News : Default Pursuant to National Policy 12-203 I can't believe what tthese clowns are putting you guys through !
March 1, 2012
High River Gold Announces Default Pursuant to National Policy 12-203 TORONTO, ONTARIO--(Marketwire - March 1, 2012) -
High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) announced today that the Ontario Securities Commission (the "OSC") has noted the Company in default of its continuous disclosure obligations under Ontario securities law due to the Company not having filed National Instrument 43-101 ("NI 43-101") compliant technical reports to support the current mineral reserves and mineral resources at its Zun-Holba and Irokinda mines.
In 2009, the Company filed a technical report dated October 10, 2008 to support the mineral reserves and mineral resources of the Zun-Holba mine and a technical report dated September 30, 2008 to support the mineral reserves and mineral resources of the Irokinda mine. As indicated in the Company's subsequent public disclosure, the NI 43-101 compliant mineral reserves and mineral resources at the mines have been essentially depleted, though production has been continuing. As a result, the OSC has concluded that there has been a material change in the mineral reserves and mineral resources at the Zun-Holba and Irokinda mines that is not supported by the technical reports filed in 2009. Accordingly, the OSC is of the view that High River is required to file new NI 43-101 compliant technical reports for the Zun-Holba and Irokinda mines.
The Company has faced serious operational and liquidity issues over the last several years and implemented cash conservation measures in Q3 2008. These measures delayed the preparation of technical reports for the Zun-Holba and Irokinda mines. The Company subsequently engaged in extensive negotiations with a number of engineering consultants regarding the preparation of technical reports for the mines that were only recently concluded.
The OSC has noted the Company will remain in default until it files new NI 43-101 compliant technical reports for the Zun-Holba and Irokinda mines. To that end, the Company has mandated its internal geologists to coordinate the preparation of NI 43-101 compliant mineral reserve and mineral resource estimates to support the current mineral reserves and mineral resources at its Zun-Holba and Irokinda mines. The Company anticipates that a new technical report for each of the Zun-Holba and Irokinda mines will be completed by March 30, 2012 and the Company will be in a position to file such technical reports concurrently with its annual filings for the financial year ended December 31, 2011. Furthermore, the Company engaged Micon International Limited ("Micon") to prepare NI 43-101 compliant technical reports for the Zun-Holba and Irokinda mines and Micon is scheduled to start this work in April 2012. The Micon technical reports are expected to be completed in Q3 2012 and the Company expects to file such reports shortly thereafter. The Company prefers independently prepared technical reports, but the length of time before such reports would be available has resulted in the Company using its internal resources to coordinate the preparation of the NI 43-101 compliant technical reports. Once the technical reports produced by Micon have been filed, they will supersede the reports being coordinated by the Company's internal geologists.
The new NI 43-101 compliant technical reports would replace the existing technical reports filed in 2009. The mineral reserves and mineral resources in the technical reports filed in 2009 should not be regarded as current, should not be relied upon and should be reviewed for historical purposes only.