More News High River produces 95,000 gold equivalent ounces in Q4
Ticker Symbol: C:HRG
High River produces 95,000 gold equivalent ounces in Q4
High River Gold Mines Ltd (C:HRG)
Shares Issued 840,218,962
Last Close 1/21/2013 $1.39
Tuesday January 22 2013 - News Release
Mr. Yury Lopukhin reports
HIGH RIVER ANNOUNCES PRODUCTION RESULTS FOR Q4 2012
High River Gold Mines Ltd. has released its production results for the fourth quarter ended Dec. 31, 2012.
Highlights
Gold production for the fourth quarter is expected to increase over Q4 2011 by approximately 2% to 95.0 thousand gold equivalent ounces ("koz") (93.1 koz in Q4 2011). The average realized gold price during the quarter was US$1,711 per ounce.
While the Berezitovy mine and the Taparko mine strongly performed in Q4 2012, producing 37.1 koz (29.4 koz in Q4 2011) and 35.6 koz (27.5 koz in Q4 2011) respectively, production fell significantly at Buryatzoloto.
On a mine-by-mine basis, key operational highlights are as follows:
- Taparko - The mine over performed relative to last year, with year-over- year ("y-o-y") production up 29%. Gold recovery level was 82% for the quarter, which is still below the Company's target of 85-90% and mine management continues to optimize milling parameters. However, the drop in recovery was offset by higher processing volume and gold grade.
- Buryatzoloto - While throughput volumes remained stable at both Buryatzoloto underground mines, head grade reduced significantly (-30% y-o-y) due to lower than expected ore grade and higher dilution. As previously announced, the Company has intensified preparation works in order to gain access to new ore blocks. The Company is also working on a new geological model for the Buryatzoloto mines, which is expected to provide better visibility on the shapes of the ore bodies and their grade distribution. Due to the complexity of Buryatzoloto's geology, the new model is expected to be applied to mine planning only toward the end of Q2 2013, which consequently keeps the head grade as source of uncertainty until then.
- Berezitovy - Mill productivity increased by 33% y-o-y, with strong quarter production volumes of 37.1 koz compared to 29.4 koz for Q4 2011 (26% y-o-y). With the second crusher and new pinion successfully installed in the first half of 2012, the Company expects strong production performance at the mine going forward.
Refined gold production by mines
Operating results Q4 2012 (koz) Q4 2011 (koz) Change
Taparko 35.6 27.5 29%
Buryatzoloto 22.3 36.2 (38%)
Berezitovy 37.1 29.4 26%
Total 95.0 93.1 2%
Exploration and Development
- On January 22, 2013, High River announced its first gold pour at Bissa. Bissa was completed ahead of schedule, on budget and with only one minor lost time injury. Total investment in the project was US$ 250 million and it was completed in 15 months.
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