High River Gold Mines Ltd HRIVF

silver is getting hot

[discern]

From Orko Silver's web site
The largest undeveloped silver deposits in the world


Navidad, Bolivia -Aquiline Resources Inc (AQI)             - 754MMoz
Corani, Peru -Bear Creek Mining Corp (BCM)                - 362MMoz
Montanore, Montana -Mines Management, Inc. (MGN) - 254MMoz
Rock Creek, Montana -Revett Minerals Inc. (RVM)        - 227MMoz
Prognoz, Russia -High River Gold Mines Ltd. (HRG)    - 207MMoz
Maverick Springs, Nevada -Silver Standard (Vista Gold)- 155MMoz
La Precosia - Orko Silver                                                      - 147MMoz
Candelaria, Nevada -Silver Standard Resources Inc. (SSRI) - 137MMoz
Waterloo, California -Pan American Silver Corp. (PAAS) - 101MMoz
Bowdens, NSW, Australia -Silver Standard Resources Inc. (SSRI) - 97MMoz
Prognoz is the highest undeveloped silver deposit in the world (680g/t compared with the second place deposit at 200g/t), so it could have a value consistent with La Precosia which is Orko's silver deposit in Mexico.
Orko only owns half the deposit as it is in a joint venture with Pan American Silver.  They hope to conclude a feasibility study by the end of the year to begin a pathway for mining.
Orko's market cap for this deposit currently sits at $200 million.  The Prognoz deposit is twice the size and three times the grade as La Precosia.
Perhaps, our aggressive management will deliver for HRG shareholders a significant return on investment after the completion of the Prognoz bankruptcy.  Certainly, Mordashov is well connected with the Russian courts and proceedings.  Most likely management pursued this option (bankruptcy) knowing that the other 50% owners of the Prognoz deposit were vulnerable.  I expect that we will emerge from bankruptcy having purchased or claimed full ownership of the deposit for low cost.
Even if Severstal scoops in to buy the additional 50% leaving HRG with only the 50% working interest in Prognoz, we have the finances in place and the political connections to develop this project.  
As silver is likely set to begin to soar, Prognoz very well may become a significant asset.  Conservatively, Prognoz should add $200 million to our market cap before production.  As Prognoz nears production and as more drilling expands the resource base, it is conceivable that HRG's silver production may rival the value of our African gold production.  In other words, a producing Prognoz could be worth a $1.00/share currently and even more as the price of silver continues to escalate.
If the best case scenario occurs, and HRG ends up owning all of Prognoz after bankruptcy proceedings and the deposit is aggressively drilled, studied and mined, I will send a letter of apology to Mr. Klimanov.  For if this happens in a growing silver market, we may find HRG's value increase to $5.00/share or higher.

[prouditalian]

you only mention best case scenario. Worst case scenario is they lose their 50%. The bk proceedings were initiated by the other owners and not hrg.Its all in the md&a. Prognoz is worth a ton of money so dont trust Severstal on this one, nothing minorities can do here.

[discern]

ProudI realize that there is risk that High River Gold can emerge from the bankruptcy proceedings without any assets. However, it was High River Gold that began court proceedings.  From what I understand the one who began the court action was HRG.In October 2009, Buryatzoloto filed a claim to the Arbitration Court of the City of Moscow against Prognoz Silver LLC to recover the indebtedness

[prouditalian]

In March 2010, Prognoz Silver LLC, which is controlled by High River’s joint venture partner, started a legal action in Moscow to declare Prognoz Silver LLC bankrupt. The primary creditor is OJSC Buryatzoloto who is owed approximately $18 million. In order to protect its interests, Buryatzoloto also filed to put Prognoz Silver into bankruptcy. Based on Buryatzoloto’s application the

[ngobe]

High River and Buryatzoloto will attempt to preserve the license and get maximum value out of bankruptcy procedures.It seems absurd to think HRG would act against its interests.  The target and culprit is "Polar Silver Resources" and their filing of bankruptcy is the result of their unwillingness/inability to pay their dues.  Furthermore, HRG as the victim already