High River boosts Taparko stake (July 08, 2002)

High River Gold Mines (HRG-T) has exercised its option and picked up an additional 18.5% interest in the advanced Taparko project in Burkina Faso, West Africa, from Queenstake Resources (QRL-T).

In return, High River has paid $1.2 million to Queenstake, re-negotiated down from the original $1.4-million price tag.

The deal is slated to close by July 15 and will boost High River’s stake in the project to 80%. The government of Burkina Faso holds the remainder.

High River has launched a US$500,000 program aimed at exploring near-surface gold resources. The work includes core, reverse-circulation (RC) and reverse-air-blast drilling on and around the Taparko shear, which hosts the property’s known gold resource. Some holes will also target the previously identified Zemce and Goengo-Kangarse prospects, which are not on the shear.

Resources at Taparko stand at 12.6 million tonnes grading 2.6 grams gold per tonne at a cutoff grade of 1 gram gold per tonne.

Recently, the government of Burkina Faso extended the deadline for High River’s development decision at Taparko to November 2003.

Also, High River reports that Axmin (AXM-V) is performing RC drilling on the nearby, 275-sq.-km Bouroum property. The objective is to define resources and delineate the high-grade zones for a prefeasibility study. Metallurgical and geotechnical studies are also planned.

Axmin picked up a 90-day option on Bouroum from Channel Resources (CHU-T) in return for $20,000 in expenditures; it can exercise the option by spending an additional $55,000. Channel is carried for a 35% interest until Axmin tables a bankable feasibility study. If Axmin decides to proceed with development, it will buy out Channel’s pro rata interest in the property’s proven and probable reserves. Axmin has committed to spend at least US$250,000 on exploration at Bouroum.

An independently reviewed estimate of resources at Bouroum stands at 2.3 million tonnes grading 3.1 grams of gold per tonne in the indicated category. Another 2.6 million tonnes running 2.8 grams gold are classified as inferred. Both calculations employ a cutoff grade of 1 gram gold per tonne.

High River and Axmin are considering developing their projects in tandem and have even agreed to study the feasibility of a joint operation. Previous work at Bouroum indicates potential for higher-grade mineralization amenable to open-pit mining.

Combined annual production from the two properties, which are 35 km apart, could reach as high as 100,000 oz., the companies say. The properties are northeast the capital, Ouagadougou.