Osisko Metals Incorporated (the ‘ Company ‘ or ‘ Osisko Metals ‘) ( TSX-V: OM ; OTCQX: OMZNF ; FRANKFURT: 0B51 ) is pleased to announce new drill results from the Gaspé Copper Project, located in the Gaspé Peninsula of Eastern Québec.

 Osisko Metals Chief Executive Officer Robert Wares commented: ‘ These new results underscore the overall large-scale potential of mineralization at Gaspé Copper, with drill hole 1082 cutting 853 metres of continuous mineralization, including the bottom 424 metres being located immediately below and outside the 2024 MRE model. Furthermore, drill hole 1088 intersected new mineralization 80 metres southwest of the 2024 MRE model, emphasizing the excellent potential for increasing the size of the known deposit at depth and to the south. ‘

Significant new analytical results are presented below (see Table 1) and include 35 mineralized intercepts from ten drill holes. Infill intercepts are all located inside the 2024 Mineral Resource Estimate model (‘MRE’, see    November 14, 2024 news release   ), and are focused on upgrading inferred mineral resources to measured or indicated categories, as applicable. Expansion intercepts are all located outside the 2024 MRE model and may potentially lead to additional resources that will be classified appropriately within the next MRE update. Some of the reported intercepts have contiguous shallower infill as well as deeper expansion (noted on Table 1 below as ‘Both**’). Maps showing hole locations are available at www.osiskometals.com .

   Highlights:   

• Drill hole 30-1082
  •   853.5 metres averaging 0.20% Cu (infill and expansion)

   

  •   147.5 metres averaging 0.19% Cu (infill)

   

 

• Drill hole 30-1089
  •   645.0 metres averaging 0.28% Cu (infill and expansion)

   

  •   91.5 metres averaging 0.21% Cu (infill)

   

 

• Drill hole 30-1083
  •   427.5 metres averaging 0.26% Cu (infill and expansion)

   

  •   153 metres averaging 0.18% Cu (infill)

   

 

• Drill hole 30-0974
  •   351.0 metres averaging 0.20% Cu (expansion)

   

  •   295.5 metres averaging 0.29% Cu (infill)

   

 

• Drill hole 30-1087
  •   334.5 metres averaging 0.23% Cu (infill)

   

  •   74.5 metres averaging 0.62% Cu (expansion)

   

 

• Drill hole 30-1094
  •   227.5 metres averaging 0.26% Cu (infill)

   

  •   49.9 metres averaging 0.24% Cu (expansion)

   

 

• Drill hole 30-1088
  •   122.7 metres averaging 0.24% Cu (expansion)

   

  •   79.5 metres averaging 0.31% Cu (expansion)

   

 

• Drill hole 30-1091
  •   42.6 metres averaging 1.14% Cu (expansion)

   

  •   210 metres averaging 0.21% Cu (infill)

   

 

  Table 1: Infill and Expansion Drilling Results  

  * Please see explanatory notes below on copper equivalent values and Quality Assurance / Quality Control.  
** ‘Both’ indicates these drill holes have   contiguous shallower infill as well as deeper expansion intercepts.  

  Discussion  

Drill hole 30-0974 was an extension of a shallow (300 m) hole drilled in 2019, located near the southwestern margin of the 2024 MRE model. It returned 295.5 metres averaging 0.29% Cu and 1.88 g/t Ag (infill) followed by a second intercept of 351.2 metres averaging 0.20% Cu and 1.72 g/t Ag (expansion) and a third deeper intercept of 48.0 metres averaging 0.32% Cu and 2.00 g/t Ag (expansion), extending mineralization to a vertical depth of 780 metres.

Drill hole 30-1082, located on top of Copper Mountain near the central part of the 2024 MRE model, intersected 48.0 metres averaging 0.19% Cu and 1.46 g/t Ag (infill), followed by a second intercept of 147.5 metres averaging 0.19% Cu and 1.86 g/t Ag (infill), followed by a third deeper intercept of 853.5 metres averaging 0.20% Cu, 1.43 g/t Ag and 0.023% Mo. The latter incudes an expansion lower intercept, below the base of the 2024 MRE model, of 424.0 metres averaging 0.21% Cu, 1.33 g/t Ag and 0.026% Mo. This hole extends mineralization near the centre of the deposit to a vertical depth of 1140 metres.

Drill hole 30-1083, located in the south-central part of the 2024 MRE model, intersected two short 36 metre-long mineralized zones followed by 153.0 metres averaging 0.18% Cu and 1.56 g/t Ag (infill), followed by a deeper intercept of 427.5 metres averaging 0.26% Cu, 1.54 g/t Ag and 0.021% Mo. The latter incudes an expansion lower intercept, below the base of the 2024 MRE model, of 328.0 metres averaging 0.24% Cu, 1.43 g/t Ag and 0.020% Mo. This was followed by a final intercept of 55.5 metres averaging 0.16% Cu and 1.34 g/t Ag. This hole extends mineralization to a vertical depth of 900 metres.

Drill hole 30-1087, located in the south-central part of the 2024 MRE model, intersected a short 40 metre-long mineralized zone followed by 334.5 metres averaging 0.23% Cu, 1.93 g/t Ag and 0.011% Mo (infill). This was followed by 74.5 metres averaging 0.62% Cu and 3.19 g/t Ag and then by another 48.3 metres averaging 0.36% Cu and 2.83 g/t Ag (both expansion), extending mineralization to a vertical depth of 598 metres.

Drill hole 30-1088, located 80 metres outside the southwestern limit of the 2024 MRE model, intersected 42.0 metres averaging 0.32% Cu and 2.20 g/t Ag followed by 122.7 metres averaging 0.24% Cu and 2.63 g/t Ag. A third intersection at depth comprised 79.5 metres averaging 0.31% Cu and 2.19 g/t Ag (all expansion). Previously undocumented mineralization in this sector reached a vertical depth of 524 metres.

Drill hole 30-1089, located in the south-central part of the 2024 MRE model, intersected 91.5 metres averaging 0.21% Cu and 1.54 g/t Ag (infill), followed by two short 26 to 27 metre-long mineralized zones, followed by 645.0 metres averaging 0.28% Cu, 1.46 g/t Ag and 0.023% Mo. The latter incudes an expansion lower intercept, below the base of the 2024 MRE model, of 396.7 metres averaging 0.30% Cu, 1.34 g/t Ag and 0.023% Mo. This hole extends mineralization to a vertical depth of 965 metres.

Drill hole 30-1091, located in the southeastern part of the 2024 MRE model, intersected two short 23 to 26 metre-long mineralized zones, followed by 210.0 metres averaging 0.21% Cu and 2.10 g/t Ag (infill). This was followed by 38.0 metres averaging 0.22% Cu and 1.50 g/t Ag and then by another 42.6 metres averaging 1.14% Cu and 5.86 g/t Ag (both expansion), extending mineralization to a vertical depth of 583 metres where the hole was stopped in an open stope of historical E Zone mining operations.

Drill hole 30-1093, located near the southeastern margin of the 2024 MRE model, intersected 112.0 metres averaging 0.25% Cu and 2.73 g/t Ag (infill), followed by four short 23 to 67 metre-long mineralized zones (all expansion), which extended mineralization to a vertical depth of 834 metres.

Drill hole 30-1094, located near the southern limit of the 2024 MRE model, intersected 227.5 metres averaging 0.26% Cu and 2.11 g/t Ag (infill), followed by 57.0 metres averaging 0.13% Cu and 1.33 g/t Ag (infill), followed by two short 26 to 50 metre-long mineralized zones (both expansion), which extended mineralization to a vertical depth of 561 metres.

Mineralization occurs as disseminations and stockworks of chalcopyrite with pyrite or pyrrhotite and minor bornite and molybdenite. At least five retrograde vein/stockwork mineralizing events have been recognized at Copper Mountain, which overprint earlier prograde skarn and porcellanite-hosted mineralization throughout the Gaspé Copper system. Porcellanite is a historical mining term used to describe bleached, pale green to white potassic-altered hornfels. Subvertical stockwork mineralization dominates at Copper Mountain whereas prograde bedded replacement mineralization, which is mostly stratigraphically controlled, dominates in the area of Needle Mountain, Needle East and Copper Brook. High molybdenum grades (up to 0.5% Mo) were locally obtained in both the C Zone and E Zone skarns away from Copper Mountain.

The 2022 to 2024 Osisko Metals drill programs were focused on defining open-pit resources within the Copper Mountain stockwork mineralization ( see    May 6, 2024 MRE press release   ). Extending the resource model south of Copper Mountain into the poorly-drilled prograde skarn/porcellanite portion of the system subsequently led to a significantly increased resource, mostly in the Inferred category ( see    November 14, 2024 MRE press release   ).

The current drill program is designed to convert of the November 2024 MRE to Measured and Indicated categories, as well as test the expansion of the system deeper into the stratigraphy and laterally to the south and southwest towards Needle East and Needle Mountain respectively. The November 2024 MRE was limited at depth to the base of the L1 skarn horizon (C Zone), and all mineralized intersections below this horizon represent potential depth extensions to the deposit, to be included in the next scheduled MRE update in Q1 2026.

All holes are being drilled sub-vertically into the altered calcareous stratigraphy which dips 20 to 25 degrees to the north. The L1 (C Zone) and the L2 (E Zone) skarn/marble horizons were intersected in most holes, as well as intervening porcellanites that host the bulk of the disseminated copper mineralization.

  Table 2: Drill hole locations  

   
Explanatory note regarding copper-equivalent grades   

  Copper Equivalent grades are expressed for purposes of simplicity and are calculated taking into account: 1) metal grades; 2) estimated long-term prices of metals: US$4.25/lb copper, $20.00/lb molybdenum and US$24/oz silver; 3) estimated recoveries of 92%, 70% and 70% for Cu, Mo and Ag respectively; and 4) net smelter return value of metals as percentage of the price, estimated at 86.5%, 90.7% and 75.0% for Cu, Mo and Ag respectively.  

   Qualified Person   

  The scientific and technical content of this news release has been reviewed, prepared, and approved by Mr. Bernard-Olivier Martel, P. Geo. (OGQ 492), an independent ‘qualified person’ as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (‘NI 43-101’).  

   Quality Assurance / Quality Control   

  Mineralized intervals reported herein are calculated using an average 0.12% CuEq lower cut-off over contiguous 20-metre intersections (shorter intervals as the case may be at the upper and lower limits of reported intervals). Intervals of 20 metres or less are reported unless indicating significantly higher grades . True widths are estimated at 90 – 92% of the reported core length intervals.

  Osisko Metals adheres to a strict QA/QC program for core handling, sampling, sample transportation and analyses, including insertion of blanks and standards in the sample stream. Drill core is drilled in HQ or NQ diameter and securely transported to its core processing facility on site, where it is logged, cut and sampled. Samples selected for assay are sealed and shipped to ALS Canada Ltd.’s preparation facility in Sudbury. Sample preparation details (code PREP-31DH) are available on the ALS Canada website. Pulps are analyzed at the   ALS   Canada   Ltd.   facility   in   North   Vancouver,   BC.   All   samples   are   analyzed   by   four   acid   digestion followed by both ICP-AES and ICP-MS for Cu, Mo and Ag.  

   About Osisko Metals   

  Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals sector, with a focus on copper and zinc. The Company acquired a 100% interest in the past-producing Gaspé Copper mine from Glencore Canada Corporation in July 2023. The Gaspé Copper mine is located near Murdochville in Québec   ‘   s Gaspé Peninsula. The Company is currently focused on resource expansion of the Gaspé Copper system, with current    Indicated Mineral Resources of     824 Mt averaging 0.34% CuEq and Inferred Mineral Resources of 670 Mt averaging 0.38% CuEq    (in compliance with NI 43-101). For more information, see Osisko Metals’ November 14, 2024 news release entitled ‘Osisko Metals Announces Significant Increase in Mineral Resource at Gaspé Copper’. Gaspé Copper hosts the largest undeveloped copper resource in eastern North America, strategically located near existing infrastructure in the mining-friendly province of Québec.  

  In addition to the Gaspé Copper project, the Company is working with Appian Capital Advisory LLP through the Pine Point Mining Limited joint venture to advance one of Canada   ‘   s largest past-producing zinc mining camps, the Pine Point project, located in the Northwest Territories. The current mineral resource estimate for the Pine Point project consists of    Indicated Mineral Resources of 49.5 Mt averaging 5.52% ZnEq and Inferred Mineral Resources of 8.3 Mt averaging 5.64% ZnEq    (in compliance with NI 43-101). For more information, see Osisko Metals   ‘   June 25, 2024 news release entitled ‘Osisko Metals releases Pine Point mineral resource estimate: 49.5 million tonnes of indicated resources at 5.52% ZnEq’. The Pine Point project is located on the south shore of Great Slave Lake, NWT, close to infrastructure, with paved road access, an electrical substation and 100 kilometers of viable haul roads.  

  For further information on this news release, visit    www.osiskometals.com    or contact:  

Don Njegovan, President
Email: info@osiskometals.com  
Phone: (416) 500-4129

   Cautionary Statement on Forward-Looking Information   

  This news release contains ‘forward-looking information’ within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as ‘expects’, or ‘does not expect’, ‘is expected’, ‘interpreted’, ‘management’s view’, ‘anticipates’ or ‘does not anticipate’, ‘plans’, ‘budget’, ‘scheduled’, ‘forecasts’, ‘estimates’, ‘potential’, ‘feasibility’, ‘believes’ or ‘intends’ or variations of such words and phrases or stating that certain actions, events or results ‘may’ or ‘could’, ‘would’, ‘might’ or ‘will’ be taken, occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This news release contains forward-looking information pertaining to, among other things: the tax treatment of the FT Units; the timing of incurring the Qualifying Expenditures and the renunciation of the Qualifying Expenditures; the ability to advance Gaspé Copper to a construction decision (if at all); the ability to increase the Company’s trading liquidity and enhance its capital markets presence; the potential re-rating of the Company; the ability for the Company to unlock the full potential of its assets and achieve success; the ability for the Company to create value for its shareholders; the advancement of the Pine Point project; the anticipated resource expansion of the Gaspé Copper system and Gaspé Copper hosting the largest undeveloped copper resource in eastern North America.  

  Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about: the ability of exploration results, including drilling, to accurately predict mineralization; errors in geological modelling; insufficient data; equity and debt capital markets; future spot prices of copper and zinc; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; political and regulatory stability; the receipt of governmental and third party approvals; licenses and permits being received on favourable terms; sustained labour stability; stability in financial and capital markets; availability of mining equipment and positive relations with local communities and groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out in the Company’s public disclosure record on SEDAR+ (www.sedarplus.ca) under Osisko Metals’ issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.  

   Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.   

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/0b33977a-2c63-4bf2-9cdb-d5d703b082d3
  https://www.globenewswire.com/NewsRoom/AttachmentNg/9434cd6c-7d6f-458a-9439-d1eb4e66a5a1  

Visible gold found in first hole—assays are pending

Nuvau Minerals Inc. (TSXV: NMC) has launched its gold-focused exploration program at its Matagami Property where the first hole drilled intersected what appears to be an orogenic lode gold system close to the Bracemac McLeod Mine in Matagami. Assays are pending after Nuvau intersected visible gold in a structure intersected in the first hole.

‘We are extremely encouraged by the success of the initial hole of our maiden gold focused diamond drill program on this 1,300 square kilometre land package,’ said Peter Van Alphen, Nuvau’s CEO. ‘The footwall rock units where this new vein intercept occurs is in a largely untested part of the property, in an area not deemed favourable for base metal mineralization. In addition, this mineralized zone is located less than 25 metres from the mine access ramp at the permitted Bracemac McLeod Mine.’

The steeply dipping, strong shear zone structure with quartz veining mineralized with pyrite and locally visible gold was intersected at a depth of approximately 200 metres below surface. Although it is within the footwall stratigraphy of the past-producing Bracemac McLeod mine, the area has seen very little drilling in the past as it was not of interest for VMS type exploration. Planning is underway for the follow up drilling which is expected to begin within the next two weeks.

Figure 1: Past producing Bracemac McLeod Mine and relative position of gold target drilled

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Figure 2: Visible gold found in more than 30 gold chips identified in logging the core

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The Matagami Property has hosted numerous base metal mines over the last 60 years. However previous owners never applied a gold-focused exploration program to this large-scale property even though it is strategically located in the Abitibi geological sub-province.

The Property is located in the Abitibi Region of Quebec, one of the world’s most productive gold districts. It includes Canada’s largest gold producing mine with the country’s largest gold mineral reserves: the Detour Lake Mine. Detour Lake is owned by Agnico Eagle Mines Limited, located west of the Matagami Property. The Casa Berardi Mine, which has produced over 3 million ounces of gold, is also located to the just southwest of the Matagami Property. (See Figure 3, below.)

Figure 3: Property Location

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Gold Exploration work: background
Since satisfying the spending requirement associated with the earn-in agreement with Glencore, Nuvau has begun working on unlocking the overlooked gold potential of this vast, 1,300 square kilometre Matagami property.

This work includes compilation of historic data, overburden till sampling, a detailed high-resolution drone airborne magnetic (MAG) survey, and now diamond drilling. The sonic (till) drill program discovered a significant gold grain anomaly in the central portion of the Property (see Nuvau Press Release, March 4, 2025) that will be subject to follow up drilling in the upcoming winter drill program. Compilation of historic data in the vicinity of the base metal mines on the main ‘mine trend’ identified numerous areas where gold mineralization had been intersected, however no follow-up work was ever completed.

About Nuvau Minerals Inc.
Nuvau is a Canadian mining company focused on the Abitibi Region of mine-friendly Québec. Nuvau’s principal asset is the Matagami Property that is host to significant existing processing infrastructure and multiple mineral deposits and is being acquired from Glencore.

Qualified Person and Quality Assurance
Bastien Fresia P. Geo. (Qc), Technical Services Director of Nuvau and a ‘qualified person’ as is defined by National Instrument 43-101, has verified the scientific and technical data disclosed in this news release, and has otherwise reviewed and approved the scientific and technical information in this news release.

Drill core samples are sawn by staff technicians to create half core splits. One split is retained in the drill core box for archival purposes with a sample tag affixed at each sample interval and the other split is placed in a labelled plastic bag along with a corresponding sample number tag and placed in the shipment queue.

Quality control samples including blind certified reference material (‘CRM’), blank material, and core duplicates are inserted at a frequency of 1 in every 20 samples and sample batches of up to 60 samples were then shipped directly by Nuvau personnel to the ALS Canada Ltd. preparation laboratory in Rouyn-Noranda, Québec.

All submitted core samples are crushed in full to 95 % passing less than 2 mm (ALS code CRU-32). A 1000-gram sample was then riffled split from the crushed material and pulverized to 90 % passing 75 μm (SPL-22 and PUL-32a). Pulps are shipped from the preparation laboratory to ALS Canada Ltd.’s analytical lab in North Vancouver, British Columbia, for assay.

Lead, silver, copper and zinc analyses were determined by ore grade four acid digestion with an inductively coupled plasma atomic emission spectroscopy (‘ICP-AES’) or atomic absorption spectroscopy (‘AAS’) finish (ALS codes Pb-OG62, Ag-OG62, Cu-OG62 and ZnOG62), whereas gold was determined by 50 g fire assay analysis with an AAS finish (code Au-AA23).

ALS Canada Ltd. is an accredited, independent commercial analytical firm registered to ISO/IEC 17025:2017 and ISO 9001:2015.

Cautionary Statements
This news release contains forward-looking statements and forward-looking information (collectively, ‘forward-looking statements’) within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as ‘may’, ‘should’, ‘anticipate’, ‘will’, ‘estimates’, ‘believes’, ‘intends’ ‘expects’ and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this news release contains forward-looking statements concerning drill results relating to the Matagami Property, the results of the PEA, the potential of the Matagami Property, the timing and commencement of any production, the restart of the Bracemac-McLeod Mine, the completion of the earn-in of the Matagami Property and the timing and completion of any technical studies, feasibility studies or economic analyses. Forward-looking statements are inherently uncertain, and the actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of the Company, including expectations and assumptions concerning the Company and the Matagami Property. Readers are cautioned that assumptions used in the preparation of any forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. Readers are further cautioned not to place undue reliance on any forward-looking statements, as such information, although considered reasonable by the management of the Company at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

The forward-looking statements contained in this news release are made as of the date of this news release, and are expressly qualified by the foregoing cautionary statement. Except as expressly required by securities law, neither the Company nor Nuvau undertakes any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the 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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259588

Highlights:

• Mining operations to restart at the San Agustin Mine in H2, 2025, with initial production expected in Q4

  

• Restart provides confidence for the first significant Heliostar investment into the future of San Agustin, aimed at extending mine life

 

• Drilling will commence immediately in H2, 2025, on oxide expansion targets, followed by sulphide porphyry/breccia exploration

 

Heliostar Metals Ltd. (TSXV: HSTR,OTC:HSTXF) (OTCQX: HSTXF) (FSE: RGG1) (‘Heliostar’ or the ‘Company’) is pleased to announce the restart of mining operations at San Agustin, located in the state of Durango. Heliostar presently produces gold from residual leaching at the San Agustin Mine. The Company will increase production by mining the mineral reserve, principally in an area the Company describes as the Corner Area. This is a key milestone to unlock increased value from San Agustin.

‘Heliostar is pleased to have met its forecast timelines to recommence mining at San Agustin,’ commented Heliostar CEO, Charles Funk. ‘Mining the Corner Area will produce 45,000 ounces of gold from the current reserve. It will generate US$40M in cash flow at a US$3,000 gold price. Heliostar has made this restart commitment, having complied with all the requirements to start mining and having approximately US$30M in cash on our balance sheet to fund the necessary capital.’

‘As the largest local employer, this milestone provides job stability and provides for expanded economic opportunities for our nearby communities and throughout the state of Durango. For Heliostar, it marks a shift from residual leaching to active mining, increasing production and improving cash flow through 2026. It also provides the confidence to begin new investment in growth at San Agustin. This will include drilling aimed at converting oxide resources to reserves and testing sulphide targets that share characteristics with deposits such as Peñasquito and Camino Rojo.’

Technical Report Summary

On January 14, 2025, the Company filed an amended and restated technical report titled ‘San Agustin Operations, Durango State, Mexico, NI 43-101 Technical Report’ prepared by Mr. Todd Wakefield, RM SME, Mine Technical Services, Mr. David Thomas, P.Geo., Mine Technical Services, Mr. Jeffrey Choquette, P.E., Hard Rock Consulting, Mr. Carl Defilippi, RM SME, Kappes Cassiday and Associates and Ms. Dawn Garcia, CPG, Stantec with an effective date of November 30, 2024 (the ‘Technical Report‘).

The life-of-mine (LOM) plan set out in the Technical Report indicates that a probable mineral reserve of 68,000 ounces of gold can be exploited over a 1.2 year mine life at an all-in sustaining cost (AISC) of US$1,990/oz Au. The initial capital cost in the Technical Report is estimated at US$4.2M.

The Technical Report demonstrates a post-tax NPV_5% of US$35.3M, an IRR of 548% and a payback period of 0.2 years for the upside case at a $3,000/oz gold price.

The mineral reserve estimate included in the Technical Report is based on the operation of the existing crusher and conveyor system having a nameplate throughput capacity of about 30,000 tonnes/day and continued operation of the heap leach and carbon-in-column (CIC) process circuit to processing ore from the expanded open pit. The mineral reserve estimate included in the Technical Report is presented below. The expected operating performance and cost forecasts were compiled with the benefit of benchmarking historical performance at San Agustin. This was supplemented with the input of seasoned professionals knowledgeable of the conventional technologies being used at San Agustin, the expected consumption quantities of key supplies, and commercial pricing for goods and services in Mexico.

Figure 1: View of Corner Area looking to southeast showing the current reserve model and planned pitshell.

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Restart Steps

In 2022, the previous operator of the San Agustin mine reached a private surface rights agreement to access a portion of the deposit referred to as the Corner Area. Despite this, mining operations ceased at the mine in late 2023 due to a lack of permit accessible mineral reserves.

In July 2025, Heliostar complied with all required applications and received the required approval to undertake this open pit expansion. The relevant application was submitted in Q4, 2024. Further, the Company has also received a variance to its environmental impact assessment (MIA) to increase the height of the San Agustin leachpad from 77 to 88 metres in height. This variation will save approximately US$5M in capital during the mining of the Corner Area due to not having to prepare an extension to the existing leachpad.

Heliostar’s restart plan will include selecting civil, drilling and mining contractors, moving of a power transmission line, establishing additional access roads on site and removing and stockpiling the vegetation and topsoil present over the Corner Area. This work is anticipated to be undertaken in Q3 and Q4, allowing for the first stacking of new ore and subsequent new gold production from the Corner Area in Q4, 2025.

Oxide Growth Targets

The restart of mining at the Corner Area expands the mine life at San Agustin. With the longer production timeline and confidence in the ability to convert resources to gold production, Heliostar will commence a drilling program seeking further mine life extensions.

The immediate focus for growth is on near-surface oxide material that could be processed through the existing facilities. The Company recognized several growth targets at the margins of the current pit and at the edge of the Corner Area reserve.

Higher-grade oxide results from the priority Corner SW target area include,

• Hole 14-SAGRC-196 grading 3.52 grames per tonne (g/t) Gold over 18.3 metres from 32.0 metres downhole

 

• Hole 14-SAGRC-177 grading 0.34 g/t Gold over 15.24 metres from 27.4 metres downhole

 

The targets are the extensions of mineralized corridors defined by grade control drilling and through a comprehensive re-logging and multi-element re-assaying program undertaken by Heliostar geologists in H1, 2025. The higher gold price environment has also increased the potential of certain lower-grade areas that were not previously a focus at San Agustin.

Figure 2: Plan map of San Agustin showing oxide gold growth targets with drilling and blasthole data shown.

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Sulphide Exploration Targets

San Agustin is a very large mineralized system that hosts a significant volume of gold, silver, lead and zinc mineralization immediately beneath and adjacent to the current pit.

This mineralization is not amenable to conventional heap leaching, and metallurgical work undertaken by the Company has indicated grades are not high enough for economic extraction at present prices.

However, higher-grade results have been returned from within the sulphide domain at San Agustin, including,

• Hole SA-133 grading 0.49 g/t Gold, 25 g/t Silver, 0.2% Lead and 1.0% Zinc over 297 metres from 16.5 metres downhole

 

• Hole SA-184 grading 0.60 g/t Gold, 15 g/t Silver, 0.1% Lead and 1.0% Zinc over 196 metres from 172 metres downhole

 

Figure 3: Geochemical and Geophysical footprints at San Agustin with the four sulphide targets labelled. 

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Similar to central Mexican, gold-rich polymetallic, intrusive-related deposits, including the Peñasquito and Camino Rojo Mines, also contain higher grade zones of gold and silver mineralization, demonstrating the potential for defining high-grade mineralization within the San Agustin system. Investors are cautioned that mineral deposits on other properties are not indicative of mineral deposits on the Company’s properties.

In H1 2025, Heliostar geologists built the most detailed geological model completed to date of the San Agustin deposit. This model proposes that the bulk of the gold and silver mined to date is from an intermediate sulphidation vein system that sits above intrusive related breccias and to the southeast of an interpreted intrusive/breccia centre that is believed to have a porphyry source.

This interpretation generated four significant new porphyry/breccia targets beyond the previously drilled mineralization. These four zones are adjacent to and northwest from the San Agustin pit. These targets are supported by geology, alteration vectors, geophysical signatures and significant geochemical footprints. The Company believes they have strong similarities to those at the Peñasquito deposit.

Upon completion of the oxide drilling, the Company intends to test these new sulphide targets, looking for high-grade mineralization at San Agustin.

Silver Vein Targets

Figure 4: Silver in rockchips at San Agustin with Consejo Vein target and selected drill hole labelled. 

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In 2021, the previous operator acquired a large claim block from Fresnillo Plc to support an expansion of the open pit. This increased the San Agustin land package to 5,884 hectares. Since this acquisition, no significant regional exploration has been undertaken on these acquired claims.

The regional exploration targets at San Agustin include the Consejo vein prospect. Last drilled in 1987, these veins include intercepts such as 1.3 m grading 3,235 g/t silver, 2.85 g/t gold, 15.0% lead and 8.7% zinc (Consejo de Recursos Minerales, 1985). There has been no drilling on these veins since the initial government program 38 years ago. Heliostar will undertake a modern sampling and target generation program focused on these veins and across the broader claim package to define additional drill targets in H2, 2025.

Note: A qualified person has not been able to independently verify the assay results in the drill intersections presented here, and Heliostar plans on conducting additional work at San Agustin to establish the grades and widths of targets on the property.

San Agustin Reserve Table from Technical Report

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Notes to accompany Mineral Reserves table:

1. Mineral Reserves are reported at the point of delivery to the process plant, using the 2014 CIM Definition Standards.

 

2. Mineral Reserves have an effective date of 30 November 2024. The Qualified Person for the estimate is Mr. Jeffrey Choquette, PE, of Hard Rock Consulting, LLC.

  

3. Mineral Reserves are reported within the ultimate reserve pit design. An external dilution factor of 5% and a metal loss of 3% have been factored into the Mineral Reserve estimate.

 

4. Tonnage and grade estimates are in metric units.

 

5. Mineral Reserve tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

 

Qualified Persons

Gregg Bush, P.Eng., Mike Gingles, MBA, Stewart Harris, P.Geo, and Sam Anderson, CPG, the Company’s Qualified Persons, as such term is defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, have reviewed the scientific and technical information that forms the basis for this news release and have approved the disclosure herein.

About Heliostar Metals Ltd.

Heliostar aims to grow to become a mid-tier gold producer. The Company is focused on increasing production and developing new resources at the 100% owned La Colorada and San Agustin mines, and on developing the Ana Paula, Cerro del Gallo and San Antonio deposits in Mexico.

FOR ADDITIONAL INFORMATION PLEASE CONTACT:

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.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain ‘Forward-Looking Statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995 and ‘forward-looking information’ under applicable Canadian securities laws. When used in this news release, the words ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘target’, ‘plan’, ‘forecast’, ‘may’, ‘would’, ‘could’, ‘schedule’ and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things, the Company’s exploration and development plans including the restart plan at San Augustin the completion of drilling activities and the testing of targets.

These statements reflect the Company’s respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company’s mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company’s management team and outside contractors; risks regarding exploration and mining activities; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company’s interactions with surrounding communities; the Company’s ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption ‘Risk Factors’ in the Company’s public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

This news release includes certain non-International Financial Reporting Standards (IFRS) measures. The Company has included these measures, in addition to conventional measures conforming with IFRS, to provide investors with an improved ability to evaluate the project and provide comparability between projects. The non-IFRS measures, which are generally considered standard measures within the mining industry albeit with non-standard definitions, are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Cash costs (Cash Costs) are a common financial performance measure in the gold mining industry but with no standard meaning under IFRS. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate each project’s economic results in the technical reports and each project’s potential to generate operating earnings and cash flow. All-in Sustaining Costs (AISC) more fully defines the total costs associated with producing precious metals. The AISC is calculated based on guidelines published by the World Gold Council (WGC), which were first issued in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated Guidance Note in 2018. Other companies may calculate this measure differently because of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus growth capital. Note that in respect of AISC metrics within the technical reports because such economics are disclosed at the project level, corporate general and administrative expenses were not included in the AISC calculations.

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