|• 20 g/t (0.58 opt) gold over
2.5 m (8.2 ft) in hole N07U068
• 13 g/t (0.38 opt) gold over 4.0 m (13.1 ft) in hole N07U066
• Results pending for 16 additional underground holes and 7
additional surface holes
• Geological re-assessment work complete for 2007 and 2008 drill
• Drill campaign up to 28,000 metres and underground mapping has
• Resource update Fall 2010
August 3, 2010. Vancouver, Canada -
Fire River Gold Corp. (TSX-V: FAU; OTCQX: FVGCF; FSE: FWR) ("FAU" or
the "Company") continues to announce high grade assay results from its
Nixon Fork Gold Mine in Alaska. The Company has received assay results
and completed careful review of holes 66 through 69 completed in 2007
(N07U066 to N07U069). New significant intercepts include N07U068
returning grades of 20 g/t (0.58 opt) gold over 4.0 m (13.1 ft) and
N07U066 returning grades of 13 g/t (0.38 opt) gold over 4.0 m (13.1 ft)
as part of the ongoing geological re-evaluation program for the
Nixon Fork Gold Mine in Alaska. A complete list of significant
intercepts is provided in Table 1 for these 4 drill holes; it includes
results of previously reported drill holes.
Results from holes N07U066 to N07U069
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 included in a resource assessment of the
mine. The geologic evaluation (re-logging) of the 9400 metres is
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 that
certified standards were used. The re-sampling program of the 2007 drill
core is essentially a modified field duplicate exercise of the original
The re-sampling of the remaining half cores was 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 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.
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
For additional details, please refer to FAU's website at
www.firerivergold.com in the
section titled "news" which includes the results from the first group of
drill holes; additional information about the geological re-assessment
program; information about 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
of potential new zones to the south, was the focus of much of the
underground drilling for 2007. The 3300 zone is pipe-like in shape and
varies in diameter from a minimum of three metres to as much as 40
Underground drilling is typically
completed in 'fan-like' arrays as shown 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
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
that have begun are underground mapping and sampling
with particular emphasis on fault and fracture
zones. As previously announced on
July 27th, 2010, a diamond drill program of up
to 28,000 metres has commenced at its Nixon Fork
Gold Mine. Drilling is commencing on surface
targets, particularly lateral or down plunge
extensions of known mineralized zones which have the
potential to provide additional resources to the
mill. These types of targets include the Whalen,
North Star, Mystery, Southern Cross, and J5A.
Following the Company's
surface program, underground drilling will begin
within the Crystal decline.
The drill program is designed to expand
resources, particularly in the area of the 3300 zone, as well as test
three to four prospective zones. Mr. Will Beach, FAU's Underground
Supervisor, has examined the workings of the Crystal decline and found
them to be in excellent condition, with only minor cleanup needed. Mr.
Beach states, "The Crystal decline and associated levels can be ready
for drilling immediately."
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 an
experienced 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 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. In July 2010 FAU
announced a diamond drill program of up to 28,000 metres initially
focusing on surface targets, particularly of known mineralized zones
which have the potential to provide additional resources to the mill.
The underground drill program is designed to expand resources,
particularly in the area of the 3300 zone, as well as test three to four
prospective zones. 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
On behalf of the Board of Directors,
President and C.E.O.
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