- Indicated Resources of:
- 121,690 tonnes grading 26.9 g/t
(0.78 opt) in the mines plus
- 92,000 tonnes grading 7.9 g/t
(0.23 opt) in the tailings for
- 3,995,000 grams (128,500 ounces)
of contained gold
- Inferred Resources of:
- 70,780 tonnes grading 27.8 g/t
(0.81 opt) in the mines plus
- 48,000 tonnes grading 7.4 g/t
(0.21 opt) in the tailings for
- 2,321,000 grams (74,600 ounces)
of contained gold
- 94% of all resource ounces close
to existing mine development
- On going 28,000 metre drill
program to expand resources
October 6, 2010. Vancouver, Canada
- Fire River Gold Corp. (TSX-V: FAU; OTCQX: FVGCF; FSE: FWR) ("FAU"
or the "Company") is pleased to report the results of a Mineral
Resource Estimation recently completed on the Nixon Fork Gold
Project, located in Alaska's Tintina gold belt. The resource
estimate was completed by Giroux Consultants Ltd. of Vancouver,
Canada. The total Indicated Resources are 3,995,000 grams
(128,500 ounces) of contained gold plus an Inferred Resource of
2,321,000 grams (74,600 ounces) of contained gold.
The resource estimate was compiled by Giroux Consultants Ltd. and is
inclusive of all mining and drill information available prior to FAU
taking over the project in August 2009. The resource is based on
1,233 diamond drill holes from both surface and underground sites
and a total of 17,693 samples that were assayed for gold. Note that
the resource estimate comprises both the lode mining (hard rock
in-situ resources) and an estimate for the tailings pond, which was
the basis of the recent September 2010 Preliminary Economic
Assessment "PEA", (see
September 29, 2010 news release).
Table 1: Resource Estimate for the Nixon
Fork Mine Project,
10 g/t cut-off grade (Giroux, 2010)
* Existing tailings estimated using a 5 g/t cut-off grade
It is important to note that 94% of all
contained gold ounces are close to current mine development or (in the
case of the tailings) on surface. This demonstrates two key facts:
1) the mine is poised to resume production, and 2) how under-explored
the claim is at present, as 6% of the resource estimate is shared
between four prospects.
The 3300 Zone is particularly important, as it is anticipated to be
the first mining zone when production resumes. Approximately 40% of
the hard rock resources are in this zone. A Preliminary Economic
Assessment "PEA" is planned for later this year that will evaluate the
viability of resuming production mining operations. This work will be
done by Snowden Mining Consultants of Vancouver.
At present, the Company is conducting a
28,000 metre diamond drill program for exploration and ore definition
purposes. A contractor's drill is currently operating on surface and has
completed 4 holes in the Whalen, 7 in the North Star and 5 in the
Southern Cross. A Company owned drill is also operating underground and
has completed 6 holes in the 3100 zone, 11 in the 3300 zone, and 3 in
the 3500 and 3550 zones. The Company is currently awaiting assay
results. A new resource estimate, updated from the 2010 drill results is
anticipated in 2011 which will incorporate all results from the 2010
FAU's President & CEO, Harry Barr, noted "Management is pleased
with this, our first mineral resource estimate. We look forward to the
results of our upcoming assessment work and to expanding this resource
further by our ongoing diamond drilling program."
This resource estimate will be included in a new NI 43-101 report and
posted to Sedar within 45 days of this News Release.
Objectives: 2010/11 Drill Program
As previously announced on
July 27th, 2010, and
September 7th 2010, a diamond drill program of up to 28,000 metres
has commenced at its Nixon Fork Gold Mine. The surface program is
testing to expand six known zones of mineralization which have the
potential to provide additional resources to the mill. The underground
portion of the drill program is focusing on expanding resources,
particularly in the 3300 Zone, 3500, 3100, as well as other prospective
The early performance of the drill crews
has prompted the Company to seek out and purchase a second unit and
expand the mining department to accommodate four shifts of drilling per
day. At present, the mine has a staff of nine mine workers, which will
be expanded to accommodate this program.
The Qualified Person for this news
release is Richard Goodwin, P.Eng., Vice President of Mining for Fire
River Gold Corp.
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 39 g/t (1.12 opt). 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 partially 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. Fire River Gold Corp is a
member of the International Metals Group.
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.
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. The TSX Venture Exchange or its Regulation Services
Provider have not reviewed and do not accept responsibility for the adequacy or
accuracy of the contents of this news release, which has been prepared
by management. We seek