RUSSIA HIGH RIVER GOLD MINES and its Russian subsidiary, OJSC BURYATZOLOTO, have released a bankable feasibility study for the Berezitovy gold project, located in the Amur Oblast of southern Siberia. The study envisions an open pit producing a total of 907,000 oz of gold and 1.57 million oz of silver over nine years. Talks have begun with financial institutions to secure debt funding for the project.
The Berezitovy project is based on reserves of 13.9 million tonnes at 2.32 g/t Au and 11.71 g/t Ag. There are also measured and indicated resources of 14 million tonnes at 2.52 g/t Au and 12.70 g/t Ag. Capital costs are estimated to be US$58.9 million and cash costs might be US$171/oz of gold. Commercial production would begin in the fourth quarter of 2005. The complete project schedule is posted at www.hrg.ca in the News Releases.
In 2002, High River acquired a 100% interest in the Berezitovy property, which contains a gold-silver-lead-zinc deposit approximately 900 metres in length and up to 150 metres in width at its thickest sections. Buryatzoloto will be the operator.