This Miner Aims to Boost Production 10-Fold by 2030

By Sean Brodrick Reviewed by: Jim Nelson

How would you like to own a gold miner that's already up 251% — and could have much further to run?

That's exactly what we're sitting on with Heliostar Metals (HSTXF), a recommendation in my Resource Trader portfolio.

In my opinion, Heliostar has much, much further to run.

You see, Heliostar is in the middle of an ambitious transformation. 

It's already producing gold at two mines in Mexico, with production expected to jump roughly 60% this year.

But that's just the beginning.

Heliostar aims to become a mid-tier gold producer, potentially increasing its production 10-fold from last year's output!

I recently sat down with Stephen Soock, Heliostar's Vice President of Investor Relations and Development, at the New Orleans Investment Conference.

You can hear the details straight from Stephen in my exclusive interview.

Watch it right here:

Heliostar Metals Is Ramping Up, Full Speed Ahead

Heliostar has an ambitious goal: grow from a small gold producer into a mid-tier mining company producing 300,000 to 500,000 ounces of gold annually by the end of the decade.

And unlike many junior miners with big ambitions, Heliostar already has producing mines generating cash flow to help finance that growth.

The company operates two gold mines in Mexico:

• La Colorada, in Sonora, is an open-pit, heap-leach operation expected to produce 20,000 to 22,300 ounces of gold in 2026. Mining recently restarted at the Veta Madre pit, and an expansion could lift production to an average of approximately 46,000 ounces annually over a six-year mine life.
• San Agustin, in Durango, is another open-pit, heap-leach operation. It is expected to produce 30,000 to 32,700 ounces this year. Exploration is underway to extend the mine's operating life.

Together, these mines are expected to produce 50,000 to 55,000 ounces of gold in 2026, up from roughly 33,000 ounces last year. That's about 60% growth at the midpoint of guidance.

But the real excitement is Heliostar’s flagship Ana Paula project, in Guerrero, Mexico.

Ana Paula is a high-grade gold deposit that Heliostar plans to develop as an underground mine.

A preliminary economic assessment envisions average annual production of approximately 101,000 ounces of gold over a roughly 10-year mine life, with all-in sustaining costs of just $1,011 per ounce.

Heliostar expects to complete a feasibility study in the second quarter of 2027, make a construction decision around midyear and pour its first gold before the end of 2028.

The company also owns Cerro del Gallo, another potential gold producer in Mexico, along with San Antonio in Mexico, Goldstrike in Utah and Unga in Alaska.

Heliostar's strategy is to use cash flow from its existing operations, supplemented by project financing, to build Ana Paula.

Cash flow from Ana Paula could then help finance additional mines.

There are risks, of course. 

Ana Paula still requires a completed feasibility study, financing and permits. And reaching 300,000 to 500,000 ounces annually by 2030 is an ambitious target.

Still, Heliostar has what many junior gold miners lack: operating mines, growing production and a project pipeline that could transform the company's size.

So, I’m happy it’s in the Resource Trader portfolio. If you’re doing this on your own, you’ll have to decide if Heliostar is right for you.

All the best,

Sean Brodrick