TORONTO, ONTARIO -- (Marketwire) -- 07/16/09 -- High River Gold Mines Ltd. (TSX: HRG) ("High River" or the "Company") would like to provide an update on the operating status of its four gold mines and its financial situation for the second quarter.
Financial Status (Liquidity and Capital Resources)
As of June 30, 2009, High River's total consolidated debt outstanding was estimated at approximately US$ 103.9 million. This includes: (a) US $39.7 million under various loans between Nomos Bank and High River's Russian subsidiaries, Buryatzoloto and Berezitovy; (b) US $26.2 million under a loan agreement between Royal Gold Inc. and High River's subsidiary, Somita SA; and (c) approximately US $27 million under loan agreements between OAO Severstal ("Severstal") and High River and Somita SA (this loan was previously held by Standard Bank plc and assigned to Severstal on April 20, 2009). The Company continues to be in breach of certain covenants under the loan agreements with Royal Gold Inc. and Severstal, who have not taken any actions thus far but have reserved their rights to do so. Total short term debt amounts to approximately US $75 million. Additionally, as of June 30, 2009, the Company's consolidated accounts payable total approximately US $20 million.
As of July 15, 2009, High River's head office cash position totalled approximately US $3.4 million, and consolidated cash totalled approximately US $13.9 million.
Operations Update (Q2/2009)
Total Q2/2009 gold poured, on a 100% basis, from High River's four operating gold mines totalled 79,997 ounces of which 78,095 ounces were refined in the same period. Following is a mine summary of operational performance during the quarter.
Taparko (100%)
Gold poured during the quarter totalled 20,139 ounces of which 17,519 ounces were refined during the same period. Approximately 182,000 tonnes of ore were processed during the quarter for an average rate of 94 tonnes per operating hour (25% below the original design capacity). Milling of a higher grade ore at 4.2 g/t has partially compensated for the shortcomings of the milling circuit.
Replacement of a trommel screen and two cyclone pumps enabled the plant to operate at slightly higher capacity than during the last quarter. However, vibration levels at the pinion/girth gear interface remain above acceptable levels which limits the productivity of the mill. The Company continues to study the problem with the goal of implementing a long term solution.
Berezitovy (100%)
Gold poured during the quarter totalled 24,023 ounces of which 22,091 ounces were refined during the same period.
