(TheNewswire)
Vancouver, Canada – TheNewswire - January 25, 2021 – HeliostarMetals Limited (TSXV:HSTR ) , (OTC: RGCTF ) , ( FRA:RGG) ( "Heliostar" or the "Company" ) is pleased to announceresults from the first two of nine holes completed at the SH-1 Zone inits 2020 exploration program at the Unga project in Alaska.
Heliostar CEO, Charles Funk, commented “ These excellent results demonstrate thehigh gold grades contained within the SH-1 zone at Unga. SH-1 is themost advanced target at Unga with 384,318 ounces of gold at 13.8g/tand is open to expand. Assays are pending for the remaining sevenholes completed at SH-1 in 2020 and the resource is expected to grow. Unga received very little exploration in the last 40 years. However,it has several exciting, high-grade gold targets. Heliostar willcontinue to aggressively explore the property in 2021 with a goal ofdefining resources in excess of one million ounces.”
Drilling Highlights
SH20-01A
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- 7.74 grams per tonne (g/t) gold and 27.0 g/t silverover 11.65 metres (m) from 12.95 m downhole including;
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- 16.06 g/t gold and 37.7 g/t silver over 4.0 m from12.95 m downhole
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SH20-02
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- 18.66 g/t gold and 11.5 g/t silver over 1.98 m from50.75 m downhole
Note: All numbers are rounded and widths representdownhole lengths. True thickness is estimated at 80-85% of downholethickness.
SH-1 Zone
SH-1 is a priority target at Unga. It holds ahigh-grade inferred resource containing 384,318 ounces gold at a gradeof 13.8 g/t and has significant potential for expansion with highgrade intercepts open along strike and at depth. The resource iscentred on the Main Shoot, which is well defined by tightly spaceddrilling, but is loosely defined by widely spaced drilling outside ofthis zone.
A 100-metre vertical gap existed between surface andthe first historical vein intercepts and in 2020, seven holes werecompleted to fill the blanks in our understanding of the rocks aroundthe upper portions of the Main Shoot. The reported holes are 50metre step outs on previously completed drilling. Based on previousdrilling, it was possible to interpret both steep and shallow plungesto mineralization. These first results suggest a steeper orientationis more likely which emphasizes the potential for further resourceexpansion at depth.
The company also completed two deeper holes in 2020 totest depth extensions in areas of widely spaced drilling. The deepestcompleted hole to date at SH-1 intersected 23.99 g/t gold over 5.48metres in hole BM-01 and the company will continue to infill theseareas and expand to depth where the system remains open.
Figure 1: Longsection of SH-1 looking to northwest with 2020 holes shown andreceived results labelled in red.
Drilling along strike from the Main Shoot indicatesparallel zones of mineralization that remain open and will be testedwhen drilling recommences in late March.
SH-1 is one of multiple epithermal gold targets alongthe 8.4km long Shumigan vein corridor. It is the most advancedprospect at Unga with a high-grade inferred resource but hasconsiderable potential for expansion.
The SH-1 inferred resource sits at the eastern end ofthe Shumagin vein corridor below an elongate hill formed by quartzveining and alteration associated with gold mineralization. At SH-1the vein forms between rhyolite in the hanging wall to the southeastand andesite in the footwall to the northwest. The vein occurs as amulti-episodic quartz vein, with a core of competent brecciated quartzveining grading outwards through an intense to weak zone of quartzalteration. Gold and lesser silver mineralization is carried withinthe veins and strongly silicified zones and is usually foundassociated with the zinc and lead sulphides, sphalerite and galena.
Drillhole | From | To | Interval (m) | Gold | Silver | Comment |
SH20-01A | 12.95 | 24.6 | 11.65 | 7.74 | 27.0 | |
Incl. | 12.95 | 16.95 | 4.00 | 16.06 | 37.7 | |
SH20-02 | 50.75 | 52.73 | 1.98 | 18.66 | 11.5 | |
SH20-03 | Assays Pending | |||||
SH20-04 | Assays Pending | |||||
SH20-05 | Assays Pending | |||||
SH20-06 | Assays Pending | |||||
SH20-07 | Assays Pending | |||||
SH20-08 | Assays Pending | |||||
SH20-09 | Assays Pending |
Table 1: Table of intersections from the SH-1 Zone. True thickness isestimated at 80-85% of downhole lengths.
Figure 3: Crosssection through SH20-1A looking towards the northeast.
Prospect | Drillhole | Easting | Northing | Elevation | Inclination | Azimuth | Total Depth |
SH-1 | SH20-01A | 399,442 | 6,120,749 | 87 | -45° | 330° | 72.54 |
SH20-02 | 399,536 | 6,120,778 | 93 | -45° | 330° | 66.45 |
Table 2: SH-1 drill hole details. NAD83, Zone 4 Coordinate system.
About Heliostar Metals Ltd.
Heliostar is a well-financed junior exploration anddevelopment company with a portfolio of high-grade gold projects inAlaska and Mexico. The company’s flagship asset is the 100%controlled Unga Gold Project on Unga and Popof Islands in Alaska. The project hosts an intermediate sulfidation epithermal golddeposit, located within the district-scale property that encompasses240km 2 across the two islands. Additional targets on the propertyinclude porphyry, high sulphidation and intermediate sulphidationepithermal veins. On Unga Island, priority targets include: the SH-1and Aquila, both on the Shumagin Trend, the former Apollo-Sitka mine,which was Alaska’s first underground gold mine and the Zachary Bayporphyry gold-copper prospect. Gold mineralization at the Centennial Zone is located onneighbouring Popof Island within four kilometres of infrastructure andservices at Sand Point.
In Mexico, the company owns 100% of three early stageepithermal projects in Sonora that are highly prospective for gold andsilver. Cumaro forms part of the El Picacho district, while the OsoNegro and La Lola projects are also prospective for epithermalgold-silver mineralization.
Quality Assurance / Quality Control
Drill core samples were shipped to ALS Limited inFairbanks, Alaska for sample preparation and for analysis at the ALSlaboratory in North Vancouver. The ALS Fairbanks and North Vancouverfacilities are ISO/IEC 17025 certified. Silver and base metals wereanalyzed using a four-acid digestion with an ICP finish and gold wasassayed by 30-gram fire assay with atomic absorption (“AA”)spectroscopy finish and overlimits were analyzed by 30g fire assaywith gravimetric finish..
Control samples comprising certified reference samples,duplicates and blank samples were systematically inserted into thesample stream and analyzed as part of the Company’s qualityassurance / quality control protocol.
Qualified Person
The Company’s disclosure of technical or scientificinformation in this press release has been reviewed and approved byStewart Harris, P.Geo., Exploration Manager for the Company. Mr.Harris is a Qualified Person as defined under the terms of NationalInstrument 43-101.
For additional information pleasecontact:
Charles Funk
Chief Executive Officer
Heliostar Metals Limited?
Email: charles.funk@heliostarmetals.com
Rob Grey
Investor Relations Manager
Heliostar Metals Limited?
Email: rob.grey@heliostarmetals.com
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Forward-Looking Information. Thisrelease includes certain statements that may be deemed"forward-looking statements". Forward-looking statementsare statements that are not historical facts and are generally, butnot always, identified by the words "expects","plans", "anticipates", "believes","intends", "estimates", "projects","potential" and similar expressions, or that events orconditions "would", "may", "could" or"should" occur. Forward-looking statements in this pressrelease include Heliostar’s plans to continue aggressive explorationat Unga in 2021 and its goal of defining a resource in excess of onemillion ounces, its plan to continue infill drilling to expand todepth where the system remains open, and its belief that the SH-1prospect has considerable potential for expansion. AlthoughHeliostar believes that the expectations expressed in suchforward-looking statements are based on reasonable assumptions, suchstatements are not a guarantee of future performance and actualresults may differ materially from those in the forward-lookingstatements. Factors that could cause the actual results to differmaterially from those in forward-looking statements include marketprices, exploitation and exploration successes, weather, continuedavailability of capital and financing, and general economic, market or businessconditions. Investors are cautioned that any such statements are notguarantees of future performance and actual results or developmentsmay differ materially from those projected in the forward-lookingstatements. Forward-looking statements are based on the beliefs,estimates and opinions of the Company's management on the date thestatements are made. Except as required by applicable securities laws,the Company undertakes no obligation to update these forward-lookingstatements in the event that management's beliefs, estimates oropinions, or other factors, should change.
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