High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

February 26, 2007 11:25 ET

High River Gold Reports More Results From Prognoz and the Resumption of Drilling

TORONTO, ONTARIO--(CCNMatthews - Feb. 26, 2007) - High River Gold Mines Ltd. ("High River" or "the Company") (TSX:HRG) is pleased to report additional activity on the Prognoz Silver Project:

- Results from a further 14 diamond drill holes (in addition to the 40 drill holes previously reported in press releases dated September 25, 2006, October 23, 2006, and November 23, 2006).

- Resumption of drilling

- Bulk Sampling activity

- Specific gravity analysis of drill hole samples

- Exploration plans for 2007

Background

During 2006, High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto ("Buryatzoloto"), acquired a 50% interest in and operatorship of the Prognoz Silver Project ("Prognoz"), situated in the Republic of Sakha (Yakutia) of the Russian Federation. This 56 square kilometre property hosts over 30 epithermal veins which, on average, are: 2 to 4 metres wide, several kilometres long, and several hundred metres deep. 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 historical resource estimate using the Russian Classification System (non Canadian National Instrument NI 43-101 compliant) as follows:



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Tonnes (t) Grade (g/t) Contained Silver (oz)
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Historical C2 Reserves 4,989,000 875.5 141,000,000
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Historical P1 Resource 2,346,399 708.3 53,000,000
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The above estimates are based on only 2 of the more than 30 veins on the Prognoz property.

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 Results

During 2006, a total of 85 holes were drilled on the Prognoz Silver Project. Of these, 70 were infill holes and 15 were step-out holes. Of the 70 infill holes, 63 holes were drilled on the Glavnoye vein, 5 holes on the Boloto vein, and one on each of the Tikhaya and Vesennaya veins. Of the 15 step-out holes, 6 holes were drilled west of the Glavnoye historical Russian classified ore reserve blocks, and 9 holes to the east. Out of the total of 85 holes drilled to date, results for 53 infill holes (on the Glavnoye vein) and one step-out hole (hole # 212 to the west) have been reported, including the 14 reported today.

Results from the 53 infill drill holes reported to date generally show:

- Vertical and horizontal continuity within the Glavnoye deposit along the approximately 2.5 kilometre strike length tested.

- High silver grades across mineable widths.

- Grades and widths generally consistent with historical values over the strike length tested. For the 53 infill drill hole results reported to date, based on a cut-off grade of 150 grams/tonne, the average grade-thickness was 2,304 grams per tonne-metres (977.2 grams/tonne x 2.36 metres), in line with the historical grade-thickness average of 2,524 grams per tonne-metres (966.3 grams/tonne x 2.61 metres).

To view a surface plan showing the drill hole locations and orientation, and a longitudinal section showing the location of drill hole intersections, please follow these links (surface plan: http://file.ccnmatthews.com/release/HRG3.pdf, longitudinal section: http://file.ccnmatthews.com/release/HRG1.pdf).

Summary/Interpretation of Specific Gravity Measurement Results

Specific Gravity results were received from analysis of the first 30 drill core samples from the Glavnoye vein. The average value was 3.12 grams per cubic centimetre (equal to 3.12 tonnes per cubic metre). This number is in line with the 3.00 grams per cubic centimetre used in the calculation of the historical Russian classified reserves and resources. Analytical work was carried out in an independent laboratory, SUE (State Unitarian Enterprise) Tsentrgeolanalitika" in Yakutsk. This laboratory possesses a Certificate of Accreditation from the Standardization Metrology and Certification Committee of the Russian Federation No. ROSS RU. 0001.512385.

Gamma Activation Analysis Drill Results

Results reported today from the 14 drill holes were obtained using gamma activation analysis. Gamma activation analysis has been used in the past on all samples to identify higher grade samples for fire assaying. Past data indicate good correlation between gamma activation analysis results and fire assaying results. Fire assays will be performed on all samples grading in excess of 500 g/t. The JSC Yangeologia laboratory is currently unable to fire assay samples due to winter stoppage in the supply of chemical reagents. Fire assaying is scheduled to resume on March 1, 2007.



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Hole No. Sampling Interval, m Core Length, True Width, Average grade
m m Silver, g/t
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From To
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198 174.40 175.30 .90 .52 56.6
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199 171.80 173.30 1.50 1.10 1044.6
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200 67.60 70.40 2.80 1.81 475.1
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201 124.50 125.00 .50 .25 718.0
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202 56.50 60.30 3.80 3.28 244.6
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203 114.15 114.75 .60 .51 563.0
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177.25 182.80 4.95 3.30 791.2
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152 49.50 53.60 4.10 2.38 1083.9
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62.80 64.90 2.10 1.48 548.6
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150 25.30 25.90 .60 .41 115.0
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151 62.80 64.90 2.10 1.48 386.4
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89.60 92.20 2.60 1.84 285.9
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212 less than 5.0
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220 55.40 56.10 .70 .45 281.0
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221 133.20 137.00 3.80 2.37 267.4
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222 201.10 201.60 .50 .27 128.0
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21 111.40 113.80 2.40 2.02 223.8
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117.50 118.10 .60 .50 256.0
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Planned Work for 2007

Drilling and Trenching

Drilling began in early January, with a single drill, and a second drill in February. Three more drill rigs, for a total of 5, will become operational in the coming months. During 2007, Buryatzoloto plans to drill approximately 40,500 metres of core 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. The Glavnoye vein will be infill drilled on 40 metre centres along strike, while Boloto, Vostochnoe, Vesennaya and others will be drilled on 80 metre centres. Step-out holes will be drilled along strike of the Boloto and other veins, and at depth below current known mineralization at the Glavnoye vein. Approximately 4,350 metres of trenching is also planned for 2007 to test soil anomalies and possible extensions of known mineralization along strike. Total expenditures on exploration during 2007 are budgeted at US $13 million.

The objectives of the 2007 exploration programme are:

- Establish National Instrument 43-101 resources

- Expand the total resource

- Begin a scoping study

Bulk Sampling

Also planned in 2007, and currently underway, is a 10 tonne bulk sampling programme to be accessed by 4 declines (200 metres in length and 40 metres in depth) driven into the Glavnoye vein. The sample will be split in two and sent to the IRGIREDMET Institute in Irkutsk and the VNIITSVETMET Institute in Ust-Kamenogorsk for metallurgical testing.

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 20 samples is a blank. Five percent of the total number of samples is sent for check assaying to the IRGIREDMET Institute in Irkutsk.

Gamma activation analysis was undertaken in JSC Yangeologia using the same sample size and preparation techniques as above. All samples grading greater than 500 g/t will be fire-assayed.

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 this year, the Taparko-Bouroum Project in Burkina Faso (May) 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 annual gold production is expected to be 230,000 in 2007, and 365,000 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