Heliostar pours first gold from San Agustin mine

Mexico-focused miner Heliostar Metals (TSX-V: 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 oz. of gold production from its remaining reserves.

Located 100 km from the city of Durango, San Agustin has a long history of activity dating back to the Spanish colonial times. Records indicate 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 the former Argonaut 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 didn’t have access to.

Increased guidance

San Agustin officially made its first pour in late January, after restarting operations on time and on budget, Heliostar announced last week.

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. The restart allows Heliostar to increase its year-over-year consolidated production guidance by more than 60% while maintaining a low all-in sustaining cost of US$2,000 ($2,720) per oz. in 2026.

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

Ongoing drilling

Heliostar is 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 grams gold per tonne for contained metal of 68,000 ounces.

Heliostar shares jumped 5.2% to C$2.84 Friday in Toronto, giving the company a market value of about $763 million (US$561 million). The stock plunged from a 52-week high last week amid a historic selloff in precious metals that also impacted mining stocks.