Mining Stock Daily Heliostar Drills More High-Grade at La Colorada in Prep for New Technical Report
May 15, 2025
Charles Funk, CEO of Heliostar Metals, shares his expertise on the La Colorada mine project, which is seeing promising drilling results rich in gold and silver. He discusses the financial dynamics of cash flow from stockpiles and anticipates updates on resource estimates that could enhance economic prospects. Funk also elaborates on the evolving permitting landscape in Mexico, stressing the balance between patience and the need for operational expansion. Excitingly, he reveals the company’s impressive Q1 performance and future production strategies.
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La Colorada Drill Expansion
- Drill results at La Colorada show wide intervals driving open pit expansion and high-grade zones hinting at underground potential.
- The latest drilling is expanding the pit shell, especially underneath Creston pit, which could grow the resource significantly.
Resource Growth and Stockpile Cash Flow
- The new drilling could add multiple tens of thousands of ounces to the resource with shallow mineralization enhancing economics.
- Stockpiles are generating significant cash flow, potentially funding pit expansions and lowering capital needs.
Stockpile Economics and Production
- Stockpiles contain 4.2 million ounces at low grade but are crushed and stacked, making them very low cost to process.
- Q1 production from stockpiles exceeded expectations, creating tens of millions in cash flow with minimal upfront capital.