High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

March 06, 2009 08:30 ET

High River Gold Provides Update on Operations

TORONTO, ONTARIO--(Marketwire - March 6, 2009) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) would like to provide an update on the operating status of its four gold mines and its financial situation:

Operations Update

Taparko

Following the scheduled mill shutdown which occurred from January 10 to January 21, 2009, in February the mill has been running at 90 to 100 tonnes per hour, in line with the steady state mill throughput level now expected going forward (as disclosed in our February 2, 2009 press release). After several weeks of operation since restart, and the application of the wear compound mid-February to improve gear meshing, the vibrations previously encountered in the ball mill and drive-train have re-occurred and reached higher than acceptable levels by the end of February. Therefore a maximum two week shutdown is scheduled for mid-March to correct the problem. Remedial action will include the installation of new ball mill liners and plummer blocks.

Gold poured at Taparko during February was approximately 8,400 ounces. The increase in production in February was mostly related to lower plant downtime in comparison to the previous month. Gold sold during the month was 8,340 ounces for revenue of approximately US $7.9 million.

Berezitovy

The ball mill was restarted on February 4, 2009 following its unplanned shutdown on January 28, 2009 to correct for damage to its clutch disks. The Company continues to undertake actions to correct the problems described in our February 2, 2009 press release to increase throughput and recovery at the mill and plant.

Gold poured at Berezitovy in February was approximately 7,100 ounces.

Buryatzoloto (Zun-Holba and Irokinda)

The Zun-Holba and Irokinda underground gold mines have reported no material challenges or shortcomings in their operations and continue to operate according to plan. Year-to-date through February 2009, gold production at Buryatzoloto was approximately 21,700 ounces.

Financial Status

As of March 4, 2009, High River's head office cash position totaled approximately US $3.6 million. The Company is continuing discussions regarding additional debt and equity financing required to ensure that it is able to meet its financial obligations.

About High River

High River is a gold company with interests in producing mines, mines under development, and advanced exploration projects in Burkina Faso and Russia.

FORWARD LOOKING STATEMENTS

This release and subsequent oral statements made by and on behalf of the Company may contain 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, event, 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. 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.

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