Heliostar Advances Cerro del Gallo Project with Detailed Prefeasibility Study

Heliostar has taken a major step forward in the development of its flagship mining asset by filing a comprehensive Prefeasibility Study (PFS) for the Cerro del Gallo Project. This milestone marks a critical phase in the company’s growth strategy, providing a clearer technical, economic, and operational framework for the future development of the project. The newly released study highlights the project’s strong potential as a long-life gold and silver operation supported by robust economics, modern mine design, and a clear development pathway.

The Prefeasibility Study represents years of geological exploration, engineering analysis, and financial modeling. It reflects Heliostar’s commitment to transparent disclosure, responsible resource development, and long-term value creation for shareholders and stakeholders alike. By filing this study, the company positions itself closer to construction readiness while also strengthening its credibility within the global mining investment community.

Overview of the Cerro del Gallo Project

The Cerro del Gallo Project is located in central Mexico, a region with a long history of mining activity and well-established infrastructure. The project is considered strategically important due to its favorable location, access to skilled labor, proximity to roads and power, and supportive mining jurisdiction. These factors significantly reduce development risk and enhance the project’s overall attractiveness.

Heliostar’s ownership and advancement of Cerro del Gallo align with its broader corporate strategy of developing high-quality precious metal assets with scalable production profiles. The project is designed as an open-pit mine with conventional processing methods, making it technically straightforward and operationally efficient when compared to more complex underground or refractory operations.

Key Highlights of the Prefeasibility Study

The Prefeasibility Study outlines a technically sound and economically viable mining operation. According to the study, Cerro del Gallo is envisioned as a multi-year open-pit gold and silver mine with consistent annual production and a stable cost structure. The mine plan is based on updated mineral resource estimates, optimized pit designs, and modern processing technology.

One of the most notable outcomes of the study is the confirmation of strong project economics under conservative commodity price assumptions. The PFS demonstrates that the project has the potential to generate solid cash flow, maintain competitive operating costs, and deliver attractive returns over its mine life. These results underscore the project’s resilience and its ability to perform across various market conditions.

Mine Design and Production Strategy

The proposed mine design focuses on operational simplicity and efficiency. The open-pit layout has been optimized to maximize resource recovery while minimizing waste movement. This approach supports lower operating costs and improves overall project sustainability.

The production strategy outlined in the study emphasizes steady output and long-term operational stability. Rather than pursuing aggressive short-term production targets, Heliostar has adopted a balanced approach that prioritizes consistent performance, equipment reliability, and workforce safety.

Processing and Metallurgy

Metallurgical test work completed as part of the Prefeasibility Study indicates that the mineralization at Cerro del Gallo responds well to conventional processing methods. The proposed flowsheet includes crushing, grinding, and standard gold and silver recovery techniques, which are widely used across the industry.

This processing approach reduces technical risk and capital complexity. By utilizing proven technology, Heliostar aims to streamline plant construction, simplify operations, and ensure predictable metallurgical performance throughout the life of the mine.

Capital and Operating Cost Considerations

The Prefeasibility Study provides a detailed breakdown of estimated capital expenditures and operating costs. Initial capital requirements are primarily associated with mine development, processing plant construction, infrastructure installation, and pre-stripping activities. These costs have been carefully evaluated using current market data and industry benchmarks.

Operating costs are expected to remain competitive due to favorable strip ratios, efficient mine planning, and the use of conventional processing methods. The study also considers ongoing cost management strategies, including optimized maintenance schedules, energy efficiency measures, and supply chain optimization.

Economic Performance and Financial Metrics

From an economic perspective, the Prefeasibility Study demonstrates that Cerro del Gallo has the potential to deliver strong financial performance over its projected mine life. Key financial metrics, such as net present value and internal rate of return, indicate a robust project capable of generating meaningful shareholder value.

The study includes sensitivity analyses that assess the project’s performance under varying metal prices, operating costs, and capital expenditure scenarios. These analyses show that the project remains economically viable across a range of assumptions, highlighting its resilience and downside protection.

Environmental and Social Considerations

Environmental stewardship and community engagement are central components of Heliostar’s development philosophy. The Prefeasibility Study incorporates environmental baseline data, preliminary impact assessments, and proposed mitigation measures designed to minimize the project’s environmental footprint.

Water management, waste handling, and land reclamation have been carefully considered in the mine design. The company has also outlined strategies for progressive rehabilitation, ensuring that disturbed areas are restored throughout the life of the operation rather than only at closure.

On the social side, the project is expected to bring meaningful economic benefits to local communities through job creation, skills development, and the use of local suppliers. Heliostar has emphasized the importance of maintaining open communication with stakeholders and building long-term, mutually beneficial relationships with surrounding communities.

Regulatory Framework and Permitting

Mexico’s established mining regulatory framework provides a clear pathway for project permitting and development. The Prefeasibility Study outlines the key permits and approvals required for Cerro del Gallo and presents a realistic timeline for obtaining them.

Heliostar has experience operating within this regulatory environment and has indicated that it will continue to work closely with relevant authorities to ensure full compliance with all environmental, safety, and operational regulations.

Risk Assessment and Mitigation Strategies

As with any mining project, Cerro del Gallo is subject to a range of technical, economic, and external risks. The Prefeasibility Study includes a comprehensive risk assessment that identifies potential challenges and outlines mitigation strategies to address them.

Key risk factors considered in the study include commodity price volatility, cost inflation, operational performance, and permitting timelines. By identifying these risks early and incorporating mitigation measures into the project design, Heliostar aims to reduce uncertainty and enhance project robustness.

Strategic Importance for Heliostar

The filing of the Prefeasibility Study is a transformative event for . It signals the company’s transition from exploration-focused activities toward development and potential production. Cerro del Gallo stands out as a cornerstone asset within Heliostar’s portfolio, offering scale, longevity, and strong economic fundamentals.

By advancing this project, Heliostar strengthens its positioning as an emerging precious metals developer with a clear growth pipeline. The study also provides a solid foundation for future financing discussions, strategic partnerships, or potential development decisions.

Next Steps Toward Project Development

With the Prefeasibility Study now filed, Heliostar’s focus will shift toward the next stages of project advancement. These may include further optimization studies, detailed engineering work, and continued engagement with regulators and local stakeholders.

Additional exploration may also be undertaken to identify opportunities for resource expansion and mine life extension. The company has indicated that Cerro del Gallo remains open for further growth, both within the existing resource boundaries and in nearby exploration targets.

Conclusion

The completion and filing of the Prefeasibility Study for the represents a major milestone for Heliostar. The study confirms the project’s technical feasibility, economic strength, and strategic importance, while also demonstrating the company’s disciplined and responsible approach to development.

As global demand for gold and silver continues to play a critical role in investment portfolios and industrial applications, projects like Cerro del Gallo are well positioned to contribute to future supply. With a solid Prefeasibility Study in hand, Heliostar moves forward with increased confidence and clarity as it works toward unlocking the full value of this promising asset in .

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