High River in black for 2002 (May 19, 2003)

High River Gold (HRG-T) has finished 2002 with earnings of $1.7 million, an improvement over 2001 when asset writedowns left it with a loss for the year.

Earnings for 2002 amounted to 2 per share but came on revenues of $83.5 million, reflecting the inclusion of revenues from the company’s Buryatzoloto subsidiary in Russia. By comparison, High River generated revenues of $23.8 million in 2001, posting a loss of $9.7 million.

High River, which had owned a minority interest in Buryatzoloto, acquired additional shares to bring its stake to 55.9% in early 2002. The Russian company, which operates the Irokinda and Zun-Holba mines in the Buryat autonomous region in Russian Siberia, produced 153,376 oz. gold in 2002, up from 147,179 oz. in 2001. Buryatzoloto’s total cash costs (including taxes and royalties) fell marginally in 2002, to US$164 per oz. from US$172 the year before.

The New Britannia mine, in Snow Lake, Man., produced 107,490 oz. in 2002, down about 7,000 oz. from the previous year. Its unit costs rose by US$20, to US$206 per oz. partly because of lower head grades; the mill processed just over 750,000 tonnes, an increase of 30,000 tonnes over 2001, but the average grade fell to 4.7 grams from 5.3 grams per tonne.

High River owns 50% of New Britannia, which is operated by partner Kinross Gold (K-T).

For the fourth quarter of 2002, High River lost $1.2 million, compared with $5.7 million in the last quarter of 2001.