High River Gold Mines Ltd.
TSX :
HRG
July 18, 2012 07:00 ET
High River Announces Production Results for Q2 2012
TORONTO, ONTARIO--(Marketwire - July 18, 2012) - High River Gold Mines Ltd. (TSX:HRG) ("High River" or the "Company") announces its production results for the second quarter ending June 30, 2012.
Highlights
Gold production for the second quarter is expected to increase on Q1 by approximately 1%, to 85 thousand gold equivalent ounces ("koz") (Q1 2012: 84.4 koz). The average realised gold price during the quarter was US$1,604 per ounce (Q1 2012: US$1,676).
The Company expects gold production to have increased at Berezitovy over the previous quarter with production falls at Taparko and Buryatzoloto. High River has taken a number of operational measures during the quarter to improve production at all mines, particularly the Taparko mine, at which performance has been somewhat disappointing.
On a mine-by-mine basis, key operational highlights are as follows:
- Taparko - The Company has ordered a new regrinding mill and two additional leach tanks for installation in July 2012. We expect to achieve higher recoveries in H2 2012 as a result.
- Buryatzoloto - The Company is working on a new geological model, which is expected to provide better visibility on the ore body shapes and their grade distribution, and the model's conclusion should be available in H1 2013.
- Berezitovy - A secondary crusher and a new pinion were successfully installed in late May 2012, improving throughput levels. June production volumes reached record levels and High River expects to sustain these productivity levels in H2 2012.
Refined gold production by mines
Exploration and Development
The Company made good progress at Bissa during Q2 2012. Half of the mining fleet is operational, with the remainder expected in August 2012. Plant construction is also underway, with the mill arriving on schedule and mill foundations being completed during the quarter.
Production Guidance
As stated in the Company's press release dated April 24, 2012, Taparko and Berezitovy experienced production bottlenecks in the first half of the year. While the Company has resolved most of the issues at Berezitovy so that the production profile of the Company in the second half will improve, the first half production bottlenecks will impact the full 2012 production volumes. As a result, High River anticipates 2012 production to be in the range of 345 to 365 koz, down from the previous range of 380 to 400 koz.
About High River
High River is an unhedged gold company with interests in producing mines, development and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. Finally, High River has a 90% interest in a development project, the Bissa gold project in Burkina Faso, and a 50% interest in an advanced exploration project with NI 43-101 compliant resource estimates, the Prognoz silver project in Russia.