|Fire River Gold Corp. produces excellent gold results from geological re-assessment work at Nixon Fork Gold Mine, Alaska|
FAU news March 23 2010
- Geological re-assessment work 30% complete; resource update Fall
- Significant Previously Undisclosed Results:
- 1.8 opt (61 g/t) Au over 13 ft (4.0 m) in hole N08U007
- 2.9 opt (99 g/t) Au over 1.3 ft (0.4 m) and 1.2 opt (41 g/t)
Au over 12.5 ft (3.8 m) in hole N08U017
2.4 opt (84 g/t) Au over 1.6 ft (0.5 m) in hole in hole N08U018
- 4.1 opt (140 g/t) Au over 15.1 ft (4.6 m), including 21.4
opt (729 g/t) Au over 2.0 ft (0.6 m) in hole N08U011 re-assay
- Results pending for 90 more holes
March 23, 2010. Vancouver, Canada - Fire River Gold Corp. (TSX-V: FAU,
OTCQX: FVGCF, FSE: FWR) ("FAU" or the "Company") is pleased to
announce bonanza gold results from its ongoing geological re-evaluation
program for the Nixon Fork Gold Mine Project in Alaska. In the years
2007 to 2008, the former operator drilled 9400 metres in 110 holes, the
results of which have never been previously disclosed to the public.
All holes were drilled after the last mining campaign and are thus
available for inclusion into an updated resource estimate, scheduled for
release in the Fall of 2010. This news release covers the first 20
holes drilled in 2008, as shown in Table 1. Results for the remaining 90
holes will be released over the next few months as re-logging work is
performed and intercept grades are verified through re-assaying select
Table 1: Complete List of Drillhole
Intercepts for 20 Holes Drilled in 2008
No significant intercepts were reported in holes N08U001, 004, 005, 009,
010, and 015.
The Nixon Fork Mine
The Nixon Fork Gold Mine, located near McGrath, Alaska, is a former
producer with two recent campaigns of mining, detailed in Table 2.
Table 2: Production History of the Nixon Fork Gold Mine's
Most Recent Mining Campaigns
The property has an operating gravity and flotation mill, two
underground mines, 85 person camp, 2.7 MW power plant, 1200 m airstrip,
and is fully permitted and bonded.
"We are in a very unique and advantageous situation at Nixon Fork",
says Harry Barr, President and CEO of Fire River Gold, "The former
owners have done all the heavy lifting and set up the operation with
excellent facilities including permitting. Our task is to demonstrate
that the Nixon Fork Gold Mine can be economically viable once again."
The deposit is a gold-rich copper silver skarn typical of other skarn
systems found throughout the world. At Nixon Fork, the higher grades are
found in steeply plunging pipe-like bodies which are oxidized to depths
of up to 350 metres below the surface. Oxidization of the system has
resulted both in secondary copper and gold, with high grades and a
Figure 1 shows approximately 1200 drill holes on a long section that
define the Crystal and Mystery ore bodies. Intercepts of greater than 3
g/t are highlighted as well as projections of the mineralized zones.
The Southern Cross is a prospective exploration target between the two
mines that is largely unexplored.
Figure 1: Long Section of the Crystal and Mystery Ore Bodies
The Geologic Re-assessment Program
The re-assessment work is being led by Larry Hillesland, Manager of
Geology (see March 2, 2010 press release). Mr. Hillesland manages a
staff of six site geologists who are re-logging and re-assaying select
critical mineralized intercepts from the property's approximately 73,000
metres of historic drill core.
Inconsistencies in the historic core logging have compromised the
usefulness of the data. Re-logging the core with consistent rock
identification and coding is critical to generating an accurate geologic
model for the orebody. This work is estimated to be 30% complete. All
drill hole intercepts reported in this release are in unmined areas and
will be incorporated into an updated resource estimate, scheduled for
completion by Fall 2010.
Included in this total is 9400 m of underground drilling in 110 holes
that was completed in 2007 and 2008 by the last operator. These holes
were intended to further define mineralized zones, testing for
extensions of the 3300 ore zone as well as the Southern Cross zone
between the Mystery and Crystal Mines, and to provide assistance with
"Results to-date from our current re-sampling and evaluation program
have met, and in some cases, exceeded our expectations and have
identified very promising grades amenable to mining." commented Larry
Hillesland, Manager of Geology.
Because the 2007 and 2008 results were not formerly reported, a careful
review of all quality control and quality assurance procedures used by
the former operator was initiated. Assay certificates were verified with
the digital database and the results from blank and certified standards
were compiled. This review shows more than an adequate number of
certified standards had been used along with numerous blanks and
Five different gold standards were used in 2008 that ranged from 1.02 to
30.04 grams per tonne. These are commercial standards produced by Rock
Labs. A total of 49 standards were submitted for this program.
Acceptable values for standards form a range that lies between two
standard deviations below the average and two standard deviations above
During 2008, 22 of the submitted standards fell outside the acceptable
limits. Of those 22 standards 17 were low to marginally low and
generally within 3 standard deviations of the mean. Five of those
standards reported values that were higher than the accepted limits. All
blank samples submitted were in acceptable ranges and the duplicate
samples showed typical variability for this type of gold system. FAU
will replace the standards for ongoing assessment work.
Table 2 shows a list of significant intercepts for 28 holes of the 2008
drill program conducted by the last operator. Due diligence field
duplicate check assays yielded significant results from 8 of the 28
drill holes. A total of 80 samples and 4 standard reference samples were
checked against the 2008 results. This table generally lists any sample
greater than 3 g/t Au, regardless of thickness. These results have
exploration significance. Note that the widths of the intercepts are not
necessarily the true width of the zone.
Fire River Gold's re-sampling program of drill core from the 2008
drilling at Nixon Fork was essentially a modified field duplicate
exercise. The remaining half-cores were fully analyzed except in rare
cases where quarter-cores were used. Sampling of core-duplicates as
compared to pulp-duplicates can produce a high degree of variability in
the results due to the "nugget effect" of gold mineralization that
occurs at Nixon Fork.
Every effort was made to replicate the previous sample intervals unless
a previous sample crossed a lithological or mineralized boundary. In
these cases the new 2010 samples were terminated at such boundaries.
The differences in lengths of the intervals may account for some of the
variability in gold grades. In general, the assays agree fairly well,
especially for a comparison of field duplicate samples in a high-grade,
coarse gold system.
Table 3: A
Comparison of the Original to Check Assays for the 2008 Drilling.
Proposed 2010 Drill Program
A 20,000 m drill program is planned to begin in Spring 2010, 8,000
metres of which will be on surface to and 12,000 metres of which will be
done underground in both the Crystal and Mystery Mines to confirm
continuity of mineralization and extend mineralized zones.
The property has numerous additional exploration prospects on surface,
as shown in Figure 2. The two existing mines are marked as squares in
the upper left section of the drawing. The stars on the map indicate
exploration prospects that have been identified by diamond drilling,
trench sampling, and outcrops. The company plans to explore these with
8,000 metres of surface drilling beginning in Spring 2010. Management
believes that there is the potential to not only expand resources in the
existing mines, but to identify completely new zones for mining.
Figure 2: Mines and Prospects on the Nixon Fork Mine Property Claim
The geological resource assessment work will be carried on through the
year and, coupled with results from the 2010 drill program; a resource
will be estimated for the property and released in the Fall of 2010.
A mine plan will be prepared and a production decision will be made for
the resumption of underground mining by the end of 2010.
The project is being managed by Richard Goodwin, P.Eng., VP Mining for
Fire River Gold and the Qualified Person for this news release.
About Fire River Gold Corp.
Fire River Gold Corp. is a junior exploration/development company
focused on developing advanced stage gold projects in North America. The
company's team of professionals, includes dedicate senior management,
geologists, engineers, corporate finance, investor relations experts,
corporate management, public company administrators and regulatory and
government affairs specialists. Fire River Gold is publicly traded in
Canada on the TSX Venture Exchange (FAU), in Germany on the Frankfurt
Exchange (FWR) and on the United States' OTCQX exchange (FVGCF).
On behalf of Fire River Gold Corp.
President & CEO
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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