Southern Cross Gold Consolidated Ltd. press release
Heliostar Presents Stronger Economics at the La Colorada Mine in Updated Technical Report
TSX - Toronto Stock Exchange · Australia
Technical Report Highlights:
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Base Case shows US$66.2M post tax NPV5, 24.4% IRR, with a payback multiple of 1.9 at a US$2,300/oz gold price
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Upside Case shows US$243.3M post tax NPV5, 168.4% IRR, with a payback multiple of 8.4 at a US$3,500/oz gold price
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286k ounces of gold produced at an AISC of US$1,626 per AuEq ounce over a 6.1-year mine life with US$45M initial CAPEX
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US$40M increase in base case post-tax NPV5 and US$9.4M reduction in initial capital expenditure from the previous technical report
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La Colorada Indicated Mineral Resources grow by 62k ounces to 513k ounces, grading 0.79 grams per tonne
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Expansion potential with Veta Madre Plus. Potential to convert up to 28k Indicated Mineral Resource ounces to Mineral Reserves to support a larger pit with drilling to be completed in Q4, 2025
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Permits received in August and September 2025 to expand the leach pad at La Colorada
Vancouver, British Columbia--(Newsfile Corp. - October 17, 2025) - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to announce the results of an updated study on the La Colorada Mine ("La Colorada"). This updated life of mine plan includes the results from the first two phases of drilling performed from November 2024 to March 2025 from the Company's ongoing ~20,000-metre drilling campaign.
Heliostar CEO, Charles Funk, commented,_"Today's results show that the La Colorada mine can continue to be a high-margin, low CAPEX operation with a 6.1-year mine life. This updated study is focused on the open pits at La Colorada, demonstrating positive economics at conservative gold prices and a compelling opportunity at current gold prices. The Company aims to continue to maximize cash generation from stockpiles in the near term and internally fund capital requirements for open-pit production planned in 2027. Indicated gold resources grew significantly with higher or maintained resource grades at El Crest_ó_n and Veta Madre. Reserves remained almost unchanged with ounces defined by new drilling offset with more conservative pit wall angles at the El Crestón pit."_
_"Beyond this study, three clear growth opportunities exist - Veta Madre Plus, an expanded pit at El Crest_ó_n and the exploration potential of the larger land package. Veta Madre Plus will be tested with an infill drilling program this quarter that could quickly show the ability to expand the pit and add an additional 28k ounces of reserves. Should higher gold prices sustain, a larger pit at El Crest_ó_n may allow for steeper pit walls, increasing reserves. The exploration potential of La Colorada remains significant with open resources and compelling exploration targets across the property. These have been virtually untested over the last 10 years despite their proximity to permitted mine infrastructure - this will change in late 2025 and 2026."_
The technical report supporting this news release will be available on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.heliostarmetals.com) within the next 45 days. The La Colorada technical report that is the subject of this news release will be reported in United States dollars (USD or US$) unless otherwise noted.
La Colorada Mine Updated Technical Report
Mineral Resource and Mineral Reserve estimates, as well as a life-of-mine (LOM) plan, were updated for the 100% owned La Colorada Mine located in Sonora, Mexico. The LOM plan in the La Colorada technical report is based on production from three deposits staged sequentially: continued production from the Junkyard Stockpile, the Veta Madre pit expansion (Veta Madre), and the El Crestón pit expansion (El Crestón).
The study includes updated Mineral Resource and Mineral Reserve estimates for Veta Madre and El Crestón. The LOM plan indicates an overall Probable Mineral Reserve of 376.2k ounces of gold (a decrease of 0.8k ounces of gold compared to the previous technical report due to mining depletion), with Veta Madre having a forecast mine life of 1.3 years and El Crestón a forecast mine life of 4.6 years, respectively. The operation will have production rates up to the 13,000 t/d nameplate throughput capacity of the process plant at an estimated LOM average US$1,626 per AuEq ounce all-in sustaining cost (AISC).
The La Colorada technical report is anticipated in November 2025.
Key Highlights
| La Colorada - Mineral Reserve & Forecast Production Highlights | | | Probable Mineral Reserves (kt) 1 | 17,117 | | Gold Grade (g/t Au) | 0.68 | | Contained Gold (koz Au) | 376.2 | | Silver Grade (koz Ag) | 9.2 | | Contained Silver (koz Ag) | 5,055.9 | | Contained GEO (k GEO) 2 | 385.4 | | Processing Rate (t/d average) 3 | 8,200 | | Life of Mine (years)4 | 6.1 | | Annual Production (oz GEO per year, average 2025-2031) 4 | 46,106 |
1. Probable Mineral Reserve. 2. GEO - Gold Equivalent Ounces. 3. Processing throughput rates vary over the life of the mine, up to the nameplate capacity of the process plant, about 13,000 t/d. 4. Includes production from the Junkyard Stockpile from May 2025 onwards.
| La Colorada - Forecast Financial Highlights | | | Average Cash Operating Costs (US$ per payable oz GEO) 1 | 1,533 | | Average AISC (US$ per payable oz GEO) 1 | 1,626 | | Total Initial Capital Cost (US$M) 2 | 44.5 | | Total Sustaining Capital Cost (US$M) 2 | 12.5 | | Total Life of Mine Capital Cost (US$M) 3 | 63.8 |
1. Non-International Financial Reporting Standards (IFRS) measures. All-in sustaining costs (AISC) were first issued by the World Gold Council (WGC) in 2013, with an updated Guidance note issued in 2018. 2. The initial capital cost reflects capital and capitalized investment before the first metals production from Veta Madre. Total sustainable capital cost of US$12.5 million is included for capitalized pre-strip before first metals production from El Crestón. 3. Includes US$7.0 million reclamation expenditure at the end of the mine life.
| La Colorada Forecast Return Estimates based on Gold Price1, 2 | | | | | US$2,300/oz 3 | US$3,500/oz 4 | | IRR (%) | 24.4 | 168.4 | | NPV @ 5.0% discount (US$M) | 66.2 | 243.3 | | Payback (years) | 3.4 | 2.0 |
1. All other key parameters are set at base assumptions, including the 5% discount rate used. More detailed analysis will be presented in the full technical report. 2. After tax return estimates. 3. Base gold price assumption used in the La Colorada technical report. 4. Comparison of the gold price of US$3,500 with reference to the US$4,110.82 London Bullion Market Association (LBMA) PM gold price on the trading day of October 15, 2025.
The study shows improved economics on the majority of the key metrics. The table below outlines the differences in the base case between the January 2025 technical report and the updated technical report. Drilling completed in 2024 and 2025 contributed additional indicated gold ounces (39k ounces at El Crestón and 30k ounces at Veta Madre). Reserves and LOM gold production have not materially changed due to recognition of faults in the El Crestón pit wall requiring more conservative pit wall designs. Resequencing production from the three deposit areas further improved the economics, increasing the NPV and the IRR in the updated technical report for La Colorada compared to the January 2025 technical report for the operation.
| Changes in Key Metrics | | | | | | January 2025 Technical Report | Updated Technical Report | Change | | Gold Price | US$2,000 | US$2,300 | 15% | | After Tax NPV5% | US$25.9M | US$66.2M | 155% | | After Tax IRR | 11.9% | 24.4% | 105% | | LOM Cash Flow | US$54.9M | US$105.5M | 92% | | Payback multiple | 1.4x | 1.9x | 36% | | Reserve gold ounces | 377 koz | 376.2 koz | -1% | | Reserve gold grade | 0.65 g/t | 0.68 g/t | 5% | | GEOs produced | 297 koz | 293 koz | -1% | | Mine life | 6.5 years | 6.1 years | -6%* | | Initial Capital Cost | US$53.9M | US$44.5M | -17% | | Total Cash Costs (per GEO) | US$1,549 | US$1,602 | 3% | | AISC (per GEO) | US$1,763 | US$1,626 | -8% |
The LOM plan outlines sequential exploitation of the three deposits beginning with continued mining from the Junkyard Stockpile through 2025, followed by exploitation from Veta Madre, then El Crestón through the following six years.
[](https://images.newsfilecorp.com/files/7729/270792_ff44e226847aeadb_001full.jpg)
Figure 1 - Site Overview
To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/7729/270792_ff44e226847aeadb_001full.jpg
Note: Infrastructure in green, stockpiles in yellow and open pits in blue
[](https://images.newsfilecorp.com/files/7729/270792_figure2.jpg)
Figure 2 - Ore Mined by Pit Phase
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Note: Figure prepared by Hard Rock Consulting, 2025
La Colorada Forecast Operating Cost Estimates
The mining method and process circuit at the La Colorada Mine remains unchanged for the proposed LOM plan compared to the January 2025 technical study. The exploitation of the three deposits benefits from the existing infrastructure at the mine, including the installed crushing and stacking equipment with a capacity of 13,000 tonnes per day. The expected operating performance and operating cost forecasts were compiled with the benefit of benchmarking current and historical performance at La Colorada, the industry standard processes being used at the mine informing the expected consumption quantities of key supplies, and commercial pricing for goods and services in Mexico.
Total Operating Cost Summary
| Operating Costs | Operating Cost (US$/oz AuEq) | Operating Cost (US$/t ore) | Operating Cost (US$/t mined) | | Total mining | 1,087 | 18.64 | 2.11 | | Total processing | 350 | 6.00 | | | Total site general and administrative | 68 | 1.17 | | | Refinery and transport | 28 | 0.48 | | | Cash operating costs | 1,533 | 26.28 | | | Production taxes | 46 | 0.78 | | | Royalties | 23 | 0.39 | | | Total cash costs | 1,602 | 27.46 | | | Sustaining capital costs | 23 | 0.40 | | | Total AISC | 1,626 | 27.86 | |
La Colorada Forecast Capital Cost Estimates
The Junkyard Stockpile is currently in production and requires only working capital.
The initial capital cost for Veta Madre is estimated at US$44.5M, including US$11.9M capital for leach pad expansion and US$30.1M mining capitalized pre-stripping costs until first metal production.
The initial sustaining capital cost for El Crestón is estimated at US$12.5M for mining pre-stripping costs until first metal production. Additional pre-stripping is required to fully exploit the El Crestón deposit, comprising both capitalized and expensed pre-stripping costs shown in the technical report to be ongoing during ore production from Veta Madre. With additional pre-stripping expenses at El Crestón, a maximum negative cash flow of US$117.6M is projected at the base gold price assumption and US$46M at the upside case of US$3,300/oz.
The LOM plan includes US$6.9M for reclamation work at the end of the mine life.
Forecast Capital Cost Summary
| Capital Costs | Initial (US$M) | Sustaining (US$M) | Total LOM (US$M) | | Mine pre-production development | 30.1 | 12.5 | 42.6 | | Contractor mobilization | 0.2 | 0.0 | 0.2 | | Slope radar system | 0.5 | 0.0 | 0.5 | | Leach pad expansion | 11.9 | 0.0 | 11.9 | | Total direct costs | 42.7 | 12.5 | 57.0 | | Owner costs and reclamation | 0.00 | 6.9 | 6.9 | | Indirects and contingency | 1.8 | 0.0 | 1.8 | | Total indirect costs | 1.8 | 6.9 | 8.7 | | Total | 44.5 | 19.3 | 63.9 |
La Colorada Economic Analysis
The economic analysis shows a base case after-tax net present value at a discount rate of 5% of US$66.2M, an after-tax internal rate of return of 24.4%, and a payback period of 3.4 years at US$2,300/oz gold. The forecast mine life is 6.1 years in the study. Approximately 374.9k ounces of gold are projected to be mined, with 286.3k ounces of gold recovered and sold.
Summary Economic Results
| Project Valuation Overview | Units | After Tax | Before Tax | | Total cashflow | US$ M | 105.5 | 162.6 | | NPV @ 5.0% (base case) | US$ M | 66.2 | 108.5 | | Internal rate of return | % | 24.4 | 33.1 | | Payback period | Years | 3.4 | 3.3 | | Payback multiple | | 1.9 | 2.4 | | Total initial capital | US$ M | 44.5 | 44.5 |
Metal Prices
The gold market has experienced significant upward price movement in the past few years. The gold price is about 80% above the base case gold price used in the study.
The sensitivity analysis presents gold price scenarios up to US$4,100/oz Au to understand the potential impact of continued gold price movement. From the base case price of US$2,300/oz, a change in the average gold price of 10% (US$230/oz Au) would change the NPV5%by approximately US$34M.
With ongoing exploitation of the Junkyard Stockpile during 2025, the project will generate revenues from sales based on current gold prices, which are expected to be significantly higher than the base case gold price used in the study.
The LOM plan and Mineral Reserves estimates are most sensitive to changes in the gold price and gold grade. Since silver is projected to contribute only about 4% to the revenues, LOM variations in the silver price have a limited impact on the cashflow forecast. The LOM plan and Mineral Reserves estimates are less sensitive to operating cost changes and least sensitive to changes in capital costs.
Gold Price Sensitivity Analysis
| Au Price (US$/oz Au) | Net Cash Flow (US$M) | After-Tax NPV @ 5.0% Discount Rate (US$ M) | IRR (%) | Payback Period (years) | Payback Multiple | | 500 | -444.25 | -364.85 | - | - | 0.0 | | 800 | -335.58 | -280.57 | - | - | 0.0 | | 1100 | -227.32 | -196.62 | - | - | 0.0 | | 1400 | -120.04 | -113.37 | -29.0% | - | 0.0 | | 1700 | -12.88 | -30.20 | -2.6% | 6.0 | 0.0 | | 2000 | 50.44 | 21.07 | 10.6% | 3.8 | 1.3 | | 2300 | 105.45 | 66.21 | 24.4% | 3.4 | 1.9 | | 2600 | 160.45 | 111.05 | 41.4% | 3.0 | 2.8 | | 2900 | 215.46 | 155.36 | 62.5% | 2.6 | 4.5 | | 3200 | 270.46 | 199.36 | 91.9% | 2.3 | 6.6 | | 3500 | 325.47 | 243.35 | 168.4% | 2.0 | 8.4 | | 3800 | 380.47 | 287.35 | - | 0.7 | 10.4 | | 4100 | 435.48 | 331.35 | - | 0.5 | 12.8 |
Note: Dash indicates values have exceeded the limits of parameters calculated using the economic model
Commentary by Company on Next Steps, Funding and Additional Opportunities
The mining of the Junkyard Stockpile will continue through the remainder of 2025. The Company expects to mine additional stockpile material already identified ahead of production from the Veta Madre Pit.
The total Mineral Reserve in the study is 374.9k ounces of gold, including the Junkyard Stockpile, Veta Madre and El Crestón.
The Veta Madre Mineral Reserve can be exploited subject to receiving a Change of Land Use (CUS) permit, which the Company expects to receive in late 2025. The El Crestón expansion is expected to be sequenced into the schedule in 2027.
In August and September 2025, the Company received approvals of modifications to two existing environmental permits; the modifications authorize the expansion of the current leach pad to include an additional 9.6Mt of capacity. This is forecast to be sufficient to mine and process material from stockpiles included in the mining sequence and the Veta Madre pit. An additional leach pad expansion is planned for the processing of material from the El Crestón expansion and will require an amendment of an existing environmental permit.
Since the development plan for La Colorada represents a continuation of the historical operations, minimal capital investment is required for new equipment and facilities; however, pre-stripping at Veta Madre and El Crestón will need to be funded. The Company expects this to come from a combination of cash generated from the operations and potentially additional non-dilutive project financing if required.
A number of opportunities at La Colorada will become a focus for the Company upon submission of the updated technical report
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Stockpiles have the potential to fund stripping costs at Veta Madre. Drilling and analysis of their financial viability is ongoing and expected to be completed in Q4, 2025
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28k Indicated Mineral Resource ounces at Veta Madre are not included in the mine plan. Infill drilling of these areas is planned for 2025, and the company is targeting converting these to reserves that would support a larger pit, known as the Veta Madre Plus pit
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A larger pit at El Crestón may allow for steeper pit walls, increasing resource to reserve conversion at this deposit
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Drilling beneath the current pit boundary at El Crestón revealed widths and grades of gold mineralized veins that maybe amenable to underground mining. The Company will further explore extensions of high-grade mineralization at depth at El Crestón and Gran Central in late 2025 and 2026
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Outside the boundaries of the Mineral Resource estimate, several exploration targets remain largely unexplored. These include fault offsets from known mineralization, consistent gold-in-soil anomalies above 0.2 g/t, and areas with undrilled rock chip samples exceeding 1 g/t gold in zones of strong alteration. Further prospecting, geophysics, drill targeting and drilling are planned for the remainder of 2025 and 2026.
The La Colorada concession area covers 10,085ha and has seen very limited exploration beyond the immediate areas where Mineral Resources have been estimated.
[](https://images.newsfilecorp.com/files/7729/270792_ff44e226847aeadb_003full.jpg)
Figure 3 - Veta Madre Plus Opportunity
To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/7729/270792_ff44e226847aeadb_003full.jpg
Mineral Resource Estimates
Mineral Resources were estimated at La Colorada for three deposits: El Crestón, Veta Madre and the Junkyard Stockpile, and are summarized in the following table. Mineral Resources have an effective date of April 30, 2025 and are reported in situ, using the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (2014 CIM Definition Standards).
Mineral Resources Statement
| Classification | Zone | Tonnes (kt) | Gold Grade (g/t) | Silver Grade (g/t) | Contained Gold Metal (koz) | Contained Silver Metal (koz) | | Indicated | El Creston | 13,678 | 0.91 | 13.0 | 402 | 5,721 | | Veta Madre | 3,915 | 0.74 | 3.6 | 94 | 452 | | | Junkyard | 2,620 | 0.21 | 7.2 | 18 | 602 | | | Total | 20,213 | 0.79 | 10.4 | 513 | 6,776 | | | Inferred | El Creston | 34 | 0.40 | 19.1 | 0 | 21 | | Veta Madre | 94 | 0.44 | 2.1 | 1 | 6 | | | Junkyard | 1,017 | 0.46 | 38.7 | 15 | 1,264 | | | Total | 1,144 | 0.45 | 35.1 | 17 | 1,291 | |
Notes to accompany Mineral Resource table:
1. Mineral Resources are reported insitu, using the 2014 CIM Definition Standards, and have an effective date of April 30, 2025. The Qualified Person for the estimate is Mr. David Thomas, P.Geo., of Mine Technical Services. 2. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 3. Mineral Resource estimates for El Crestón and Veta Madre use the end-of-month October 2024 topography. Mineral Resource estimates for the Junkyard use the end-of-month April 2025 topography. 4. Mineral Resources at El Crestón and Veta Madre are constrained by a conceptual pit shell using the following assumptions: a gold price of US$2,400/oz Au; a silver price of US$29/oz Ag; a rock mining cost of US$2.44/t mined; a backfill mining cost of US$1.75/t mined; a crushing and leaching cost of US$1.84/t processed; at El Crestón a process cost of US$4.84/t processed and at Veta Madre a process cost of US$3.72 $/t; a general and administrative cost of US$1.12/t processed; a selling cost of US$0.88/t processed; at El Crestón a gold metallurgical recovery of 78% and a silver metallurgical recovery of 19% were used. Pit slope angles varied from 22º (pad) to 35-42º (pit). At Veta Madre, a gold metallurgical recovery of 67% and a silver metallurgical recovery of 5.0% were used. Pit slope angles averaged 45°. 5. Junkyard Mineral Resources are reported using the following assumptions: a gold price of US$2,400/oz Au; a silver price of US$29/oz Ag; a stockpile rehandle cost of US$1.30/t mined; a crushing and leaching cost of US$1.72/t processed; a process cost of US$3.10/t processed; a general and administrative cost of US$1.15/t processed; a selling cost of US$0.66/t processed; a gold metallurgical recovery of 66%; and a silver metallurgical recovery of 27%. 6. Mineral Resources are reported at gold equivalent cut-offs of 0.15 g/t AuEq at El Crestón and Junkyard and 0.13 g/t AuEq at Veta Madre. Gold equivalents are calculated using AuEq = (Au + Ag/equivalency factor), where equivalency factor = ((Au price in US$/g Au recovery) / (Ag price in US$/g Ag recovery)). This results in Au:Ag ratios of 1:339.75, 1:1,108.97 and 202.3 respectively. 7. Totals may not sum due to rounding.