High River takes on Russian silver project (June 21, 2006)

The Russian subsidiary of High River Gold (HRG-T), Buryatzoloto, has lined up an agreement with private Russian company Gazteck Industry that will give Buryatzoloto a 50% interest in an undeveloped silver project in the Yakutia region of northeastern Russia.

Under the deal, Buryatzoloto provides US$7.3 million cash and settles another US$14.7 million in liabilities for Gaztech, in exchange for the 50% interest in the Prognoz project, 450 km north of Yakutsk.

Soviet-era and post-Soviet resource estimates at Prognoz put the size of the deposit at 5 million tonnes grading 876 grams silver per tonne in C2 reserves, corresponding roughly to indicated and inferred resources. Another 2.3 million tonnes at an average 708 grams per tonne fell into the Russian P1 category, essentially making for more inferred resources. The resources are in two zones, Glavnaya and Boloto.