High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

March 26, 2007 11:51 ET

High River Gold Extends High-Grade Zone at Bissa

TORONTO, ONTARIO--(CCNMatthews - March 26, 2007) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) is pleased to report results from the early stages of a new drill programme on its Bissa Group Permits in Burkina Faso. These results represent the beginning, or a $0.9 million expenditure, of a comprehensive US $10 million drill programme (approximately US $2 million per quarter) started in November 2006. These early results indicate an extension of the high-grade zone ("IO Zone") at depth and east along strike. The objective of this programme is to expand the National Instrument 43-101 resource on the Bissa Group Permits to over 2 million ounces of gold.



Highlights of this first phase of drilling include the following gold
assay results:

RC Hole: ZKBR06-231 5.39 g/t over 36 metres
DD Hole: ZKBC06-082 5.12 g/t over 15 metres
DD Hole: ZKBC06-083 17.15 g/t over 9 metres
6.86 g/t over 21 metres
DD Hole: ZKBC06-089 10.60 g/t over 7 metres
RAB Hole: TSRB06-015 16.21 g/t over 4 metres
RC Hole: TSRR06-003 12.91 g/t over 14 metres

Background

A 31,500 metre drill programme by High River in late 2005 and early 2006
established a new National Instrument 43-101 compliant resource of:

Measured: 81,980 ounces of gold
Indicated: 580,270 ounces of gold
Inferred: 679,470 ounces of gold

This resource was based on drilling carried out over only a six kilometer
section of the anomalous 35 kilometre strike length of the Sabce
Deformation Corridor. Highlights of previously reported drilling on the
IO zone included:

59 g/t over 9 metres
35 g/t over 14 metres
39 g/t over 10 metres
12 g/t over 27 metres
16 g/t over 20 metres
17 g/t over 16 metres
10 g/t over 25 metres



During 2006, High River completed a comprehensive surface exploration programme, which included soil sampling on 400 metre centres over the entire length of the Sabce Deformation Corridor and adjacent structures. Based on this work, 12 target areas were identified for drilling.

The new drill programme was targeted to:

- Better define the 320 metre long (along strike) and minimum 100 metre deep high-grade IO zone of the Bissa South Extension Area and determine a more appropriate capping for this zone (current cap ranges from 3 to 8.5 g/t gold).

- Test the down dip and down plunge extension of the IO zone

- Determine a geological model for structural control of the IO zone

- Test the 12 Target Areas identified by past exploration work (see press release dated September 14, 2006). To view a map of the Bissa Group Permits, including the Bissa Resource Area and Target Areas, please follow this link: http://www.ccnmatthews.com/docs/bissaper.pdf

The current programme used three drill rigs (one diamond drill (DD), one reverse circulation (RC), and one rotary air-blast (RAB)) to complete:

- 8 DD holes and 15 RC holes on the IO zone

- 3 RC holes on the Bissa Southwest zone

- 8 RC holes and 124 RAB holes on the Roffo and Lessa target areas

- 2 RC holes on the Lelsego target area

Summary/Interpretation of Drill Assay Results

Results from this drill programme have:

- Assisted in better defining the high-grade IO zone.

- Assisted in the structural interpretation of the IO zone. The structural studies undertaken thus far suggest a northeast trending zone dipping southeasterly. Within this zone, ore shoots plunge systematically to the northeast and remain open along strike and at depth.

- Identified 3 new drill targets for further follow-up work in the Roffo and Lessa target areas.

High River was successful in showing that the high-grade IO zone extends at depth and along strike. Best results came from hole ZKBC06-083, which had crosscut two intersections grading 17.15g/t of gold over 9.0 metres and 6.86 g/t of gold over 21.0 metres respectively. This hole confirms the down-plunge continuity of the IO zone to a vertical depth of 100 metres.

RC holes ZKBR06-226 to 233, drilled in order to test in more detail the east continuity and the down plunge extension of the IO zone, intersected high grade mineralized bodies that are comparable to the ones generally found around the richer ore shoots of the IO zone. The best intersection was returned from hole ZKBR06-231 which graded 5.39 g/t of gold over 36 metres (including 95.55 g/t of gold over 1.0 metre). These results suggest that the high grade zone reaches 105 metres in apparent thickness at a vertical depth of 80 metres (please see the cross-section referred to in the section titled "Highlights of Drill Assays Received" below).

These latest results also give the IO Zone a strike length of at least 320 metres and indicate that the deformation continues to the east and at depth.

Holes ZKBC06-087 and 088 were drilled 80 m east of RC holes ZKBR06-226 to 233. These two holes intersected a new gold zone (previously intersected by ZKBC06-066), below the IO zone, at a vertical depth of 100-145 metres. The best intersection graded 2.71 g/t of gold over 14.7 metres in hole ZKBC06-088.

Highlights of Drill Assays Received

To view a surface plan showing the drill hole locations and orientation, a longitudinal section showing the location of drill hole intersections, and a representative cross-section within the IO zone, please follow these links (surface plan: http://www.ccnmatthews.com/docs/surface.pdf, longitudinal section: http://www.ccnmatthews.com/docs/long.pdf), cross-section: http://www.ccnmatthews.com/docs/crosss.pdf. All holes were drilled at an azimuth of 145 degrees except for DD holes 82, 84, 87, 88, and 89 which were drilled in the opposite direction (325 degrees). All holes were drilled at a dip of 45 or 50 degrees except RC holes 225 to 233 which were drilled vertically to confirm the new IO zone structural model. Note that insufficient information is available to determine true width of drill intercepts.



IO Zone
---------------------------------------------------------------------------
Sampling Average gold
Interval (m) Core Length grade Gold
Hole No. Drill Method From To (m) (g/t)
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ZKBC06-082 DD 114 129 15 5.12
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ZKBC06-083 DD 59 68 9 17.15
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78.1 89 10.9 1.05
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95.8 98 2.2 1.23
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104 125 21 6.86
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ZKBC06-084 DD 72 79 7 1.07
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92.2 102.5 10.3 4.46
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114.25 117.5 3.25 2.31
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136 139.1 3.1 1.22
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ZKBC06-085 DD 65.2 68 2.8 6.94
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ZKBC06-086 DD 37 38 1 4.32
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89.7 90.5 .8 16.46
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104 105 1 6.4
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ZKBC06-087 DD 48 49 1 4.51
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109 115 6 1.99
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ZKBC06-088 DD 137.3 152 14.7 2.71
---------------------------------------------------------------------------
155 163 8 2.43
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ZKBC06-089 DD 83.95 97 13.05 3.59
---------------------------------------------------------------------------
100.95 108 7.05 10.6
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ZKBR06-225 RC 55 59 4 2.9
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ZKBR06-226 RC 107 111 4 2.87
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ZKBR06-228 RC 74 79 5 4.58
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82 87 5 3.44
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ZKBR06-229 RC 72 80 8 3.17
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ZKBR06-231 RC 77 113 36 5.39
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including 81 82 1 95.55
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ZKBR06-233 RC 96 102 6 2.36
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ZKBR06-234 RC 22 26 4 3.34
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ZKBR06-235 RC 59 62 3 4.32
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ZKBR06-236 RC 127 129 2 25.37
---------------------------------------------------------------------------



Rofo, Lessa Target Areas
---------------------------------------------------------------------------
Sampling Average gold
Interval (m) Core Length grade Gold
Hole No. Drill Method From To (m) (g/t)
---------------------------------------------------------------------------
TSRB06-061 RAB 38 46 8 1.45
---------------------------------------------------------------------------
TSRB06-014 RAB 6 16 10 1.05
--------------------------------------------------------------------------
TSRB06-015 RAB 30 34 4 16.21
---------------------------------------------------------------------------
TSRB06-122 RAB 24 28 4 1.28
---------------------------------------------------------------------------
TSRB06-129 RAB 0 10 10 1.81
---------------------------------------------------------------------------
TSRR06-003 RC 4 18 14 12.91
---------------------------------------------------------------------------
TSRR06-005 RC 15 24 9 1.14
---------------------------------------------------------------------------


Plans for the Next Phase of Drilling

During the next phase of work, drilling will continue to test other drill target areas along the Sabce Deformation Corridor, specifically Gougre, Guibare, Gonglou, and Wemstenga (please refer to the Bissa Permit map link under the previous section titled "Background"). As well, further infill and step-out drilling will be carried out on the IO zone to explore continuation of mineralization along strike and at depth. Geophysical work planned to occur shortly includes a gradient array induced polarization-resistivity (IP) survey southwest of Gonglou. High River is also planning to perform a pole-dipole IP test over the IO zone to see if this method can help in following a potential extension of the high grade zone to the east.

Since the drilling results referred to in this press release, an additional 515 RAB holes, 46 RC holes, and 17 DD holes have been drilled. Drilling occurred on the IO zone (4 DD holes), Wemstenga (8 RC holes), Guibare (22 RC holes), Roffo/Lessa (11 RC holes), Bissa SW (1 DD hole, 5 RC holes), Gougre (12 DD holes), Bouly (15 RAB holes) and two new targets on the Bissa permit (116 RAB holes). The balance of the RAB holes were drilled on other areas on the Bissa project. Results will be reported as soon as they become available.

Quality Assurance and Quality Control

The HQ drill core is logged, photographed, and then halved using a diamond saw. Reverse circulation drilling assay samples are collected every metre directly from the cyclone. Each sample is weighed at the site and successively split using a mechanical riffle splitter until sample size is reduced to two (2) kilograms (+/-150 grams). Successive splits are always collected from the same side of the splitter. Sample rejects are replaced in the sample bag, labelled and stored at a guarded sample warehouse. All samples are collected by High River personnel. Samples are taken from the field to a guarded camp where they are temporarily placed in sealed bags and stored in a guarded storage facility until they are transferred to analytical laboratory staff for final delivery to the laboratory facilities. Sample bags remain closed until final delivery to the laboratory.

All assays for gold from samples collected by High River were conducted at the Abilab Afrique de l'Ouest SARL ("Abilab") laboratory located in Bamako, Mali. Check assaying on a selected suite of samples is planned to be performed at the ALS-Chemex Laboratory in Vancouver, British Columbia. Upon receipt by Abilab, samples are organized in numerical order and subdivided in batches of twenty samples. Four internal quality control samples are inserted by High River: a blank, two duplicates and one standard reference material ("SRM"). Rock samples are crushed (-10 mesh) with a jaw crusher. A 250 to 300-gram sub-sample is collected and pulverized (90% passing -150 mesh). Rock samples are assayed for gold by fire assay with an atomic absorption finish on a 50 gram subsample. Samples assaying greater or equal to 5 g/t gold were systematically re-assayed (from the same pulp) with a gravimetric finish. Assay results are submitted by Abilab digitally, inspected by a database manager and conditioned for proper entry into the assay database.

Qualified Persons

Mr. Driffield Cameron, P.Geo., Vice President, Exploration of High River is the designated Qualified Person for the Bissa project and has reviewed this press release.

About High River

High River is currently constructing two open-pit gold mines which are scheduled to commence production in 2007, the Taparko-Bouroum Project in Burkina Faso (May/June) and the Berezitovy Project in Russia (August). 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, and annual production from Berezitovy will average 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable gold production is expected to be approximately 230,000 ounces in 2007, and 365,000 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