Heliostar To Produce Up To 20,250 Gold Equivalent Ounces In 2024 From New Mines
Heliostar Metals (TSXV: HSTR) has provided production guidance following its announced acquisition of operational assets in Mexico. The two operating gold mines, La Colorada and San Agustin, have been operating for Heliostar on a commercial basis since July 11, 2024.
Total production from the two mines from July to December 2024 is estimated to be 20,000 to 20,250 gold equivalent ounces, of which 19,350 to 19,750 will be gold ounces. All-in sustaining costs for these ounces is estimated to be between $1,650 and $1,750 per ounce.
Actual production, for the period of July through October totaled 15,500 gold equivalent ounces, which had an all-in sustaining cost of $1,700 per ounce.
At La Colorada, production currently comes from leach pads after mining was paused in September 2023. Stockpiled material is currently being processed here, with Heliostar stating it has identified a 4.2 million tonne stockpile as a possible ore source for further processing. A pre-feasibility study is meanwhile expected to be released in the first quarter, with an eye towards restarting full mining operations in mid-2025. Current guidance calls for total gold equivalent production here of 4,800 to 4,950 ounces of the six month period.
READ: Heliostar Closes On $5 Million Purchase Of Producing Mexican Assets
At San Agustin, production is expected to slow following mining activities ceasing over permit constraints. Production is now coming from existing leach pads, while a permit has been applied for to expand the open pit, enabling mining to resume in 2025. Should it not receive approval, the mine will move to care and maintenance. The mine is expected to produce 15,200 to 15,300 gold equivalent ounces here through to the end of December 2024.
“Heliostar is now a cash flow positive gold producer with significant potential and an under-explored portfolio of properties with significant resource growth potential. Today’s guidance for the second half of 2024 shows strong cash flow margins. This cash flow is being re-invested in our Mexican assets and represents the first significant investment these assets have received in many years,” commented Charles Funk, CEO of Heliostar.
Heliostar Metals last traded at $0.54 on the TSX Venture.
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