Heliostar stock rises after drilling 242 metres of 9 g/t gold at Ana Paula

Heliostar Metals (TSXV: HSTR) shares jumped by 25% on Tuesday following the release of drill results from its Ana Paula project in Mexico.

The latest results featured two drill holes assessing the mineralization up-plunge of and within the high-grade panel at the core at Ana Paula.

Hole AP-23-297 returned the longest, highest-grade interval drilled in the project’s history, with 241.95 metres grading 9.06 grams gold per tonne. Included within are multiple high-grade gold intervals. Hole AP-23-298 returned 104.1 metres at 6.14 grams gold, including 19.5 metres at 15.11 grams gold.

These holes exceeded the resource model’s predicted high grades and extended high-grade mineralization up-plunge, which means this up-plunge area could add to Ana Paula’s resource.

“It shows potential to add ounces at higher grade in the up-plunge growth target, and it illustrates the excellent continuity of high grade along the length of the high-grade panel,” Heliostar CEO Charles Funk said in a release.

“Holes AP-23-297 and AP-23-298 are both respectively 33% and 38% increases relative to the current resource model prediction, at a >5 g/t gold cut-off grade,” he added.

The current drill program is designed to evaluate Ana Paula’s ability to host a high-margin, underground gold mine.

Heliostar acquired the project from Argonaut Gold (TSX: AR) for US$30 million in March. Ana Paula is located in the north-central part of Guerrero state.

The project currently holds a 1.5-million-oz. measured and indicated resource in 21 million tonnes grading 2.16 grams gold. A 2023 preliminary feasibility study concluded that at US$1,600 per oz. gold, the project has a $464-million net present value and a 31% internal rate of return.

Shares of Heliostar Metals gained 7¢ to close at 35¢ Tuesday, giving the Vancouver-based gold junior a market capitalization of $51.7 million.