Shares Of Micro Cap Miner Surging On Impressive Drilling Results

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Thursday, January 30, 2025

With the price of gold continuing to climb within a whisker of all-time highs, it’s no surprise that gold miners are enjoying the upward run as well. Inflation, economic uncertainty and debt servicing are all reasons cited as the main reasons for the strong multi-year rally in the shiny metal.

One company that looks to have just found more of the shiny stuff is Heliostar Metals Ltd. (TSX-Venture: HSTR) (OTCQX: HSTXF). The Company announced additional results from a 12,500-metre drilling program at the La Colorada Mine in Sonora, Mexico. La Colorada restarted production in early January 2025, and the current drill program is intended to expand the mineral reserves ahead of a Feasibility Study and expansion decision planned for mid-2025.

Highlights of the drill program included 5.0m grading 9.69 g/t gold, 4.3m grading 9.87 g/t gold and 15.0m grading 2.54 g/t gold. According to the report, the higher-grade intercepts demonstrate underground potential beyond the current open pit.

Heliostar CEO, Charles Funk, commented, "At La Colorada, we are seeing the combined benefit of gold production at record prices and growth from the first significant investment into the project in many years. Our aggressive five-rig drill program is designed to increase the reserves of the Creston pit. Success to date in the shallow part of the pit could lower the upfront capital costs presented in the January 13th Technical Report. The Company will use the results of this drill program to finalize a Feasibility Study in mid-2025 and then make an expansion decision on La Colorada to 50,000-100,000 ounces per year of annual production. We are also hitting high grades and widths and deeper intercepts could drive underground mining optionality beyond the open pit. We will further test this target with additional drilling in this current drill program."

Shareholders were impressed with the latest results, bidding shares of HSTR up 11.43% to $0.78 while U.S. listed shares (HSTXF) were up 11.5% to $0.54.

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