Novophirsovskoye projectHere is HRG press release from May 31, 2006 https://www.highrivergold.com/i/pdf/2006-05-31_NR.pdf
1) What is the value of the property?
2) Who is the buyer?
3) How much are they going to pay?
4) How much longer can Severstal screw the minority shareholders?
The assay values looked pretty good to me.
The focus of the programme was Zone 1 where Buryatzoloto drilled 12 core holes (2,485 m) on
six sections at 100 m intervals and excavated four trenches (778 m). The best intercept
encountered in core hole C-1a was 51.1 m averaging 11.5 g/t gold and 15.8 g/t silver from
surface, which was followed by 10.2 m averaging 1.6 g/t gold from 53.7 m. Trench K-1, testing
the surface extension of the mineralized zone intersected in hole C-1a, returned two
mineralized intervals of 37.0 m grading 15.4 g/t gold and 14.5 g/t silver, and 33.3 m grading
3.6 g/t gold. Two other holes drilled below hole C-1a, along the axis of a plunging syncline, did
not intersect any high-grade mineralization. Hole C-3, drilled 80 m southwest of hole C-1a,
intersected 1.9 m averaging 15.9 g/t gold and 32.1 g/t silver from 125 m. One of two previous
core holes, completed in 2001 by a previous party and drilled towards C-1a along the dip of the
mineralized zone, also intersected significant gold mineralization from surface to approximately
38 m; these samples were analysed by an X-ray spectrochemical method and the data available
indicates that only a few samples were assayed by fire assay. Gold mineralization in Zone 1
appears to be limited to the nose of the syncline and extends from surface to approximately 85 m.
Mineralization is associated with pyrite within argillically altered tuffs of intermediate
composition enclosing lens-like bodies of quartzite.
At Zone 2, located 100 m to 500 m north of Zone 1, Buryatzoloto completed 130 short core holes
(<10 m) totaling 1,215 m on three lines on a 400 m by 20 m grid. No significant mineralization
was encountered in the drilling. In early 2006, an additional 30 holes, averaging 9.6 m for a total
of 288 m, were completed and fire assays are pending.
Another 40 short holes (<10 m) spaced at 20 m intervals were completed on one line, traversing
Zones 9 and 10 from the southwest to the northeast. Assays are pending.
High River Gold Mines Ltd.
155 University Avenue, Suite 1700
Toronto, Ontario M5H 3B7
Tel: (416) 947 1440 • Fax: (416) 360 0010
Email: info@hrg.ca • Web site: www.hrg.ca
2
At Zone 3, located 90 m to 370 m south of Zone 1, Buryatzoloto completed one trench (138 m)
and one drill hole (C-46) of 160.9 m. No significant assays were reported. A previous core hole
drilled 70 m to the northwest had intersected 5.7 m averaging 2.0 g/t gold from 18.4 m.
Preliminary reconnaissance work has identified five additional areas of interest (Zones 9, 10, 17,
19 and 23) that will be the subject of further exploration work. Rock sampling in these outcroppoor
areas returned values up to 3.0 g/t gold. Several soil anomalies up to 1.5 g/t gold have been
identified. The budget for phase 2 exploration in 2006 is approximately US $1.8 million.
Novophirsovskoye Highlights
Target Hole No. Length (m) From (m) To (m) Interval (m) Gold (g/t) Silver (g/t)
Zone 1 C-1a 171.5 0.0 51.1 51.1 11.5 15.8
Incl. 0.0 0.25 0.25 12.6 12.8
Incl. 1.4 1.7 0.3 20.6 13.1
Incl. 1.7 2.1 0.4 12.0 10.8
Incl. 2.1 2.9 0.8 47.6 20.0
Incl. 5.1 6.0 0.9 23.3 18.5
Incl. 6.0 6.5 0.5 10.8 14.2
Incl. 6.5 7.1 0.6 19.2 19.7
Incl. 7.1 7.7 0.6 20.5 16.5
Incl. 9.3 10.0 0.7 24.9 21.5
Incl. 10.0 10.7 0.7 11.8 29.1
Incl. 14.4 15.3 0.9 10.0 21.6
Incl. 19.7 20.5 0.8 11.2 17.7
Incl. 20.5 21.0 0.5 16.5 14.9
Incl. 21.0 21.9 0.9 71.0 39.4
Incl. 21.9 22.8 0.9 44.9 19.6
Incl. 22.8 23.5 0.7 24.0 16.9
Incl. 25.2 26.0 0.8 19.2 32.3
Incl. 26.0 27.0 1.0 39.6 32.9
Incl. 27.0 27.7 0.7 60.6 25.4
Incl. 27.7 28.5 0.8 35.9 20.7
Incl. 28.5 29.2 0.7 57.8 27.3
Incl. 29.2 29.9 0.7 18.8 17.6
Incl. 32.9 33.2 0.3 62.0 445.8
Incl. 46.0 46.5 0.5 11.8 79.9
53.7 63.9 10.2 1.6 3.3
C-2 250.0 53.1 57.0 3.9 1.1 –
148.4 150.4 2.0 1.9 –
C-3 251.9 125.0 126.9 1.9 15.9 32.1
C-5 230.0 No significant results
C-6 150.0 No significant results
C-7 250.0 No significant results
C-24 171.4 No significant results
C-25 250.0 No significant results
3
Hole No. Length (m) From (m) To (m) Interval (m) Gold (g/t) Silver (g/t)
C-26 256.1 152.2 153.2 1.0 16.3 –
176.5 178.9 2.4 3.4 2.4
195.3 199.1 3.8 2.5 1.8
C-27 150.5 No significant results
C-31 121.1 87.0 95.0 8.0 1.0 36.1
C-37 231.6 No significant results
Trench K-1 117.5 154.5 37.0 15.4 14.5
Incl. See (1) 119.5 128.5 9.0 36.1 18.8
Incl. 130.5 131.5 1.0 10.3 11.1
Incl. 137.5 138.5 1.0 11.0 13.1
Incl. 138.5 139.5 1.0 48.2 47.3
Incl. 139.5 140.5 1.0 15.6 21.5
Incl. 145.5 147.5 2.0 17.3 12.6
Incl. 150.5 151.5 1.0 14.0 11.6
See (2) 168.0 201.3 33.3 3.6 –
Incl. 168.0 169.0 1.0 10.3 5.1
Incl. 192.0 193.0 1.0 17.1 7.2
Incl. 196.5 197.1 0.6 10.2 5.1
Incl. 201.2 201.3 0.1 14.4 8.6
Trench K-7 No significant results
Trench K-8 No significant results
Trench K-9 No significant results
Zone 3 C-46 160.9 No significant results
Trench K-12 No significant results
Note: Assays reported are uncut. All drill core values above 10 g/t in the composite are reported in the
table. True width is estimated to be 60% to 80% of the drilled length.
(1) The interval 119.5-128.5 m includes nine contiguous 1.0 m intervals of 70.9, 29.8, 36.6, 56.7, 26.0,
22.2, 13.3, 23.0 and 46.8 g/t gold.
(2) Three consecutive 1.0 m samples were analyzed x-ray spectrographically rather than the standard
fire assay.
The holes are collared with HQ (63.5 mm) rods in overburden and telescoped to NQ-sized core
(47.6 mm) in bedrock. The core is logged and photographed by Buryatzoloto professional staff
and halved, using a diamond saw. Half of the core is stored on-site in a secure core shed and the
other half is sampled. Collected samples (including core, channel and rock chip) are crushed and
split into one approximately 1.2 kg sample which is, in turn, split into two samples of 600 g. One
of the 600 g samples is stored at the secured site as a duplicate and the other is pulverized to
-200 mesh (-0.074 mm) and used for analysis.
Samples are initially assayed by an extractive X-ray spectrographic method by Buryatzoloto’s onsite
field laboratory. A 10 g to 20 g sample taken from the 600 g pulverized sample is burned,
decomposed by acid and analyzed for gold, with a detection limit of 0.2 g/t. The remainder of the
sample (580-590 g) is transported by road to the Republic Analytical Center (“RAC”) in Ulan-
Ude for semi-quantitative emission spectral analyses of 26 elements and fire assay (only if the Xray
spectrographic assay is greater than 0.5 g/t gold). RAC is an ISO 17025 accredited laboratory
and is