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September 1, 2010. Vancouver, Canada - Fire River Gold Corp. (TSX-V:
FAU; OTCQX: FVGCF; FSE: FWR) ("FAU" or the "Company") is pleased to
announce that as part of its ongoing development of the Nixon Fork Gold
Mine Project, the Company has engaged Snowden Mining Industry
Consultants Inc. "Snowden" to prepare a Preliminary Economic Assessment
(PEA) to evaluate the economic viability of resuming underground
commercial production. The study will present a preliminary mine plan
for the project, including dilution and recovery analysis, stoping
method selection, production and development forecasts, capital and
operating cost estimations, revenue projection, and a financial model.
The tentative date for completion of the study is mid December 2010.
This will be the third significant technical report that the Company
will publish in 2010, the first being an updated NI 43-101 Resource
Estimate (scheduled for September) and the second being a PEA evaluating
the completion a carbon-in-leach "CIL" circuit to reprocess the historic
tailings pond. The Snowden PEA will incorporate the results of the prior
two studies.
The Company is actively drilling the orebody both from surface and
underground as part of a 28,000 meter drill program, which will be
continued through winter and completed in spring of 2011. For
timeliness, the results of this program will not be incorporated into
the Snowden PEA.
About Snowden Mining Industry Consultants Inc.
Snowden is a premium provider of consulting services, technology
solutions and technical training to the Mining and related sectors.
During the last 22 years, it has built a track record providing clients
with the information and solutions necessary to optimise their
investment in the resources sector.
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 flotation plant with a gravity gold separation
circuit and a sulphide flotation 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 Corp. is a member of the
International Metals
Group.
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 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
safe harbour.
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