Heliostar Metals (TSX-V:HSTR) says the Feasibility Study at its Ana Paula Gold Project in Guerrero, Mexico, is 34% complete and remains on schedule for delivery in Q2 2027.
The company is targeting a construction decision in mid-2027 and first gold production before the end of 2028, subject to study results, financing, and permitting.
Since the November 2025 preliminary economic assessment (PEA), Heliostar has completed 74 holes totalling 25,072m, primarily across the High Grade Panel, with additional drilling at the Expansion zone and other targets.
The High Grade Panel extends 300m horizontally and 330m down-plunge, with its core averaging 50–60m thick. The Expansion zone extends up to 200m down-plunge and remains open in multiple directions.
President and CEO Charles Funk says the Feasibility Study is Heliostar’s most significant current value-creation activity.
“The study sets the design, operating plan, and cost of a potential mine build that is planned to start in mid-2027,” Funk says.
Funk adds that the study and production targets remain unchanged.
“We remain on track to meet our Q2 2027 Feasibility Study timeline and are targeting a H2 2028 first production goal.”
Heliostar says an updated mineral resource estimate is nearing completion, while metallurgical testing indicates consistent mineralisation across the deposit.
Engineering, permits, and funding advance
Flotation circuit test work is complete, while pilot-scale testing of a proposed bio-oxidation circuit is expected to finish in the coming weeks. Further circuit optimisation is planned for October.
The company intends to replace the PEA’s fixed gold cut-off grade with a net smelter return model. Engineering now considers a 2,000-tonne-per-day plant, compared with 1,800 tonnes per day in the PEA, while the comminution circuit would accommodate a potential expansion to 2,500 tonnes per day.
Heliostar says it plans to submit an environmental permit application to Mexico’s Secretariat of Environment and Natural Resources in September or October. The proposed underground-only operation would reduce surface disturbance by approximately 65% compared with the previous open-pit plan.
The company is also progressing condemnation drilling, water concession applications, power studies, and quotations for long-lead equipment.
Heliostar plans to fund construction through internally generated cash and project debt, with Hannam & Partners advising on debt arrangements. The company intends to assess non-dilutive financing options during the December quarter.
Funk says Heliostar plans quarterly milestone updates as it works towards a proposed 10-year operation producing an average of 100,000 ounces of gold a year.
Heliostar Metals is a Canadian gold producer operating the La Colorada and San Agustin mines in Mexico, with a development portfolio spanning Mexico and the US.
Write to France Pinzon at Mining.com.au
Main image: Heliostar Metals
