Canadian Mining Journal

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GOLD DEVELOPMENT – High River raises funds for Russian mine

RUSSIA - HIGH RIVER GOLD MINES of Toronto has arranged project financing of US$49.0 million to complete development...



RUSSIA – HIGH RIVER GOLD MINES of Toronto has arranged project financing of US$49.0 million to complete development of the Berezitovy open pit gold mine and mill in the Amur Region. High River holds 99% of the project ownership. The money will be provided by the European Bank for Reconstruction and Development and the Russian NOMOS Bank.

The capital cost of the Berezitovy mine is budgeted to be US$88.0 million. To the end of March 2006, High River had provided US$41.0 million of the US$53.0 million spent on the project. The mine is expected to average 120,000 oz of gold annually at an operating cash cost of US$160/oz.

High River (www.hrg.ca) has provided the following update on the project. The 101-km powerline to the mine site is complete, and preparation for the mill site and tailings area has begun. Pre-stripping for the pit began in April. Commissioning is scheduled for the second quarter of 2007.