High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

January 31, 2011 09:25 ET

High River Gold Reports Updated Resource and Reserve Statements

TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) -

(All currency figures are in US dollars unless otherwise noted)

High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) today reported the results of the recently completed mineral reserve and resource estimates prepared for most of High River's assets located in Russia and Burkina Faso.

Technical reports compliant with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") in respect of such estimates are being currently prepared by Wardell Armstrong International ("WAI"). The company expects to file the completed reports by the end of February, 2011. The "qualified person" in charge of the preparation of the technical reports is Dr. Phil Newall, BSc (ARSM), PhD (ACSM), CEng, FIMMM, Director with WAI. Dr. Newall also supervised the preparation of this press release.

Highlights

The company announced the updated reserves and resources estimates as of November 1, 2010 for:

  • Berezitovy mine in Russia
    • 1,035 kOz of proven and probable reserves
    • 1,238 kOz of measured + indicated resources
    • 132 kOz of inferred resources
  • Taparko-Bouroum mine in Burkina Faso
    • 627 kOz of proven and probable reserves
    • 758 kOz of measured + indicated resources
    • 186 kOz of inferred resources
  • Bissa advanced exploration project in Burkina Faso
    • 1,653 kOz of proven and probable reserves
    • 2,649 kOz of measured + indicated resources
    • 218 kOz of inferred resources

Note: Mineral resources are reported inclusive of any reserves.

Also, High River announced the first time resource estimates for greenfield exploration targets in Burkina Faso:

  • Yeou: 82 kOz of inferred resources
  • Ankouma: 74 kOz of inferred resources
  • Bouly: 253 kOz of inferred resources
  • Gougre: 225 kOz of inferred resources
  • Zinigma: 139 kOz of inferred resources

Background information about assets

Berezitovy mine

The gold mineralisation at the Berezitovy mine, located in the Amur Region of Russia, is related to explosive breccia within granitic gneisses which is present within a north-northwest trending and steeply southwest dipping zone of brecciated and hydrothermally altered granodiorite. In addition, gold mineralisation is associated with metasomatic alteration and quartz flooding in granitic and granodioritic rocks. The near surface oxidation zone is very shallow (5-7m deep) and mineralisation throughout is predominantly sulphides. Modern mining operations began in December 2007. The deposit is mined by conventional open pit techniques with drill and blast, and haulage utilising CAT and Belaz trucks. The mine has a throughput of approximately 1.2Mtpa, with 184t/hr through the CIP plant to a dry paste plant at a nominal average grade of 2.4g/t Au.

Taparko-Bouroum mine

The Taparko and Bouroum gold deposits, in Burkina Faso, comprise sulphide-poor quartz veins hosted by shear zones of various attitudes. Mining at Taparko mine commenced in late 2007 and currently extracts gold ore from the 3/5 open pit by conventional drill & blast with truck haulage to a comminution-gravity-CIL processing circuit. Ore has also been produced from the GT pit at Taparko and from the Bouroum project to the west. The current daily rate of excavation is approximately 4,400tpd of ore with an average of 17,000t of waste, whilst the mill feed rate is approximately 190t/hr.

Bissa deposit

The Bissa deposit in Burkina Faso represents a late stage development project with a Feasibility Study completed in 2010. This project, which comprises typical Birimian greenstone shear-hosted gold mineralization, is scheduled for open pit production, with gold recovery by CIL. Over and above the main deposit, the Bissa licence and adjacent exploration properties contain significant additional resources, and it is likely that in due course, these will be incorporated into the operation. Presently, the planned mining method for this project is open pit. The zone of mining extraction consists of several open pits dispersed along approximately 5.5km of the southwest/northeast oriented mineralised zone.

Other exploration assets in Burkina Faso

The Burkina Faso assets also include several exploration sites such as Bouly, Gougre, Zinigma, Guibare, Yeou, Ankouma, Yargo, Sakou, Yimiougou, Mane, Nounagou and Tyegana. Of those, the exploration in Yeou, Ankouma, Bouly, Gougre and Zinigma is advanced enough to generate resources.

Mineral Resource/Reserve Estimates

Mineral resources and reserves have been estimated and classified according to the CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines (December 2005) (the "CIM Guidelines").

Berezitovy

The Berezitovy resource model has been derived from geostatistical studies. The key drillhole spacings for the allocation of measured resources were 40m x 40m and 80m x 80m for indicated resources. The extent of inferred resources was limited to within 60m of a diamond drillholes intersection within the modelled mineralised zone.

The final block model was used as the basis for resource evaluation. Summary results of the evaluation of the un-mined, in-situ resources are shown in the table for three different cut-off grade levels: 0.3g/t, 0.5g/t and 0.7g/t Au.

Berezitovy Resource Estimate (WAI, November 1, 2010
(in accordance with CIM Guidelines))
Ore Type Sulphide Sulphide Sulphide
Cut Off Grade (g/t) 0.3 0.5 0.7
Measured Tonnage (kt) 10,764 10,577 9,905
Au (g/t) 2.00 2.02 2.12
Metal kg 21,492 21,412 20,999
oz 690,972 688,412 675,118
Indicated Tonnage (kt) 10,357 10,184 9,479
Au (g/t) 1.64 1.66 1.74
Metal kg 17,008 16,933 16,502
oz 546,807 544,420 530,550
Measured + Indicated Tonnage (kt) 21,121 20,761 19,384
Au (g/t) 1.82 1.85 1.93
Metal kg 38,499 38,345 37,501
oz 1,237,779 1,232,832 1,205,668
 
Inferred Tonnage (kt) 2,571 2,364 1,951
Au (g/t) 1.59 1.70 1.93
Metal kg 4,098 4,009 3,766
oz 131,743 128,906 121,080
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

As a continuation of mineral resource modelling of Berezitovy deposit, WAI has undertaken a pit optimisation using the Mineral Resource Block Model prepared by WAI and updated in November 2010. The model was depleted to contain only those mineral resources that have not been extracted as of November 1, 2010. WAI used NPV Scheduler® software for the optimisation, applying the following conceptual financial and technical parameters:

  • Gold Price - US$900/oz;
  • Selling Cost - US$56/oz;
  • Production Rate – 2Mtpa;
  • Discount Rate - 11.2%;
  • Dilution – 5.5%;
  • Mining Recovery Factor – 96.6%;
  • Mining Cost (Ore & Waste) – US$1.30/t;
  • Processing Cost - US$12.55/t processed;
  • Gold Recovery – 90.1%, and
  • Final Pit Wall Angle - 55º.

The results of the WAI pit optimisation as calculated by NPV Scheduler® are presented in the table below.

Berezitovy Open Pit Ore Reserves (WAI, November 1, 2010
(in accordance with CIM Guidelines))
Ore Type Sulphide
Cut Off Grade (g/t) 0.51
Proven Tonnage (kt) 10,129
Au (g/t) 1.98
Metal kg 20,105
oz 646,450
Probable Tonnage (kt) 6,199
Au (g/t) 1.95
Metal kg 12,085
oz 388,597
Proven + Probable Tonnage (kt) 16,328
Au (g/t) 1.97
Metal kg 32,190
oz 1,035,047
Notes:
1. Mining factors of 5.5% dilution and 96.6% mining recovery applied.
2. Global density of 2.87t/m3 applied to both ore and waste.

Taparko

The criteria for defining resource categories were derived from the geostatistical studies. Key drillhole spacings for the allocation of indicated resources they were 20m x 20m (along-strike x down-dip). All of the modelled resources within the mineralised zone wireframes and within 50m of a composite sample have been classified as inferred.

The final block models were cut against the topographic/pit surveys dated November 1, 2010 and used as the basis for resource evaluation. Summary results of the evaluation of the in-situ resources for all Zones are shown in the table below, by rock type, for four different cut-off grade levels: 0.5, 1.0, 1.5 and 2.0g/t Au.

Mineral Resource Estimate – Taparko All Zones
(WAI, November 1, 2010
(in accordance with CIM Guidelines))
Cut Off Grade 0.5 1.0 1.5 2.0
Measured Tonnage (kt) 0 0 0 0
Au (g/t) 0 0 0 0
Metal kg 0 0 0 0
oz 0 0 0 0
Indicated Tonnage (kt) 6,153 5,832 4,956 3,836
Au (g/t) 2.86 2.98 3.28 3.72
Metal kg 17,625 17,358 16,240 14,279
oz 566,663 558,065 522,138 459,076
Measured + Indicated Tonnage (kt) 6,153 5,832 4,956 3,836
Au (g/t) 2.86 2.98 3.28 3.72
Metal kg 17,625 17,358 16,240 14,279
oz 566,663 558,065 522,138 459,076
 
Inferred Tonnage (kt) 1,290 1,136 947 687
Au (g/t) 2.30 2.50 2.75 3.13
Metal kg 2,967 2,846 2,606 2,149
oz 95,387 91,513 83,786 69,082
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

As a continuation of mineral resource modelling of Taparko deposit, WAI has undertaken a pit optimisation using the Mineral Resource Block Model prepared by WAI and updated in November 2010. The model was depleted to contain only those mineral resources that have not been extracted as of November 1, 2010. WAI used NPV Scheduler® software for the optimisation, applying the following financial and technical parameters:

  • Gold Price - US$900/oz;
  • Production Rate – 1.7Mtpa;
  • Discount Rate - 11.2%;
  • Dilution – 5.0%;
  • Mining Recovery Factor – 97.0%;
  • Mining Cost (Ore & Waste) – US$1.33/t;
  • Processing Cost - US$15.30/t processed;
  • Gold Recovery – 95%, and
  • Final Pit Wall Angle - 45º.

The results of the WAI pit optimisation for Taparko as calculated by NPV Scheduler® are presented in the table below.

Taparko Open Pit Ore Reserves (WAI, November 1, 2010
(in accordance with CIM Guidelines))
Open Pit (Area) GT 2N2K 35 Total
Cut Off Grade (g/t) 0.55 0.55 0.55 -
Proven Tonnage(kt) - - - -
Au(g/t) - - - -
Metal kg - - - -
oz - - - -
Probable Tonnage(kt) 643 1,517 3,962 6,122
Au(g/t) 4.33 1.85 2.84 2.75
Metal kg 2,785 2,809 11,260 16,854
oz 89,554 90,327 362,043 541,924
Proven + Probable Tonnage(kt) 643 1,517 3,962 6,122
Au(g/t) 4.33 1.85 2.84 2.75
Metal kg 2,785 2,809 11,260 16,854
oz 89,554 90,327 362,043 541,924
Note: 5% dilution and 97% mining recovery applied.

Bouroum

The resource models for F12 and Welcome Stranger have been derived from the geostatistical studies. Key drillhole spacings for the allocation of indicated resources at F12 were 20m x 20m (along-strike x down-dip), inferred resources were allocated to blocks within the mineralised zone wireframes within 50m of a composite sample. All of the modelled resources at Welcome Stranger were classified as inferred due to high very short scale variability between paired holes.

The final block models were used as a basis for resource evaluation. A summary of the results for the evaluations of in-situ resources is shown in the table below for various cut-off grade levels.

Mineral Resource Estimate – in-situ Resources – Bouroum All Zones
(WAI, November 1, 2010
(in accordance with CIM Guidelines))
Cut Off Grade 0.5 1.0 1.5 2.0
Measured Tonnage (kt) 0 0 0 0
Au (g/t) 0 0 0 0
Metal kg 0 0 0 0
oz 0 0 0 0
Indicated Tonnage (kt) 2,364 2,217 1,836 1,326
Au (g/t) 2.52 2.63 2.91 3.36
Metal kg 5,948 5,829 5,345 4,449
oz 191,240 187,416 171,845 143,031
Measured + Indicated Tonnage (kt) 2,364 2,217 1,836 1,326
Au (g/t) 2.52 2.63 2.91 3.36
Metal kg 5,948 5,829 5,345 4,449
oz 191,240 187,416 171,845 143,031
 
Inferred Tonnage (kt) 856 803 731 604
Au (g/t) 3.3 3.47 3.68 4.08
Metal kg 2,826 2,783 2,692 2,466
oz 90,831 89,490 86,565 79,289
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

The results of the WAI pit optimisation for F12 only was calculated by NPV Scheduler®, using the same parameters as Taparko, are presented in the table below.

Open Pit Mineral Reserves for F12 (WAI, November 1, 2010
(in accordance with CIM Guidelines))
Open Pit (Area) F12
Cut Off Grade (g/t) 0.9
Proven Tonnage(kt) -
Au(g/t) -
Metal kg -
oz -
Probable Tonnage(kt) 999
Au(g/t) 2.64
Metal kg 2,639
oz 84,855
Proven + Probable Tonnage(kt) 999
Au(g/t) 2.64
Metal kg 2,639
oz 84,855
Notes:
1. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

Bissa

The resources were defined using the categories that were derived from the geostatistical studies. Key drillhole spacings for the allocation of measured resources were 20m x 20m, for indicated resources they were 40m x 40m (along-strike x down-dip). All of the modelled resources, covered by 80m x 80m drillings grids, have been classified as inferred

The final block model was used as the basis for resource evaluation. A summary of the results of the evaluation of the in-situ resources are shown in the table below, for three different cut-off grade levels: 0.5g/t, 0.8g/t and 1.1g/t.

Bissa Mineral Resource Estimate – Total in-situ Resources – Whole Deposit
(WAI, November 1, 2010 (in accordance with CIM Guidelines))
Cut Off Grade 0.5 0.8 1.1
Measured Tonnage (kt) 497 493 484
Au (g/t) 3.33 3.35 3.40
Metal kg 1,657 1,652 1,643
oz 53,262 53,117 52,807
Indicated Tonnage (kt) 57,570 41,878 27,079
Au (g/t) 1.40 1.68 2.09
Metal kg 80,730 70,348 56,535
oz 2,595,518 2,261,707 1,817,606
Measured + Indicated Tonnage (kt) 58,068 42,371 27,561
Au (g/t) 1.42 1.70 2.11
Metal kg 82,386 71,999 58,176
oz 2,648,780 2,314,824 1,870,414
 
Inferred Tonnage (kt) 5,657 3,821 2,262
Au (g/t) 1.2 1.46 1.82
Metal kg 6,768 5,577 4,118
oz 217,609 179,264 132,385
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

The metal price used for the pit optimisation was US$900/oz Au. The following technical and economical parameters were used:

  • Gold Price - US$900/oz;
  • Production Rate – 3.0Mtpa;
  • Discount Rate - 11.2%;
  • Dilution – 6.0%;
  • Mining Recovery Factor – 97.0%;
  • Mining Cost (Weathered Ore) – US$2.43/t;
  • Mining Cost (Fresh Ore) – US$3.23/t;
  • Mining Cost (Waste) – US$1.90/t;
  • Processing Cost (Weathered Ore) - US$13.79/t processed;
  • Processing Cost (Fresh Ore) - US$21.22/t processed;
  • Gold Recovery (Weathered and Fresh Ore) – 91.5%/86.5%, and
  • Final Pit Wall Angle - Various.

Based on the described above open pit optimisation, WAI estimated Bissa open pit mineral reserves. Detailed results of this estimation are given in the table below.

Bissa Open Pit Mineral Reserves (WAI, November 1, 2010
(in accordance with CIM Guidelines))
(COG = 0.62g/t Au)
Ore/Rock Type Ore (kt) Au (kg) Au (g/t)
Total Proven 487 1,572 3.23
Total Probable 28,676 49,846 1.74
Total Proven and Probable 29,163 51,417 1.76
       
Weathered Proven - - -
Weathered Probable 22,729 35,896 1.58
Fresh Proven 487 1,572 3.23
Fresh Probable 5,947 13,950 2.35
       
Weathered Proven and Probable 22,729 35,896 1.58
Fresh Proven and Probable 6,434 15,521 2.41
Waste 106,621    
Notes
1. Mining Factors of 6% dilution and 97% mining recovery applied. Waste is given inclusive of inferred material, which is also treated as waste.
2. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

Other Burkina Faso Resources

Yeou

The Yeou property is located 30km north of Bouroum deposit and has the same type of geological properties as the better-explored F12, Bissinga and Welcome Stranger. Gold mineralisation is associated with quartz veining hosted in granodiorite close to a major sheared contact (to the south) with mafic metavolcanic to gabbroic rocks. Most of the veining is parallel to the shear zone although some extensional and/or tension gash veining more or less perpendicular to the main trend, are present.

A block model was used as the basis for resource evaluation. The key drillhole spacings for the allocation of inferred resources were 40m x 50m (along-strike x down-dip). A summary of the evaluation of the in-situ resources are shown in the table below, for four different cut-off grade levels: 0.4g/t, 1.0g/t, 1.5g/t and 2.0g/t Au.

Yeou Mineral Resource Estimate (WAI, November 1, 2010
(in accordance with CIM Guidelines))
COG Classification Volume (m3) Tonnes (t) Density (t/m3) Au (g/t) Contained Metal
(kg) (troy oz)
0.4 Inferred 426,790 1,066,052 2.50 2.39 2,550 81,980
1.0 Inferred 333,567 821,087 2.46 2.87 2,357 75,765
1.5 Inferred 211,808 523,880 2.47 3.76 1,968 63,286
2.0 Inferred 144,568 359,517 2.48 4.62 1,663 54,459
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

Ankouma

The Ankouma prospect, which lies some 23km north of Bouroum, comprises a suite of mafic volcanics which have been cut by a north-northwest trending main shear zone some 800m long, as well as other sub-parallel smaller shears.

The main zone is well delineated by gold geochemistry, the sub-parallel units less so. The mineralisation also appears to be well defined by Resistivity which shows an anomalous zone larger than the known mineralised outcrop. Other trenches show variable amounts of mineralisation with some good individual assays, a similar trend to that seen in the drillholes.

A final block model was used as the basis for resource evaluation. The key drillhole spacings for the allocation of inferred resources were 40m x 40m (along-strike x down-dip). Summary results of the evaluation of the in-situ resources are shown in the table below, for four different cut-off grade levels: 0.5g/t, 1.0g/t, 1.5g/t and 2.0g/t Au.

Ankouma Mineral Resource Estimate – Total in-situ Resources (WAI, November 1, 2010
(in accordance with CIM Guidelines))
COG Classification Volume (m3) Tonnes (t) Density (t/m3) Au (g/t) Contained Metal
(kg) (troy oz)
0.5 Inferred 708,507 1,815,679 2.56 1.26 2,296 73,825
1.0 Inferred 352,915 896,641 2.54 1.78 1,599 51,417
1.5 Inferred 161,162 396,308 2.46 2.37 941 30,254
2.0 Inferred 63,619 159,579 2.51 3.27 522 16,792
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

Bouly

Bouly is located in the 68.56km2 Namtenga Permit to the southeast of Bissa. The bedrock comprises massive non-foliated porphyritic mafic metavolcanics, brecciated by younger porphyritic intrusive dykes and gold is associated with quartz-pyrite-chalcopyrite veinlets with potassic alteration along the vein walls.

The criteria for defining resource categories were derived from the geostatistical studies. Key drillhole spacings for the allocation of inferred resources were 80m x 80m (along-strike x down-dip).

The final block model was used as the basis for resource evaluation. A summary of the results of the Bouly evaluation of the in-situ resources are shown in the table below, for four different cut-off grade levels: 0.3g/t, 0.6g/t, 0.8g/t and 1.0g/t Au.

Bouly Mineral Resource Estimate – Total in-situ Resources (WAI, November 1, 2010 (in accordance CIM Guidelines))
Cut Off Grade 0.3 0.6 0.8 1.0
Inferred Tonnage (kt) 16,571 9,607 3,680 1,143
Au (g/t) 0.68 0.82 1.02 1.35
Metal kg 11,315 7,877 3,762 1,544
oz 363,793 253,261 120,966 49,653
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

Gougre

The Gougre deposit lies in the Gargo permit area which is west of the Bissa project, is coincident with a resistivity and chargeability gradient and appears to lie on the contact with a mafic volcanic. Gold mineralisation is associated with a strongly magnetic silicified unit cut by limonite-filled fractures and occurs in a zone constrained by two narrow intervals of intense fracturing.

The final block model was used as the basis for resource evaluation. Summary results of the evaluation of the in-situ resources are shown in the table below for four different cut-off grade levels: 0.5g/t, 1.0g/t, 1.5g/t and 2.0g/t Au.

Gougre Mineral Resource Estimate – Total in-situ Resources (WAI, November 1, 2010
(in accordance CIM Guidelines))
Cut Off Grade 0.5 1.0 1.5 2.0
Inferred Tonnage (kt) 2,930 2,726 2,223 1,538
Au (g/t) 2.39 2.52 2.82 3.33
Metal kg 7,002 6,869 6,269 5,122
oz 225,123 220,844 201,544 164,680
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

Zinigma

Zinigma is located in the Yargo Permit, northwest of Bissa, where an 800 x 300m zone of disturbance was noted, trending approximately east-west. Individual pits are from 10 to 60m deep chasing generally narrow (<50cm) white quartz stringers.

The deformation zone which contains the mineralisation is hosted within felsic volcanics (schists) which are strongly weathered and show extensive kaolin, hematite and limonite in the altered zones.

The final block model was used as the basis for resource evaluation. The key drillhole spacings for the allocation of inferred resources were 66m x 55m (along-strike x down-dip). Summary results of the evaluation of the in-situ resources are shown in the table below, for four different cut-off grade levels: 0.5g/t, 1.0g/t, 1.5g/t and 2.0g/t Au.

Zinigma Mineral Resource Estimate – Total in-situ Resources (WAI, November 1, 2010
(in accordance CIM Guidelines))
Cut Off Grade 0.5 1.0 1.5 2.0
Inferred Tonnage (kt) 3,687 1,854 839 361
Au (g/t) 1.17 1.60 2.06 2.51
Metal kg 4,317 2,959 1,725 904
oz 138,792 95,150 55,465 29,071
Notes:
1. Mineral resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.
2. Mineral resources are reported inclusive of any reserves.
3. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery.

Data Verification

Dr. Phil Newall is a "qualified person" as defined by National Instrument 43-101 and as a qualified person completed the verification of data on which the above mineral reserve and resource estimates were based. This verification included an assessment of QA/QC data, sample preparation and assay methodologies, core recoveries, density data, data inputs, survey data and validation of historic exploration data used in the estimate. Data were validated by using field checks, statistical methods and evaluating written protocols.

High River has implemented QA/QC procedures at all projects to ensure best industry practice in sampling and analysis of the drill core samples.

The Berezitovy mine has its own dedicated onsite core storage shed and preparation facility. All sample analysis at Berezitovy is undertaken in the on-site laboratory (process plant) which is adequate for the level of prospecting work. The laboratory uses a range of Standard Reference standards supplied by Rocklabs. The standard ore sample assays 1.65ppm Au (tolerance +/- 0.08ppm Au) and the tailings sample assays 0.71ppm Au (tolerance +/- 0.03ppm Au).

At Taparko mine, core from all mineralized intersections is stored in well-organized racks at the mine. For the Bissa project, High River has a dedicated facility in the town of Kongoussi which includes core storage and sample preparation.

The primary analytical laboratory used by High River for the Taparko, Bouroum, Bissa and the other exploration projects in Burkina Faso is Abilab in Ouagadougou. It employs an established QA/QC program which operates a global quality management system that is ISO9001:2000 accredited.

None of the laboratories contracted by High River for sample analyses has any relationship to, or interest in, High River or any of its projects.

Qualified Person

Dr. Phil Newall, BSc (ARSM), PhD (ACSM), CEng, FIMMM, Director with WAI is the qualified person responsible for supervising the preparation of this press release and the scientific and technical information contained in this press release. Dr. Newall is independent of High River.

Cautionary Note

The grades presented in the above tables are not meant to imply recoverable gold. Mineral resources and reserves have been estimated and classified according to the CIM Guidelines. High River is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant issues that could potentially affect the estimate of mineral resources or reserves. The mineral resources and reserves may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic and other factors.

About High River

High River is an unhedged gold company with interests in producing mines and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. Finally, High River has two advanced exploration projects with NI 43-101 compliant resource estimates, the Bissa gold project in Burkina Faso and 50% interest in the Prognoz silver project in Russia.

FORWARD-LOOKING INFORMATION

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements. Forward-looking information includes, but is not limited to, statements with respect to mineral reserve and resource estimates; the ability to realize estimated mineral reserves; recoveries, grades and annual production; receipt of all necessary approvals; the parameters and assumptions underlying the mineral resource and reserve estimates and the financial analysis; and gold prices. 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. Estimates regarding mineral resources and reserves, as outlined above and in the technical report, have been based on knowledge of company management and the knowledge and experience of third party experts. 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, events, 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, including those risk factors discussed in the Company's 2009 Annual Information Form. 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.
    Konstantin Sobolevskiy
    CEO
    011 7 495 981 0910 ext. 6676
    info@hrg.ca
    www.hrg.ca