Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), detailing the company's continued advancement of its primary development asset, the Ana Paula project in Guerrero, Mexico. A November 2025 preliminary economic assessment (PEA) for Ana Paula outlined a nine-year underground mine plan with projected annual production of 101.1 thousand ounces of gold following ramp-up. The study reported cash costs of $923 per ounce and all-in sustaining costs (AISC) of $1,011 per ounce.
Using a gold price assumption of $2,400 per ounce, the PEA generated an after-tax net present value discounted at 5% (NPV5) of $426.0 million and an internal rate of return (IRR) of 28.1%. The company is actively converting and expanding mineral reserves through drilling, with recent results from the Expansion Zone including an intercept of 25.45 meters grading 8.26 grams per tonne gold, including a higher-grade section of 8.30 meters at 19.99 grams per tonne gold. Mineralization remains open for expansion to the north, northwest, and at depth.
Management is progressing a feasibility study targeted for completion in the first half of 2027. Development of an existing 412-meter decline is expected to continue through 2026, supporting a goal of achieving first production in the second half of 2028. The company's strategy for 2026 focuses on self-funded execution, guided by a production target of 50,000 to 55,000 ounces of gold. Heliostar exited 2025 with $40.6 million in cash, and a planned $27 million exploration program for the year is expected to be funded from mine cash flow.
Beyond Ana Paula, Heliostar is building a portfolio with multi-asset growth potential. The Cerro del Gallo project adds a second asset with an estimated after-tax NPV5 of $424 million and an IRR of 33.1%. Furthermore, the acquisition of the Goldstrike project in the United States provides significant optionality. A 2018 PEA for Goldstrike, a past-producing heap-leach operation, outlined average annual gold production of approximately 95,000 ounces. That study, based on a $1,300 per ounce gold price, indicated an initial capital expenditure of $113.2 million, an after-tax NPV5 of $129.5 million, and an IRR of 29.4%.
The updated analysis underscores Heliostar's transition from a single-asset developer to a company with a pipeline of projects in mining-friendly jurisdictions. The robust economics of the Ana Paula project, combined with the strategic value and growth potential represented by Cerro del Gallo and Goldstrike, positions the company to potentially capitalize on sustained gold prices. For stakeholders and the mining industry, this development path highlights a methodical approach to building a mid-tier gold producer with assets in both Mexico and the United States, offering exposure to multiple sources of future production and cash flow. The full announcement from Stonegate Capital Partners is available here.
