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News Release Highlights:
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67 g/t (1.95 opt) gold over 6.3 m
(20.7 ft) in hole N07U059
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Results pending for 26 additional
underground holes and 7 additional surface holes
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2010 drill campaign scheduled to
begin late June
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Resource update Fall 2010
June 18, 2010. Vancouver, Canada - Fire
River Gold Corp. (TSX-V: FAU; OTCQX: FVGCF; FSE: FWR) ("FAU" or the
"Company") is pleased to announce high-grade gold results 67 g/t
(1.95 opt) gold over 6.3 m (20.7 ft) in hole N07U059 from the
ongoing re-evaluation program on its Nixon Fork Gold Mine Project in
Alaska. The Company has received assay results and completed careful
review of two holes completed in 2007 (N07U059 to N07U060). New
significant intercepts include 67 g/t (1.95 opt) gold over 6.3 m (20.7
ft) in hole N07U059 as part of the ongoing geological re-evaluation
program for the Nixon Fork Gold Mine Project in Alaska. A complete list
of significant intercepts is provided in Table 1. for these two drill
holes.
Table 1:
List of Previously Unannounced Drill holes completed in 2007.
During 2007 and 2008, the previous
operator completed 9400 metres from mostly underground drill stations in
110 holes. The results for these holes were not reported by that
operator and have never been include in a resource assessment of the
mine. The geologic evaluation (re-logging) of the 9400 metres is
complete.
Because the 2007 and 2008 results were not formerly reported, a careful
review was initiated by FAU of all quality control and quality assurance
procedures used by the former operator. Although original check assays
from the 2007 drill program were not documented, it is clear, however,
that certified standards were used. The re-sampling program of the 2007
drill core is essentially a modified field duplicate exercise of the
original assay results.
The re-sampling of the remaining half-cores, were fully analyzed except
in rare cases where quarter-cores were used. Sampling of core-duplicates
as compared to FAU's pulp-duplicates can produce a high degree of
variability in the results due to the ʺnugget effectʺ of gold
mineralization that occurs at Nixon Fork. This nugget effect was clearly
evident in the bonanza grades reported for the 2008 drilling.
Every effort has been made to replicate the previous sample intervals
except when 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 are in
conformity, especially for a comparison of field duplicate samples in a
high‐grade, coarse gold system.
These results show for the first time a significant check assay
discrepancy in the 2007 drilling for drillhole N07U060. No significant
intercept was produced for the interval 24.4m to 26.5 metres. This
interval contained a composite grade of 29 g/t from the historic assays.
This shows the importance of the due diligence and check assays.
Re-logging and sampling of the historic core is of critical importance
to understanding the controls of gold mineralization as well as gaining
confidence in the high grades. The differences in grades shown are
typical of high grade, gold deposits with a significant nugget
distribution.
For additional details, please refer to
FAU's website: www.firerivergold.com under news, which include the
results from the first group of drill holes, the geological
re-assessment program, historic site production, a description of the
deposits, additional information on the QA/QC measures and a description
of our planned 2010 exploration drilling program.
Figure 1. is a cross section through the 3300 gold zone in the Crystal
decline. This zone as well as extensions a potential new zones to the
south was the focus of much of the underground drilling for 2007. The
3300 zone is a pipe-like in shape and varies in diameter from a minimum
of 3 metres to as much as 40 metres.
Underground drilling is typically completed in 'fan-like' arrays of
drill holes show in Figure 2. These fans define the limits of the high
grade zones in the 3300. Most of the drilling in 2007 was completed
between the 280 and 200 levels of the Crystal decline.
Relogging and sampling of the 2007 and 2008 drill core has been
completed. Geologic work will now focus on selected zones from the
pre-2007 core library, particularly in areas of favourable targets and
mineralization. Work will also begin on a new resource estimate
scheduled for completion by Fall of 2010.
Other near term tasks to begin in June will be underground mapping and
sampling with particular emphasis on fault and facture zones. Also, core
drilling will commence in the later part of June with the initial focus
on high quality near-surface targets.
Table 2. A
comparison of the Original 2007 assays with the check assays
from 2010 (field duplicates).
The Nixon Fork Gold Mine produced
significant bi-product copper and silver. Until the closure of the mine
in 2007, reported copper production was 1.27 million lbs and silver
production was 19,566 ounces from 106,137 tonnes mined. Historic
recovered grades are about 0.6% for copper and 0.18 opt for silver.
The project is being managed by Richard Goodwin, P.Eng, VP Mining for
Fire River Gold and is the Qualified Person for this news release.
About Fire River Gold Corp.
Fire River Gold Corp. is a near term production company with a superior
technical team focused on bringing its flagship project, the Nixon Fork
Gold Mine, back into production within the next 12 months. The Nixon
Fork Gold Mine is a fully permitted and bonded gold mine with past
production values averaging 1.4 opt (42 gpt). Facilities at the Nixon
Fork Gold Mine include a 200 tpd floatation plant with a gravity gold
separation circuit and a sulphide floatation 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 1.5 km long landing strip. Nixon Fork is located
within Alaska's Tintina Gold Belt, which hosts numerous world class
deposits. Fire River Gold is a member of the International Metals Group
(www.internationalmetalsgroup.com)
On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.
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"Harry Barr"
Harry Barr
President & CEO
Certain information regarding the Company including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities laws and necessarily involve risks
associated with mining exploration and development, volatility of prices,
currency fluctuations, imprecision of resource estimates, environmental and
permitting risks, access to labour and services, competition from other
companies and ability to access sufficient capital. As a consequence, actual
results may differ materially from those anticipated in the forward-looking
statements. A feasibility study has not been completed and there is no certainty
the disclosed targets will be reached nor that the proposed operations will be
economically viable. 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. We seek
safe harbour.
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