High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

September 25, 2007 12:11 ET

Drilling Extends Mineralized Zone at Prognoz Silver Project

TORONTO, ONTARIO--(Marketwire - Sept. 25, 2007) - High River Gold Mines Ltd. ("High River" or "the Company")(TSX:HRG) is pleased to report additional drill assay results from the world-class Prognoz Silver Project ("Prognoz"), one of the largest and highest grade undeveloped silver projects in the world.

Fire assay results were received from 7 diamond drill holes which stepped out a further 740 metres along strike to the east of known mineralization of the Boloto vein. These new results indicate a significant extension of high grade mineralization on the Boloto vein, and underline the considerable upside potential of the Prognoz Silver Project. The Boloto vein is just one of over 30 known veins on the Prognoz property. The existing Russian Classified reserves and resources at Prognoz come from only two of these veins, Glavnoye and Boloto, with the Boloto vein accounting for only 15%.

Micon International Limited is preparing a Canadian National Instrument NI 43-101 compliant resource estimate on the Prognoz property.



Highlights

- Boloto vein mineralization extended 740 metres beyond the 1,100 metre
strike length containing the current Boloto resource
- Bonanza grade mineralization across substantial widths:
- 2,839 g/t silver over 7.8 metres
- 9,339 g/t silver over 2.0 metres
- Significant potential for further extension along strike

Fire Assay Results

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Sampling Core True Silver Azimuth Dip
Hole No. Interval (m) Length (m) Width (m) Grade (g/t) (degrees) (degrees)
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From To
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345 114.0 116.9 2.9 1.82 167.9 N190 -45
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346 78.7 79.4 0.7 0.45 86.9 N190 -45
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347 67.8 68.8 1.0 0.85 461.0 N190 -45
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127.0 127.4 0.4 0.34 481.0
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169.7 175.0 5.3 4.45 230.5
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348 161.3 166.8 5.5 3.67 321.2 N190 -45
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349 205.0 216.0 11.0 7.82 2839.2 N190 -45
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368 15.4 16.0 0.6 0.45 182.0 N190 -45
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28.6 29.2 0.6 0.45 201.0
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369 22.9 23.7 0.8 0.68 289.0 N190 -45
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61.2 63.5 2.3 2.00 9339.4
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Summary/Interpretation of Drill Assay Results

The holes reported above were step out holes, drilled on 80 or 160 metre centres along strike to the east of the existing resource area (block C2-1) of the Boloto vein, as indicated on the surface plan, which can be viewed on the following link: http://www.ccnmatthews.com/docs/boloto1.pdf. These step-out holes effectively extend the strike length of known mineralization of the Boloto vein by 740 metres, an increase of approximately 70% over the 1,100 metre strike length of the Boloto vein within the current resource block. The easternmost hole, hole 349, had the widest and one of the highest grade intersections, indicating significant potential for further extension east along strike.



Individual cross sections can be viewed at the following links:
Hole 345 http://www.ccnmatthews.com/docs/3451.jpg
Hole 346 http://www.ccnmatthews.com/docs/3461.jpg
Hole 347 http://www.ccnmatthews.com/docs/3471.jpg
Hole 348 http://www.ccnmatthews.com/docs/3481.jpg
Hole 349 http://www.ccnmatthews.com/docs/3491.jpg
Hole 368 http://www.ccnmatthews.com/docs/3681.jpg
Hole 369 http://www.ccnmatthews.com/docs/3691.jpg


A further 9 holes were drilled, stepping out to the east of easternmost hole 349 on 160 metre centres, with fire assay results pending.

Background

During 2006, Buryatzoloto acquired a 50% interest in and operatorship of the Prognoz Silver Project, situated in the Republic of Sakha (Yakutia) of the Russian Federation. This 56 square kilometre property hosts over 30 epithermal veins which are up to 2 to 4 metres wide, several kilometres long, and several hundred metres deep. Based on extensive past work, consisting of 89 diamond drill holes (17,805 metres) and 317 trenches (17,756 metres), the Prognoz Silver Project has a historical resource estimate using the Russian Classification System (non Canadian National Instrument NI 43-101 compliant) as follows:



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Tonnes (t) Grade (g/t) Contained Silver (oz)
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Historical C2 Reserves 4,989,000 875.5 141,000,000
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Historical P1 Resource 2,346,399 708.3 53,000,000
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The above estimates have been calculated for only 2 of the more than 30 veins on the Prognoz property. 85% of the total is estimated from exploration work on the Glavnoye vein, whereas 15% is from the Boloto vein. To see a map of the Prognoz property showing the location of Boloto and other known veins on the property, please follow this link: http://www.ccnmatthews.com/docs/mapofprognozproperty1.jpg.

These estimates have been 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 Canadian National Instrument 43-101 (NI 43-101). These estimates should not be relied upon until fully confirmed by a NI 43-101 compliant independently estimated resource calculation.

Quality Assurance and Quality Control

The NQ drill core is logged, photographed, and then halved using a diamond saw. Half is stored as a duplicate in a secure facility on site. The other half is crushed to 2 mm, pulverized in a ring mill to 0.3-0.4 mm, and then divided into two equal portions each weighing approximately 1 kilogram. One of these pulverized samples is stored on site in a secure facility, while the other is pulverized a second time to minus 0.074 mm, then split into two samples: one for fire assaying (weighing 950 grams) and another for spectral analysis (weighing 50 grams), and transported to an independent laboratory, the IRGIREDMET Institute in Irkutsk. Out of the 950 gram fire assay sample, two samples, each weighing 50 grams, are split out, fire assayed, and the silver grade is calculated as an arithmetic mean of the two values. In the case of a significant discrepancy between the two values, an additional two 50 gram samples are split out, assayed, and the arithmetic mean of the four values is recorded as the value for that sample. On average, one out of every 20 samples is a blank. Five percent of the total number of samples is sent for check assaying to an independent laboratory in Chita.

Qualified Persons

The Prognoz exploration programme is managed and directed by Mr. Munko Dampilov, Deputy General Director and Chief Geologist of Buryatzoloto, and Ms. Lyubov Kuprianova, Chief Geologist of Buryatzoloto Exploration Expedition, and Ms. Anna Zelenskaya, Project Chief Geologist, who are supervising the exploration programme, including the verification of sampling, analytical and test data underlying the information given in this press release. 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 International Ltd.

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 (3rd quarter) and the Berezitovy Gold Mine in Russia (4th quarter). Annual gold production from Taparko-Bouroum is planned at 100,000 ounces for the first 12 months increasing to over 140,000 ounces in the third year of operation, and annual 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 be approximately 175,000 ounces in 2007, and 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.

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