OCT 25, 2006 - 10:20 ET
High River Gold Adds to its Land Holdings on the Birimian Greenstone Belt in Burkina Faso Hosting the Bissa Deposits
TORONTO, ONTARIO--(CCNMatthews - Oct. 25, 2006) - High River Gold Mines Ltd. ("High River" or "the Company") (TSX:HRG) is pleased to announce that it has acquired options on two contiguous permits, Tyegana and Zibtenga, approximately 90 kilometres northeast of Ouagadougou in the Kaya area of Burkina Faso. The 147 square kilometre Tyegana permit and the 126 square kilometre Zibtenga permit are located in the same greenstone belt (Boromo) as, and 75 kilometres southeast of, High River's Bissa project (1.3 million ounces of gold outlined, see High River press release dated May 23, 2006). These two contiguous permits cover an extensive shear zone, contain numerous artisanal workings, have been subject to past exploration work, and, as such, appear to possess similar exploration potential to our other properties in the area.|
The Tyegana permit contains two Artisinal Mining Authorizations (AMA's) and four additional documented areas of orpailleur gold workings, which are aligned along a six kilometre east-west trend. The workings occur in a shear zone which follows the southern boundary of a massive metabasalt unit in the central part of the permit. The Zibtenga permit is contiguous to the north and east of the Tyegana permit and contains three AMA's and five documented areas of orpailleur gold workings. Most appear to follow the same shear zone along strike to the east of the Tyegana workings for another six kilometres of strike length. The Zibtenga optionor reports that additional AMA's are pending on the Zibtenga permit (AMA's are one kilometre square areas granted to individuals or small private local companies for small scale mining, with the provision that if these areas are covered by a subsequent exploitation permit, they will not be renewed.).
During the mid 1990's, the two permit areas received a preliminary phase of exploration in which the Sawi prospect on the Zibtenga permit was tested with 16 shallow reverse air blast (RAB) holes (543 metres). As noted in reports to the Burkina Faso Ministry of Mines, Quarries and Energy, the most significant results of the drilling from five of the holes identified gold values varying from 0.69 to 5.90 grams of gold per tonne over lengths of 2 to 4 metres. Also on the Zibtenga permit, trenching on the Bouli prospect included a two metre interval grading 53 grams of gold per tonne, and a trench at the Bagadogo prospect returned 1.2 metres grading 3.77 grams of gold per tonne. Visible gold in quartz-tourmaline veining has been observed at several of the permit sites.
High River, and its 16%-owned strategic alliance partner in Burkina Faso, Goldrush Resources Ltd., hold over 9,000 square kilometres of exploration permits in Burkina Faso. High River previously announced (see High River press release dated September 14, 2006) a US $10 million drilling programme, budgeted at US $2 million per quarter, which will start in the fourth quarter of 2006. The objective of the programme is to increase the resources of the Bissa Deposits from the current 1.3 million ounces to at least 2 million ounces by drilling 12 target areas. In addition to this programme, High River will conduct surface exploration work on the two new permits announced today, Tyegana and Zibtenga, with the goal of identifying additional drill targets. Goldrush Resources Ltd. has a 2006 exploration budget of US $2.5 million and is expected to spend a similar amount in 2007 exploring its Burkina Faso properties.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
Vice President Investor Relations
(416) 360-0010 (FAX)
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