Cerro del Gallo Project PFS: $424M NPV, 33.1% IRR
Heliostar Metals Ltd.'s Cerro del Gallo Project in Guanajuato, Mexico has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $424M, an after-tax IRR of 33.1%, and initial capital of $195M. The mine plan runs 15 years at about 86 k GEO/yr per year.
Heliostar Metals Ltd.'s Cerro del Gallo Project has reported Pre-Feasibility Study (PFS) results for the gold project in Guanajuato, Mexico. The study headlines an after-tax net present value of $424M at a 5% discount rate. It reflects Heliostar Metals Ltd.'s (HSTR.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $424M using a 5% discount rate. After-tax IRR is 33.1%. Initial capital expenditure is estimated at $195M, with life-of-mine sustaining capital of $48M. All-in sustaining costs are pegged at 1390 USD/GEO.
Production and mine plan. The project envisions an open pit, heap leach operation. Life of mine is 15 years. Average annual production is approximately 86 k GEO/yr.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 3.75%.
These figures are extracted from Heliostar Metals Ltd.'s technical disclosures and reflect the most recent PFS on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Probable | 91,893 kt | 0.51 g/t Au, 15.25 g/t Ag | 1,495 koz Au, 45,066 koz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 239,984 kt | 0.38 g/t Au, 13.78 g/t Ag | 2,944 koz Au, 106,359 koz Ag |
| Inferred | 24,448 kt | 0.28 g/t Au, 13.67 g/t Ag | 224 koz Au, 10,746 koz Ag |
Our Analysis
The 33.1% after-tax IRR sits in the lower half of the 92 gold projects we track, but it still clears the practical financing hurdle for a developer by a wide margin, especially given Mexico’s mining-friendly jurisdiction. The 5% discount rate is at the low end of the reporting convention, which flatters the headline NPV; a more typical rate would compress that figure. The NPV of $424M is roughly in line with the company’s market cap, which cuts both ways—it suggests the market has not priced in a premium for the project, but it also means there is limited upside cushion if costs or timelines slip.
Capital intensity is low at 46% of NPV, reducing funding risk for a $195M initial build. However, the study’s gold price assumption sits well above the current live spot of $4,134.90/oz, making the returns optimistic if prices revert. The single most important watch-item is permitting and construction execution in Guanajuato, where community and regulatory dynamics can delay timelines for a single-asset junior.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.