Heliostar Metals Ltd. (HSTR:TSX.V; HSTXF:OTC; RGG1:FRA) shared new results from its ongoing drilling program at the Ana Paula project in Guerrero, Mexico, according to an April 23 release.
The recent drilling data from Ana Paula includes several notable high-grade intercepts, including 69.15 meters grading 10.09 grams per tonne (g/t) gold from 93 meters, 43.8 meters grading 13.9 g/t gold from 104.55 meters (including 19.85 meters grading 22.5 g/t), 28.95 meters grading 11.2 g/t from 163.35 meters, and 30.65 meters grading 11.3 g/t from 94.0 meters (including 14.1 meters grading 22.1 g/t).
The primary goal of the drilling program is to elevate inferred mineral resources to higher confidence categories, which will not only support the ongoing Feasibility Study but also help identify new exploration targets around the deposit, the company said.
"Today's results highlight the unique nature of the High Grade Panel in its ability to consistently return exceptionally high-grade gold over broad intercepts," Heliostar Chief Executive Officer Charles Funk said. "The infill drill program continues to confirm this style of mineralization in portions of the deposit currently in the inferred category. We are on track to upgrade these zones to include them in the mine plan in the 2027 Feasibility Study for Ana Paula."
He continued, "Our aim for this study is to expand the nine-year mine life and ~100,000 ounce per year high-margin production profile shown in our November 2025 Preliminary Economic Study. Bringing the Ana Paula mine online in 2028 will be a major step forward for achieving Heliostar's goal of being a 500,000 ounce per year producer by the end of the decade."
Five Holes in the High Grade Panel
Heliostar has successfully completed a substantial phase of its drilling program at Ana Paula, achieving 88 holes and covering 31,184 meters for the 2025-26 period, the company said. This extensive drilling effort is primarily focused on infilling areas identified with inferred mineralization as outlined in the November 2025 Preliminary Economic Analysis mine plan. Concurrently, the program is dedicated to delineating additional mineralization close to the planned underground mine infrastructure through step-out drilling and is actively exploring deeper for down-plunge extensions in the Expansion Zone.
The latest update from the company includes results from five holes located in the High Grade Panel, a key focus of the ongoing drilling, which aims to exceed the initially planned 28,000 meters due to cost efficiency and successful exploration outcomes. Currently, there are 14 more holes from this area pending assay results. These holes are also being utilized to gather essential rock strength and hydrogeologic data, alongside samples for further metallurgical analysis, all of which are intended to accelerate the integration of these zones into the future mine plan set for the upcoming Ana Paula Feasibility Study.
Among the highlighted drill results, Hole AP-25-349, positioned approximately 55 meters west of AP-25-359 and 104 meters west of AP-25-360, was specifically drilled to target a segment of inferred mineralization within the High Grade Panel. This hole yielded 28.95 meters at 11.24 grams per tonne (g/t) gold, including a segment of 19.70 meters at 15.14 g/t gold, confirming the presence of a well-established high-grade zone that aligns with current geological interpretations.
Another significant drill, Hole AP-25-359, located about 55 meters southwest of AP-25-360, aimed to probe and define the vertical extent of the High Grade Panel, Heliostar said. It returned 43.8 meters grading 13.91 g/t gold, with a particularly high-grade core of 19.85 meters grading 22.51 g/t gold. This result, along with additional intervals of 24.75 meters at 8.96 g/t gold and 6 meters at 27.98 g/t gold, further underscores the continuity of high-grade mineralization within this zone.
Hole AP-25-360, centrally positioned within the drill pattern, was designed to test mineralization at greater depths within the High Grade Panel. It reported one of the thickest intervals encountered, with 69.15 meters grading 10.09 g/t gold. Additionally, Hole AP-25-371, located approximately 52 meters east of AP-25-360 and 105 meters northeast of AP-25-359, tested the eastern portion of the panel and returned 30.65 meters grading 11.33 g/t gold, including 14.05 meters grading 22.13 g/t gold, affirming the extension of broad zones of high-grade mineralization across this section of the High Grade Panel.
These results collectively demonstrate consistent, high-grade mineralization across closely-spaced drill holes and support the ongoing transition of inferred resources within the High Grade Panel to higher confidence categories. The mineralization is consistent with an interpreted east-west trending structure that controls the high-grade zones, although true widths are yet to be determined, the company said.
Drilling is set to continue across the High Grade Panel, its less defined western edge, and the Expansion Zone, with further results anticipated in May.
Building Co. Into a Mid-Tier Gold Producer
The results from Ana Paula were promising, particularly within the Expansion Zone, according to an updated research note by Hannam & Partners Analyst Jonathan Guy on April 10. A significant find from the current drilling phase is a 101-meter intersection at a grade of 5.34 g/t gold starting from 512.5 meters depth. This result, which is located down dip from the existing resource envelope, confirms the potential for further depth and growth at Ana Paula, building on an earlier intersection of 25.45 meters at 8.26 g/t gold.
Further results expected this quarter could suggest a substantial increase in the resource base, particularly at greater depths, the analyst said. Key near-term catalysts for the project include additional exploration results, progression of Ana Paula towards a feasibility study planned for the first half of 2027, commencement of decline development in the second half of 2026, integration of the new Goldstrike project, and achieving the 2026 production guidance of 50,000 to 55,000 ounces of gold. The target valuation for Heliostar remains set at CA$7.52 per share.
The valuation implies a 191% upside from the time of writing. It is derived using a discounted cash flow (DCF) methodology with a 5% discount rate. Valuations for Heliostar's operational mines are calculated at 1x net asset value (NAV), with Ana Paula valued at 0.7x NAV and earlier-stage projects at an average of 0.2x NAV. This approach results in a risk-weighted operational NAV of US$8.60 per share. Adjustments for the company's balance sheet and general and administrative expenses have been factored into the final target valuation. This strategic financial assessment underscores the growth potential and robust prospects of Heliostar's mining projects.
"Management's message is increasingly centered on building Heliostar into a mid-tier gold producer by using cash flow from its operating mines to fund a pipeline of higher-margin growth assets," noted Stonegate Capital Partners Analyst Dave Storms in a March 26 research note. "The company exited 2025 with CA$40.6 million of cash, and management expects to fund a CA$27 million exploration program from operating cash flow in 2026. Near-term priorities include executing at La Colorada and San Agustin, advancing Ana Paula toward a Feasibility Study in 1H27 and production in 2028, and progressing the broader development pipeline, which now includes Goldstrike. For 2026, Heliostar guided consolidated production of 50,000-55,000 ounces of gold, with cash costs of CA$1,850-CA$1,950/oz and AISC of CA$2,025-CA$2,125/oz."
In the firm's valuation of Heliostar, Storms said two distinct methodologies were employed. Firstly, using the Enterprise Value to Net Asset Value (EV/NAV) approach, a range of 0.4x to 0.6x is applied, with a midpoint of 0.5x. This calculation leads to a valuation range of CA$3.19 to CA$4.69, with a midpoint value of CA$3.94. Secondly, when utilizing the Enterprise Value to Reserves (EV/Reserves) valuation method, a multiple range from 50x to 100x is used, with a midpoint of 75x. This results in a valuation range of CA$2.37 to CA$4.54, with a midpoint of CA$3.45.
'Whopper' Results
On April 23, Jeff Valks, senior analyst for The Gold Advisor, compared Heliostar's high-grade drilling results from Ana Paulausly to the "whopper, whopper, junior whopper" theme from Burger King due to their substantial nature.
The stock market response to these developments has been positive, with Heliostar's shares showing a significant increase of over 130% over the past year. Despite this rise, there is a sentiment that the shares are still undervalued given the company's prudent financial management and the promising results from its properties, Valks said.
"Infill drilling that upgrades confidence categories ahead of a Feasibility Study changes how timelines get modeled. That shifts a story closer to production reality," Valks wrote. "We love what we're seeing. The stock remains a Buy."
The expert said he holds a long position on the stock, and site founder Jeff Clark holds an overweight position with no plans to sell.
"There has rarely been a company that was able to capitalize on aligning stars as well as Heliostar Metals," noted Caesars Report on April 23. "While CEO Charles Funk will be the first to admit that the booming gold price provides a very strong tailwind to support the operational assets while making the lives of the technical teams on the development projects easier, seeing how Heliostar was built out to the company it is right now cannot solely be attributed to ‘luck.'"
The article continued, "The methodological approach and the somewhat surgical precision to secure assets and sequence them into a company-wide growth plan requires skills. The Goldstrike project wasn't just purchased on a whim. It's the type of asset Heliostar excels at in bringing (back) into production: low capex ounces to get production going and using the cash flow to accelerate the production across the portfolio."
According to FactSet on April 15, 2026, National Bank Financial gave Heliostar Metals a Buy rating with a CA$4.50 target price. FactSet also reported that on April 23, 2026, ATB Cormark Capital Markets analyst Richard Gray gave the company a Buy rating with a CA$7.50 target price.
The Catalyst: Questions About Gold's Future
Gold has seen a significant rise in its market value over the last few years, as reported by Aly J. Yale for CBS News MoneyWatch on April 24. The precious metal first crossed the US$3,000-per-ounce mark in 2025 and soon after surpassed the US$4,000 threshold. This upward trajectory continued into 2026, with gold prices hitting a record high of US$5,000 per ounce early in the year. Despite this peak, there was a notable retreat in prices to around US$4,400 in March, though they have since stabilized at over US$4,700 per ounce by mid-April.
The current market situation raises questions about the future direction of gold prices and whether a further decline is on the horizon. Financial experts have offered their insights on this matter. Thomas Winmill from Midas Funds suggested that a decrease of 10% to 20% in gold prices is a possibility. On the other hand, Brett Elliott from the American Precious Metals Exchange (APMEX) projected that gold might average around US$4,500 this year, potentially climbing to US$5,800. However, he also pointed out the risk of prices dropping to as low as US$4,000.
Elliott also commented on the expected volatility in the gold market, noting that significant price swings have become more common. For instance, gold prices recently fluctuated from US$5,400 to US$4,100 within a matter of weeks. Such volatility highlights the unpredictable nature of the gold market, suggesting that investors might see more fluctuations as the year progresses.
Streetwise Ownership Overview*
Heliostar Metals Ltd. (HSTR:TSX.V; HSTXF:OTC; RGG1:FRA)
On Friday, gold prices saw a slight increase, although they were on track to close the week with losses amid ongoing inflation worries, TradingView reported April 24. Similarly, silver prices experienced a rise, gaining 0.7% on COMEX. In the energy sector, oil prices showed mixed results; Brent crude saw a modest increase, while West Texas Intermediate crude dropped by nearly 1% on the same day. Despite Friday's mixed performance, Brent and WTI have recorded significant gains for the week, with increases of 17% and 14%, respectively.
In the metals market, both aluminum and copper prices witnessed declines on the London Metal Exchange. Thu Lan Nguyen, head of FX and commodity research at Commerzbank AG, commented on the potential market impacts of the ongoing conflict in the Middle East. She noted that the conflict could lead to a short to medium-term increase in market concentration in the aluminum sector, potentially benefiting China. This observation highlights the broader economic implications of geopolitical tensions on global commodity markets, the piece noted.
Ownership & Share Information1
Management and Insiders own about 2% of shares, while Strategic Investors own 14%. Institutions hold 23% of shares, and the remaining shares are retail.
Heliostar Metals Ltd. has a market cap of CA$657.39 million, with 277.38 million shares outstanding. The company's 52-week range is CA$0.97-CA$3.47.
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- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Heliostar Metals Ltd.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
