Mining and Exploration Co. Reveals Promising Drill Results
Source: Streetwise Reports
May 26, 2023 (Investorideas.com Newswire) Heliostar Metals Ltd. has recently reported initial results from drilling taking place in its Ana Paula project in Mexico. Read more to see what catalysts are on the company's calender and what one analyst says about the company.
In a May 24 research note from Roth Capital Partners, analyst Mike Niehuser said, "We have focused on the Ana Paula Project as it is the most important component of this valuation assessment."
The first two holes drilled on the property, Hole AP-23-292 and Hole AP-23-291, exhibited promising results.
- Hole AP-23-292 was drilled to 101.1 meters at 8.3 grams per tonne (g/t) gold, including 53.2 meters at 11.0 g/t gold.
- Hole AP-23-291 was drilled to 118.5 meters at 5.4g/t gold, including 44.5 meters at 11.0 g/t gold, including 4.0 meters at 48.5 g/t gold.
The ongoing drill program is targeting the high-grade Panel at Ana Paula. The company believes the core has the potential to hold a high-margin, underground gold mine development opportunity.
Heliostar CEO, Charles Funk, said in a news release that "Drill results like this are rare anywhere in the world. Ana Paula's high grade and consistently wide intervals of gold mineralization demonstrate the underground mine potential."
According to the news release, Heliostar will continue to drill at the site to "increase the Ana Paula resource" and will "focus on infill and expansion of the high-grade Panel."
In the May 24 note, Niehuser commented, "Following the acquisition, including the addition of the Ana Paula Project with an increase in outstanding shares, we are adjusting our price target to CA$0.65 per share and maintain our Buy rating."
A junior mining company Heliostar, according to its website, is "an aggressively growing junior mining company with a portfolio of high-grade projects in Alaska and Mexico."
It recently acquired the Ana Paula mine in the Guerrero Gold Belt of southwestern Mexico for US$30 million from Argonaut Gold. Located just 15 km from Torex Gold's El-Limon mine, it will, according to the company, "be the next gold producer in the region" as "it holds 1.47 million ounces of measured and indicated gold at 2.16 g/t."
As well as CEO and Director Charles Funk, Heliostar's management team also includes Executive Chairman and Director Jacques Vaillancourt, Directors George R. Ireland, and Ken Booth, and Independent Director Alan Wilson.
Heliostar's Promising Properties
Though the Ana Paula property is Heliostar's current focus, the company also has its San Antonio Gold project, a gold development project located in Baja California Sur state, Mexico. Development at San Antonio is currently on hold as the company waits for an environmental permit.
Heliostar's website gives more details on the San Antonio Gold project, describing "a 2012 preliminary economic assessment [that] reported measured and indicated mineral resources of 1,735,000 ounces of gold and an inferred resource of 67,000 ounces of gold."
Similarly, the company's Unga project in Alaska holds high-grade occurrences of both gold and silver in its three primary epithermal vein systems at SH-1, Apollo Sitka, and Aquila.
The company noted on its website that "There are several additional exploration targets on the Midway Trend and Norm's Trend. They will become higher priority targets in the near future."
Latest Gold Status
According to Markets Insider, more Americans are viewing gold as a better long-term investment than stocks for the first time since 2013.
Investing.com reported that "J.P. Morgan is telling its clients to add to cash and gold positions at the expense of equities and bonds."
The Stockwatch Business Reporter wrote, "New York spot gold fell US$1.30 to US$1,970.50 on Tuesday. The TSX Venture Exchange dropped 1.44 points to 611.35 while the TSX gold index lost 4.54 points to close at 301.23."
It also went on to report that Heliostar was "a busy trader, dipping two cents to 47 cents on 2.64 million shares on new assays from its Ana Paula project in Guerrero, Mexico."
Multiple Upcoming Catalysts
As well as the exciting first drill results, Heliostar has many other upcoming events and milestones to look forward to.
Between June and October, the company will also have access to Infill and Growth target Drill Results in Ana Paula. In June, the company expects to have more information on the underground mine design and the impact on economics.
By September, they're expecting the metallurgy and mill flow sheet and will also have an updated resource by November.
Share and Ownership Structure
According to the company, 5% of Heliostar's stock is held by management and insiders. According to Reuters, CEO and Director Charles Walter Funk has 1.07%, with 1.58 million shares. Director George Ireland has 0.73%, with 1.08 million. Vice President of Projects Sam Anderson has 0.13%, with 0.19 million. CFO Mahesh Liyanage has 0.08%, with 0.03 million, and Independent Director Allan Wilson has 0.02%, with 0.03 million.
2.10% is held by strategic investors; this is held by Mount Everest Finance S.A., with 3.10 million shares.
22.62% is with institutional investors. AIMS Asset Management Sdn Bhd has 7.18%, with 10.61 million shares. Euro Pacific Asset Management LLC has 4.21%, with 6.21 million. U.S. Global Investors Inc. has 0.83%, with 1.23 million, and Konwave AG has 0.48%, with 0.70 million.
The rest is in retail.
Headquartered in Vancouver, Heliostar currently has 147.8 million shares on issue and 14.4 million options and RSU's. It has 58 million warrants and CA$6 million in the bank.
The company trades at a 52-week range of CA$0.23 and CA$0.57.
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