Gold surged to an all-time high of $2,798.24/oz today as safe-haven demand increased amid U.S. tariff threats on Mexico, Canada, and possibly China. 

Against this backdrop, gold producer, Heliostar Metals Ltd. (Ticker: HSTR.v or HSTXF for US investors), announced strong shallow oxide gold results from its ongoing 12,500m drill program at the La Colorada Mine in Sonora, Mexico.  

Key Drill Results: 

• 5.0m at 9.69 g/t gold  
• 4.3m at 9.87 g/t gold  
• 15.0m at 2.54 g/t gold  
• 11.65m at 1.86 g/t gold  
• 11.6m at 1.72 g/t gold  
• 21.6m at 0.77 g/t gold  

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Drilling has successfully identified near-surface oxide gold mineralization in zones previously classified as waste within the planned Creston Pit expansion, potentially reducing stripping requirements and improving project economics. Additionally, high-grade intercepts at depth indicate potential for underground mining beyond the open pit.  

Strategic Expansion Plans  

La Colorada restarted production in early January 2025, with the current drill program aimed at expanding reserves ahead of a mid-2025 Feasibility Study and a planned expansion to 50,000-100,000 ounces per year of annual production. 

CEO Charles Funk highlighted the benefits of record gold prices and the first major investment in La Colorada in years, emphasizing that ongoing success could **lower upfront capital costs** for the expansion.  

The company has completed 47 holes, reporting results from 23 new holes, with 6,452m drilled to date. The focus remains on defining additional ounces within the planned pit expansion while evaluating deeper zones for potential underground mining.  

Next Steps  

• Incorporating results into a reserve update and Feasibility Study by mid-2025  
• Further drilling in Q1 and Q2 2025 to refine the deposit’s potential  
• Evaluating underground mining potential beyond the current pit boundary  

La Colorada currently hosts 312,000 ounces at 0.76 g/t gold and 10.1 g/t silver in reserves, with additional exploration upside. With gold prices at record highs, Heliostar’s strategic drilling and expansion efforts aim to maximize value from the mine.  

Full news here: https://www.heliostarmetals.com/news-articles/heliostar-delivers-strong-shallow-oxide-gold-hits-at-the-la-colorada-mine-sonora-mexico

Posted on behalf of Heliostar Metals Ltd.