Heliostar Drill Results Strengthen Case for a Mine Life Extension at San Agustin

Heliostar Metals Ltd. (HSTR) has reported assay results from 164 holes totaling 16,970 meters at the San Agustin mine, bringing the current drilling program to 217 holes for 22,118 meters. The release covers four of the nine near-mine target areas: Corner Expansion, Phase 3 East, Phase 5, and the newly defined East Wall Zone. The company has expanded the program’s scope to 25,000-30,000 meters, up from the prior plan of 15,000-18,000 meters, while maintaining the total budget at US$9.75 million. Two rigs are currently active, with reverse circulation drilling focused on resource definition and core drilling aimed at gathering resource, geotechnical, hydrogeological, and metallurgical data.

The stated objective of the drilling is to define additional oxide gold ounces to support up to two years of mine-life extension at San Agustin. Management indicates that the Corner Expansion and East Wall zones are expected to provide approximately 50% of that targeted two-year extension.

Key reported intercepts, presented as uncut AuEq unless noted, include:

• East Wall: 100.6 m @ 0.42 g/t AuEq from surface; 94.5 m @ 0.33 g/t AuEq from surface; 24.4 m @ 3.44 g/t AuEq from 105.2 m, including 7.6 m @ 10.41 g/t AuEq; 36.6 m @ 0.68 g/t AuEq; 71.6 m @ 0.37 g/t AuEq; 25.9 m @ 0.42 g/t AuEq.
• Corner Expansion: 40.9 m @ 0.99 g/t AuEq from 20.0 m; 73.0 m @ 0.38 g/t AuEq; 50.3 m @ 0.37 g/t AuEq; 32.0 m @ 0.54 g/t AuEq; 9.1 m @ 1.19 g/t AuEq; 73.2 m @ 0.43 g/t AuEq; 53.3 m @ 0.45 g/t AuEq; 76.2 m @ 0.36 g/t AuEq; 9.1 m @ 3.34 g/t AuEq.

A critical disclosure notes that the 24.4 m @ 3.44 g/t AuEq intercept is reduced to 0.75 g/t AuEq on a top-cut basis, and the 7.6 m @ 10.41 g/t AuEq sub-interval is reduced to 1.81 g/t AuEq. The top cut applied is 7 ppm Au or 300 ppm Ag. True widths for the reported intervals are unknown, and no cutoff grade is stated. The AuEq formula utilizes US$2,150/oz for gold, US$26/oz for silver, an oxide gold recovery of 66%, an silver recovery of 10%, and a transition gold recovery of 38%.

Heliostar Metals Ltd. (HSTR) has released drill results from the San Agustin mine, a producer-stage operation where exploration updates are primarily significant if they materially alter reserves, mine life, or net asset value. The current San Agustin reserve stands at 68,000 ounces at a grade of 0.29 g/t, supporting a mine life of 1.2 years. The company is guided to produce 30,000 to 32,700 ounces of gold from San Agustin in 2026, which accounts for approximately 60% of its consolidated guidance of 50,000 to 55,000 ounces.

The latest release targets a resource-definition step intended to extend the short-life heap-leach mine’s operational timeline. Heliostar states that two identified zones can provide about 50% of a targeted two-year extension, effectively adding roughly one additional year of production to San Agustin. This extension is operationally useful but modest relative to the company’s market capitalization of approximately C$665 million and its larger pipeline projects, including Ana Paula, Cerro del Gallo, and Goldstrike.

The stock closed at C$2.38 on November 6, 2026, below its 52-week high of C$3.28 and above its low of C$1.57. This release is broadly in line with the March 2026 San Agustin results, with the addition of the low-grade East Wall zone and a capped high-grade outlier. The results serve as an incremental confirmation for the San Agustin mine-life story but do not yet change reserves or economics, and the headline grade is not robust after capping.

Heliostar Metals Ltd. (TSX: HSTR), a gold producer and developer listed on the Toronto Stock Exchange, is focused on operations in Mexico and the United States under the leadership of CEO Charles Funk. The company’s strategy involves building mines with production capacities in the 100,000 to 250,000 ounces per year range, with a target to exceed 500,000 ounces annually by 2030.

Heliostar currently operates two producing assets: the La Colorada open-pit heap leach mine in Sonora, Mexico, and the San Agustin open-pit heap leach mine in Durango, Mexico. The company’s development portfolio includes the Ana Paula underground gold project in Guerrero, described as its flagship asset; the Cerro del Gallo open-pit heap leach project in Guanajuato, which is at the pre-feasibility study stage; the San Antonio project in Baja California Sur; the Goldstrike project in Utah, featuring Carlin-style gold and antimony potential; and the Unga silver resource project in Alaska. According to the company’s investor presentation, all projects are 100% owned with no royalties.

In the first half of 2026, Heliostar reported revenue of US$110.9 million, net income of US$22.1 million, cash holdings of US$43.0 million, and no debt. The company’s guidance for 2026 anticipates gold production of 50,000 to 55,000 ounces and silver production of 290,000 to 320,000 ounces, with all-in sustaining costs (AISC) projected between US$2,025 and US$2,125 per ounce.

The Ana Paula project’s preliminary economic assessment outlines a nine-year mine life with an average production of approximately 101,000 ounces per year. At a gold price of US$2,400 per ounce, the project shows an after-tax net present value (NPV5) of approximately US$426 million and an AISC of about US$1,011 per ounce. A feasibility study is targeted for completion in the second quarter of 2027, with first production planned for the second half of 2028.

Heliostar is also acquiring the Goldstrike project for a total consideration of US$72.5 million. The deal structure includes US$10 million in cash and shares at closing, with up to US$60 million in deferred payments. The acquisition adds approximately 975,000 ounces of indicated gold grading 0.46 grams per tonne, along with antimony potential.