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Feb. 01, 2013 04:30AM PST
A Russian gold company the size of Goldcorp could be formed now that Russian billionaire Mikhail Prokhorov has sold a stake in the country’s biggest gold miner.
MINING.com reported that a combination of Polyus Gold (LSE:PGIL) and Polymetal International (LSE:POLY) is a likely outcome of last week’s news that Russian billionaire Mikhail Prokhorov is selling a 37-percent stake in Polyus to an unnamed group of investors selected by billionaire Suleiman Kerimov’s Nafta Moskva, which holds a 40-percent stake in Polyus.
Kerimov tried unsuccessfully merge the two firms last year. If he succeeds this time, the resulting company will be the world’s fifth- or sixth-largest gold producer (on par with Canada’s Goldcorp), with over 2.7 million ounces predicted for 2013, according to MINING.com.
Polyus made headlines this week when it announced that its gold output in 2012 rose 12 percent, to a record 1.68 million ounces — exceeding production targets by 5 percent and bucking the trend plaguing major gold producers like Goldcorp and Barrick Gold (NYSE:ABX,TSX:ABX), which have both struggled to bring projects online.
It expects its 2012 gold sales to rise a whopping 22 percent, to $2.8 billion, compared to $2.3 billion a year ago.
“The record double-digit growth rate achieved in 2012 came as a result of … exceptional performance delivered by our largest mines, Olimpiada and Blagodatnoye, and steady improvements at Kuranakh,” Polyus said in a statement.
The company also said it may hike its 2013 output by 7 percent, to between 1.7 and 1.8 million ounces, due to rising production in Russia.
Meanwhile, Polymetal also announced that it produced significantly more gold in 2012 than in 2011 — 1.06 million gold-equivalent ounces, which is 31 percent more than it put out in 2011 and 6 percent better than its original guidance. The news prompted the precious metals miner to announce a possible disbursement of a special dividend at the end of the year, adding to this month’s payout of US$0.50 per share, which cost the company $191 million, Reuters reported.
Polymetal is on track to pour 1.2 million ounces this year, notwithstanding the risk of a 5-percent shortfall due to delays at one of its facilities, the company said.
Gold rises on continued hopes of money printing
The gold price added over $18, or 1 percent, Wednesday on poor economic news from the United States; that points to continued stimulus on the part of the US Federal Reserve. The yellow metal was changing hands for $1,681 an ounce after the release of economic data showing that the US economy shrunk 0.1 percent during the fourth quarter of 2012; the Fed’s statement that it will continue buying Treasury bills and bonds worth $85 billion a month due to “downside risk to the economic outlook” also contributed to the uptick.
By Thursday, however, Wednesday’s gains were erased, with the precious metal down over $20, to $1,660 midday, as gold traders sold and took profits. Spot gold closed at $1,664 on the last day of the month, while gold futures (April delivery) last traded down $17.80 at $1,663.90. On a monthly basis, gold in January booked losses for the fourth month in a row.
Gold, considered a hedge against inflation and currency depreciation, has doubled in value since the US Federal Reserve, under the direction of Chairman Ben Bernanke, started its quantitative easing programs in 2008. These programs are essentially aimed at increasing the supply of money in order to drive down interest rates and stimulate borrowing and consumer spending.
Indian gold traders do brisk trade as wedding season approaches
Indian bullion dealers appear to have stepped up their gold trading last month in anticipation of the hike in the gold import duty announced on January 21.
Mineweb reported that bullion traders “cornered most of the precious metal in the first three weeks of the month,” clearly hedging their bets on what will happen after the customs duty on gold imports rises from 4 percent to 6 percent.
Traders also seem keenly aware of India’s wedding season, which begins next week and continues until May, and is considered the most lucrative time of the year for the gold trade as families purchase gold jewelry to mark weddings and other auspicious occasions.
US produced less gold and silver in 2012
Production of gold and silver in the United States was down last year even though the total value of minerals produced in the US was up for the third year in a row, according to stats from the US Geological Survey (USGS).
The USGS reported the value of all minerals produced at $76.5 billion in 2012 versus $74.8 billion in 2011, with gold, copper and aggregates comprising the top three sectors. However, US mines only produced 230 tons of gold last year, compared to 234 in 2011, and 1,050 tons of silver, versus 1,120 tons in the prior year.
Ghana starts refining gold, China to offer ETFs
Two countries reached milestones this week in the way they handle or vend gold. Ghana, Africa’s second-largest gold producer, will begin refining gold for the first time since mining began in the country over 100 years ago, Bloomberg reported, beginning with state-owned Precious Minerals Marketing. The country is aiming to add domestic value to its natural resources, most of which are exported unprocessed.
The Chinese government took another step toward encouraging its citizens to buy gold by introducing rules for the operation of exchange-traded funds (ETFs), China Daily reported. While no timetable for the introduction of ETFs was announced, the move is “part of government efforts to boost the development of both the gold market and the capital market,” the article states.
Gold Investing News reported last week that commodity ETFs were dominated by gold in 2012, with assets in gold ETFs totalling $146.6 billion — and representing the lion’s share of the $199.8 billion under management in commodity ETFs.
Company news
Oyu Tolgoi’s massive copper-gold-silver complex will reach commercial production by 2013, Rio Tinto (LSE:RIO,ASX:RIO,NYSE:RIO) said Thursday in response to a media report stating that the company is considering a temporary halt in construction for political reasons. ”The power is secured, first ore produced and the concentrator switched on,” Rio Tinto spokesman Illtud Harri told Reuters. “We are on schedule for first commercial production in the first half of the year.” Rio was allegedly considering halting the $6.2-billion project to protest Mongolia’s demands for a larger stake in the project and new royalty rates, Bloomberg reported.
The government of Kyrgyzstan is once again trying to force Centerra (TSX:CG) to renegotiate its mining license for its Kumtor open-pit mine, EurasiaNet reported on Monday. The former Soviet republic last year cancelled surface mining rights granted to the Canadian gold miner on accusations that the company is damaging the environment and stealing the country’s wealth. The mine has produced 8.4 million ounces of gold since 1997 and accounts for 60 percent of the Central Asian republic’s industrial output.
Bloomberg reported that AngloGold Ashanti (NYSE:AU) expects to overshoot costs for its Tropicana mine by 13 percent. The company blamed an overheated Western Australian construction market, along with extreme skill shortages and higher labor costs, in explaining the new estimate of between AU$820 million and $845 million. In 2010, the mine’s capex was estimated at $775 million.
Junior company news
On Monday, Atacama Pacific Gold (TSXV:ATM) released a preliminary economic assessment (PEA) for its Cerro Maricunga oxide-gold project in Chile. The PEA targets annual production of 298,000 ounces over the first five years of a 10-year mine life. The Toronto-based company said the project is “globally one of the largest oxide gold projects under consideration for development.”
Guyana Goldfields (TSX:GUY) filed a technical report relating to its Aurora gold project in Guyana. The report outlines an open-pit, underground operation that will yield 194,000 ounces per year over a 17-year life of mine, with 231,000 ounces produced on average in the first 10 years.
Meadow Bay Gold (TSX:MAY) announced that a resource estimate has been completed for its Nevada-based Atlanta gold project. The company said it has more than doubled the resource since acquiring the property two years ago.
Securities Disclosure: I, Andrew Topf, hold an equity position in Goldcorp.
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Investor Insight
Heliostar combines production of ~50,000–55,000 oz in 2026 with a pipeline of high-margin development assets in Mexico led by Ana Paula. Supported by operating cash flow from La Colorada and San Agustin, a debt-free balance sheet and strategic expansion into the US with the Goldstrike project in Utah, the company is positioned to scale into a 500,000 oz per year gold producer.
Overview
Heliostar Metals (TSX:HSTR,OTCQX:HSTXF,FRA:RGG1) is an emerging gold producer focused on building a mid-tier, multi-asset production platform, anchored in Mexico and complemented by strategic expansion into the United States.
The company has rapidly transformed from an explorer into a producer through disciplined, value-accretive acquisitions, assembling a 100 percent-owned portfolio of producing mines, advanced development projects and exploration assets. This platform provides both immediate cash flow and long-term scalability.
In 2025, Heliostar produced 34,098 gold equivalent ounces, generated US$47.4 million in mine operating earnings, and ended the year with US$40.6 million in cash and no debt, demonstrating strong execution and financial discipline.
Production is expected to increase to 50,000–55,000 oz in 2026, driven by La Colorada and San Agustin. Development of Ana Paula and Cerro del Gallo supports a clear pathway to 500,000 oz annual production by 2030.
In 2026, Heliostar formed part of the OTCQX’s Best 50 top-performing companies. The company ranked 8th overall, joining 7 other mining companies in the top 10.
Beyond its core Mexican portfolio, the addition of the Goldstrike project in Utah introduces further growth optionality, reinforcing Heliostar’s strategy of acquiring and advancing underexplored assets with strong development potential. With a staged growth strategy, strong margins and an expanding resource base, Heliostar is positioned to evolve into a 500,000 oz per year gold producer by 2030.
Company Highlights
- Growing Production Base: Two producing mines targeting 50,000–55,000 oz of gold in 2026, generating cash flow to fund development.
- Clear Path to Mid-Tier Scale: Staged growth targeting annual production of 500,000 oz by 2030.
- High-Margin Flagship Asset: The Ana Paula PEA outlines 101,000 oz/year production (post ramp-up) with strong economics, including US$1,012M NPV5% and 51.3% IRR at higher gold price assumptions, supporting a 2028 production target.
- Self-Funded Growth Model: Generated US$47.4 million in mine operating earnings (2025) with US$40.6 million in cash and zero debt, reducing reliance on equity dilution.
- Robust Resource Base: Approximately 7.3 Moz measured and indicated gold resources plus ~1.4 Moz inferred, supporting long-term scalability.
- High-Quality Development Pipeline: Cerro del Gallo targeting 86,000 GEO/year at US$1,390 AISC, alongside San Antonio’s production potential.
- Strategic Expansion in the US: Acquisition of the Goldstrike project in Utah adds near-surface oxide potential and long-term growth optionality.
- Strong Institutional Backing: Approximately 53 percent institutional ownership, complemented by high-net-worth investors and management alignment.
Key Projects
Ana Paula (Flagship Development Project)
Ana Paula is a high-grade underground gold project in Guerrero and the cornerstone of Heliostar’s long-term growth strategy.
The November 2025 PEA outlines a 9 year mine life with 101,000 oz/year production, 874,700 oz total output, and strong economics, including a US$1,012M NPV5% and a 51.3 percent IRR, supported by a low AISC of US$1,011/oz.
The project hosts approximately 742,000 oz measured and indicated at 5.4 g/t and 514,000 oz inferred, highlighting its high-grade profile and expansion potential.
With a feasibility study targeted for H1 2027 and construction expected in H2 of the same year, Ana Paula is expected to become the primary driver of Heliostar’s transition to mid-tier production.
The company is targeting production at Ana Paula in 2028.
La Colorada Mine
La Colorada in Sonora is a key cash-flowing asset that underwent a successful turnaround in 2025. The mine hosts reserves of 376,000 ounces of gold grading 0.68 g/t in 17.1 million tonnes of ore.
The mine is expected to produce 20,000–22,300 oz in 2026 at AISC of US$1,775–1,875/oz, supported by a six-year mine life and approximately 286,000 oz total production profile.
Mining at the project’s Veta Madre pit commenced in August 2026, a milestone that the company ties to its plan to secure cash flow through 2027 and 2028 to support construction at Ana Paula.
Ongoing drilling, pit expansions and underground potential provide meaningful upside, reinforcing its role as a core funding engine for development.
San Agustin Mine
San Agustin in Durango is a restarted oxide heap-leach operation providing near-term production growth and cash flow.
2026 guidance targets 30,000–32,700 oz of gold at AISC of US$2,150–2,250/oz, following a low-capital restart funded from the company’s balance sheet.
The asset offers additional upside through oxide expansion and sulphide exploration, supporting potential mine life extension.
Cerro del Gallo Project
Cerro del Gallo is a large-scale gold-silver development project in Guanajuato and a key driver of future production growth.
The 2025 PFS outlines ~86,000 GEO/year over a 15-year mine life at US$1,390 AISC, with strong economics, including US$972 million NPV5% and 59.3 percent IRR at higher gold price assumptions.
The project is expected to play a central role in advancing Heliostar towards the goal of 500,000 oz annual production by 2030.
San Antonio Project
San Antonio is a 100%-owned heap-leach development project offering strong optionality and long-life production potential.
The project hosts approximately 1.74 million ounces of measured and indicated gold and demonstrates attractive optionality, including potential 80,000 oz/year production and low AISC of US$1,063/oz.
As permitting advances, San Antonio represents a key medium-term growth opportunity within the portfolio.
Goldstrike Project (Utah, USA)
Goldstrike is a newly acquired gold project that expands Heliostar’s footprint in the United States and adds exploration and development optionality. The property currently hosts an Indicated resource of 975 kilo ounces at 0.46 g/t of gold.
The project hosts a near-surface oxide gold system with historical production of approximately 209,000 ounces of gold and defined mineralization, offering potential for low-cost, open-pit heap-leach development. Its geological setting and existing dataset provide a strong foundation for resource growth and technical advancement.
Goldstrike complements Heliostar’s acquisition strategy by adding a scalable, underexplored asset outside its core Mexican portfolio, enhancing long-term growth potential.
Drilling is underway at Goldstrike to test the antimony and gold potential of both Antimony Ridge and Antimony Knoll, with results expected towards the end of 2026.
Management Team
Charles Funk – President & CEO
Charles Funk has over 20 years of experience in exploration and business development, including senior roles at Newcrest Mining and OZ Minerals. He led the Panuco discovery for Vizsla Silver, demonstrating strong capability in identifying high-value deposits. At Heliostar, he has driven the company’s transformation into a multi-asset gold producer through disciplined acquisitions. His leadership is focused on building a scalable, mid-tier gold platform.
Gregg Bush – Chief Operating Officer (COO)
Gregg Bush is a proven mine builder with extensive experience in mine development, integration and operations. He previously served as COO of Capstone Mining and held senior leadership roles at Equinox Gold. Bush brings deep expertise in optimizing operating assets and advancing projects into production. He plays a key role in executing Heliostar’s production growth strategy.
Sam Anderson – VP Projects
Sam Anderson has approximately 25 years of experience in mine geology and project development, including 17 years at Newmont. He played a key role in advancing the Merian Mine from resource stage through construction to steady-state production. His expertise spans exploration, resource expansion and project execution. At Heliostar, he leads the advancement of key development assets.
Mike Gingles – VP Corporate Development
Mike Gingles brings more than 35 years of experience in the mining industry, specializing in corporate development and M&A. He played a leadership role in major transactions including Pueblo Viejo and Turquoise Ridge. His expertise includes project evaluation, deal structuring and strategic partnerships. He supports Heliostar’s acquisition-driven growth strategy.
Hernan Dorado – VP Sustainability & Special Projects
Hernan Dorado is a fifth-generation miner with over 20 years of experience in mining operations, particularly in Mexico. He was a founding member of Guanajuato Silver, where he served as COO. His expertise includes permitting, community engagement and sustainability practices. He ensures responsible development across Heliostar’s operations.
Vitalina Lyssoun – Chief Financial Officer (CFO)
Vitalina Lyssoun is a Chartered Professional Accountant (CPA, CA) with more than 16 years of experience in financial management within the resource sector. She has extensive expertise in public company reporting, compliance and internal controls. Prior to joining Heliostar, she led the corporate accounting function at Gatos Silver. Her experience spans multiple international jurisdictions.
Stephen Soock – VP Investor Relations & Development
Stephen Soock has nearly 20 years of experience across mining operations and capital markets. He began his career in technical roles at mine sites before transitioning to equity research, where he spent eight years covering growth-stage mining companies. He is a mining engineer and CFA Charterholder. At Heliostar, he leads investor relations and supports capital markets strategy.
Investor Insight
GoldInxs Mining Corp. (TSXV:INXS, OTCQB: INXGF) provides investors with exposure to early-stage gold-copper exploration in British Columbia, leveraging a portfolio of high-potential projects in Tier 1 jurisdictions, within established gold districts, surrounded by strong regional infrastructure and led by an experienced management team committed to accelerating discovery and delivering shareholder value.
Overview
GoldInxs Mining Corp. is a discovery-focused mineral exploration company dedicated to identifying and advancing high-potential copper-gold assets in proven geological belts. The Company's strategy centers on acquiring overlooked and underexplored projects with large-scale potential, applying modern exploration techniques to rapidly evaluate targets and unlock shareholder value through discovery.
The Company’s. common shares started trading on the TSX Venture Exchange in July 2026 under the symbol INXS, positioning itself to capitalize on favorable copper and gold market fundamentals.
Copper demand is forecasted to grow steadily through 2030, with the global copper market expected to expand to over US$340 billion by 2030, driven by electric vehicles, renewable energy and infrastructure growth.
On the other hand, gold continues to provide a safe-haven hedge against policy risks and market volatility, making GoldInxs’ dual focus on copper and gold particularly compelling for investors.
The Company’s portfolio is anchored by two priority projects: the Fishpot Project in central British Columbia, interpreted as an emerging, large epithermal system with strong infrastructure access and jurisdiction quality as well as early indications of blackwater-style mineralization, and the non-core Millar Project in the prolific B.C Golden Triangle, a district renowned for world-class discoveries. While surrounding deposits attracted billions of dollars in investment, Fishpot received only sporadic historical exploration despite widespread hydrothermal alteration and numerous anomalous gold, silver and copper results. Artemis Gold’s Blackwater Mine has announced tripling production with an intended $1.56B investment, which sits only 65 km from the Fishpot property.
Backed by a management team with expertise in exploration, project development and capital markets, GoldInxs is positioned to rapidly advance its assets, deliver near-term exploration catalysts and create shareholder value through discovery and strategic growth.
Company Highlights
- Mining-friendly jurisdiction: Projects are in British Columbia, which ranked second in Canada and 20th globally in the 2025 Fraser Institute investment attractiveness rankings.
- Flagship and district-scale assets: Portfolio is anchored by the flagship Fishpot Project (“Fishpot”) in central B.C., showing strong geological indicators of mineralization, blackwater-style mineralization potential and immense exploration upside potential with only 378 meters of historical drilling. Fishpot is strategically located in the same region as Artemis Gold’s Blackwater Mine and Evolution Mining’s optioned Clisbako property.
- Clear path to 2026 catalysts: GoldInxs secured a drill permit for an upcoming maiden 2,000-metre drill program at Fishpot, near-term exploration programs are designed to define mineralized systems, outline blackwater-style potential and create shareholder value following the completion of a 3D IP survey and drill targeting.
Key Projects
Fishpot Project
The Fishpot Project represents the cornerstone asset within the GoldInxs portfolio. Covering up to 5,500 hectares in Central British Columbia, and located ~95 km north of Quesnel, Fishpot hosts a large hydrothermal alteration system that exhibits many of the geological characteristics observed in major epithermal and intrusion-related gold systems throughout the region. Fishpot encompasses five claim blocks, held under an option to acquire 100 percent subject to a 2 percent NSR, representing a significant exploration opportunity in a highly prospective region.
Fishpot represents a largely untested hydrothermal mineral system where multiple independent exploration datasets, including gold-silver-copper surface geochemistry, alteration and geology, airborne magnetics, 3D IP chargeability/resistivity and identified epithermal-to-potential-porphyry target environments, are converging to define drill targets, despite only 378 metres of historical drilling across two holes.
Fishpot is situated within the highly prospective Stikine Terrane and is underlain by Hazelton Group volcanic rocks and intrusive units comparable to those associated with several significant deposits in British Columbia. Extensive quartz-sericite alteration, hydrothermal brecciation, pyrite mineralization and multi-element geochemical anomalies support the interpretation of a robust mineralizing system. Fishpot is strategically positioned near active and historical mining operations, including Artemis Gold’s Blackwater Deposit, Newton Gold Project, Capoose and 3Ts Project, underscoring its large-scale discovery potential. Importantly, based on early-exploration results, Fishpot shares several regional geological characteristics commonly associated with Blackwater-style gold systems, including felsic volcanics, strong alteration, pyrite-rich mineralization and gold-silver geochemical associations. Despite the similarities the Company cannot yet make any formal connections to the surrounding properties, nor can they guarantee that such deposits exist on their ground.
Fishpot Exploration Technology: GoldInxs advanced its Fishpot targeting program by combining a conventional 3D IP survey with emerging Virtual DRILL™ remote-sensing technology as an additional targeting layer, using multiple geological, geochemical and geophysical datasets to refine and prioritize targets ahead of a planned ~2,000-metre drill program.
Fishpot Drill Permit & Expansion: GoldInxs has received the required drilling permits and expanded Fishpot to 5,509 hectares, positioning the Company to proceed with its inaugural ~2,000-metre modern drill program on a property that has seen very limited historical drilling, while refining targets through integrated geological, geochemical and geophysical data.
Despite multiple encouraging exploration indicators, Fishpot has been subjected to only two historic drill holes totaling 378 metres, leaving the broader mineral system largely untested and providing significant leverage to future exploration success.
Recent exploration completed by GoldInxs generated the highest reported gold value on Fishpot to date, returning up to 5.65 g/t Au from surface sampling, while airborne geophysical surveys identified multiple coincident magnetic and geochemical anomalies that have strengthened the Company's exploration model and target pipeline.
The 2025 program returned rock samples of up to 5.65 g/t Au, 11.35 g/t Ag and 0.42% Cu, while historical work reportedly returned up to 4.36 g/t Au and 3.2% Cu.
The property exhibits the potential low-sulphidation epithermal targets at Fishpot North, intermediate-sulphidation signatures at Fishpot East, and a large central magnetic high being evaluated for potential porphyry mineralization at depth. The Company is focused on finalizing drill targeting and preparing for the inaugural diamond drill campaign at Fishpot in the coming months following completion of the IP survey. GoldInxs is preparing to drill-test a 5,509-hectare, largely undrilled hydrothermal system in central British Columbia where high-grade surface gold-silver-copper results, Blackwater-style geological characteristics and multiple coincident geophysical targets have converged to define a portfolio of high-priority exploration targets.
Management Team
Nick Michael – President and CEO
Mr. Michael is a veteran mining executive and technical director with over 37 years of global experience spanning mine development, engineering and operational leadership. His expertise covers the full project lifecycle, including design, construction, technical due diligence and Independent Engineer assignments for institutional investors and project financiers. He also leads CJK Milling, a company focused on reprocessing historical mine waste to recover discarded gold decades ago, when it was less valuable.
Carlo Rigillo, CPA, Chief Financial Officer
Mr. Rigillo is an experienced Chartered Professional Accountant with over two decades of experience. He holds a Bachelor of Commerce from the University of Toronto.
Barry Miller – Executive Chairman and Director
Mr. Miller brings over 30 years of experience in public markets, including roles as a broker, consultant and financier. He is the founder of GoldInxs and has been actively involved in the resource sector through leadership positions, including as director of Tinova Resources Corp., an exploration company focused on tin and rare earth elements in British Columbia and Alaska.
Tara Asfour - Vice President, Corporate Development and Communications
An executive consultant with over 13 years of experience, Tara Asfour holds expertise in corporate development, capital markets, investor relations and strategic communications. She has led strategic financings, partnerships and offtake initiatives within the resource sector through previous corporate development and investor relations roles with multiple publicly listed companies.
Al Fabbro – Director
With over three decades of experience spanning both the mining and finance sectors, Mr. Fabbro previously led Yorkton Securities’ retail trading department and was part of its Natural Resources Group. He later served as Lead Director of Roxgold Inc. and currently holds executive leadership roles in the mining industry.
Darcy Vis, P.Geo. – VP Exploration and Director
Mr. Vis is an economic geologist with over 17 years of experience in mineral exploration. He has held senior technical roles across multiple exploration companies and is the President of Tripoint Geological Services Ltd. His expertise includes target generation, project evaluation and exploration program execution.
Stephen Soock, P.Eng., CFA – Director
Mr. Soock is a mining professional with nearly 20 years of experience spanning both technical operations and capital markets. He currently serves as Vice President, Investor Relations and Development at Heliostar Metals.
Christopher Kelly, PQS, FCIArb – Director
Mr. Kelly has over 15 years of experience in construction and natural resources. He holds a BSc in Construction Economics and Management and an MSc in Construction Law and Dispute Resolution, and runs Trachtala Consulting Ltd.