March 4, 2011. Vancouver, Canada -- Fire
River Gold Corp. (TSX.V: FAU; OTCQX: FVGCF; FSE: FWR) (the
"Company", "Fire River") wishes to present a corporate update for the
Nixon Fork Gold Mine Project and to announce a non-brokered private
Fire River Gold Project is being prepared to resume production in the
summer of 2011. A staff of over 40 site workers has been hired to manage
the site. Activities include:
- Diamond drilling with two
underground Hagby drills, which are averaging approximately 100 ft
of drilling per shift each.
- An extensive rehabilitation project
in the main ventilation raise is nearly complete.
- Construction of the cyanidation
plant is ongoing with a crew of five workers. Three of the five
leach tanks have been installed and all lead time orders have been
placed to achieve a targeted completion date of July 2011.
- Test mining and ore stockpiling will
begin in March, building a stock pile for the re-commissioning of
the mill in June.
These activities are all being managed by
Leonard Therrien, our Mine Manager and Bruce Ferguson, our mill
The non-brokered placement will be for up to 14,000,000 units at a
purchase price of $0.50 per unit for gross proceeds of up to $7,000,000.
Each unit will consist of one common share and one-half of one
non-transferable share purchase warrant. Each whole share purchase
warrant entitles the holder to purchase one common share of the Company
at a price of $0.70 per share for 18 months, subject to accelerated
expiry, such expiry being accelerated to 30 days in the event the
Company's shares have closed at or above a price of $0.90 per share for
10 consecutive trading days.
A finder's fee may be payable in accordance with regulatory policies.
The foregoing is subject to regulatory approval.
The proceeds from the private placement will be used primarily to
supplement the Company's working capital budget by covering the
operating costs (estimated at $2.5 M per month) as the mine ramps up to
full production, to evaluate and expand the exploration drilling
program, and to review potential acquisitions.
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 in 2011. The Nixon Fork Gold Mine is a
permitted and bonded mine which include a ~200 tpd processing plant with
a gravity gold circuit, sulphide flotation circuit and a gold recovery
system (CIL circuit) that is scheduled to be completed by Summer 2011.
The mine also includes a fleet of surface & underground mining vehicles,
a self-contained power plant, maintenance facilities, drilling
equipment, an 85 person camp, office facilities and a 1.2 km long
A 28,000 metre exploration and ore definition drill program is in
progress to expand the current resources and support the detailed mine
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 COO
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