| | Nixon Fork Overview
FAU Projects - Nixon Fork
NIXON
FORK GOLD MINE
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Key Highlights:
- High grade gold with copper and silver
credits
- Previous production average over 40 grams
per tonne
- Turn key mining operation
- Mine fully permitted and bonded
- Excellent potential for near term
production
- Complete re-evaluation of the mine, mill,
resource and tailings in progress
- Significant exploration upside
The Company's main focus is the gold-copper-silver Nixon Fork
Mine, Alaska, which was acquired in August of 2009. A former
high-grade gold mine, it produced approximately 145,000
ounces of gold at a production average of 42 grams per ton
(1.4 opt).
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This turn-key, project is a fully operational
mining - milling facility that includes a 200+ tpd flotation plant with a
gravity gold separation circuit. In 2008, a complete CIL gold
leaching circuit was designed and purchased and is approximately
60% installed. The mine also includes a fleet of mining
vehicles, a self-contained diesel power plant, maintenance
facilities, drilling equipment, an 85 person camp, office
facilities and a 1.2 km long landing strip. Mining and
processing operations at Nixon Fork are fully permitted and
bonded.
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2010 Re-evaluation Program in Progress
In 2009 the company began a $1.25M evaluation of the project to
confirm the status of the geological work, confirm both the gold
grade from the tailings pond, and further metallurgical
assesment through testwork. The evaluation program is continuing into 2010, with
key milestones including a determination of a go, no-go decision
for completing the CIL circuit to process tailings by Fall 2010; defining exploration targets for underground and surface
drilling commencing in Spring; the preparation of a new resource
estimate for the property by Fall 2010, and the determination of
a go, no-go decision for the resumption of underground mining by
the end of the year.
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The Nixon Fork mine hosts a skarn deposit with complex
geology. Understanding the rock types and structure is paramount
to demonstrating the continuity of mineralization. Although
management believes the information from the previous operators
to be relevant, it is management's objective to re-establish a
new geological model and mine plan by completing the following:
- at the mine site, the company has a team of geologists
that are currently re-logging all existing core at site in
conjunction with underground mapping of current workings (a
component of the re-logging will be to reduce and compile
historic rock codes from over 300 to approximately 30)
- re-assaying selective intercepts, and
- confirming or correcting hole surveys
- re-logging and re-assaying portions of the most recent
drill programs undertaken by the previous operators
- management plans to drill up to 12,000 m in 2010 in both
underground and surface programs
- Upon completion of this work, a new resource estimate
scheduled for completion late in 2010, will be prepared for
the property, using Fire River's new data from the 2010
Exploration program.
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The ongoing work program of 2010 is under the direction of
Richard Goodwin, P.Eng., an underground mining engineer and
experienced project manager, with a team of site geologists. To
accelerate this work, the project team has been expanded in 2010
with the addition of four geologists, including Larry Hillesland
as the Manager of Geology and Kristian Whitehead as a Senior
Project Geologist.
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Underground Exploration Update 2010
From 2004 through 2009 the previous operator spent approximately
US$52 million on upgrades to the processing facilities, mine
infrastructure, permitting and bonding with only a limited
amount of their budget spent on exploration.
FAU plans to use the results of this geological re-evaluation
program to guide a 8,000m underground drill program scheduled
for spring and summer. The final resource estimate, scheduled
for release late in 2010 will incorporate the results of the
re-evaluation program as well as the results of the 2010
drilling.
Surface Exploration Update 2010
As well, the Company will undertake a total of 4,000m of surface
drilling which will test several development prospects on the
property from surface in hope of establishing additional zones
of mineralization.
Re-Evaluation of Tailings Pond
The first operator of the Nixon Fork Mine produced an average
head grade of approximately 42 grams per ton (1.4 OPT) but only
averaged 83% recovery. Based on previous engineering and
metallurgical studies done on the tailings pond, between
150,000 tonnes and 170,000 tonnes of mill tailings are in place (at
a grade of between 7 and 9 grams per tonne) which are currently
being re-evaluated.
The objective is to look at the feasibility of re-processing the
tailings through the new CIL plant that was purchased and is
approximately 60% installed in the mill. A drill program was
done in the fall to confirm the gold grades and a metallurgical
study is in progress, confirming prior study results. A complete
evaluation of the tailings production is slated for first half
of 2010. If the Company elects to defer this option, gold
recovery from the tails will be a component of an overall mine
plan, anticipated for completion by the end of 2010. Ongoing
periodic updates will follow as the program continues through
2010.
Richard Goodwin, P.Eng. is the Qualified Person for this
project.
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updated Feb
25 2010 |
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