Heliostar Commences Open Pit Mining at La Colorada Mine
Heliostar Metals Ltd. (HSTR) announced the commencement of open-pit mining at the Veta Madre pit on its 100% owned La Colorada property in Mexico. The restart of mining represents a strategic milestone aimed at generating cash flow through 2027 and 2028 to fund the construction of the Ana Paula project.
The operation is on track to meet 2026 production guidance of 20,000–22,300 ounces of gold. The company is transitioning from its current stockpile-and-injection leaching method to stacking higher-grade new gold ore, with full production from this new approach expected to start next year. The current technical report and operating plan indicate a six-year mine life averaging 46,100 ounces of annual gold production.
La Colorada Mine total reserves stand at 376,000 ounces of gold grading 0.68 g/t in 17.1 million tonnes (Mt) of ore. The Veta Madre Pit reserves comprise 48,000 ounces of gold grading 0.71 g/t in 2.1 Mt of ore. Recent exploration drilling has identified a larger pit design than the 2025 technical report, with the Veta Madre Plus pit targeting an additional 20,000 ounces of gold beyond the current reserve base.
Charles Funk, CEO, stated, "The restart of open-pit mining at La Colorada is another important milestone for Heliostar. This progress is part of our corporate plan to secure cash flow through 2027 and 2028 to support construction at Ana Paula. We see production from Veta Madre as a critical part of that plan."
Funk added, "The Company has designed a larger pit than detailed in the 2025 technical report as a result of our recent exploration drilling campaign. Called the Veta Madre Plus pit, it targets an additional 20,000 ounces of gold beyond the current reserve base in the currently planned Veta Madre Plus pit. We see significant potential for additional growth at La Colorada and now have a steady production base from which we can continue to expand the future of the mine."
Heliostar also announced it has become a signatory to the International Cyanide Management Code (Cyanide Code), committing to safe and environmentally responsible cyanide management. Information regarding La Colorada will be posted on the Cyanide Code website. Gregg Bush, P.Eng. (COO) and Mike Gingles, MBA (VP Corporate Development) have reviewed and approved the scientific and technical information in the release.