NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: HIGH RIVER GOLD MINES LTD.
TSX SYMBOL: HRG
OCTOBER 4, 2004 - 12:00 ET
High River Gold Begins Dismantling The 'Mill 4
TORONTO, ONTARIO--(CCNMatthews - Oct. 4, 2004) - (TSX:HRG) - High River
Gold Mines Ltd. is pleased to announce that, having received approval
from the State of Nevada, it has begun the dismantling and relocation of
the "Mill 4 Processing Facility" recently acquired from Newmont Mining
Corporation (press release - August 30, 2004). The Company intends to
relocate the complete plant and other purchased equipment to its
Berezitovy Project, presently under development in the Amur Region of
southern Siberia, Russian Federation. The current plan is to have all
components relocated to Russia and available for reassembly by March
2005. Excellent progress is being achieved connecting the Berezitovy
site to the low-cost regional power grid and local power is expected to
be available in time for the reassembly activity.
With respect to the development of the Taparko-Bouroum gold mine in
Burkina Faso, West Africa, High River is pleased to report the purchase
of the complete fleet of nine haulage trucks. These off-highway trucks,
Caterpillar 773D, can haul a load of 54 metric tonnes and will be the
first use of this size of truck in the country. The cost of the trucks
totalled approximately US $4 million. Two of the trucks are currently in
transit to Burkina Faso and the remainder are expected to be delivered
early in the new year.
In April, High River announced the results of a sensitivity study
undertaken to evaluate the impact of a higher gold price (US $400 per
ounce) on the economics of the Taparko Project and the potential for
increased production levels and/or extending planned mine life. The
study more than doubled the in-pit gold resource to over 1.3 million
ounces from the 605,000 ounces, calculated at a gold price of US $350.
High River recently engaged SRK to further this study to calculate the
economic reserves using a US $400 gold price based on new pit designs
taking into account the deeper pits and longer in-pit ramping system.
The study will also review the impact of the higher gold price on the
Bouroum deposits purchased by the Company in June. The study results are
expected to be available by the end of October.
This report 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 Annual Information Form.
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
President and CEO
High River Gold Mines Ltd.