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The Berezitovy property is located in the Amurskaya Oblast region of the Russian Federation approximately 340 kilometres southwest of Tynda and 150 kilometres northwest of Skovorodino. The city of Tynda is located on the Baikal-Amur Railway while Skovorodino is located at the junction of the Trans Siberia and Baikal-Amur railways. The nearest population centre is Urusha (4,700 people) located 50 kilometres to the south of the property, on the Trans Siberian railway and a major road.
The Berezitovy property is located in the Prishulkino Structural-Metallogenic Zone which forms part of the eastern flank of the Eastern Transbaikal Upper Amur Region. Structurally the deposit is situated within the Magochina thrusted block of Archean age rocks and is near the intersection of Sergachinski and Khaiktinski regional faults. The area of the Berezitovy property is underlain predominantly by Early Proterozoic-age biotite-feldspar gneissose granites and granodiorites with some feldspar-pyroxene gabbro in the southern part. To the east and west of the property, Jurassic-age granodiorite and diorites are present. To the south of the property, the Yuzhna-Sergachinski Fault separates the above rocks from the Archean-age Shurigiskaya and Amazarskaya Suites containing interlayered biotite gneiss and biotite-feldspar gneiss. Gold mineralization is present within a north-northwest trending, steeply southwest dipping zone of brecciated and hydrothermally altered granodiorite. This zone, along with several other zones of similar orientation in the general area, may represent regional scale tension gashes developed between the east-northeast trending Severa and Yuzhna-Sergachinski faults. The overall outline of the mineralized zone is due to the juxtaposition of two inverted cone shaped structures (breccia pipes), which have provided channel ways to the hydrothermal alteration and the associated gold-polymetallic mineralization. Presence of shard fragments in the breccia may also indicate volcanic activity predating the mineralization. Gold mineralization is present in various facies of brecciated zones with disseminated sulphides and in silicified rocks. Sulphide mineralization consists predominantly of pyrite, sphalerite and galena. Gold is commonly present in solid solution with silver as electrum. A post-mineral, east-northeast diorite dike separates the Berezitovy deposit into two parts; a northern area containing the North Zone and a southern one containing the Central and South Zones. Based on field observations and resource assay data, the Central and South Zones has significantly higher average gold and lead grades and similar silver and zinc grades compared to the North Zone.
Project Development
The results of this work were incorporated into a bankable feasibility study that was completed in June 2004 (click on Technical Report June 2004 - PDF). In August 2004, the Company acquired from Newmont Mining Corporation (Newmont) the Mill 4 Gold Ore Processing Facility ("Mill 4") and an overland conveyor system located in Nevada, USA. In late 2004, the Company transferred a 1% interest in the Berezitovy project to the State Property Fund in the Amurskaya Oblast.
Processing
High River will employ its own mining fleet and mine workforce for waste movement and ore mining. The project will employ 600 people at maximum production with most drawn from the region. All employees will be housed on site in a camp and work a one month in/one month off rotation. Mining activity will be carried out on two 10-hour shifts. Supplies will arrive in Skovorodino via rail or truck at a transfer centre operated by High River, which will also facilitate employee rotation changes.
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