Bullboard - Stock Discussion Forum Heliostar Metals Ltd HSTXF

Primary Symbol: V.HSTR

Metals & Mining Gold

Heliostar Metals Ltd. is a Canada-based mid-tier gold producer. The Company is engaged in the acquisition, exploration, and development of mineral properties in North America. The Company is focused on developing the 100% owned Ana Paula Project in Guerrero, Mexico. The Ana Paula Gold Project is an advanced-stage, gold development project located in Guerrero State, Mexico. Its San Antonio Gold... see more

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Heliostar Metals Ltd > Decline

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Post by deepthinker63 on Jul 19, 2023 12:01pm

Decline

The original plan Alio called for the construction of a 1200m decline for the purposes of underground drilling. Is Heliostar saying they can achieve the same result without doing the same work. That seems unlikely.

The drill program is expected to confirm the continuity and shape of the high-grade gold mineralization below the proposed pit that is hosted in the breccia and it will also explore the gold mineralization indications at depth hosted in hornfels skarn, typical of the Guerrero Gold Belt. The underground drilling program proposed includes 55 diamond drill holes (12,000 metres).

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Comment by deepthinker63 on Jul 19, 2023 12:15pm

I haven't heard a good explanation for why they didn't pursue the Alio plan, which seemed very strong, other than money.

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Comment by Ungawatcher on Jul 19, 2023 2:57pm

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Comment by deepthinker63 on Jul 19, 2023 3:08pm

Maybe the results added some, but if they were really serious they would have completed the decline and drilled from underground as Alio was planning. It's pretty clear to me that what they're trying to do is "flip" this property for a nice gain, and use the cash to go back to Alaska. Of course, they'd have to sell Ana Paula for something like $80 million to make ...more

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Comment by Ungawatcher on Jul 19, 2023 3:54pm

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Comment by deepthinker63 on Jul 19, 2023 4:04pm

In order to flip it for that, they'd have to show a million ounces UG, from 260K now. Maybe they're up to 350K now. It's the mostly unexplored skarn at depth which might really pay off.

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Comment by deepthinker63 on Jul 20, 2023 11:16am

If they fail to boost UG resources to near 1 million oz, which I'm not sure they're doing ATM, then they may have to proceed to mining themselves. If they announce plans to continue the decline, then that's what's likely happening.

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Comment by deepthinker63 on Jul 20, 2023 11:20am

I think the problem is they didn't have the money to test UG properly, by building the decline and then drilling from there. So, the strategy seems to be to add whatever they can via infill, and then hope they find something new.

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