Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), highlighting significant progress at the company's flagship Ana Paula gold project in Guerrero, Mexico, and the expansion of its asset portfolio. The November 2025 Preliminary Economic Assessment (PEA) for Ana Paula outlines a nine-year underground mine with projected annual production of 101,100 ounces of gold after ramp-up. The study shows cash costs of $923 per ounce and all-in sustaining costs (AISC) of $1,011 per ounce, positioning the project competitively within the industry.
At a gold price assumption of $2,400 per ounce, the PEA generates an after-tax net present value (NPV) at a 5% discount rate of $426.0 million and an internal rate of return (IRR) of 28.1%. These strong economics underscore the project's potential value creation. Management is advancing a Feasibility Study targeted for the first half of 2027 and expects to continue development of the existing 412-meter decline in 2026, supporting a targeted first production date in the second half of 2028.
Recent drilling results continue to demonstrate the project's expansion potential. The company reported Expansion Zone results of 25.45 meters at 8.26 grams per tonne gold, including a high-grade interval of 8.30 meters at 19.99 grams per tonne. Mineralization remains open to the north, northwest, and at depth, indicating opportunities for further resource growth. For 2026, the company's focus is on self-funded execution, with guided production of 50,000 to 55,000 ounces, $40.6 million in cash exiting 2025, and a $27 million exploration program expected to be funded from mine cash flow.
Beyond Ana Paula, Heliostar is building a multi-asset growth pipeline. The Cerro del Gallo project adds a second asset with an after-tax NPV5 of $424 million and an IRR of 33.1%. More strategically, the acquisition of the Goldstrike project in the United States provides significant optionality in a key mining jurisdiction. The project's 2018 PEA outlined average annual gold production of approximately 95,000 ounces, with initial capital expenditure of $113.2 million. At a $1,300 per ounce gold price, that study showed an after-tax NPV5 of $129.5 million and an IRR of 29.4%. This acquisition diversifies Heliostar's geographic risk and adds a past-producing heap-leach asset to its portfolio. To view the full announcement from Stonegate Capital Partners, including downloadable images and additional details, visit https://www.stonegateinc.com.
The importance of this update lies in the clear pathway Heliostar is establishing toward becoming a mid-tier gold producer. The robust economics at Ana Paula, combined with a disciplined, self-funded execution plan for 2026, reduce near-term financing risk. The strategic expansion of the asset base, particularly into the United States with Goldstrike, provides investors with exposure to multiple high-return projects at different stages of development. For the gold mining industry, Heliostar's progress demonstrates that disciplined project advancement and portfolio diversification can create substantial shareholder value even in a single-company narrative. For readers and investors, this signals a company transitioning from exploration to near-term production with a financed plan and a pipeline for sustained growth, offering a compelling case within the junior mining sector.
