Heliostar spills first gold from the San Agustin mine

[Ben Graham]

Mexico-focused miner Heliostar Metals (TSXV: HSTR) says it has poured first gold from the recently restarted San Agustin mine in Durango state.

The open-pit mine officially becomes Heliostar’s second producing asset, after its La Colorada mine in Sonora. The company expects San Agustin to deliver around 45,000 ounces of gold production from its remaining reserves.

The San Agustin mine, situated 100 km from the city of Durango, has a long history of activity dating back to the Spanish colonial times, with records indicating total gold output of 3 million oz. spanning over four decades.

Modern exploration took place at San Agustin in the 1990s, led by Canada’s Eldorado Gold (TSX: ELD). The project was later passed onto Argonaut Gold (now Florida Canyon Gold), which brought the mine online in 2012 before halting operations in 2024.

Heliostar subsequently took on the project, with plans to mine the Corner area that Argonaut previously did not have access to.

Increased guidance

In a statement this week, the company announced that San Agustin officially made its first pour in late January, after restarting operations on time and on budget.

So far, the operation has exceeded internal targets for ore mining rates and recoverable ounces stacked on the pad to date, the Canadian miner said, adding that the mine is on track to meet its 2026 production guidance.

“It is an extraordinary time in the gold market to bring new production online,” Heliostar CEO Charles Funk said. He added that the milestone allows the company to increase its year-on-year consolidated production guidance by over 60% whilst maintaining a low all-in sustaining cost of $2,000 per ounce in 2026.

In January, the company issued a 2026 production guidance of 50,000-55,000 ounces of gold, including 30,000-32,700 ounces from San Agustin and 20,000-22,300 ounces from La Colorada.

Ongoing drilling

Meanwhile, Heliostar is also in the process of completing a 10,000-15,000-metre drill program at San Agustin, with the aim of defining additional oxide gold mineralization around the open pit that could extend the current mine life. According to a 2025 technical study, the mine is expected to only have a 14-month life, producing a total of 44,500 gold ounces.

The estimate is based on a probable reserve of 7.36 million tonnes grading 0.29 g/t gold, containing 68,000 ounces.

Shares of Heliostar rose by nearly 3% on Friday. The stock plunged from a 52-week high last week amid a historic selloff in precious metals, which also impacted miners’ performances. The company has a market capitalization of C$747.3 million ($540.4 million).