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FAU - Oct 8 2009 release
New Page 2
October 8, 2009
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NI 43-101 compliant mineral resource
containing measure and indicated resource of approximately.
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3.09 million tons grading 0.082
ounces per ton (opt) gold (2.81 g/t) for a total of 259,940 ounces
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7.61 million pounds of copper
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1.39 million ounces of silver.
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14 targets are identified
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2009 program is complete pending assay
results
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Excellent Infrastructure, road access to
property, 12 miles from major highway and railroad, power nearby.
Vancouver, Canada --
Fire River Gold Corp. (the "Company", "FAU") (CNSX: FAU) is
pleased to announce that further to its news release dated August
19, 2009 the Company has completed a formal option agreement ("FOA") on
the Golden Zone Project with Hidefield Gold PLC and Mines Trust Company (the "Optionors").
Exploration Update:
The 2009 exploration field program has been completed with a total of 1340
linear feet of trenching which was mapped and sampled. The trenching is
south of the Breccia Pipe Resource area toward the GAS Prospect and was designed
to further investigate mineralization encountered in drill hole 6004, which was
completed in 2006. Trenching in the Gas area uncovered extensive hornfels
alteration and a strongly altered fault zone. Trench 4 in the Copper King area
discovered hornfels at the contact with a quartz porphyry intrusive body. The
hornfels contained copper staining and this target has not been previously
drilled. Trenching in Long Creek area also uncovered previously unknown quartz
porphyry intrusive bodies. Previous drill core was re-logged and samples were
collected for assay from intervals not previously sampled. Geochemical samples
have been submitted to ALS Chemex for gold and multi-element analyses and
results are expected in approximately one month.
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 zone.
The Golden Zone has a NI 43-101 compliant mineral resource 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 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 mineralization. The Breccia
is being evaluated as a possible open pit target. At least fourteen targets are
identified within the 8000 hectare property and all have limited exploration
work completed to date
A technical report prepared by William Ellis for Fire River reports the mineral
resource contained on the property and is available on the Sedar
website through Fire River Gold Corp.
Terms of Agreement
The Company has an option to acquire 100% in the Golden Zone Project located in
Alaska from Hidefield Gold PLC (60%) and Mines Trust Company (40%). FAU has paid
US$20,000 on signing of the LA and an additional US$30,000 (paid) 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.
Nixon Fork Property
Highlights about Nixon Fork Gold Project
• Turn key mining operation
• Mine fully permitted and bonded
• Multi million dollar expenditures to date on
equipment and facilities
• Significant exploration upside
The recently acquired Nixon Fork Gold Mine in Alaska has the potential to be a
near term gold producer. For further information, please refer to FAU's news
releases dated and June
29, 2009 and August
13, 2009 and a recent article written by North 60 of Mining News (Sept.
27, 2009).
A budget of CDN$1.25 million has been allocated with the objective of conducting
a re‐evaluation of mine reserves/resources, metallurgy, tailings
production scenarios, financial analysis and update on the exploration plan
going forward.
Draken Property
FAU has commenced with an initial Phase I work program consisting of surface
exploration program, detailed rock sampling, mapping, rock chip sampling and
metallic sieve analysis on selected samples and is continuing to move forward
with the Phase I exploration on its 100% owned Draken Project.
Please refer to www.firerivergold.com
for further information on the Draken Property.
Kansas Creek Property
Management is currently re-evaluating the data on the Kansas Creek Property with
the objective of outlining a Phase I exploration program. Management expects to
have recommendations and the commencement of Phase I exploration program for the
spring of 2010.
For further information on the Kansas Creek Property, please refer to FAU's
news release dated June
19, 2009.
Greg Myers, PhD., P.Geo., is the Qualified Person for this press release.
On behalf of the Board of Directors
"Harry Barr"
Harry Barr
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.
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