Heliostar restarts mining operations at San Agustin

Executive Summary

• Heliostar Metals has officially restarted mining operations at its San Agustin mine in Durango, Mexico, following the receipt of final government approvals on July 22, 2025.
• The company is targeting the production of 45,000 gold-equivalent ounces from the current reserve at an All-In Sustaining Cost (AISC) of $1,990/oz, with an estimated $40 million in cash flow at a $3,000/oz gold price.
• Concurrently, the company is executing a 10,000–15,000-meter oxide drilling program to extend mine life, with 37 holes completed and initial high-grade results reported from the Corner SW target area.

Key Details

• Operational Restart: Mining, crushing, conveying, and stacking of ore onto the leach pad have recommenced. The 30,000-tonne-per-day crushing circuit has been recommissioned, and surface access roads and power line adjustments were completed to facilitate operations.
• Production Economics:
  • Reserve: 45,000 ounces of gold-equivalent ounces.
  • AISC: $1,990/oz Au.
  • Margin: Over $2,300/oz at current spot prices.
  • Cash Flow: Expected $40 million (U.S.) at a $3,000/oz gold price.
• Technical Report (NI 43-101):
  • Effective Date: November 30, 2024.
  • Probable Mineral Reserve: 68,000 ounces of gold.
  • Mine Life: 1.2 years.
  • Initial Capital Cost: $4.2 million (U.S.).
  • Financial Metrics (Upside Case @ $3,000/oz):
    • Post-tax NPV (5%): $35.3 million (U.S.).
    • Post-tax IRR: 548%.
    • Payback Period: 0.2 years.
  • Throughput: Existing crusher and conveyor system with a nameplate capacity of ~30,000 tonnes/day.
• Drilling Program (Oxide Growth Targets):
  • Goal: Define additional gold-bearing oxide material to extend mine life.
  • Scope: 10,000 to 15,000 meters total.
  • Progress: 37 holes completed (3,300 meters) with assays pending.
  • Active Areas: Corner SW, MKT, and Phase 3 SW.
• Drilling Results (Corner SW Target):
  • Hole 14-SAGRC-196: 3.52 g/t gold over 18.3 meters from 32.0 meters downhole.
  • Hole 14-SAGRC-177: 0.34 g/t gold over 15.24 meters from 27.4 meters downhole.
• Equipment Mobilization: The mining contractor has mobilized 90% of the mobile equipment fleet to site.

Notable Quotes

• Charles Funk, CEO: "Restarting mining at San Agustin is a significant milestone for Heliostar. It delivers on our guidance of a Q4 2025 restart issued at the beginning of the year and sets the company up for a large increase in consolidated gold production in 2026."
• Charles Funk, CEO: "We have certainty in our production profile at San Agustin and La Colorada going into 2026 and look forward to providing formal guidance in January."