushing circuit. The company drilled 35 holes in the waste-dump to get a better understanding of the mineralization as these data points could be important to help determine whether or not this stockpile could provide a production bridge at La Colorada before the higher grade production from the Veta Madre and Creston pits could potentially come online (the current gold production is coming from the Junkyard stockpile).
Of the 35 holes that were effectively drilled, 26 returned intervals with ‘significant widths’ and grades exceeding 0.164 g/t gold-equivalent (which is used as the cutoff grade for the Junkyard stockpile which is currently being mined and processed). You can find all relevant assay results in the company’s press release but the bullet points below highlight some of the better intervals.
No metallurgical test work has been completed at La Colorada but we wouldn’t be surprised to see similar characteristics and results compared to the Junkyard stockpile.
Given the successes at the Junkyard and Truckshop stockpile, Heliostar’s technical team has now also decided to drill-test the El Dorado stockpile. If successful, processing rock from El Dorado could provide additional production before the Veta Madre and the expanded Creston pit.
Disclosure: The author has a small 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.
