Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), highlighting continued advancement of the company's flagship Ana Paula project in Guerrero. The project is being developed as a high-grade underground asset, with a positive preliminary economic assessment released in early fourth quarter 2025 outlining significant production potential.
The PEA indicates total recovered production of approximately 875,000 ounces over a nine-year mine life, with mill feed averaging 5.37 grams per tonne gold. The proposed 1,800 tonne per day underground operation would produce roughly 101,000 ounces annually at cash costs of approximately US$923 per ounce and all-in sustaining costs of about US$1,011 per ounce. At a gold price of US$2,400 per ounce, the study delivers a post-tax NPV5 of US$426 million, a 28% internal rate of return, and a 2.9-year payback period, demonstrating strong leverage to higher gold prices.
Management is progressing engineering work, metallurgical studies, and a 15,000-meter drill program designed to upgrade Inferred resources, extend the High-Grade and Parallel panels, and support a Feasibility Study targeted for mid-2026. First underground production remains expected in 2028. The company has also restarted mining operations at San Agustin, adding 45,000 ounces to its production profile. A pre-feasibility study for Cerro del Gallo shows a base case net present value of $424.0 million, while an oxide targets drilling program is underway with 37 holes completed and submitted for analysis.
The economic metrics presented in the Ana Paula PEA suggest the project could become a significant mid-tier gold producer with attractive returns at current gold price assumptions. The combination of high-grade feed and relatively low operating costs positions the project competitively within the gold mining sector. The ongoing drill program and engineering work represent critical steps toward de-risking the project ahead of the planned feasibility study.
For investors and industry observers, Heliostar's progress demonstrates the potential for new gold production coming online later this decade. The company's multi-asset approach, combining development at Ana Paula with production from San Agustin and advancement of Cerro del Gallo, provides multiple pathways to value creation. The technical work now underway will be crucial for converting the promising PEA results into a bankable feasibility study that could support project financing decisions. To view the full announcement, including downloadable images, bios, and more, click here.
