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October 3, 2011 Vancouver, BC,
Canada - Fire River Gold Corp. and Mystery Creek Resources Inc. (TSX.V:
FAU), (OTCQX: FVGCF), (FSE: FWR) (collectively
"the Company") is pleased to announce the discovery of the new 3550 Zone
at the Nixon Fork Mine Project. It is actually the down dip extension of
previously mined ore body called the Hi Grade Recreation Zone, which was
mined to a depth of 50 m from surface (to 330 mASL) in the 1920s, as
depicted in Figure 1. The zone was found to bottom out in the original
mining program, and diamond drilling performed by the company and prior
operators could not establish the existence of a down-dip extension.
Figure 1: The New 3550 Zone at
the Nixon Fork Mine Project
Applying a horizontal offset evident in the
3300 Zone to the 3550 Zone, our geologists deduced that it was possible
that the down-dip extension existed, but that all drill holes intended
to test the extension were drilled too short. Accordingly three longer
holes were planned and drilled to test the theory, which yielded very
positive initial results in the form of mineralized zones with visible
gold, usually an indicator of high grade mineralization.
The 3000 and 3300 zones extend continuously from surface at
approximately 400 mASL to 90 mASL and neither has been "bottomed out".
Approximately 185,000 ounces of gold has been extracted in the modern
era (from 1993 to present), almost all of which has been from the 3000
and 3300 zones. Both have been mined from the main ramp to a depth of
160 mASL. Current mining activities are also concentrated on these two
zones. The 3550 Zone could represent a "triplet" to these two
significant zones, and provide the opportunity to significantly increase
our resources and mine life. If the 3550 zone demonstrates the same
vertical continuity as the two other zones, its location is ideal for
minimizing the capital cost and time requirement to establish access for
mining, as the entire vertical extent will be close to existing
development.
Assays from the first holes are anticipated over the next few weeks and
will be released when validated. The Qualified Person for this news
release is Richard Goodwin, P.Eng, President & C.O.O for Fire River
Gold.
About Fire River Gold Corp.
Fire River Gold Corp.'s Nixon Fork Mine is operated by Mystery Creek
Resources, a wholly owned subsidiary of Fire River Gold, which is based
in Anchorage, Alaska.
The Nixon Fork Mine, located in the resource rich Tintina Gold Belt, is
Alaska's newest operating gold mine and is projected to produce 50,000
ounces of gold per year.
Operations started in July of 2011, with plans to ramp up to full
production by late fall 2011. This year-round mining program will be
producing both concentrate and doré bars. Fire River Gold will be
replenishing what is mined on an annual basis by further drilling
exploration targets on surface and underground thereby extending the
life of the operation and receiving further benefit from the strong
metals market.
Fire River Gold has a stable platform for growth due to its strong
financial position, a talented and experienced management team and Board
of Directors who have the experience to execute on Fire River Gold's
strategy.
Nixon Fork is a past producing mine with a high grade production history
(42 g/t), and a low capital requirement due to pre-existing
infrastructure. Fire River Gold has no debt.
On behalf of the Board of Directors,
"Richard Goodwin"
Richard Goodwin
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
safe harbour.
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