High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

April 16, 2012 21:16 ET

High River Announces Updated Reserve and Resource Estimate and Current Technical Reports for Irokinda and Zun-Holba

TORONTO, ONTARIO--(Marketwire - April 16, 2012) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) announced that it has filed on SEDAR a technical report on the Irokinda project, entitled "Technical Report on the Irokinda Project, Republic of Buryatia, Russian Federation" dated April 5, 2012, and a technical report on the Zun-Holba project, entitled "Technical Report on the Zun-Holba Project, Republic of Buryatia, Russian Federation" dated April 5, 2012 (collectively, the "Technical Reports"), which were prepared by Ricardo Valls, P. Geo.

The Technical Reports audit and convert the results of the exploration work of High River for both projects into Canadian Institute of Mining, Metallurgy and Petroleum compliant mineral resources and mineral reserves. The Technical Reports are compliant with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Highlights

The updated reserves and resources estimates as of January 1, 2012 for:

  • The Irokinda mine
    • 322,704 tonnes of ore with 9.2 g/t gold grade resulting in 2,967 kg of proven and probable gold reserves
    • 200,220 tonnes of ore with 15.6 g/t gold grade resulting in 3,118.2 kg of measured and indicated gold resources
    • 332,918 tonnes of ore with 13.3 g/t gold grade resulting in 4,440.5 kg of inferred gold resources
  • The Zun-Holba mine
    • 260,610 tonnes of ore with 9.4 g/t gold grade resulting in 2,454 kg of proven and probable gold reserves
    • 212,428 tonnes of ore with 12.1 g/t gold grade resulting in 2,580 kg of measured and indicated gold resources
    • 538,812 tonnes of ore with 10.6 g/t gold grade resulting in 6,161 kg of inferred gold resources

Mineral Resource/Reserve Estimates

Mineral resources and reserves have been estimated and classified according to the CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines (December 2005) (the "CIM Guidelines").

Irokinda

A summary of the current mineral reserve and resource estimates for the Irokinda mine are shown in the tables below.

Mineral Reserve Estimate (January 1, 2012)
Tonnes Au g/t Au, kg
Proven 187,787 9.1 1,709
Probable 134,917 9.3 1,257.7
Proven + Probable 322,704 9.2 2,967
Mineral Resource Estimate (January 1, 2012)
Tonnes Au g/t Au, kg
Measured 110,356 16.3 1,798.5
Indicated 89,864 14.7 1,319.7
Inferred 332,918 13.3 4,440.5
Measured + Indicated 200,220 15.6 3,118.2

The 2011 exploration-mining parameters currently in use are:

  1. Cut-off grade of 3 g/t gold to outline the boundaries of the mineralized zones.
  2. Minimum gold grade of 6.8 g/t over a mineralized zone composite intercept.
  3. Minimum mining thickness of 1 m. When thickness is less than 1 m, but the gold grade is higher, it is recommended to use the metrogram (3 and 6.8 g/t).
  4. Maximum length of 12 m for waste rock and low grade mineralization being included in the "reserve" estimation.
  5. Uneconomic "reserves" cut-off is 1 g/t, minimum thickness 1 m.
  6. Minimum silver grade taken into account 3 g/t.

Zun-Holba

A summary of the current mineral reserve and resource estimates for the Zun-Holba mine are shown in the tables below.

Mineral Reserve Estimate (January 1, 2012)
Tonnes Au g/t Au, kg
Proven 38,528 11.7 453
Probable 222,082 9.0 2,001
Proven + Probable 260,610 9.4 2,454
Mineral Resource Estimate (January 1, 2012)
Tonnes Au g/t Au, kg
Measured 30,072 15.9 478
Indicated 182,356 11.5 2,102
Inferred 538,812 10.6 6,161
Measured + Indicated 212,428 12.1 2,580

The 2011 exploration-mining parameters currently in use are:

  1. Cut-off grade of 3 g/t gold to outline the boundaries of the mineralized zones.
  2. Minimum gold grade of 7 g/t over a mineralized zone composite intercept.
  3. Minimum mining thickness of 1 m. When thickness is less, but the gold grade is higher, it is recommended to use the metrogram.
  4. Minimum gold grade in a mineable block of 15.5 g/t gold.
  5. Minimum gold grade of 11.9 g/t gold in a block being mined with workings targeted to reach a mineable block.
  6. Maximum thickness of 3 m for waste rock and low grade mineralization being included in the "reserve" estimation.
  7. Uneconomic "reserves" are considered to be blocks with gold grade less than 15.5 g/t or 11.9 g/t but higher than 7 g/t. In the Russian terminology any uneconomic "reserves" are considered to be "off balance reserves" while economic "reserves" are considered to be "balance reserves."
  8. Estimate silver "reserves" within the outlines of the gold "reserves."

Data Verification

Ricardo Valls is a "qualified person" as defined by 43-101 and, as a qualified person, completed the verification of data on which the above mineral reserve and resource estimates were based. This verification included reviewing randomly selected blocks of Russian classified "reserves" and reviewing the parameters by which they were converted to "operational reserves." Discussions with mining personnel were also held on the appropriate category in which to place the individual blocks according to the CIM classification system.

Depending on the geological boundaries, mineralization is sampled by core samples of varying length to a maximum of one metre at Irokinda and Zun-Holba. All host rocks without sulphide mineralization are photographed in the core boxes and sampled by geochemical (chip) samples up to 5 m in length.

The data verification programs undertaken on the data collected from the Irokinda and Zun-Holba mines adequately support the geological interpretations and the analytical and database quality, and therefore support the use of the data in mineral resource and mineral reserve estimation.

Internal check assays are performed to find random errors in the analytical work at the on-site laboratories at both Irokinda and Zun-Holba. The external check assays for the gold grades are performed using the fire assay method at the laboratories located in the cities of Irkutsk (IRGIREDMET, which has ISO 9000 and ISO 14000 certificates valid until 2014) and Ulan-Ude (Republic Analytical Centre). These laboratories contracted by High River for sample analyses do not have any relationship to, or interest in, High River or any of its projects.

Qualified Person

Ricardo A. Valls, P. Geo, consultant from Valls Geoconsultant, is a "qualified person" as such term is defined in NI 43-101 and was responsible for supervising the preparation of the Technical Reports and has reviewed and approved the scientific and technical information included in this press release. Mr. Valls is independent of High River.

Cautionary Note

The grades presented in the above tables are not meant to imply recoverable gold. Mineral resources and reserves have been estimated and classified according to the CIM Guidelines. High River is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant issues that could potentially affect the estimate of mineral resources or reserves. The mineral resources and reserves may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic and other factors.

About High River

High River is an unhedged gold company with interests in producing mines, development and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. Finally, High River has a 90% interest in a development project, the Bissa gold project in Burkina Faso, and a 50% interest in an advanced exploration project with NI 43-101 compliant resource estimates, the Prognoz silver project in Russia.

FORWARD LOOKING INFORMATION

This release contains forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended, including those risk factors discussed in the Company's 2011 Annual Information Form. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

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