HelioStar CEO, Charles Funk, recently shared his enthusiasm for the exciting developments at La Colorada. The project is reaping the rewards of gold production at record prices and significant growth following a substantial investment, marking a pivotal moment in many years. The ambitious five-rig drill program is strategically designed to bolster reserves at the Creston pit. Early successes in the shallow areas of the pit indicate the potential to reduce initial capital costs, paving the way for a Feasibility Study scheduled for mid-2025. This study will culminate in a pivotal decision to expand La Colorada’s annual production to 50,000-100,000 ounces.
- Mineralization at Creston Pit: Primarily hosted in three veins, the North, Intermediate, and South Veins, mineralization at Creston Pit sets the stage for significant growth potential. These veins trend in various directions and exhibit promising mineralized zones, surrounded by halos of smaller veins. The existing Mineral Reserves stand at 312,000 ounces of gold, laying a solid foundation for future expansion opportunities.
- Drill Results: The ongoing drill program has yielded promising results, with 47 holes completed and 23 new holes reported in this release. The program targets both shallow extensions of known veins and potential mineralization beneath the current pit, aiming to enhance reserves and overall resources.
- Expansion Potential: The results point towards opportunities for reserve growth through near-surface extensions of known veins and further mineralization under the pit. High-grade intercepts at various depths hint at the potential for underground mining, offering new possibilities beyond the current open pit boundaries.
Moving forward, the Company plans to incorporate the current drill program results into a resource model and update reserves in the upcoming Feasibility Study. A successful outcome from this program could not only reduce upfront capital requirements but also significantly impact the economics of the expansion at La Colorada. Anticipated drilling results in Q1 and Q2 of 2025 will further inform the decision-making process for the project.
In conclusion, the recent developments at La Colorada highlight the exciting growth potential and promising future of the project. With a strategic approach to drilling and a focus on reserve expansion, HelioStar is poised to unlock new opportunities and navigate towards a successful expansion decision in mid-2025.
