High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

November 23, 2006 18:26 ET

More Good Results '5 Drill Holes & Check Assays' From High River Gold's Prognoz Silver Project

TORONTO, ONTARIO--(CCNMatthews - Nov. 23, 2006) - High River Gold Mines Ltd. ("High River" or "the Company")(TSX:HRG) is pleased to report additional activity on the Prognoz Silver Project:

- assay results from a further 5 diamond drill holes (in addition to the 35 drill holes previously reported in press releases dated September 25, 2006 and October 23, 2006). Four of these holes were drilled on the eastern periphery of the C2-1 block and exceeded historical results in that area.

- check assay results from the first 35 drill holes.

- 2007 plans for resource growth, upgrading to NI 43-101 standards, and scoping studies.

Background

The Prognoz Silver Project ("Prognoz") is 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. 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
-----------------------------------------------------------------------


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 Assay Results

Results from the 40 drill hole assay results reported to date generally show:

- Vertical and horizontal continuity within the Glavnoye deposit along the approximately 1.4 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 40 drill hole assays reported to date, based on a cut-off grade of 150 grams/tonne, the average grade-thickness was 2,582 grams per tonne-metres (1007.1 grams/tonne x 2.56 metres), in line with the historical grade-thickness average of 2,794 grams per tonne-metres (959.1 grams/tonne x 2.91 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://www.ccnmatthews.com/docs/Prognozsurfaceplan.pdf, longitudinal sections: http://www.ccnmatthews.com/docs/PrognozLongitudialsection.pdf).

Summary/Interpretation of Check Assay Results

A total of 190 samples from the first 35 drill holes were sent for check assaying to the IRGIREDMET Institute in Irkutsk. On average, the check assay results were 2% higher than the originally announced assay results obtained from JSC Yangeologia in Batagai.



Assay Results Reported Today

Hole No. Sampling Interval, m Core Length, m True Width, m Average grade
-------------------- Silver, g/t
From To
---------------------------------------------------------------------------
191 124.80 127.50 2.70 1.91 587.9
---------------------------------------------------------------------------
192 35.10 44.40 9.30 7.30 651.5
---------------------------------------------------------------------------
193 83.95 90.00 6.05 4.70 620.4
---------------------------------------------------------------------------
195 43.30 44.00 0.70 0.61 381.4
---------------------------------------------------------------------------
196 28.80 30.80 2.00 1.01 545.1
------------------------------------------------------------------
80.50 80.80 0.30 0.24 316.0
---------------------------------------------------------------------------


Planned Work to end of 2006 and for 2007

To date, 66 infill holes have been drilled on the Glavnoye deposit. These holes span a strike length of 2.4 kilometres of an overall 4 kilometre strike length of known mineralization on Glavnoye, which is open to the east. Drill assay results have been received and reported for 40 of these 66 infill holes. To the end of 2006, a further 3 exploration (step-out) drill holes are planned, one to the west of the C2-1 reserve block, and two to the east of the C2-3 reserve block. These step-out holes will be drilled as part of a 160 metre by 80 metre grid. During 2007, Buryatzoloto plans to drill approximately 40,000 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.

Results of the 2006 drill programme appear to be achieving the original objective of:

- Confirming the historical Russian drill assay results, and

- Confirming the vertical and horizontal along-strike continuity of the Glavnoye deposit.

Based on these positive results, High River has outlined the following objectives for 2007:

- Begin to up-grade existing Russian classified historical reserves and resources to NI 43-101 standards.

- Expand the total resource, with an interim target of 300 million ounces of silver.

- Begin preliminary scoping studies.

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. For the purpose of independent external control 190 samples were sent for check assaying to the IRGIREDMET Institute, with results as reported above.

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