Drill Results
Heliostar Set to Expand La Colorada with Strong Drill Results and Key Permits
Heliostar’s Veta Madre expansion remains on track despite the stock falling 45% from its peak as the market digests execution pace and cost trajectory.
Executive Summary
- Heliostar Metals announced strong drill intercepts at the Veta Madre pit area at its La Colorada mine, including high-grade intervals up to 1.3m @ 173.5 g/t Au.
- Final permitting approvals for the Veta Madre pit expansion have been received, clearing the last regulatory hurdle for the project.
- Engineering for the larger "Veta Madre Plus" pit is ongoing, with waste stripping targeted to commence in early Q3 2026.
- Production from the expanded pit is targeted for the first half of 2027.
- The completed drill program (44 holes, 8,425m) aims to de-risk and expand the pit to the south and at depth, targeting an additional ~20,000 ounces of gold above the current mine plan.
- Management confirmed it will not release a new NI 43-101 report for this expansion but will reflect the updated resource model and higher gold price impacts in its 2027 annual production and cost guidance.
- This is a drill results and operations update, not an earnings release. All financial metrics cited below are prior-period context to frame the operational update.
Material Impact
- The news confirms execution of a previously telegraphed plan. The Veta Madre permit closure and Q3 stripping start were already priced into the January 2026 guidance.
- The ~20,000 oz reserve upside is incremental but does not materially alter the 6.1-year mine life or the company's near-term cash flow profile.
- The stock has declined ~45% from its January 2026 peak (~$3.28 to ~$1.82). The market appears to have already discounted the execution timeline and is likely focused on broader macro headwinds, cost trajectory, and the capital intensity of the Ana Paula development.
- This is a routine positive execution update. It does not re-rate the business, change guidance, or introduce new financial metrics.
HSTR · Price
Company Overview
- Heliostar Metals is a producing gold and silver miner operating in Mexico and the USA.
- Flagship Assets: La Colorada (Sonora, Mexico) and San Agustin (Durango, Mexico).
- Development Pipeline: Ana Paula (Guerrero, Mexico) underground project targeting 101 koz/yr by 2028; Cerro del Gallo (Guanajuato, Mexico) PFS stage; Goldstrike (Utah, USA) acquired in April 2026; San Antonio (Baja California Sur) early-stage.
- Management: Charles Funk (CEO), Gregg Bush (COO), Vitalina Lyssoun (CFO).
- Strategic Investors: Eric Sprott (15%), Franklin Templeton (5.6%), Adrian Day - Europac (3.8%).
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Jun 25, 2026 · 06:31