Heliostar Metals Advances Toward 500,000-Ounce Production Goal - Mexico Business News

AI desk brief

Heliostar Metals is pushing its Ana Paula gold project in Guerrero toward an underground feasibility study, with recent drilling returning 52.4m at 5.84 g/t Au and 122 holes totaling 35,121m to upgrade and extend resources. The company is targeting first production for H2 2028 and ultimately 500,000 oz/year by decade-end, though the immediate project case is still contingent on SEMARNAT permit approval.

Economics improve sharply at higher gold prices: management cites an elevated-scenario model using $3,800/oz gold and a 5% discount rate that lifts after-tax NPV to about US$1bn, versus a US$426m NPV at $2,400/oz in the baseline PEA. Initial capex is estimated at US$300m-C$420m, potentially rising toward US$330m after trade-off studies and inflation adjustments, with funding planned from operating cash flow at existing Mexican mines.