Heliostar Metals Ltd. (TSXV: HSTR | OTCQX: HSTXF | FRA: RGG1) has provided an update on its potential to advance its underground decline as well as complete test mining to process a bulk sample at its Ana Paula deposit in Guerrero, Mexico.
“Since acquiring Ana Paula 10 months ago, Heliostar’s team has moved quickly to redefine Ana Paula as a high-grade underground gold project,” commented Heliostar CEO, Charles Funk.
“We have successfully increased the resource, identified a >10g/t gold zone for possible commencement of mining, identified additional resource growth areas, demonstrated significant improvement to gold recoveries, and bolstered the company’s management team.”
Ana Paula has a 412m-long decline currently completed to one third of its target length by a previous operator. Heliostar is undertaking an internal review on the potential to extend this decline to the base of the High-Grade Panel to test mine a bulk sample of the deposit.
The engineering study indicates that the bulk sample will require an additional 1,100m of tunnel development and 317m of spiral and stope development. The decline design option has been designed as the best option for future mine production from the current resource.
The design indicates that a production rate of 4m/d would complete tunnel development and stope development within 11 months from commencement. Completing the development would allow for test production within 12 months of commencement of the start of construction.
“The Company intends to maintain the current high pace of progress in 2024 by studying the benefits of completing the existing underground decline to test mine a bulk sampe …In addition, it will provide greater confidence in the deposit’s gold recoveries, lower the cost of infill drilling and provide a platform for deeper resource growth drilling,” Funk added.
“Heliostar also intends to complete a PEA in the second half of 2024, submit the underground mining permit modifications, and continue resource drilling to further grow the Ana Paula resource.”
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