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 substantial economic potential.
The PEA study details 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 PEA 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 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 on schedule for 2028, maintaining the project's development timeline despite ongoing technical work.
This development is significant for the gold mining sector as it represents a substantial high-grade asset moving toward production in a region with established mining infrastructure. The project's strong economics at current gold prices, combined with its leverage to potential price increases, positions Heliostar as a company with meaningful growth potential in the intermediate gold producer space. The advancement of Ana Paula contributes to global gold supply development at a time when new high-grade discoveries are becoming increasingly rare.
Beyond the Ana Paula project, Heliostar has restarted mining operations at San Agustin, adding 45,000 ounces to its production profile. The company has also completed a Pre-Feasibility Study for Cerro del Gallo showing a base case NPV of $424.0 million, and is conducting an oxide targets drilling program with 37 holes completed and submitted for analysis. These parallel developments strengthen the company's overall project portfolio and provide multiple pathways to production growth.
The economic implications extend beyond the company itself to the Guerrero region and broader mining industry. Successful development of Ana Paula would create employment opportunities, generate local economic activity, and demonstrate the continued viability of high-grade underground gold mining in Mexico. For investors, the project represents a de-risked asset with clear economics and a defined path to production, offering exposure to gold price movements through a development-stage company with multiple assets. To view the full announcement, including downloadable images, bios, and more, click here.
