Russian subsidiary powers High River

High River Gold Mines‘ (HRG-T) attributable gold production grew by more than 43,000 oz. in 2002, thanks to an increased stake in its Russian subsidiary, Buryatzoloto.

High River boosted its position in Buryatzoloto, which operates the Zun-Holba and Irokinda mines in southern Siberia, by 29.3% to 55.8%.

High River’s share of production from the two mines amounted to 85,669 oz., up from 39,002 in 2001. In all, the mines poured 153,392 oz. at an estimated cash cost of US$186 per oz. in 2002, up from 147,179 oz. at US$173 per oz. in the previous year.

Last autumn, Buryatzoloto commissioned an 86-km-long power line connecting Zun-Holba to the local power grid in order to reduce operating costs by US$15-$20 per oz. (The Irokinda operation is already hooked up to the local grid.)

Meanwhile, in the same region, High River is engaged in an audit aimed at bringing the Berezitovoye deposit’s reserve figure in line with Canadian standards. Results from a 17-hole drilling program are expected by the end of February, to be followed by a feasibility study.

Near-surface resources at Berezitovoye run 14.1 million tonnes grading 3.05 grams gold and 14.3 grams silver per tonne, plus 0.93% zinc and 0.57% lead, based on a cutoff grade of 1 gram gold per tonne.

Meanwhile, High River’s take from its half-interest in the New Britannia mine in Manitoba rang in at 53,745 oz. during 2002, down from 57,264 oz. in 2001. The mine, operated by TVX Gold (TVX-T), churned out 107,490 oz. at US$206 per oz. over the year, down from the 114,529 oz. produced at US$186 per oz. in 2001.

New Britannia is held by the TVX Newmont Americas joint venture, formerly TVX Normandy Americas. As part of a recently approved 3-way merger deal with Kinross Gold (K-T) and Echo Bay Mines, TVX, which already has a 50.1% stake, will purchase Newmont Mining‘s (NEM-N) 49.9% interest in the joint venture for US$180 million.

In the end, Newmont will have a 14% interest in the new Kinross.