The Technical Reports audit and convert the results of the exploration work of High River for both projects into mineral resources and mineral reserves that comply with both the Australasian Joint Ore Reserves Committee and the Canadian Institute of Mining, Metallurgy and Petroleum. The Technical Reports are compliant with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
Highlights
The updated reserves and resources estimates as of April 1, 2012 for:
- The Irokinda mine
- 226,000 tonnes of ore with 11.34 g/t gold grade resulting in 2,570 kg of proven and probable gold reserves
- 692,900 tonnes of ore with 9.68 g/t gold grade resulting in 6,700 kg of measured and indicated gold resources
- 203,600 tonnes of ore with 10.23 g/t gold grade resulting in 2,100 kg of inferred gold resources
- The Zun-Holba mine
- 889,000 tonnes of ore with 8.54 g/t gold grade resulting in 7,600 kg of proven and probable gold reserves
- 712,900 tonnes of ore with 11.03 g/t gold grade resulting in 7,800 kg of measured and indicated gold resources
- 91,900 tonnes of ore with 10.73 g/t gold grade resulting in 1,000 kg of inferred gold resources
Mineral Resource/Reserve Estimates
Mineral resources and reserves have been estimated and classified according to the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2004) (the "JORC Code") and the CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines (November 2010) (the "CIM Guidelines"). Wherever in this press release the term reserves appears in quotations ("reserves" or "operational reserves") it refers to reserve estimates conducted according to the Russian classification system or terminology. The Technical Reports convert the Russian "reserves" into JORC and CIM compliant mineral resources and reserves.
Irokinda
A summary of the current mineral reserve and resource estimates for the Irokinda mine are shown in the tables below.
| Mineral Reserve Estimate (April 1, 2012) |
|
Tonnes |
Au g/t |
Au, kg |
| Proven |
225,000 |
11.36 |
2,560 |
| Probable |
1,000 |
6.59 |
10 |
| Proven + Probable |
226,000 |
11.34 |
2,570 |
|
| Mineral Resource Estimate (April 1, 2012) |
|
Tonnes |
Au g/t |
Au, kg |
| Measured |
319,600 |
12.67 |
4,050 |
| Indicated |
373,300 |
7.12 |
2,650 |
| Inferred |
203,600 |
10.23 |
2,100 |
| Measured + Indicated |
692,900 |
9.68 |
6,700 |
The current exploration-mining parameters used at the Irokinda mine are:
- The minimum (cut-off) gold grade in marginal intersections to delineate the mineralized zones along strike and dip, as well as in the samples taken to outline the width of the mineralization or vein, is 3 g/t gold.
- The minimum gold grade in an estimated block is 6.8 g/t gold.
- The minimum mining width included in a "reserve" estimate is 1 m and, in the case of smaller widths, corresponding grade x thickness values (3.0 m and 6.8 g/t gold) are to be applied to determine if the areas with smaller widths can be included.
- The maximum low grade mineralized vein (zone) strike extension included in an estimated "reserve" outline is 12 m.
- The cut-off gold grade necessary to delineate off-balance "reserves" is 1 g/t gold.
- The minimum mineralized vein width needed to estimate off-balance "reserves" is 1 m.
Zun-Holba
A summary of the current mineral reserve and resource estimates for the Zun-Holba mine are shown in the tables below.
| Mineral Reserve Estimate (April 1, 2012) |
|
Tonnes |
Au g/t |
Au, kg |
| Proven |
505,300 |
9.06 |
4,600 |
| Probable |
383,700 |
7.85 |
3,000 |
| Proven + Probable |
889,000 |
8.54 |
7,600 |
|
| Mineral Resource Estimate (April 1, 2012) |
|
Tonnes |
Au g/t |
Au, kg |
| Measured |
451,600 |
11.36 |
5,100 |
| Indicated |
261,300 |
10.45 |
2,700 |
| Inferred |
91,900 |
10.73 |
1,000 |
| Measured + Indicated |
712,900 |
11.03 |
7,800 |
The current exploration-mining parameters used at the Zun-Holba mine are:
- Cut-off grade of 3 g/t gold to outline the boundaries of the mineralized zones.
- Minimum gold grade of 7 g/t over a mineralized zone composite intercept.
- Minimum mining thickness of 0.8 m. When thickness is less, but the gold grade is higher it is recommended to use the metrogram.
- Maximum thickness of 3.0 m for waste rock and low grade mineralization being included in the "reserve" estimation.
Data Verification
William J. Lewis, B.Sc., P.Geo., Tania Ilieva, P. Geo., and Barnard Foo, P.Eng., employed by Micon, are "qualified persons" as defined by 43-101 and, as qualified persons, completed the verification of data on which the above mineral reserve and resource estimates were based. This verification included a site visit to both Irokinda and Zun-Holba and a review of the resource block model, including a review of the cut-off grade, estimation procedures, capping of high grade assays and block estimation protocols. In addition, a review of the spreadsheets of tabulated Russian "reserves" for each vein and by polygon block was undertaken to verify the following:
- The appropriate methodology and parameters had been used to estimate the in-situ geological resources.
- The methodology and parameters for the quantities of dilution and recovery of the broken material within the stoping areas were appropriate and had been applied correctly.
- The estimates had been recorded correctly.
- The summary tables had correctly listed total tonnages, grades and contained metal within the "reserve" categories.
- The classification of the "reserves" had been applied in a consistent manner throughout the estimation process.
- The reconciliation between the "reserves" and the mine and mill production provided support for the validity of the reserve estimate.
A detailed block-by-block review of the Russian classified "reserves" was conducted, along with a review of the parameters by which these were converted to "operational reserves." Discussions were also held as to the appropriate category in which to place the individual blocks according to the JORC and CIM classification system.
Micon concluded that the Russian estimate, as audited by Micon, had been reasonably prepared and could be used as the basis for the conversion of the Russian "reserves" into mineral resources and the Russian "operational reserves" into mineral reserves which conform to both the current JORC code and CIM standards and definitions
Qualified Person
William J. Lewis, B.Sc., P.Geo., Tania Ilieva, P. Geo., and Barnard Foo, P.Eng., employed by Micon, are the qualified persons responsible for supervising the preparation of the Technical Reports and have reviewed and approved the scientific and technical information included in this press release. Each qualified person is independent of High River.
Cautionary Note
The grades presented in the above tables are not meant to imply recoverable gold. Mineral resources and reserves have been estimated and classified according to the JORC Code and the CIM Guidelines. High River is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant issues that could potentially affect the estimate of mineral resources or reserves. The mineral resources and reserves may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic and other factors.
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.
FORWARD LOOKING INFORMATION
This release contains forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended, including those risk factors discussed in the Company's 2011 Annual Information Form. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.