TORONTO (miningweekly.com) – TSX-listed High River Gold, which cautioned last month that its future was in doubt, has restarted the ball mill at its Taparko-Bouroum gold mine, in Burkina Faso, and said that it had received proposals for the sale of some or all of the company.

The Taparko mill was out of operation for the entire third quarter after the driveline failed, but the company has now installed a new gearbox, and has also put in place vibration-monitoring equipment to detect future faults.

If any vibration is detected, the mill may need to be shut down for further repairs, and the company will decide by the end of 2009 if more work is required to ensure that the mill continues to be in good operating condition, High River Gold said in a statement.

The mine is expected to produce 5 000 oz of gold this month, and 7 000 oz in December.

A stockpile of 200 000 t of ore is available and will be used to feed the process plant, with mining operations scheduled to restart by January.

'STRATEGIC ALTERNATIVES'

The company continues to hold talks with its principal lenders, in an attempt to resolve its financial situation going forward.

“The ability of the company to continue as a going concern remains dependent upon these discussions and/or for bearance from its lenders, accommodations from trade creditors, establishing steady production at its two new mines and obtaining additional financings,” the firm reiterated.

High River announced on October 31 that it had defaulted on certain agreements and payments, and that it had set up a special committee to investigate the sale of some or all of the company.

The firm said on Monday that “indicative proposals” for the entire company and for specific assets had been received.

Shares in the company fell 10%, to C$0,045 apiece by 15:59.

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