Heliostar is focused on expanding its operations to become a mid-tier gold producer.
The Company holds a portfolio of 100%-owned assets in Mexico, including the producing San Agustin and La Colorada gold mines, the flagship Ana Paula development project, and other promising development projects: Cerro del Gallo, and San Antonio.
The producing mines are forecast to produce between 31,000 and 41,000 gold equivalent ounces in 2025, at a cash cost of between US $1,800 - $1,950 per ounce. The cash flow from these mines will go to developing the rest of the portfolio.
The Company’s portfolio took shape in 2024 after a transformational acquisition from Florida Canyon Gold Inc. That acquisition is key to Heliostar’s strategy of becoming a premier precious metals producer.
Heliostar’s target is >500,000 ounces of gold production by 2030. The Company’s plan to accomplish that is by acquiring mines that can produce between 100,000 to 250,000 ounces per year.
The Company has an exciting, achievable plan to grow its business over the next 18 months.
The addition of the former Argonaut Gold assets strengthened Heliostar’s portfolio and transformed the Company. It brought Heliostar closer to its goal of becoming a premier mid-tier gold company and producing more than 500,000 ounces of gold per year by 2030.
The most notable change is that Heliostar now generates its own cash flows. While exploration companies must dilute shareholders to raise capital, Heliostar now has gold sales to fund its programs. Cash flow from the San Agustin and La Colorada mines began accruing to Heliostar as of July 11, 2024.
The acquisition also removes Heliostar’s single asset risk with five Mexican assets: two producing mines, one permitted mine, and two more at the permitting stage.
The Company also reduced its risk by acquiring these assets for a low price. Heliostar paid just US$5M for 3.5M measured and indicated ounces of gold resources plus the Cerro del Gallo historical resource. That works out to less than $1.43 per M&I ounce of gold.
As part of the agreement, Heliostar no longer must pay contingent milestone payments of up to US$20 million on the Ana Paula Project.
Heliostar inherited an existing in-country team with a strong track record of operating mines in Mexico. Their addition bolsters an already strong management team.
Today, Heliostar is on the path to creating a premium precious metals company in Mexico with a near-term gold production target of >150,000 ounces per year.
