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Gold/Mining/Energy : Canadian Warrants Only -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (2790)	2/22/2008 2:02:40 PM
From: calgarylady	Read Replies (1) \| Respond to of 23102

News out for High River HIGH RIVER GOLD ACQUIRES NICKEL DEPOSIT High River Gold Mines Ltd.'s 85-per-cent-owned Russian subsidiary, OJSC Buryatzoloto, has acquired a 100-per-cent ownership interest in the Chaya nickel deposit, as the successful bidder in an auction conducted on Feb. 22, 2008, in Ulan Ude by the Russian Ministry of Natural Resources. The cost to acquire this mining licence was 260 million rubles (approximately $10.6-million (U.S.)). Chaya has been subject to nearly 50 years of exploration activity including geophysics, trenching and drilling and hosts historical Russian classified C2 and P1 resources totalling 121.7 million tonnes containing 1.38 billion pounds of nickel and 314 million pounds of copper. All resource estimates in this press release have been calculated according to standard Russian industry practice and do not conform to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards and definitions for resource estimates, as set out in Canadian National Instrument 43-101. These estimates should not be relied upon until fully confirmed by an NI 43-101-compliant independently estimated resource calculation. High River and Buryatzoloto intend to remain focused on precious-metals mining and, as such, plan to identify and involve a base-metals-focused third party in the project by way of joint venture or spin-out. The acquisition of Chaya, located in the Republic of Buryatia, was seen by High River as an excellent opportunity to capitalize on the company's local knowledge and expertise in mining and logistics through Buryatzoloto. Buryatzoloto has been operating two underground mines in Buryatia for more than 15 years and has the local expertise to strongly support a third party partner to move the project forward quickly. Chaya has excellent logistics, being close to railroad facilities and a power line. More about the Chaya nickel deposit Location Chaya is located in the Russian Far East, 70 kilometres north-northeast of the northern tip of Lake Baikal, approximately 300 kilometres west of High River's Irokinda mine, and 100 kilometres by road north of the regional centre of Nizhne-Angarsk. It is 80 kilometres north of the Baikal-Amur railroad line and a 220 kilowatt-hour power line. Geology Chaya is a magmatic nickel-sulphide deposit. Mineralization is largely confined to a tectonically broken zone parallel to the long axis of the Chayskiy pyroxenite-dunite massif hosted by early Proterozoic gneisses and amphibolites. The deposit strikes approximately 1,500 metres in an east-west direction, dips subvertically and is on average 20 metres thick. Mineralization largely consists of pyrrhotite, as well as pentlandite and chalcopyrite. The deposit dimensions appear to be amenable to open-pit mining. Russian classified resources The attached estimate was done using cut-off grades of 0.5 per cent for nickel and 0.3 per cent for copper, and was approved by the Science-Technical Council of the State Industrial-Geological Association, Buryatgeologia. Resource Tonnes Nickel Contained Nickel Copper Contained copper category (millions) grade(%) (million pounds) grade (%) (million pounds) C2 51.1 0.6 670 0.19 212 P1 70.6 0.46 714 0.17 102 Total 121.7 1,384 314 Metallurgical testwork Metallurgical testing conducted on five 400-to-500-kilogram samples by leading Russian metallurgical laboratories, Gibronickel and Mechanobr, indicated recoveries of 80 per cent to 87.5 per cent for nickel and 81 per cent for copper into a bulk concentrate using a gravity-flotation flow sheet. Nickel recovery increased to 92 per cent to 94 per cent using a pressure leach process. Exploration upside The deposit is open at depth. Also, Chaya is located in a highly prospective nickel belt. The Yoko-Dovyrenskiy nickel-sulphide deposit is located 40 kilometres west of Chaya. Several known exploration targets exist in the vicinity of Chaya area, including the anomalous Ogiyendo and Yubileynoye properties. © 2008 Canjex Publishing Ltd.