Having traded in a range of $2.66 to $2.40 per share, High River Gold Mines seems to be making a breakout as their Berezitovy Gold Project in Russia, moves closer to production.

The gold project is still going to plan and the first gold is due to be poured in August of this year. Predicted production at the mine is expected to reach 100,000 ounces of gold each year for at least a decade. Of course this gold produced from this project is completely unhedged and this is one of the main reasons we like High River Gold as their project will benefit from higher gold prices which we believe are imminent.

The COO and Exceutive VP of High River Gold Mines, Daniel Vanin, said:

“I am extremely pleased with the progress of construction at Berezitovy achieved by our management and operational team. The quality of materials and labour sourced locally has been excellent. I look forward to a successful start-up in August.”

After the start up in August, High River Gold will put the mine into commerical production in October after 30 days of continuous production at 60% of rated capacity.

This start in commercial production should coincide well with the seasonal rally that we expect in gold prices, after the current summer doldrums, and should push the stock price of HRG considerably higher.

With that in mind as well as the other projects that High River have, we continue to hold this gold stock and keep it as a BUY in our portfolio of gold stocks here at Gold Prices. We bought the stock on May 11th for $2.49 so at $2.90 we are holding a profit of about 16.5% which is a pleasant start to our investment.

High River Gold Ltd trades as HRG on the TSX and has a market cap of C$726.75M