High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

May 31, 2006 09:22 ET

High River Gold Reports on its First Exploration Programme at Novophirsovskoye, Russia

TORONTO, ONTARIO--(CCNMatthews - May 31, 2006) - High River Gold Mines Ltd. ("High River", the "Company") (TSX:HRG) is pleased to report the results of its first phase of exploration at the Novophirsovskoye project located approximately 170 km southwest of Barnaul, the capital of the Altai Region of Russia. The 51.2 square kilometre exploration and mining license was acquired in early 2005, through public auction, by High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto ("Buryatzoloto").

From mid-August to late October 2005, Buryatzoloto completed 13 core holes (2,646 m), 130 short reconnaissance core holes (less than 10 m) totaling 1,215 m and five trenches (916 m) in target Zones 1, 2 and 3 located in the southeastern part of the exploration license. Additionally, an area of 25 square kilometres was covered by geological reconnaissance mapping and sampling. Based on this work, Buryatzoloto is in compliance with the license requirements.

The focus of the programme was Zone 1 where Buryatzoloto drilled 12 core holes (2,485 m) on six sections at 100 m intervals and excavated four trenches (778 m). The best intercept encountered in core hole C-1a was 51.1 m averaging 11.5 g/t gold and 15.8 g/t silver from surface, which was followed by 10.2 m averaging 1.6 g/t gold from 53.7 m. Trench K-1, testing the surface extension of the mineralized zone intersected in hole C-1a, returned two mineralized intervals of 37.0 m grading 15.4 g/t gold and 14.5 g/t silver, and 33.3 m grading 3.6 g/t gold. Two other holes drilled below hole C-1a, along the axis of a plunging syncline, did not intersect any high-grade mineralization. Hole C-3, drilled 80 m southwest of hole C-1a, intersected 1.9 m averaging 15.9 g/t gold and 32.1 g/t silver from 125 m. One of two previous core holes, completed in 2001 by a previous party and drilled towards C-1a along the dip of the mineralized zone, also intersected significant gold mineralization from surface to approximately 38 m; these samples were analysed by an X-ray spectrochemical method and the data available indicates that only a few samples were assayed by fire assay. Gold mineralization in Zone 1 appears to be limited to the nose of the syncline and extends from surface to approximately 85 m. Mineralization is associated with pyrite within argillically altered tuffs of intermediate composition enclosing lens-like bodies of quartzite.

At Zone 2, located 100 m to 500 m north of Zone 1, Buryatzoloto completed 130 short core holes (less than 10 m) totaling 1,215 m on three lines on a 400 m by 20 m grid. No significant mineralization was encountered in the drilling. In early 2006, an additional 30 holes, averaging 9.6 m for a total of 288 m, were completed and fire assays are pending.

Another 40 short holes (less than 10 m) spaced at 20 m intervals were completed on one line, traversing Zones 9 and 10 from the southwest to the northeast. Assays are pending.

At Zone 3, located 90 m to 370 m south of Zone 1, Buryatzoloto completed one trench (138 m) and one drill hole (C-46) of 160.9 m. No significant assays were reported. A previous core hole drilled 70 m to the northwest had intersected 5.7 m averaging 2.0 g/t gold from 18.4 m.

Preliminary reconnaissance work has identified five additional areas of interest (Zones 9, 10, 17, 19 and 23) that will be the subject of further exploration work. Rock sampling in these outcrop-poor areas returned values up to 3.0 g/t gold. Several soil anomalies up to 1.5 g/t gold have been identified. The budget for phase 2 exploration in 2006 is approximately US $1.8 million.



Novophirsovskoye Highlights
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Target Hole No. Length From To Interval Gold Silver
(m) (m) (m) (m) (g/t) (g/t)
---------------------------------------------------------------------
---------------------------------------------------------------------
Zone 1 C-1a 171.5 0.0 51.1 51.1 11.5 15.8
-------------------------------------------------------------
Incl. 0.0 0.25 0.25 12.6 12.8
-------------------------------------------------------------
Incl. 1.4 1.7 0.3 20.6 13.1
-------------------------------------------------------------
Incl. 1.7 2.1 0.4 12.0 10.8
-------------------------------------------------------------
Incl. 2.1 2.9 0.8 47.6 20.0
-------------------------------------------------------------
Incl. 5.1 6.0 0.9 23.3 18.5
-------------------------------------------------------------
Incl. 6.0 6.5 0.5 10.8 14.2
-------------------------------------------------------------
Incl. 6.5 7.1 0.6 19.2 19.7
-------------------------------------------------------------
Incl. 7.1 7.7 0.6 20.5 16.5
-------------------------------------------------------------
Incl. 9.3 10.0 0.7 24.9 21.5
-------------------------------------------------------------
Incl. 10.0 10.7 0.7 11.8 29.1
-------------------------------------------------------------
Incl. 14.4 15.3 0.9 10.0 21.6
-------------------------------------------------------------
Incl. 19.7 20.5 0.8 11.2 17.7
-------------------------------------------------------------
Incl. 20.5 21.0 0.5 16.5 14.9
-------------------------------------------------------------
Incl. 21.0 21.9 0.9 71.0 39.4
-------------------------------------------------------------
Incl. 21.9 22.8 0.9 44.9 19.6
-------------------------------------------------------------
Incl. 22.8 23.5 0.7 24.0 16.9
-------------------------------------------------------------
Incl. 25.2 26.0 0.8 19.2 32.3
-------------------------------------------------------------
Incl. 26.0 27.0 1.0 39.6 32.9
-------------------------------------------------------------
Incl. 27.0 27.7 0.7 60.6 25.4
-------------------------------------------------------------
Incl. 27.7 28.5 0.8 35.9 20.7
-------------------------------------------------------------
Incl. 28.5 29.2 0.7 57.8 27.3
-------------------------------------------------------------
Incl. 29.2 29.9 0.7 18.8 17.6
-------------------------------------------------------------
Incl. 32.9 33.2 0.3 62.0 445.8
-------------------------------------------------------------
Incl. 46.0 46.5 0.5 11.8 79.9
-------------------------------------------------------------
53.7 63.9 10.2 1.6 3.3
-------------------------------------------------------------
C-2 250.0 53.1 57.0 3.9 1.1 -
-------------------------------------------------------------
148.4 150.4 2.0 1.9 -
-------------------------------------------------------------
C-3 251.9 125.0 126.9 1.9 15.9 32.1
-------------------------------------------------------------
C-5 230.0 No
significant
results
-------------------------------------------------------------
C-6 150.0 No
significant
results
-------------------------------------------------------------
C-7 250.0 No
significant
results
-------------------------------------------------------------
C-24 171.4 No
significant
results
-------------------------------------------------------------
C-25 250.0 No
significant
results
-------------------------------------------------------------
C-26 256.1 152.2 153.2 1.0 16.3 -
-------------------------------------------------------------
176.5 178.9 2.4 3.4 2.4
-------------------------------------------------------------
195.3 199.1 3.8 2.5 1.8
-------------------------------------------------------------
C-27 150.5 No
significant
results
-------------------------------------------------------------
C-31 121.1 87.0 95.0 8.0 1.0 36.1
-------------------------------------------------------------
C-37 231.6 No
significant
results
-------------------------------------------------------------
Trench K-1 117.5 154.5 37.0 15.4 14.5
-------------------------------------------------------------
Incl. See (1) 119.5 128.5 9.0 36.1 18.8
-------------------------------------------------------------
Incl. 130.5 131.5 1.0 10.3 11.1
-------------------------------------------------------------
Incl. 137.5 138.5 1.0 11.0 13.1
-------------------------------------------------------------
Incl. 138.5 139.5 1.0 48.2 47.3
-------------------------------------------------------------
Incl. 139.5 140.5 1.0 15.6 21.5
-------------------------------------------------------------
Incl. 145.5 147.5 2.0 17.3 12.6
-------------------------------------------------------------
Incl. 150.5 151.5 1.0 14.0 11.6
-------------------------------------------------------------
See (2) 168.0 201.3 33.3 3.6 -
-------------------------------------------------------------
Incl. 168.0 169.0 1.0 10.3 5.1
-------------------------------------------------------------
Incl. 192.0 193.0 1.0 17.1 7.2
-------------------------------------------------------------
Incl. 196.5 197.1 0.6 10.2 5.1
-------------------------------------------------------------
Incl. 201.2 201.3 0.1 14.4 8.6
-------------------------------------------------------------
Trench K-7 No
significant
results
-------------------------------------------------------------
Trench K-8 No
significant
results
-------------------------------------------------------------
Trench K-9 No
significant
results
---------------------------------------------------------------------
Zone 3 C-46 160.9 No
significant
results
-------------------------------------------------------------
Trench K-12 No
significant
results
---------------------------------------------------------------------

Note: Assays reported are uncut. All drill core values above 10 g/t
in the composite are reported in the table. True width is
estimated to be 60% to 80% of the drilled length.

(1) The interval 119.5-128.5 m includes nine contiguous 1.0 m
intervals of 70.9, 29.8, 36.6, 56.7, 26.0, 22.2, 13.3, 23.0 and
46.8 g/t gold.
(2) Three consecutive 1.0 m samples were analyzed x-ray
spectrographically rather than the standard fire assay.


The holes are collared with HQ (63.5 mm) rods in overburden and telescoped to NQ-sized core (47.6 mm) in bedrock. The core is logged and photographed by Buryatzoloto professional staff and halved, using a diamond saw. Half of the core is stored on-site in a secure core shed and the other half is sampled. Collected samples (including core, channel and rock chip) are crushed and split into one approximately 1.2 kg sample which is, in turn, split into two samples of 600 g. One of the 600 g samples is stored at the secured site as a duplicate and the other is pulverized to -200 mesh (-0.074 mm) and used for analysis.

Samples are initially assayed by an extractive X-ray spectrographic method by Buryatzoloto's on- site field laboratory. A 10 g to 20 g sample taken from the 600 g pulverized sample is burned, decomposed by acid and analyzed for gold, with a detection limit of 0.2 g/t. The remainder of the sample (580-590 g) is transported by road to the Republic Analytical Center ("RAC") in Ulan-Ude for semi-quantitative emission spectral analyses of 26 elements and fire assay (only if the X-ray spectrographic assay is greater than 0.5 g/t gold). RAC is an ISO 17025 accredited laboratory and is independent of Buryatzoloto. At the RAC laboratory, gold is determined by fire assay with a detection limit of 0.5 g/t gold using 50 g aliquots. The laboratory is instructed to automatically re-analyze abnormally high gold values.

QA/QC procedures include the submission by Buryatzoloto of systematic blank and standard samples within the sample batches submitted to its field laboratory and the RAC. Each tenth sample is represented by a blank or standard for both the X-ray and fire assay analyses. The results from these control samples indicate acceptable consistency of analysis. Approximately 5% of all samples assayed at the RAC are sent to the Irgiredmet Laboratory in the city of Irkutsk.

The Novophirsovskoye exploration programme is managed and directed by Mr. Munko Dampilov, Deputy General Director and Chief Geologist of Buryatzoloto, and Ms. Lubov Kuprianova, Chief Geologist of Buryatzoloto Exploration, along with Mr. Evgeney Mosskva, Project Chief Geologist, who is supervising the exploration programme, including the verification of sampling, analytical and test data underlying the information given in this press release. Mr. Driffield Cameron, P.Geo., Vice President, Exploration of High River and designated qualified person for this press release, reviewed the exploration programme and the project safeguards on site and at the RAC laboratory.

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 approximately 120,000 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 350,000 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.
    Don Whalen
    Executive Chairman
    (416) 947-1440
    (416) 360-0010 (FAX)
    or
    High River Gold Mines Ltd.
    David Mosher
    President & CEO
    (416) 947-1440
    (416) 360-0010 (FAX)
    info@hrg.ca
    www.hrg.ca