High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

September 01, 2005 15:41 ET

High River Gold Completes Acquisition of Jilbey

TORONTO, ONTARIO--(CCNMatthews - Sept. 1, 2005) - High River Gold Mines Ltd. (TSX:HRG)("High River" or "the Company") is pleased to announce the completion of its merger with Jilbey Gold Exploration Ltd. ("Jilbey") by way of plan of arrangement, which was approved by Jilbey's shareholders on August 19, 2005.

Under the terms of the plan of arrangement, Jilbey amalgamated with a 100%-owned subsidiary of High River, and Jilbey shareholders received 0.75 common shares of High River for each common share of Jilbey held. As a result of the completion of the plan of arrangement, High River issued 19,346,758 common shares of the Company with 6,750,028 common shares issuable in respect of the exercise of warrants/options held by Jilbey shareholders. High River now has 216,150,272 common shares issued and outstanding.

The merger establishes High River as a dominant gold company in Burkina Faso with production scheduled to commence in 2006 at the Taparko-Bouroum property and a large highly prospective property package (approximately 8,000 square kilometres) which includes the exciting Bissa property and the recent high-grade gold discovery at Labola. As a result, High River can effectively optimize its technical exploration programmes and development initiatives in Burkina Faso.

The Bissa Project exploration programme for the remainder of 2005 will be accelerated, with US $2,400,000 budgeted for the last three months of the year. A drilling contract covering three drills is being finalized to carry out core, reverse circulation and reverse air blast drilling for 10,500 m, 17,500 m and 6,000 m respectively. This drilling programme is expected to provide the information required to calculate a new resource estimate for the Bissa property by year end or early 2006.

High River is constructing two open-pit gold mines which are scheduled to commence production next year, the Taparko-Bouroum Project in Burkina Faso and the Berezitovy Project in Russia. Annual gold production from Taparko-Bouroum is planned at 100,000 ounces in year one increasing to over 140,000 ounces in the third year of operation, with annual production from Berezitovy of 100,000 ounces. Combined with gold production from High River's 84%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable annual gold production is planned to exceed 300,000 ounces by 2007, establishing the Company as a mid-tier gold producer.

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.
    Don Whalen
    Executive Chairman
    (416) 947-1440
    (416) 360-0010 (FAX)
    or
    High River Gold Mines Ltd.
    Laurie Gaborit
    VP Investor Relations & Corporate Secretary
    (416) 947-1440
    (416) 360-0010 (FAX)
    info@hrg.ca
    www.hrg.ca