Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Heliostar Metals (TSXV: HSTR) saw a significant jump in its shares on Tuesday following the release of additional results from drilling its Ana Paula project in Mexico. The current program is designed to evaluate Ana Paula’s ability to host a high-margin, underground gold mine.
The latest results featured two drill holes assessing the mineralization up plunge of and within the high-grade panel at the core at Ana Paula.
Hole AP-23-297 returned the longest, highest-grade interval drilled in the project’s history, with 241.95 metres grading 9.06 grams per tonne (g/t) gold. Included within are multiple high-grade gold intervals. Hole AP-23-298 returned 104.1 metres at 6.14 g/t gold, including 19.5 metres at 15.11 g/t gold.
These holes exceeded the resource model’s predicted high grades and extended high-grade mineralization up plunge, adding to Heliostar’s belief that this up-plunge area has the potential to increase the current Ana Paula mineral resource.
“It shows potential to add ounces at higher grade in the up-plunge growth target, and it illustrates the excellent continuity of high grade along the length of the high-grade panel,” Heliostar CEO Charles Funk commented.
“Holes AP-23-297 and AP-23-298 are both respectively 33% and 38% increases relative to the current resource model prediction, at a >5 g/t gold cut-off grade,” he added.
Heliostar acquired the Ana Paula project from Argonaut Gold (TSX: AR) for $30 million in March of this year. The property is located in the north-central part of Guerrero state.
Ana Paula currently holds a 1.47-million-ounce measured and indicated resource at 2.16 g/t gold. A 2023 preliminary feasibility study concluded that at $1,600/oz. gold price, the project has a C$464 million net present value and a 31% internal rate of return.
Shares of Heliostar Metals soared 25% by market close Tuesday, giving the Vancouver-based gold junior a market capitalization of C$51.7 million.
