(TheNewswire)
Vancouver, Canada - TheNewswire - October 22, 2020 - HeliostarMetals Limited (TSXV:HSTR ) (OTC :RGCTF ) ( FRA:RGG)( "Heliostar" or the "Company" )is pleased to provide an update on drilling at the Unga project inAlaska. The Company currently has three drill rigs exploring the SH-1resource, the historic Apollo Mine, and the Aquila prospect and hascompleted 1,200 metres of drilling. Drilling at SH-1 has intersectedtargeted veining up-dip and at depth, while drilling at Aquila hasintersected veining. The program is expected to continue until lateNovember 2020.
Heliostar CEO, Charles Funk, commented "The ramp-up of our drilling programhas been slower than planned due to difficulty staffing the threecontract rigs at site. However, we are now making more significantprogress with 1,200 metres completed and a total of 12 holes completeacross the SH-1, Apollo and Aquila targets. Veins have beenintersected in drilling at each prospect and the company has submittedsamples for analysis with an expectation of first results duringNovember."
Exploration Update
The 2020 Unga project drill plan includes four prioritytarget areas: SH-1 resource, the Apollo Mine, Aquila and Centennial(Figure 1). Drilling began at SH-1 on September 15 th , at Apollo onSept 24 th , and at Aquila on October 11 th . The delayin staffing will impact the planned 6,500-8,000 program and thecompany will provide an update when the reduction in total metresdrilled is known.
SH-1
At SH-1, eight holes totalling 743 metres have beencompleted to-date. Drilling has focused on the up-dip extensions ofmineralization, in an approximately 100m gap between historicaldrilling and the surface and the down-dip extensions of mineralizationat or below historical drilling levels (Figure 2). Up-dip drillingencountered veining and hydrothermal breccia in all eight completedholes and will serve to improve near surface estimations of geometryand grade. One hole targeting the down-dip extensions ofmineralization has been completed and encountered veining andhydrothermal brecciation. All assays are pending. SH-1 has been thefocus of recent drill programs where intercepts have included wideveins with high gold grades. The current program is designed toimprove estimation near surface, infill drill where wide (greater than100 metre) drill spaces exist and to extend mineralization that isopen at depth.
Apollo
At Apollo, one drill hole totalling 199 metres has beencompleted. The hole targeted the gold mineralization at the lowermargins of the historic mine and encountered hanging wall veins andworkings. A second drill hole targeting the down dip projection ofthe historic stopes at a lower elevation than the first is inprogress. Apollo was Alaska's first underground gold mine and isestimated to have produced 130,000 ounces prior to its closure in1922. Gold mining occurred over the upper 200 vertical metres of thesystem but did not progress deeper due to a change from a golddominant oxidized mineralogy to a gold, silver, base metal-richunoxidized mineralogy which could not be profitably processed usingmethods available at the time. This drilling program is the first tointersect the downdip projection of these historically mined oreshoots.
Figure 1: TheUnga project with 2020 primary drill targets identified.
Figure 2: Longitudinal section along the SH-1 resource with 2020 drill holesidentified and target areas highlighted.
Aquila
Aquila drilling has completed three holes totalling 258metres. Two drillholes have intersected and recovered the targetedvein zone. This vein was originally identified by Battle MountainGold in 1980's though mapping and trenching. Drill testing at the time was unsuccessful and abandoned in large partdue to poor core recoveries. This current drilling program has beenmore successful with significantly better core recovery in the firstholes of this program.
Other targets
The company has also been reviewing, generating andprioritising additional targets on the project. Extensions of theApollo-Sitka vein at the Empire Ridge and Sitka targets are ready fordrilling and surface sampling has been completed at Bloomer Ridge nearSH-1 (Figure 1).
Three-year extension of the UngaSurface Access Agreement
In late August, the company entered into a new, 3-yearsurface agreement with the Unga Corporation. This agreement allowsthe Company access to the areas surrounding the SH-1, Apollo andAquila targets as well as numerous other prospective explorationsites. Heliostar enjoys a strong relationship with our localstakeholders and we thank the Unga Corporation for their ongoingsupport and cooperation.
About Heliostar Metals Ltd.
Heliostar is a well-financed junior exploration anddevelopment company with a portfolio of high-grade projects in Alaskaand Mexico. The company's flagship asset is the 100% controlled UngaGold Project on Unga and Popof Islands in Alaska. The project hostsan intermediate sulfidation epithermal gold deposit, located withinthe district-scale property that encompasses 240km 2 across the twoislands. Additional targets on the property include porphyry, highsulphidation and intermediate sulphidation epithermal veins. On UngaIsland, priority targets include: the SH-1 and Aquila high-grade goldzones, both on the Shumagin Trend, the former Apollo-Sitka mine, whichwas Alaska's first underground gold mine and the Zachary Bay porphyrygold-copper district. Gold mineralization at the Centennial Zone islocated on neighbouring Popof Island within four kilometres ofinfrastructure and services 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.
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@redstargold.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 expectations that the transactionscontemplated in the Agreement will be approved by the TSX VentureExchange and completed and that it can obtain shareholder approval forits proposed post-closing share consolidation, name change and theelection of both the Heliostar nominees and the Heliodor nominees atits next general meeting of shareholders, that it can successfully raise at least C$6 millionand, if so, the number of Heliostar shares that would be issued in theoffering, and, finally, that it can commence exploration at its Ungaproject in late August and that it can achieve its 2020 explorationplans. Although the Company believes the expectations expressed insuch forward-looking statements are based on reasonable assumptions,such statements are not guaranteeing 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, and continuedavailability of capital and financing, and general economic, market orbusiness conditions. Investors are cautioned that any such statementsare not guarantees of future performance and actual results ordevelopments may differ materially from those projected in theforward-looking statements. Forward-looking statements are based onthe beliefs, estimates and opinions of the Company's management on thedate the statements are made. Except as required by applicablesecurities laws, the Company undertakes no obligation to update theseforward-looking statements in the event that management's beliefs,estimates or opinions, or other factors, should change.
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