HIGH RIVER GOLD MINES of Toronto has acquired a 100% interest in the Berezitovoya project in southern Siberia, Russia. The company hopes the property can become a low-cost open pit mine.
According to reports prepared for and approved by the Russian Ministry of Geology in 1982, the deposit consists of 14.1 million tonnes grading 3.05 g/t Au, 14.31 g/t Ag, 0.93% Zn, and 0.57% Pb. There is a higher grade core zone estimated to be 7.1 million tonnes grading 3.68 g/t Au and 14.57 g/t Ag. High River has hired ROSCO POSTLE ASSOCIATES to audit the reserve figures using standards set by the CIM.
Historical metallurgical testing from bulk samples assessed gravity and direct cyanidation methods. Approximately 28% of the gold could be recovered by gravity, and the recovery rate from cyanidation could be 90% to 92%.
High River already controls (51% fully diluted) a Russian gold producer, OJSC Buryatzoloto. The latter has 100% interest in the Zun-Holba and Irokinda mines, also located in southern Siberia. In 2001 Buryatzoloto produced 147,176 oz of Au at a total cash cost of US$173/oz. When High River completes the acquisition of Berezitovoya, it plans to sell at cost 50% of the property to Buryatzoloto. A 17-hole drill program is under way at Berezitovoya, a feasibility study is expected soon, and a production decision may be made early next year.
More information about High River's Russian projects and its work in Manitoba and Burkina Faso can be found at www.hrg.ca