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Leading the way in building a vibrant gold mining industry in Burkina Faso.

Taparko-Bouroum Gold Mine

The first gold pour at the Taparko-Bouroum Mine on July 17, 2007. Commercial Production was declared on October 1, 2007. The start-up of the Taparko-Bouroum Gold Mine marked the revival of a modern gold mining industry in Burkina Faso. It is the first commercially operated gold mine in the country since the government-operated Poura mine closed in 1999.

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The Taparko-Bouroum Gold Mine is located in the Namantenga Province of Burkina Faso in West Africa, approximately 200 kilometres northeast of the capital city of Ouagadougou and is easily accessible by road. The Bouroum property is located approximately 49 kilometres northwest of the Taparko mill site.

The gold mine is operated by SOMITA SA, a company owned 90% by High River Gold Mines Ltd., and 10% by the Government of Burkina Faso

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Plan View of the Taparko mine and processing site

History
The original discovery at Taparko was made in 1980 by the Burkina Faso Government department of geology and mining (BUMIGEB). High River and an associate entered into a joint venture agreement for the Taparko property in August 1993 and were granted an exploration permit in February 1996.

The mining resources at Bouroum (held previously by AXMIN Inc.) were later acquired by High River and added to the total mineral resources of the project.

Environmental and feasibility studies were undertaken in October 2003. The preliminary result showed a mineable reserve of 7.6 million tonnes at a grade of 2.91 g/t with an annual processing rate of one million tonnes of ore producing 2,600 kilograms of gold and projecting a mine life of 7.6 years.

An industrial mining exploitation permit for the Taparko site was granted in August 2004 and the company SOMITA SA "SOCIETE DES MINES DE TAPARKO" was created. The procurement of the equipment and start-up of earthworks and construction began in September 2004 with the official launching of works under the patronage of the Prime Minister of Burkina Faso in February 2005. The exploitation permit for the Bouroum property was received in June 2005.

Geology
In the Taparko area, economically important accumulations of gold mineralization were identified within three discrete zones: Zone 3/5 (1.1 kilometres long) Zone 2N/2K (500 metres long) and Zone GT (400 metres long).

Gold at the Taparko Property occurs predominantly in a northwest trending broad shear zone. Gold mineralization is concentrated in a system of quartz veins and veinlets, dipping between 40 and 50 degrees to the northeast, that occur throughout most of the known length of the Taparko shear zone. The width of the zones varies between 5 and 20 metres.

In Bouroum, all of the gold deposits of economic importance and most of the gold-in-soil anomalies and artisanal workings lie within what is defined as a "deformation corridor". Gold mineralization occurs in a quartz veining system with local variation in each of the three ore zones: Bissinga Zone is a relatively short shoot at 80 metres in length, F-12 Zone is approximately 500 metres long and Welcome Stranger Zone is 180 metres long.

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Based on a US $800/ounce gold price, Proven and Probable Reserves total 8,855,000 tonnes grading 2.81 g/t for 800,000 ounces.

Exploration is expected to define additional resources that will extend the mine life. A systematic drill programme testing the potential at depth beneath the Taparko 3/5 pit, as well as the potential for satellite deposits within and outside the Taparko mining concession, will commence during 2008 with the objective of defining additional gold resources.

Mining
All ore deposits at Taparko and Bouroum are near surface and amenable to open pit mining. The daily rate of excavation is 3,000 tonnes of ore with an average of 17,000 tonnes of waste. Open pit optimization was performed on each deposit using Whittle software. Open pit wall slopes were provided by Golder Associates and vary from 43 to 56 degrees. The average stripping ratio is 4.36:1 at Taparko and 7.21:1 at Bouroum. Ore production is based on 5 metre benches. Ore is mined using 54 tonne trucks loaded by CAT-385 backhoe excavators and CAT 988 front-end loaders. Blast hole drilling (102 mm and 114 mm holes) is done with Sandvik Pantera 1500 drills. Other surface equipment includes CAT D9 dozers, a grader, water trucks, service vehicles and light vehicles. A complete maintenance shop is located in the vicinity of the processing plant area. Ore is hauled from Bouroum to Taparko on a connecting gravel haul road using a local contractor.

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Processing
The processing plant flow sheet is comprised of seven main circuits: crushing, grinding, gravity concentration, CIL, acid wash and elution, carbon regeneration and gold recovery. The tailings are thickened and sent to the tailings storage facility for disposal. Plant design contains two ore feed lines where the ore is fed based on its hardness (altered rock is soft and fresh rock is hard). Hard ore is crushed using a conventional jaw crusher and two cone crushers, while soft ore is sent through a mineral sizer. The crushing/grinding circuit delivers product to the leach circuit at 80% minus 75 micron. A component of the milling circuit cyclone underflow is directed to a gravity concentrator to recover between 15 and 25% of gold in a gravity concentrate. The leach circuit consists of a hybrid CIL configuration with 24 hours of residence time. Processing plant overall recoveries are expected to range from 94 to 97% for the oxidized ore and from 89 to 94% for the sulphide ores.

The process water is supplied from a new water storage dam (maximum capacity of 2 million cubic metres), 4.3 kilometres from the processing plant. A pipeline from a new pump station located at the Yalgo reservoir (approximately 9.6 kilometres away) supplies this storage dam. All water used in ore processing is sent with the residue to the tailings pond, drained to the return water dam and pumped back to the plant. The tailings storage facility, the return water dam as well as all trenches containing the various pipelines, are lined with individual waterproof liners. Thus, great care is taken to eliminate any possibility of environmental contamination.

Mine Infrastructure and Services
The Taparko and Bouroum properties primarily use heavy fuel oil generated power with back-up/peak power loads met with the assistance of diesel generators. Fuel requirements are supplied from a main fuel storage station which includes two tanks of 650,000 litres each. Potable water for the camp and mine site is sourced from the Yalgo reservoir and treated on-site.

The main administration building provides office space for management, administration, accounting, human resources, safety and training, geology, engineering and mine supervision personnel. The main workshop and large warehouse are in the same area. Other infrastructure includes a weigh station, an assay laboratory, a water treatment plant, a sewage system, a sanitary landfill and explosive magazines.

Accommodation is provided at a large camp at Taparko with housing for approximately 200 employees (senior staff and employees), catering facilities and recreational facilities. The total mine complement during regular operation is approximately 360 employees, including 335 Nationals, with only 5% of the total consisting of expatriates. The SOMITA organization is composed of five departments: (1) Administration - which provides the services of accounting, logistics and the corporate office in Ouagadougou; (2) Human Resources - which provides the services of personnel, health, safety, training, environment and security; (3) Mining; (4) Maintenance and; (5) Process Plant. Contracted services include: catering, security, power plant operation and maintenance as well as the assay laboratory operation for the first few years.

Environmental Considerations
An environmental study was conducted to estimate the effects of the project on the local environment and the people living in the area. The principal social and environmental issues of the project were identified and mitigation or compensation measures were proposed. The identification and evaluation of the environmental impacts were done in accordance with the standards of the African Development Bank and those of the World Bank. As per High River guidelines, the project aimed to meet and exceed the highest standards of Canadian, Burkina Faso and World Bank norms.

Public hearings were held in conjunction with the environmental impact study. Recommendations were made to SOMITA SA to allow the project's designers to develop the project with minimum impact on the local environment.

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An Environmental Monitoring and Management Program (EMMP) was instituted following completion of the environmental study. The objective of the EMMP is to provide all the relevant information required for the environmental management of the activities of SOMITA. The activities are presented in the form of a responsibility chart, which defines the type of involvement expected from directors, team leaders, supervisors and employees. An implementation schedule for the EMMP, reflecting the work schedule for the Project facilities and infrastructures, was completed and is in effect.

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