High River boosts output

In the first half of the year, Toronto-based High River Gold Mines (HRG-T) produced a record amount of gold at lower costs at its 50%-owned New Britannia mine in Manitoba, and at the mines of JCS Buryatzoloto, a Russian company in which it holds a 43.4% interest.

New Britannia produced 54,200 oz. at a total cash cost of US$190 per oz. in the first half, compared with 53,900 oz. at US$207 per oz. in the first six months of 2000. This production is shared equally by High River and partner TVX Normandy Americas.

In southern Siberia, JCS Buryatzoloto operates the Zun-Holba and Irokinda mines, which produced 73,000 oz., 25% more than the 48,100 oz. reported for the first six months of 2000. Cash costs fell to US$159 from US$163 per oz. between the two periods.

At the end of last year, New Britannia’s resources totalled 900,000 contained ounces, including 496,000 oz. in reserves. Exploration has so far managed to replace all gold production since mining began in late 1995.

Buryatzoloto hosts a resource of 5.3 million contained ounces, including 1.6 million oz. of reserves grading 17.3 grams.

On the financial front, high River recently closed a fully subscribed rights offering that generated gross proceeds of $3.6 million. The funds will be used at all three of its gold projects.