High River starts commercial production at Taparko
Thursday, September 27th, 2007
High River Gold Mines Ltd. has achieved commercial production at its Taparko-Bouroum gold mine in Burkina Faso. The criteria established for commercial production stipulated that all components of the processing plant were to operate for 30 consecutive days at 60-per-cent capacity or better. Mill throughput during the 30-day period ending Sept. 24, 2007, totalled 60,825 tonnes, representing an average capacity utilization of 74 per cent. The mill is currently operating at over 80-per-cent capacity.
The effective date of commercial production for accounting purposes will be Oct. 1, 2007, at which time gold sales and operating costs will begin to be reported on High River’s income statement. Prior to Oct. 1, 2007, gold sales and operating costs have been capitalized for financial reporting purposes.
The Taparko-Bouroum gold mine produced 3,623 ounces of gold during the 30-day commercial production evaluation period. Prior to the commencement of the evaluation period, a total of 1,269 ounces of gold was produced. It is anticipated that up to Oct. 1, 2007, a total of 5,642 ounces will have been produced with the associated revenue being credited against the capital cost of the project.
Gold production for 2007 is expected to total approximately 30,000 ounces, with annual production planned at 100,000 ounces, rising to over 140,000 ounces in the third year of operation. Approximately 214,000 tonnes of ore (equivalent to three months of production) remain stockpiled, ready for processing.
The successful start of commercial production at the Taparko-Bouroum gold mine is a major accomplishment and milestone in the growth of High River, as it is the first gold mine taken from discovery through to production entirely by the High River team. The Taparko-Bouroum gold mine also marks the revival of a modern gold mining industry in Burkina Faso, as it is the first commercially operated gold mine in the country since the last gold mine closed in 1999.
The official mine opening ceremony will be held on Oct. 8, 2007. Joining High River in celebrating this momentous occasion will be the Prime Minister of Burkina Faso, federal and local government officials, as well as the local community.