Vancouver, Canada, March 29th, 2021 – Heliostar Metals Limited (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG) ("Heliostar" or the "Company") is pleased to announce results from the first two holes ever completed at the La Lola project in Sonora, Mexico.
Highlights
Heliostar CEO, Charles Funk, commented “These results are an excellent start to our drilling program at La Lola. To prove that higher grades occur within the main La Barra vein is a significant development and the company continues to drill looking for the heart of the system. This 1,500-metre program is the first ever drilling completed at La Lola and if Heliostar can demonstrate ore grades we can then step-out along the entire length of the La Barra vein.”
La Lola Drill Program
The current drilling program commenced with a shallow hole to confirm the dip of the main La Barra vein, followed by successively deeper tests of the vein. In holes LOLA21-01, LOLA21-02 and LOLA21-03, two subparallel veins have been intersected and comprise multi-phase massive to crystalline quartz, calcite and fluorite with local very fine-grained sulphides. The quartz rich phases of the vein range from locally finely banded at surface to a variety of breccia textures, including high energy breccia textures, at depth. This is interpreted as a vector towards the mineralized centre of the epithermal vein.
La Lola Project
The La Lola property is a 63.6 square kilometre land package near Equinox Gold’s Mercedes mine, First Majestic Silver’s Santa Elena mine, SilverCrest’s Las Chispas deposit, Silver Tiger Metals’ El Tigre deposit and Grupo Mexico’s giant La Caridad mine.
The property includes the prospective La Barra vein, a 5 kilometre-long quartz-carbonate-fluorite vein with elevated values of gold, silver and pathfinder elements. In outcrop the vein is up to 40 metres wide and has textures typical of shallow epithermal formation. Broad clay alteration, fluorite and low temperature textures suggest that the surface expression of the La Barra vein is the higher levels of an epithermal system and that the metal-rich zone of the epithermal system may exist at depth.
Precious metals values in rocks on surface generally contain low values as would be expected based on the shallow level expression of the geological model. However, values up to 56.6 grams per tonne (g/t) gold and up to 424 g/t silver have been found within the larger vein zone and are believed to represent stronger pulses of mineralization that were able to propagate closer to the surface. Historic mining on the vein has focused on fluorite that occurs near surface within the vein zone and is a shallow level feature of other productive systems such as at the Los Gatos mine in Chihuahua.
About Heliostar Metals Ltd.
Heliostar is a well-financed junior exploration and development company with a portfolio of high-grade gold projects in Alaska and Mexico. The company’s flagship asset is the 100% controlled Unga Gold Project on Unga and Popof Islands in Alaska. The project hosts an intermediate sulfidation epithermal gold deposit, located within the district-scale property that encompasses 240km2 across the two islands. Additional targets on the property include porphyry, high sulphidation and intermediate sulphidation epithermal veins. On Unga Island, priority targets include: the SH-1 and Aquila, both on the Shumagin Trend, the former Apollo-Sitka mine, which was Alaska’s first underground gold mine and the Zachary Bay porphyry gold-copper prospect. Gold mineralization at the Centennial Zone is located on neighbouring Popof Island within four kilometres of infrastructure and services at Sand Point.
In Mexico, the company owns 100% of three early stage epithermal projects in Sonora that are highly prospective for gold and silver. Cumaro forms part of the El Picacho district, while the Oso Negro and La Lola projects are also prospective for epithermal gold-silver mineralization.
Qualified Person
The Company’s disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., Exploration Manager for the Company. Mr. Harris is a Qualified Person as defined under the terms of National Instrument 43-101.
For additional information please contact:
Charles Funk
Chief Executive Officer
Heliostar Metals Limited
Email: charles.funk@heliostarmetals.com
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: rob.grey@heliostarmetals.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information. This release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "would", "may", "could" or "should" occur. Forward-looking statements in this press release include Heliostar’s plans to continue aggressive exploration at Unga in 2021 and its goal of defining a resource in excess of one million ounces, its plan to continue infill drilling to expand to depth where the system remains open, and its belief that the SH-1 prospect has considerable potential for expansion. Although Heliostar believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not a guarantee of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, weather, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
