Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), highlighting continued progress at the company's flagship Ana Paula project in Guerrero, Mexico. The project is being developed as a high-grade underground asset, with a positive Preliminary Economic Assessment released in early fourth quarter 2025 outlining substantial economic 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 currently progressing engineering and metallurgical work while conducting 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 on schedule for 2028. The company's progress can be tracked through their corporate announcements available at https://www.stonegateinc.com.
Beyond the Ana Paula project, Heliostar has restarted mining operations at its San Agustin property, adding 45,000 ounces to its production profile. The company has also completed a Pre-Feasibility Study for its Cerro del Gallo project showing a base case net present value of US$424.0 million. Additionally, an oxide targets drilling program is underway with 37 holes completed and submitted for analysis.
The importance of this development lies in the growing significance of high-grade gold projects in stable mining jurisdictions like Mexico. With gold prices remaining elevated and global economic uncertainty driving demand for safe-haven assets, projects with strong economics and clear development timelines are attracting increased investor attention. The Ana Paula project's combination of high-grade resources, favorable economics, and established timeline positions Heliostar as a notable player in the North American gold development sector.
For investors and industry observers, the progress at Ana Paula represents not only potential value creation for shareholders but also contributes to regional economic development in Guerrero through job creation and infrastructure investment. The project's advancement through the feasibility stage will be closely watched as it moves toward production decision, with implications for both the junior mining sector and broader gold market supply dynamics.
