High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

November 14, 2007 16:43 ET

High River Gold's Berezitovy Gold Mine on Track to Achieve Commercial Production in December

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) is pleased to report on construction progress at its unhedged Berezitovy Gold Project ("Berezitovy") in Russia.

The Berezitovy Gold Mine is on track to achieve Commercial Production in December of this year after having poured its first gold bar on August 7, 2007 (see press release dated August 8, 2007). Commercial Production is defined as 30 consecutive days of process plant operation at 60% capacity or better. Berezitovy's annual production, after achieving full production levels, is expected to exceed 100,000 ounces of gold for at least 9 years.

Project Construction Update

Mining

Pre-stripping has been completed, and mining continues with approximately 230,000 tonnes of ore (approximately 2 months of production) stockpiled.

Process Plant

The crushing, grinding and leach circuits are operating and processing ore. Some minor work remains on the carbon stripping circuit.

Tailings Storage Facility

The double-lined, zero discharge Tailings Storage Facility is complete, with the liner laid and the slurry pipeline and radial stacker assembled and operational. Construction of the filter plant is nearing completion, with all components on site and only minor work remaining on electrical and piping connections.

Power Generation

Low cost, reliable electrical power has been available on-site for more than 2 years from the regional hydro-electric power grid, which the project accesses through a 110 KV, 100 kilometre-long power line built by the Company. Power costs in 2007 were less than US 5 cents per kilowatt hour.

Water Supply

All pumps and piping supplying water have been installed and are operational. Water sources are abundant and of high quality.

Flotation Circuit Project

In a May 30, 2007 press release, High River announced scoping level plans for the installation of flotation circuits to recover zinc and lead and to improve the recovery of silver. High River is currently planning additional bench-scale confirmatory test-work to refine flotation equipment sizing. Also in the planning stages are permitting and detailed engineering work. Construction of the flotation circuits is tentatively scheduled to begin in Q2 2008 and the production of zinc and lead concentrates could begin as early as January 2009. As noted in the May 30th press release, implementation of the Flotation Circuit Project has the potential to significantly reduce the cash cost per ounce gold at Berezitovy through zinc, lead and silver by-product credits.

Project Construction Progress in Pictures

To view photographs showing the latest progress at the Berezitovy Mine, please follow this link: http://file.ccnmatthews.com/release/hrg.pdf.

About High River

High River is bringing two new open-pit gold mines into production this year, the Taparko-Bouroum Gold Mine in Burkina Faso (September) and the Berezitovy Gold Mine in Russia (4th quarter). Gold production from Taparko-Bouroum for 2008 is planned at 100,000 ounces increasing to approximately 140,000 ounces in 2009, and 2008 production from Berezitovy is expected to exceed 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable unhedged gold production is expected to exceed 300,000 ounces 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