Heliostar Unveils Strong Preliminary Economic Assessment for Ana Paula

Heliostar Metals Ltd. has released a Preliminary Economic Assessment (PEA) for its Ana Paula underground project in Guerrero, Mexico, showcasing compelling economic metrics. The assessment indicates a post-tax net present value (NPV5) of **US$426 million** and an internal rate of return (IRR) of **28.1%**, with an impressive payback period of just **2.9 years** at a gold price of **US$2,400 per ounce**.

The PEA also outlines an upside scenario, which posits a potential NPV5 of **US$1,012 million** and an IRR of **51.3%**, assuming a gold price of **US$3,800 per ounce**. Over a projected nine-year mine life, the operation is expected to produce **874,700 ounces** of gold, averaging **101,000 ounces** per year after an initial ramp-up phase. The all-in sustaining cost (AISC) is estimated at **US$1,011 per ounce**, placing it among the lowest-cost gold producers globally.

Path to Production and Economic Viability

Heliostar’s CEO, **Charles Funk**, expressed optimism about the PEA, stating that the findings confirm Ana Paula’s potential to become a low capital expenditure, high-margin gold mine. He emphasized the project’s ability to facilitate the company’s transition to mid-tier status by **2028**, significantly boosting its production capabilities while maintaining one of the industry’s lowest cost bases.

The company is implementing a comprehensive plan to advance Ana Paula towards production, which includes accelerating the completion of the underground decline, conducting exploration drilling, and submitting permit amendments. The goal is to initiate production by **2028**. Funk noted, “The current **15,000-meter drill program**, engineering, and metallurgical studies all aim to enhance the mine’s economic outlook and establish a mine life of at least ten years.”

Projected annual after-tax free cash flow stands at **US$93.8 million** at a **US$2,400 per ounce** gold price, and **US$168 million** at a **US$3,800 per ounce** price. This strong cash generation is attributed to the combination of high-grade mineralization and a bulk tonnage mining approach.

Resource Estimates and Future Plans

The PEA is based on a resource update from **November 27, 2023**, which includes **742,000 ounces** of measured and indicated resources and **514,000 ounces** of inferred resources. The resources are reported using a cut-off grade of **2.10 g/t** gold and are classified according to the standards set by the Canadian Institute of Mining (CIM).

The initial capital expenditure required to bring Ana Paula into production is estimated at **US$300 million**. This includes costs for extending the existing decline into the deposit and constructing a **bio-oxidation (BIOX)** circuit, which will enhance gold recovery rates. The operation will utilize a processing facility capable of handling **1,800 tonnes per day**, employing both gravity and flotation methods to maximize gold extraction.

Heliostar has initiated a **conference call on November 11, 2025,** to discuss the PEA highlights and the development plan. Stakeholders and interested parties can register for the call through the company’s website.

The PEA results are preliminary and do not guarantee future economic viability, as they include inferred resources considered too speculative for classification as mineral reserves. Heliostar has not yet made a definitive production decision regarding the Ana Paula project.

As the company moves forward, it anticipates generating sufficient free cash flow from its existing operations to support Ana Paula’s development. The upcoming drilling program aims to upgrade resource classifications, while ongoing permit amendments will facilitate the transition to underground mining.

In summary, Heliostar’s PEA for Ana Paula highlights a strong economic foundation and outlines a clear path toward production, positioning the company for significant growth in the coming years.