High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

November 09, 2007 12:35 ET

High River Gold Reports on Status of NI 43-101 Resource Estimates

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2007) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) is pleased to report developments regarding Canadian Institute of Mining, Metallurgy and Petroleum National Instrument 43-101 ("NI 43-101") compliant resource estimates on its mines and projects:

- NI 43-101 compliant resource estimates for the Zun-Holba Gold Mine and the Irokinda Gold Mine have recently been completed, and are in line with previously reported Russian classified resources for these two operating mines,

- a NI 43-101 compliant resource estimate for the Prognoz Silver Project is on schedule to be completed before year-end, and

- an updated NI 43-101 compliant resource estimate for the Taparko-Bouroum Gold Mine is planned to be completed during the first quarter of 2008.

Zun-Holba and Irokinda Gold Mines

NI 43-101 compliant gold resource estimates for the Zun-Holba Gold Mine and the Irokinda Gold Mine have recently been prepared by MICON International Limited ("MICON") and filed on SEDAR. MICON conducted a review and an audit of the Russian classified resources and estimated NI 43-101 compliant reserves and resources as at December 31, 2006. For the two mines combined, the NI 43-101 estimate was in line with previously calculated Russian classified C1 and C2 resources:


------------------------------
--------------------------------------- Russian Classified
NI 43-101(1) Resource Estimates(1)
--------------------------------------- ------------------------------
Category Contained Gold Category Contained Gold
(oz) (oz)
--------------------------------------- ------------------------------
Proven & Probable 542,370 C1 281,000
--------------------------------------- ------------------------------
Measured & Indicated(2) 37,629 C2 415,000
--------------------------------------- ------------------------------
Inferred 109,947
---------------------------------------

(1) expressed on a 100% basis
(2) excludes Proven & Probable reserves


MICON, in its technical reports, concluded:

- known mineralization at both mines remains open at depth and along strike in both directions and does not appear to be constrained by any major geological features

- there is potential to significantly add to the longevity of production at both mines given:

-- the past success rate at both mines of converting resources to reserves

-- their historical production (1.7 million of ounces of gold since 1964 (Zun-Holba) and 1974 (Irokinda))

-- Zun-Holba's and Irokinda's geological prospectivity at and around their respective mine-sites

For the NI 43-101 reserve and resource estimates for each mine, on a 100% basis, please see Appendix 1.

Prognoz Silver Project

MICON is currently preparing a NI 43-101 resource estimate on the Prognoz Silver Project, after having visited the property in June. The technical report is due to be completed in Q4 2007. Historical work on the property consisted of 89 diamond drill ("DD") holes (17,805 metres) and 17,756 metres of trenching. Since acquiring the property in 2006, High River's 85%-owned subsidiary, OJSC Buryatzoloto, has drilled 85 DD holes in 2006, and 447 DD holes in 2007 to the end of September. Prognoz is one of the largest and highest grade undeveloped silver deposits in the world. High River believes that the project has substantial upside, as the current historical Russian classified resource of 194 million ounces of silver grading over 800 g/t is based on only two of over 30 veins currently identified on the property. The Company has recently announced that it is looking into the possibility of spinning out the Prognoz Silver Project into a new company in order to fully realize the value of the project for High River shareholders.

The designated qualified persons for the Prognoz Silver Project are Mr. Driffield Cameron, P.Geo., Vice President, Exploration of High River and Mr. William Lewis, P. Geo., Senior Geologist with MICON.

Taparko-Bouroum Gold Mine

High River has engaged SRK Consulting (Canada) Inc. ("SRK") to calculate an updated NI 43-101 reserve and resource estimate for the Taparko-Bouroum Gold Mine. The updated estimate will reflect the current cost and gold price environment by incorporating more recent gold price assumptions together with operating costs derived from actual operating experience. The NI 43-101 reserve and resource estimate for Taparko-Bouroum was calculated by SRK in 2003 based on a gold price of US $350 per ounce and costs current at the time. The Company expects the updated NI 43-101 reserve and resource estimate to be completed in the first quarter of 2008.

About Russian Classified Resource Estimates

Russian classified resource estimates are calculated according to standard Russian industry practice and do not conform to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards and definitions for resource estimates, as set out in National Instrument 43-101. These estimates should not be relied upon until fully confirmed by a NI 43-101 compliant independently estimated resource calculation.

About High River

High River is bringing two new open-pit gold mines into production this year, the Taparko-Bouroum Gold Mine in Burkina Faso (September) and the Berezitovy Gold Mine in Russia (4th quarter). Gold production from Taparko-Bouroum for 2008 is planned at 100,000 ounces increasing to approximately 140,000 ounces in 2009, and 2008 production from Berezitovy is expected to exceed 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable unhedged gold production is expected to exceed 300,000 ounces in 2008. In addition, the Company has two advanced exploration projects, the Bissa Gold Project in Burkina Faso and the world-class Prognoz Silver Project in Russia. These projects are expected to significantly add to the Company's production profile in the future.

Forward Looking Statements - This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected. Risk and uncertainties about the Company's business are more fully discussed in the Management's Discussion and Analysis published in the Company's Annual Report and in the Annual Information Form.



Appendix 1

Zun-Holba Gold Mine (100%)
--------------------------

---------------------------------------------------------------------------
Proven and Probable Reserves(i)
Reserve ----------------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------------------
Proven 372,115 12.8 152,783
---------------------------------------------------------------------------
Probable 377,888 12.3 149,150
---------------------------------------------------------------------------
Total 750,003 12.5 301,933
---------------------------------------------------------------------------
(i) includes applicable dilution (at zero grade) and mining losses


---------------------------------------------------------------------------
Measured and Indicated Resources(ii)
Resource ----------------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------------------
Measured 309,136 16.2 160,538
---------------------------------------------------------------------------
Indicated 322,327 15.7 162,762
---------------------------------------------------------------------------
Total 631,463 15.9 323,300
---------------------------------------------------------------------------
(ii) includes undiluted Proven and Probable Reserves


---------------------------------------------------------------------------
Inferred Resources
Resource ----------------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------------------
Total Inferred 241,381 13.7 106,421
---------------------------------------------------------------------------


Irokinda Gold Mine (100%)
-------------------------

---------------------------------------------------------------------------
Proven and Probable Reserves(i)
Reserve ----------------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------------------
Proven 394,399 12.29 155,905
---------------------------------------------------------------------------
Probable 206,860 12.71 84,532
---------------------------------------------------------------------------
Total 601,259 12.44 240,437
---------------------------------------------------------------------------
(i) includes applicable dilution (at zero grade) and mining losses


---------------------------------------------------------------------------
Measured and Indicated Resources(ii)
Resource ----------------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------------------
Measured 350,443 14.85 167,373
---------------------------------------------------------------------------
Indicated 183,365 15.15 89,326
---------------------------------------------------------------------------
Total 533,808 14.96 256,699
---------------------------------------------------------------------------
(ii) includes undiluted Proven and Probable Reserves


---------------------------------------------------------------------------
Inferred Resources
Resource ----------------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------------------
Total Inferred 12,464 8.8 3,527
---------------------------------------------------------------------------


Notes to Appendix 1:

1. The Qualified Persons responsible for the preparation of these NI 43-101 reserve and resource estimates are William J. Lewis, B.Sc., P. Geo. (APEGB # 20333, APEGM #20480, NAPEGG #1450, APGO #1522), a senior geologist with MICON, and Robert J. Leader, P.Eng., a senior mining engineer with MICON.

2. The effective date of each NI 43-101 reserve and resource estimate is December 31, 2006.

3. Details of the key assumptions, parameters, and methods used to estimate the above mineral resources and reserves are as follows:



Resources

---------------------------------------------------------------------------
Mine block cut-off grade (g/t) min. mining width (m)
---------------------------------------------------------------------------
Zun-Holba 15.5 0.8
---------------------------------------------------------------------------
Irokinda 6.8 1.29
---------------------------------------------------------------------------

Reserves

Mineral reserves were derived directly from the NI 43-101 compliant
resources using the following parameters:

---------------------------------------------------------------------------
Mine gold price dilution mining losses
---------------------------------------------------------------------------
Zun-Holba(1) US $550/oz 23.1% to 49.6% 6.3% to 8.4%
---------------------------------------------------------------------------
Irokinda(2) US $550/oz 13% to 62% 3.1% to 13.0%
---------------------------------------------------------------------------
(1) dilution and mining loss parameters vary by mining level
(2) dilution and mining loss parameters vary by vein


4. In MICON's opinion, there are no significant technical, legal, environmental, or political considerations which would materially affect the mineral reserves or resource estimates in the tables above.

5. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Contact Information

  • High River Gold Mines Ltd.
    Dan Hrushewsky
    Vice President, Investor Relations
    (416) 947-1440
    (416) 360-0010 (FAX)
    Email: info@hrg.ca
    Website: www.hrg.ca