Heliostar Metals (TSX-V: HSTR)(OTC: HSTXF) CEO Charles Funk on High-Grade Intercept from First Two Holes at La Lola Silver-Gold Project, Mexico & Drilling Update from Unga Gold Project, Alaska
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Heliostar Metals — Mr. Charles Funk. Charles, how are you today?
Charles Funk: I'm doing very well. With the market like this, it's a better day, isn't it!
Gerardo Del Real: It's a good thing to see some green on the board for a change! We know that we've had a consolidation in the space that's lasted several months. You and I chatted last time and thought that it made for an excellent entry point to Heliostar's stock. Sure enough, you had some news here a few days ago that the market has reacted positively to.
You drilled 2.5 meters of 92 grams per tonne (g/t) silver in the first holes at the La Lola property in Sonora, Mexico.
And so congratulations on that! I know that it was two holes that were announced. And the one that is the highlight intercept is a proof-of-concept for the team, right?
Charles Funk: Absolutely! La Lola was a big district that I staked in a previous role because it had big veins. The La Barra vein is over 5 kilometers in a big area of alteration.
And we knew that we didn't expect super high grades consistently at surface because the nature of these veins is that it hadn't eroded down to the level where the gold and silver deposit. So we did some surface sampling and got a two-ounce gold sample; some 400-gram silver samples.
And so all of a sudden, we had a big district, which is a tick. We had a big, long vein that gets up to 40 meters wide; another big tick. And then, those samples showed that there is gold in the system, which was the third big tick. So the next thing we had to do was to drill deeper to where we think that would be, following our geologists' models on how to make these discoveries.
And so the project had never been drilled before. And so we're currently drilling; we're on hold for the moment. But as you mentioned, we put out the 2.5 meters at 92 grams in the second hole. The first hole, we worked out that the vein dipped in a different orientation to what we thought, and then we drilled it effectively in the second hole.
And so these are the best silver numbers that have been sampled from the main vein. So that's telling us that we're on the right track, and we very much look forward to the assays from all three. And then, we're about to hit the vein in hole four.
So as geos, we're watching every day for what could be down there because this really confirms our thesis.
Gerardo Del Real: The company has always believed that the grades would increase with depth, correct?
Charles Funk: Yeah, so the best way I can describe that is I was previously involved in the Ermitaño discovery about 50 kilometers away that First Majestic is putting into production this year.
At surface, there was almost no gold. I think the highest sample may be 0.25 grams gold. And then, 100 meters down, we drilled and got about 5 meters at 1 gram. And then another 50 meters below that, drilled 11 meters at 18 grams.
And that's the way these veins can change. And that's what gave us the confidence to do this drill program at La Lola. We've done it before.
Gerardo Del Real: Excellent! Alaska… can't let you go before I ask about Alaska! How are things coming along there as far as preparations for a resumption of drilling?
Charles Funk: Extremely well. We put out a press release last week to say that we're mobilizing with three drill rigs. With Easter starting in the next couple of days, we'll start drilling a little later than we originally planned. But we'll be drilling at Alaska in a couple of weeks.
And so we'll have more news from Mexico on our projects over the next month to
month-and-a-half. And then, you'll start to see consistent news flow from our program in Alaska.
We believe in our projects, so we're being very active exploring them.
Gerardo Del Real: Excellent! You have some high quality projects. You're drilling both. I'm looking forward to assay results from each of those. Anything else to add to that, Charles?
Charles Funk: No, I think we've covered it. We're looking forward to a transformational summer for Heliostar.
Gerardo Del Real: Fantastic. Looking forward to having you back on to talk about it. Thanks again.
Charles Funk: Thank you and a good day to your listeners.
Gerardo Del Real: Thanks, Charles.