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Highlights:
- New drilling results at La Colorada Mine, Sonora, Mexico show strong shallow oxide gold intercepts.
- Multiple drill holes report high-grade gold intercepts, with some showing gold grades over 9 g/t.
- The ongoing drilling program focuses on reserve growth, with significant opportunities for both open-pit and underground expansion
Heliostar Metals Ltd. (TSXV:HSTR) has reported additional results from its extensive drilling program at the La Colorada Mine in Sonora, Mexico. The drilling is focused on expanding the mineral reserves in advance of a Feasibility Study and possible expansion decision due mid-2025. The mine recently resumed production, and the drill program is integral to evaluating the future capacity of the Creston Pit.
The results, released on January 30, 2025, show several significant gold intercepts from the program’s first phase. The shallow drilling within areas previously considered waste indicates the possibility of increasing mineral reserves. This drilling is exploring the continuation of mineralization at the Creston Pit, which is primarily hosted in three veins: North, Intermediate, and South. These veins have shown gold mineralization that may extend deeper, beyond the current pit boundaries.
Shallow Drill Results and Reserve Expansion
In total, Heliostar has completed forty-seven holes as part of the 12,500-metre program, with twenty-three new holes reporting results. The program has targeted both shallow extensions of known veins and deeper parts of the pit that could lead to underground mining opportunities. The high-grade gold intercepts encountered in the latest phase of drilling show mineralization that may be amenable to both open-pit and underground mining.
The results include various high-grade intercepts, with some drill holes returning gold grades significantly above the 0.16 g/t cutoff previously used for resource estimation in the current technical report. These high-grade results are seen as a key factor in reserve growth, particularly in areas that were previously deemed waste material.
Geological Insights and Continued Drilling Efforts
The current drill program also aims to assess the deeper mineralization beneath the pit, which could extend the mine's life by making underground mining a viable option. The ongoing exploration highlights the prospect for both shallow and deeper mineralization that could contribute to future resource models and reserve updates.
As of now, the drilling program has completed over six thousand metres, with further results expected in the first and second quarters of 2025. These results will contribute to a resource model update and a comprehensive Feasibility Study scheduled for mid-2025.
The drilling program at La Colorada represents a critical step toward assessing the economic viability of an expanded mining operation. The upcoming resource and reserve updates will incorporate the latest data from the drilling program, providing a clearer picture of the mine’s long-term capacity.
