Location: Durango, Mexico
Ownership: 100%
Metals: Gold, Silver
Royalty: Oxides 0%, Sulphides 2%
Mine: Open pit
The San Agustin property is located in the northern San Lucas de Ocampo Mining District.
The main part of the San Agustin property is composed of two concessions acquired by Argonaut Gold from Silver Standard Resources in December 2013.
Argonaut began mining operations in February 2017, pouring gold and silver doré in September 2017, and commencing commercial production in October 2017. Heliostar Metals purchased the project in November 2024.
(as at April 1, 2024)
San Agustin mineral resources, effective as of 01 April 2024. Mineral resources are reported in-situ inclusive of mineral reserves, using the 2014 CIM Definition Standards. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Definitions for mineral resource categories used in this report are consistent with those defined by the 2014 CIM Definition Standards.
The parameters and modifying factors that apply are listed below:
Mineral resources are reported using the 2014 CIM Definition Standards with an effective date of 01 April 2024 as defined by end-of-month March 2024 topography. The Qualified Person for the estimate is Owen Nicholls, CPG AIPG, an employee of Argonaut.
Areas of uncertainty that may materially impact the mineral resources estimate include:
(as at April 1, 2024)
San Agustin mineral reserves, effective as of 01 April 2024 are summarized in Table 1-1. The mineral reserve estimate conforms to the 2014 CIM Definition Standards and are stated at the point of delivery to the process plant.
The parameters and modifying factors that apply are listed below:
Mineral reserves are reported at the point of delivery to the process plant using the 2014 CIM Definition Standards with an effective date of 01 April 2024 as defined by the end-of-month March 2024 topography. The Qualified Person for the estimate is Marc Leduc, P.Eng, an employee of Argonaut.
Factors that may affect mineral reserves include:
The San Agustin property is located approximately 10 kilometres southwest of the El Castillo Mine. The oldest rocks in the San Agustin area are Cretaceous siltstones, sandstones and limestones. These rocks are unconformably overlain by a thick sequence of Tertiary volcanic rocks comprised of older andesites and younger pyroclastic-dominated rhyolites.
A dacite dome complex and associated hydrothermal breccias host the majority of the mineral resources at San Agustin. The dacite is poorly exposed and typically forms areas of low relief. The deposit has an oxide zone from surface that averages approximately 60 metres deep.
The Company is reviewing the potential to rehandle ~20Mt of non-agglomerated run-of-mine material from the beginning of the mine's life.
San Agustin contains 8.1Mt at 0.33 g/t gold and 17.5 g/t silver (86 koz Au and 4.54 Moz Ag) in a cutback that requires an expansion permit.
The Company believes that San Agustin has potential to host sulphide mineralization below the current pit shell.
A large under-explored property.
All technical information on the San Agustin Mine is based on a technical report entitled “San Agustin Gold/Silver Mine NI 43-101 Technical Report” with an effective date of May 15, 2024, filed on SEDAR by Argonaut on May 29, 2024 (the “San Agustin Technical Report”). To the best of Heliostar’s knowledge, information, and belief, the San Agustin Technical Report is considered current pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and there is no new material scientific or technical information that would make the disclosure of the mineral resources, mineral reserves or results of the San Agustin Technical Report inaccurate or misleading.
While the Company considers the San Agustin Technical Report to be current, it plans to prepare an updated technical report based on its revised approach to developing the San Agustin Mine and will file such technical report on or before January 13, 2025.
