FAU
is a member of The International Metals Group
(IMG), an organization of professionals with a
wealth of experience in all aspects of the
mining industry. Our group consists of a brain
bank of project acquisition, exploration and
development professionals, including dedicated
CEOs, geologists, engineers, corporate finance,
investor relations experts, corporate managers,
public company administrators, and regulatory
and government affairs specialists. The
companies within the group are able to share
resources, costs and expertise, which provides a
significant advantage in comparison to
individual public companies.
The primary focus of the Company is the exploration and development of
North American gold projects with a specific emphasis in Alaska. |
|
|
|
The Company completed its IPO at the end of May 2009 with its Draken
project. On June 29, 2009, the Company acquired the Nixon Fork Gold Mine
in Alaska. In an effort to continue to add to the Company's advanced
stage project portfolio, on August 19, 2009 FAU announced an option to
acquire 100% of the Golden Zone project. The project is located 240 km
north of Anchorage, Alaska on the south flank of the Alaska Range and is
road accessible.
NIXON FORK GOLD MINE - ALASKA, USA
Key Highlights
- High grade gold with copper and silver credits
- Previous production average over 42 grams per ton (1.4 opt)
- Fully permitted and bonded turnkey mining operation
- Excellent potential for near term production
- Complete re-evaluation of the mine, mill, resource and tailings
in progress
- Significant exploration upside
Facilities
Facilities at the Nixon Fork Gold Mine include a 200 tpd flotation plant
with a gravity gold separation circuit. In 2008, a CIL gold leaching
circuit was purchased and approximately 60% installed. The mine also
includes a fleet of mining vehicles, a self-contained power plant,
maintenance facilities, drilling equipment, an 85 person camp, office
facilities and a 1.2 km long landing strip. All necessary permits are in
place to resume mining operations.
2010 Re-evaluation Program in Progress
Management is in the process of completing the re-evaluation of the
status of the mine, mill, and underground resource and is working
towards finalizing a comprehensive study to resume operations. The final
re-evaluation report will come out in stages with the first milestone
being the completion of the tailings study to be released in Spring
2010. A 12,000 meter underground and surface drill program is slated to
be completed before year end along with the completion of a new NI
43-101 resource estimate. The Company will prepare a comprehensive mine
plan to demonstrate the economic viability of resuming mining operations
in Spring 2011.
Re-Evaluation of Tailings Pond
The first operator of the mine produced an average head grade of
approximately 42 grams per ton (1.4 opt) with 83% recovery. Through
previous engineering and metallurgical studies, the tailings have
demonstrated a mineral potential of between 150,000 and 170,000 tonnes
grading between 7 and 9 grams per tonne. A CIL circuit was designed,
purchased, and was 60% installed for the purpose of re-processing the
tailings. The Company is currently validating the metallurgical test
work, enhancing the existing design, and preparing an economic
feasibility evaluation for the tailings re-processing program. The
results of this study will be released in the Spring of 2010. It is
possible that the decision will be to defer this option and incorporate
gold recovery from the tails into an overall mine plan.
Surface Exploration
As the last two operators of the project focused most of their financial
efforts on underground development, the mine infrastructure, equipment,
permitting and bonding, only a limited amount of their budget was spent
on exploration. An 8000 meter surface drill program is planned on a
number of exploration targets that have been identified by prior
drilling, trench sampling, and surface outcrops.
Tailings Drilling Fall 2009
Underground Exploration
From 2004 through 2009 the previous operator spent approximately US$52
million on upgrades to the processing facilities, mine infrastructure
permitting and bonding. During 2007 -- 2008, 9,381 meters of reserve and
resource definition drilling was conducted however the results were
never fully evaluated or released. The Company is currently reviewing
all drill core of the above mentioned program and results are expected
to be reported during the next 2-3 months. In Spring of 2010 a 12,000
meter underground exploration program is slated to begin with the
objective of increasing the current resources and confirming a new
geologic model.
On November 12, 2009 the Company listed its shares on the TSX Venture
Exchange. On January 11, 2010, the Company commenced trading on the
OTCQX International Exchange.
We will continue to update you, our shareholders, through regular press
releases, trade shows and our website. On behalf of the Board of
Directors, and your Company's management, I wish to thank you for your
continued support. For further information on your Company, please visit
our website at www.firerivergold.com or email us at info@firerivergold.com.
|
