- 37.0 g/t (1.07 opt) gold over 3.6 m
(11.7 ft) in hole N10-007 including 77.9 g/t (2.27 opt) gold over
1.1 m (3.6 ft)
- 27.6 g/t (0.80 opt) gold over 1.4 m
(4.6 ft) in hole N10-015
- Results pending for additional
surface and underground holes
- 28,000 metre drill program ongoing
- Second diamond drill purchased and
en route to mine site
November 23, 2010. Vancouver, Canada -
Fire River Gold Corp. (TSX-V: FAU; OTCQX: FVGCF; FSE: FWR) ("FAU" or the
"Company") is pleased to report the first results obtained from the
28,000 metre drill program at the Nixon Fork Gold Mine situated in
Alaska's Tintina Gold Belt. A total of 6,700 metres have been drilled to
date of which 2,400 metres were on surface. The Company has received
assay results from 16 of the 19 surface drill holes.
New significant intercepts include N10-007
returning grades of 37.0 g/t (1.08 opt) gold over 3.6 m (11.7 ft)
including 77.9 g/t (2.27 opt) gold over 1.1 m (3.6 ft) and drill hole
N10-015 reported a grade of 27.56 g/t (0.80 opt) gold over 1.4 m (4.6
ft). N10-007 was drilled in the North Star zone which is located
approximately 1800 metres from the mill and accessible by road and drill
hole N10-015 was drilled at Southern Cross which is located
approximately 680 metres from the mill.
The Phase I surface drilling program was completed on October 23rd and
focused on drill targets with lateral or down plunge extensions of known
mineralized zones delineated by historical drilling with a particular
focus on targets that exhibited the potential to provide additional
resources to the mill.
Three zones were targeted for a total of 19 drill holes: Whelan, North
Star and Southern Cross. Four drill holes for a total of 738 metres
tested the Whalen, seven drill holes for a total of 767metres tested the
North Star and eight drill holes for a total of 906 metres tested the
Southern Cross zone. All zones tested during the surface drill program
have not been previously been mined in the recent past and continue to
demonstrate prospective areas which may provide additional mill feed to
the current mine. Assay results are pending for three additional surface
drill holes located at the Southern Cross zone as well as the recent
2010 underground drilling.
"These first results from our surface drilling program are
encouraging.", commented Richard Goodwin, VP Mining of Fire River Gold.
"They demonstrate the occurrence of high grade mineralization outside of
the Crystal and Mystery Mines and affirm the possibility of extending
operations by continuously replacing depleted mines with new ones
through ongoing exploration."
A Phase II surface drilling is anticipated to commence within the early
spring of 2011 and will continue the with the Phase I objective of
following up on additional targets at the Southern Cross, J5A and
Mystery zones not tested within the 2010 program. Additionally, the
Phase II surface program will continue to expand the prospective zones
delineated by the 2010 surface drill program.
Table 1. List of
significant 2010 Surface Diamond drill assay results. The widths of the
intercepts are not necessarily the true width of the mineralized
Nixon Fork Gold Mine
The Nixon Fork Gold Mine was acquired in September 2009. From 1995 -
2007, the project produced approximately 175,000 ounces of gold at an
average grade of 39 grams per ton (1.14 opt). The mining and processing
facilities at Nixon Fork are permitted and bonded.
The deposit is a gold-rich copper silver
skarn typical of other skarn systems found throughout the world. At
Nixon Fork, the higher grades are found in steeply plunging pipe-like
bodies which are oxidized to depths of up to 350 meters below the
surface. Oxidization of the system has resulted both in secondary copper
and gold, with high grades and a "nuggety" distribution.
Objectives About 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 zones.
The Company has purchased a second underground diamond drill which is
currently in transport to the mine site. The second drill rig will be
used to help expand the mining department to accommodate four shifts of
drilling per day. At present, the mine has a staff of nine underground
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.
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 1.14 opt (39 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 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 1.2 km long landing strip.
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