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NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: HIGH RIVER GOLD MINES LTD.
TSX SYMBOL: HRG
APRIL 3, 2004 - 14:15 ET
Retransmission: US $400 Gold Doubles Pit Resource At
High River Gold's Taparko Project
TORONTO, ONTARIO--(CCNMatthews - Apr 3, 2004) - (TSX:HRG) - High
River Gold Mines Ltd. today announced the results of a recently
completed "Sensitivity Study" using a US $400 gold price for the
Taparko Project in Burkina Faso, West Africa. The analysis was
conducted by SRK Consulting (Steffen Robertson and Kirsten
(Canada) Inc.), qualified person - Ken Reipas P.Eng, Principal
Mining Engineer.
In October 2003, High River completed a feasibility study based
on a US $350 per ounce gold price (see 43-101 Technical Report -
SEDAR filing) and announced a positive development decision for
the Taparko Project. In support of the feasibility study, during
2003, High River completed an additional 14,000 metres (153
holes) of drilling to further define the reserve/resource base
for the project. The results of the feasibility study and the
recent sensitivity study are based on data from a total of 456
drill holes of which 74% are core holes.
/T/
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Tonnes Grade Contained Gold Strip Ratio
(mln) (g/t) (oz)
--------------------------------------------------------------------
Feasibility Study
(at US $350/oz) (table 1) 6.7 2.78 604,800(a) 4.6
Sensitivity Study
(at US $400/oz) (table 2) 16.0 2.55 1,315,000 3.5
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(a) CIM classified reserves
/T/
The sensitivity analysis was undertaken to evaluate the impact of
a higher gold price on the project economics and the potential
for extending the planned mine life. The above cut-off tonnage
estimates made in the sensitivity study are based on a pit shell
only, and do not represent reserves. To calculate reserves at a
US $400 per ounce gold price, a new pit design would be required
based on an optimization at the higher gold price, using the
following adjusted input parameters:
- The haulage cost for ore and waste would increase to reflect
greater trucking distances to the waste dump and crusher
- The pit slope angles would change due to deeper pits and a
longer in-pit ramping system
The reported tonnages in table 2 are expected to be somewhat
reduced in an optimized pit design for the higher gold price.
The bankable feasibility study is ongoing but near completion.
The project is being evaluated using a gold price base of US $350
per ounce and generates an IRR in excess of 15 percent. The
43-101 Technical Report contains the capital and operating cost
estimates in the feasibility study.
High River expects to complete its optimization initiatives on
the project shortly and will then be in a position to announce
definitive operating and capital costs which will form part of
the bankable feasibility study. Discussions with banks for the
debt financing component of the project are already well
advanced. Our schedule for commencing production in the fourth
quarter of 2005 remains on track.
/T/
Table 1
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Feasibility Study Results
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Taparko Property Pit Ore Contained Gold Strip Ratio
-------------
(mt) (g/t) (oz)
3/5 4.6 2.83 421,500 4.6
GT 0.9 3.83 109,900 6.0
2N/2K 1.2 1.86 73,400 3.5
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Total 6.7 2.78 604,800(a) 4.6
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(a) CIM classified reserves
Table 2
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Sensitivity Study Results
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Above Cut-off
Taparko Property Pit Tonnage Contained Gold Strip Ratio
-------------
(mt) (g/t) (oz)
3/5 9.8 2.50 790,000 3.1
GT 3.9 3.10 390,000 3.1
2N/2K 2.3 1.83 135,000 5.9
------ ---------------
Total 16.0 2.55 1,315,000 3.5
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/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
Don Whalen, Chairman and VP Marketing
or
Cathie Simon, Investor Relations
(416) 947-1440
(416) 360-0010 (FAX)
highrivergold@hrg.ca
www.hrg.ca
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