High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

October 23, 2006 09:03 ET

High River Gold Reports More Good Results from the Prognoz Silver Project

TORONTO, ONTARIO--(CCNMatthews - Oct. 23, 2006) - High River Gold Mines Ltd. ("High River" or "the Company") (TSX:HRG) is pleased to report assay results from a further 10 diamond drill holes, in addition to the previously announced 25 drill holes (press release dated September 25, 2006), from the first phase of drilling at the Prognoz Silver Project ("Prognoz"), situated in the Republic of Sakha (Yakutia) of the Russian Federation. High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto ("Buryatzoloto"), owns a 50% interest in and is operator of Prognoz. 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 year 2000 historical resource estimate using the Russian Classification System (non Canadian National Instrument NI 43-101 compliant) as follows:



-----------------------------------------------------------------------
Tonnes (t) Grade (g/t) Contained Silver (oz)
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Historical C2 Reserves 4,989,000 875.5 141,000,000
-----------------------------------------------------------------------
Historical P1 Resource 2,346,399 708.3 53,000,000
-----------------------------------------------------------------------


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.

Summary/Interpretation of Drill Assay Results

To date, assay results from 35 diamond drill holes have been received by Buryatzoloto. These infill holes were drilled on 80 metre sections, with one step-out section (#1) 160 metres to the west, over 840 metres of an overall 4 kilometre strike length of known mineralization of the Glavnoye deposit, one of 30 veins identified on the Prognoz project. The assay results generally show:

- Vertical and horizontal continuity within the Glavnoye deposit along this 840 metre strike length.

- High silver grades across mineable widths. Notable intersections include:



Latest 10 holes:

3,663.9 grams/tonne Ag over 2.89 metres (hole 181)
2,482.9 grams/tonne Ag over 2.79 metres (hole 180)
3,793.0 grams/tonne Ag over 0.85 metres (hole 188)
2,524.0 grams/tonne Ag over 1.26 metres (hole 185)
3,150.7 grams/tonne Ag over 0.72 metres (hole 182)

Previous 25 holes:

1,107.9 grams/tonne Ag over 12.43 metres (hole 164)
2,006.3 grams/tonne Ag over 2.53 metres (hole 176)
929.1 grams/tonne Ag over 4.72 metres (hole 155)
2,051.1 grams/tonne Ag over 1.95 metres (hole 161)
580.4 grams/tonne Ag over 6.43 metres (hole 165)
752.3 grams/tonne Ag over 4.12 metres (hole 174)
615.9 grams/tonne Ag over 4.29 metres (hole 159)
1,343.2 grams/tonne Ag over 1.91 metres (hole 173)


- Grades and widths generally consistent with historical values over the strike length tested. Based on a cut-off grade of 150 grams/tonne, the average grade-thickness from the 35 holes of 2,169.9 grams per tonne-metres (948.1 grams/tonne x 2.29 metres) is in line with the historical grade-thickness average of 2,408.9 grams per tonne-metres (850.3 grams/tonne x 2.83 metres).

To view a surface plan showing drill hole locations and orientation please follow this link: http://www.ccnmatthews.com/docs/hrg21023.pdf.

To view a longitudinal section please follow this link: http://www.ccnmatthews.com/docs/hrg11023.pdf.

Exploration Programme

From June to late September 2006, two diamond drill rigs completed 55 drill holes (7,792 metres) of an infill drilling programme on the Glavnoye deposit, one of 30 veins identified on the 56 square kilometre Prognoz property. The results received to date are from 35 holes located in block C2-1, representing 0.84 kilometres of an overall 4 kilometre strike length of known mineralization within the Glavnoye deposit. The main purpose of the drilling programme is to test the vertical and horizontal (along strike) continuity within the central and eastern portions of block C2-1 of the Glavnoye deposit, with the ultimate aim of confirming the historical resource and deriving a NI 43-101 independently estimated resource.



Assay Results

------------------------------------------------------------------------
Sampling Interval
Hole No. (metres) Core Length True Width Average Grade Silver
----------------- (metres) (metres) (grams/tonne)
from to
------------------------------------------------------------------------
------------------------------------------------------------------------
C-180 31.20 35.50 4.30 2.79 2,482.9
-------------------------------------------------------------
57.70 58.50 0.80 0.52 2,367.0
-------------------------------------------------------------
67.40 67.70 0.30 0.20 889.0
------------------------------------------------------------------------
C-181 43.70 44.10 0.40 0.26 1,026.0
-------------------------------------------------------------
91.30 95.80 4.50 2.89 3,663.9
-------------------------------------------------------------
129.70 130.70 1.00 0.64 906.0
------------------------------------------------------------------------
C-182 97.60 101.70 4.10 2.12 1,042.5
-------------------------------------------------------------
104.50 105.40 0.90 0.46 212.0
-------------------------------------------------------------
153.90 155.30 1.40 0.72 3,150.7
-------------------------------------------------------------
166.30 167.30 1.00 0.51 776.0
------------------------------------------------------------------------
C-184 26.60 27.20 0.60 0.54 3,300.0
------------------------------------------------------------------------
C-185 49.80 51.20 1.40 1.26 2,524.0
-------------------------------------------------------------
55.80 59.80 4.00 3.60 337.3
------------------------------------------------------------------------
C-186 78.60 78.90 0.30 0.21 221.0
------------------------------------------------------------------------
C-187 25.20 26.20 1.00 1.00 662.0
------------------------------------------------------------------------
C-188 43.50 44.35 0.85 0.85 3,793.0
------------------------------------------------------------------------
C-189 51.50 52.70 1.20 1.14 829.9
------------------------------------------------------------------------
C-190 143.90 146.40 2.50 2.50 534.8
------------------------------------------------------------------------


Pending Results/Planned Work

As indicated, the results presented represent only 35 holes of 55 holes drilled to date. To the end of 2006, a further 16 exploration drill holes are planned to be drilled on a 160 metre by 80 metre grid to the east and to the west of the main section of the Glavnoye deposit. During 2007, Buryatzoloto plans to drill 42,000 metres in order to continue exploring the entire 4 kilometre strike length of the Glavnoye deposit, and to explore the Boloto and other vein targets on the property.

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 on site to 1 mm and divided into two equal portions each weighing approximately 1 kilogram. One of these crushed samples is stored on site in a secure facility, while the other is pulverized to -0.074 mm and transported by helicopter to an independent laboratory, "JSC Yangeologia" in Batagai. This laboratory possesses a Certificate of Accreditation from the Standardization Metrology and Certification Committee of the Russian Federation No. ROSS RU. 0001.512384, which is valid until September 9, 2008. 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 19 samples is a blank. Five percent of the total number of samples is sent for check assaying to the IRGIREDMET Institute in Irkutsk. For the purpose of independent external control 198 samples have been sent for check assaying to the IRGIREDMET Institute. To date no results from check assaying have been received.

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, along with 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 currently constructing two open-pit gold mines which are scheduled to commence production in the first half of 2007, 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 averaging more than 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable annualized gold production rate is expected to exceed 325,000 ounces by mid-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.
    Dan Hrushewsky
    Vice President Investor Relations
    (416) 947-1440
    (416) 360-0010 (FAX)
    Email: info@hrg.ca
    Website: www.hrg.ca