Heliostar Metals (TSX-V:HSTR) delivered its strongest production quarter yet, producing a record of 14,803 ounces of gold and 79,710 ounces of silver.
A total of 11,960 ounces of gold and 52,997 ounces of silver were sold in Q2 2026. Year-to-date, 21,940 ounces of gold and 63,607 ounces of silver have been sold.
The company says this puts Heliostar on track to achieve its production guidance of 50,000 to 55,000 gold ounces.
At the La Colorada Mine in Mexico, a second injection leaching unit was brought online during Q2 2026, and wells have been drilled to support injection leach through the balance of the year.
Meanwhile at the San Agustin Mine, production maintained a steady-state, increasing gold production by 49%. Grade control drilling resulted in positive ore tonnes reconciliation above the reserve model. Reserves at the Corner Reserve area are estimated at 68,000 ounces of gold.
Heliostar says the San Agustin Mine was a major cashflow contributor in Q2, and is anticipated to be a key cashflow driver through 2026 and beyond.
The company achieved a record cash position of US$43 million at the end of Q2, with no debt. Heliostar also achieved record revenues of US$56.5 million, driving record mine operating earnings to US$31.1 million and a net income of US$8 million.
CEO Charles Funk says both mines are in stable operations and producing gold at a low cost of US$1,654 an ounce, which allows the company to continue generating cashflow despite fluctuations in the gold price.
“We have built cash on our balance sheet to support the construction of Ana Paula next year while still investing in growth across multiple avenues,” Funk says.
“This includes investing in our producing mines with mine-life extension focused drilling and studies, such as Veta Madre Plus at La Colorada and the Corner Extension at San Agustin. It also includes growth outside of our Mexican portfolio with the closing of the Goldstrike acquisition.”
Acquisitions, development, and exploration
Heliostar closed the acquisition of the Goldstrike Project in Utah in Q2. The project hosts an indicated resource of 65.8 million tonnes at 0.46 grams per tonne gold for 975,000 ounces.
The company sees exploration potential, with most drilling only extending to 200m below surface.
Meanwhile, drilling is continuing at the Ana Paula Project as a Feasibility Study progresses and a Bankable Feasibility Study scheduled for completion in Q2 2027. Infill drilling is continuing to encounter wide zones of mineralisation in areas classified as inferred resources at the Ana Paula deposit.
The results are being incorporated into an updated resource that will support an upcoming Feasibility Study.
Heliostar expects to submit an underground mine permit and provide an update on the Feasibility Study sometime this current quarter.
Heliostar Metals is aiming to become a mid-tier gold producer, focused on increasing production and developing new resources in Mexico.
Write to Aaliyah Rogan at Mining.com.au
Images: Heliostar Metals
