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Fire River Gold Corp. Tailings Sampling / Drill Program Averages 7.6 g/t Gold at Nixon Fork Gold Mine, Alaska
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FAU news April 6 2010
  • The average gold grade of all 2009 samples is 7.6 g/t
  • Potential for re-processing an existing high grade tailings pond through a CIL circuit as an early production scenario
  • The Nixon Fork Mine had two prior production campaigns under different operators
  • A 250 tpd CIL plant was designed, purchased and is 60 % installed

April 6, 2010. Vancouver, Canada - Fire River Gold Corp. (TSX-V: FAU, OTCQX: FVGCF, FSE: FWR) ("FAU" or the "Company") is pleased to provide an update regarding its tailings re-processing evaluation work, being done as part of its ongoing development of the Nixon Fork Mine Project in Alaska. 

FAU is assessing the viability of re-processing an existing high grade tailings pond through a CIL circuit as an early production scenario, prior to the resumption of underground mining. This news release defines the process that is being followed and gives an update of progress to date, including results from tailings drilling and metallurgical testwork. 

The Nixon Fork Mine had two prior production campaigns under different operators, as shown in Table 1, below.

Table 1: Historic Mining and Gold Recoveries



The tailings are located in a dammed impoundment downstream of the mill facility in a "Vee" shaped valley (see Figure 1). 


Figure 1: The Nixon Fork Mine Tailings Pond

A total of 34 holes have been drilled in the tailings pond to test its grade. Thirteen holes totalling 124 ft were drilled in 2004, each to a depth of approximately 9.5 ft. In 2009 FAU drilled an additional 21 holes ranging in depth from 8 to 30 ft, a total drilled distance of 329 ft. Not all planned sites could be drilled, as the tailings liquefied quite easily, especially close to the exposed water of the pond. Sampling was done every 2.5 ft, producing a total of 133 samples, which are shown in Table 2. 

Table 2: Gold Assay Results (g/t) from 2009 Tailings Drilling Program

There does not appear to be any zoning of grade by depth. In general the grades are higher on the NW side of the pond and generally decrease to the east and south. The average gold grade of all 2009 samples is 7.6 g/t.

Figure 2 shows the location of the 2004 and 2009 drillholes. Red and magenta colors have been used to indicate assay grades that are greater than 9 g/t.

Figure 2: Location of the Drillholes in the Tailings Pond


The prior operator conducted metallurgical testwork for use in the design of the CIL circuit. FAU conducted additional leaching tests at PRA labs in Richmond that are in agreement with prior testwork, indicating a cyanidation recovery of over 80% can be expected. Gravity and flotation tests on the tailings material indicated that neither method is appropriate. Further optimization tests are in progress to establish design criteria for sizing equipment.

Figure 3: Panorama of FTDS at Nixon Fork, March 2010

A 250 tpd CIL plant was designed, all equipment procured, and partially installed in 2007. Nearly all equipment is new and installation is estimated to be 60% complete. 

The property has a valid cyanide use permit and a permitted and constructed Filtered Tailings Disposal Site (FTDS, see Figure 3). Two shallow monitoring wells need to be installed to monitor the groundwater downstream of the FTDS.

The Company will continue its analysis of this early production scenario, including the following aspects:
  • critical review and modification to the current design
  • assessing capital requirements for completion
  • estimating operating costs, revenues and cash flow from production
  • evaluating the cost and benefit of a production rate increase from the existing 250 tpd

A team has been assembled to assist FAU with this work, which visited the site from March 23 -26. The team includes George Rawsthorne, P.Eng, who is acting as design metallurgist, Ted Barbor, a mill operations specialist, and Bill Wong, P. Eng who will do the design work for the mill. They were accompanied by the original contractor from the 2007 construction program, Alaska Mechanical Inc., who will quote on an estimate for completion.


Figure 4: Tailings Re-processing Assessment Team at Site

The analysis work is projected to be completed by the end of May 2010 with construction possible this spring and summer (2010) assuming a positive result.

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 dedicated 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 Board of Directors,

"Harry Barr"

Harry Barr
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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not Pink OTC Markets Inc. are solely responsible for the accuracy of such news releases.

 
 

You can view the Next News Releases item: Tue Apr 13, 2010, Continued High Grade Gold Results Including 1.8 opt (60.55 g/t) Gold Over 13.7 ft (4.2 m) Nixon Fork Gold Mine, Alaska

You can view the Previous News Releases item: Wed Mar 31, 2010, Fire River Gold Corp. Announces Additional High Grade Gold Results From Nixon Fork Gold Mine, Alaska

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