August 19 2009 FAU News Release
Option to acquire 100% of advanced stage
Gold/Copper/ Silver project
Over 20,000 meters of drilling completed to date
Significant exploration be upside on 14 previously
2009 program to evaluate potential expansion of
Vancouver, Canada -- Fire River Gold Corp. (the "Company",
"FAU") (CNSX: FAU) is pleased to announce that further to the Company's completion of a positive due diligence review on the Golden Zone Project with Hidefield Gold
PLC, and Mines Trust Company (the "Optionors"), the Company has provided notice that it intends to proceed with the acquisition of the Golden Zone Project. The parties will have 45 days to complete a Formal Option Agreement
("FOA"). In the event the FOA is not completed within 45 days, the terms and conditions of the Letter Agreement (LA) shall remain binding until the FOA has been completed.
About the Golden Zone Project
The Golden Zone Project is located 240 km north of Anchorage, Alaska on the south flank of the Alaska Range. The project is accessible by road, and is just 19 km from the Parks Highway, which connects Fairbanks and Anchorage. A fully self contained camp and work facility is on site.
The project is an advanced stage gold-copper-silver system with approximately 20,100 meters of drilling, extensive trenching, soil sampling grids, multiple geophysical surveys, and metallurgical samples collected from core and the underground workings in the main Breccia
The property hosts several mineralization styles including an igneous rock hosted breccia pipe, several replacement zones of mineralization in calcareous rocks, and mineralization hosted in volcanoclastic rocks.
The Breccia target is the most advanced and hosts the mineral resource and the 2009 exploration program will evaluate the possible extension on this
minerization. The Breccia is being evaluated as a possible open pit target. At least 14 targets are identified within the 8000 hectare (19,768 acres) property and all have limited amounts of exploration work.
A technical report prepared by Norwest Corporation for Piper Capital in May, 2005 reports the NI 43-101 compliant mineral resource as containing a measured and indicated resource of approximately 3.09 million tons grading 0.082 ounces per ton (opt) gold (2.81
g/t) using a cut-off grade of 0.03 opt gold (1.03
g/t) for a total of 259,940 ounces with 7.61 million pounds of copper and 1.39 million ounces of silver. The previous NI43-101 is available on the SEDAR website through Piper Capital or at
www.hidefieldgold.com or http://www.hidefieldgold.com/i/pdf/goldenzone-43101.pdf.
FAU has not confirmed the resource as of this date and a new NI43-101 technical report is currently being completed for
Terms of Agreement
The Company will have an option to acquire 100% in the Golden Zone Project located in Alaska. FAU has paid US$20,000 on signing of the LA and an additional US$30,000 will be paid within seven (7) days of the signing of the FOA. Further cash payments of an aggregate US$225,000 are to be paid over a period of three (3) years due on or before May 31, 2012.
The Company must also pay the Optionor 500,000 common shares of the Company within seven (7) days of signing of the FOA, and additional share payments of an aggregate value of US$1,300,000 in shares over a period of four (4) years due on or before May 31, 2013. Shares will be issued based on the 30 day average share price of FAU at the close of market commencing with of the first day preceding the date of issue, or such other price as may be required by the regulatory authorities at the date of issue.
To complete the option the Company must expend a cumulative US$2,500,000 in work expenditures by December 31, 2014 with a minimum annual commitment of US$250,000. Once the Company has completed cumulative expenditures of US$1,000,000 into the project, cumulative cash payments of US$200,000, the issuance of the first 500,000 common shares of the Company and US$650,000 worth of shares, the Company will earn a 51% interest in the Project. Upon completion of all cash and share payments and a cumulative US$2,500,000 of work expenditures, the Company will earn a 100% interest in the property, subject to a 2% royalty with a buy down provision for US$1 million.
About Fire River Gold Corp.
Fire River Gold Corp. ("FAU") completed its IPO at the end of May 2009. FAU is the newest member of the
International Metals Group
(IMG) and will have access to a well established team with over 100 years of experience working in Alaska. The primary focus of FAU is the exploration and development of gold projects in North America. The acquisition of the
Nixon Fork Gold Mine
(see FAU release dated August 13,
2009) allows FAU to continue the development of a near term gold production opportunity. In addition, FAU is completing Phase I exploration on its 100% owned Draken Project and it is scheduled to be concluded by mid August. In addition, management is reviewing the data on its newly acquired Kansas Creek Gold Project.
On behalf of the Board of Directors
President & CEO
The Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
Disclaimer: This news release may contain certain "forward-looking statements". All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and available at www.sedar.com or filed with the Canadian National Stock Exchange. Any forward-looking statements are not guarantees of the Company's future performance and are subject to risks and uncertainties that could cause actual results, developments, and business decisions to differ materially from those contemplated by any forward-looking statements.
Except as required by law, the Company undertakes no obligation to update any forward-looking statements.