Fire River Gold Corp. Provides Updated Resource Estimate
FIRE RIVER GOLD CORP. PROVIDES UPDATED RESOURCE ESTIMATE
December 21, 2011 Vancouver, BC, Canada - Fire River Gold Corp. and Mystery Creek Resources Inc. [TSX.V: FAU| OTCQX: FVGCF| FSE: FWR] (collectively "the Company") provides the following re-estimation of the resources at the Nixon Fork Mine, prepared by Giroux Consultants Ltd., based on diamond drilling performed in 2010 and 2011, mining extraction in 2011, and adjustments to the 2010 resource estimate.
This 2011 Resource Estimate demonstrates the viability of the company's stated objective: to replenish what is mined on an annual basis, thereby extending mine life beyond the existing resource base.
The new resource estimate is shown in Table 1 below:
Table 1: 2011 Resource Estimate for the Nixon Fork Mine (at 10 g/t Au, Giroux)
*Does not include tailings added to pond from 2011 operations
Correction to the 2010 Resource Estimate:
The hard rock mining portion of the 2010 Resource estimate included 121,690 tonnes of indicated resources at a grade of 26.9 g/t plus 70,780 tonnes of inferred resources at a grade of 27.8 g/t using a COG of 10 g/t Au (Giroux 2010).
Through the course of preparing the 2011 re-estimate it was determined that the 3077 zone had been previously extracted. This error inflated the 2010 resource estimate by 9,330 tonnes of indicated resources grading 42.3 g/t and 10,920 tonnes of inferred resources grading 34.7 g/t. The corrected 2010 resource estimation is shown in Table 2.
Table 2: Corrected 2010 Resource Estimate for the Nixon Fork Mine (at 10 g/t Au, Giroux)
Comparison of the 2011 and 2010 Resource Estimates:
A total of 24,800 m of diamond drilling was performed in 2010 and 2011, which included exploratory and ore definition drilling. Resources were expanded for three zones as a result of this drilling: 3000, 3300, and 3550. Mining operations began on 4 July 2011. It is estimated that a total of 11,300 tonnes grading 17.1 g/t (approximately 6,200 oz) was extracted before the date of the 2011 resource estimate (October 13, 2011), exclusively from the 3300 zone. Table 3 shows the net result of increases to the resource estimate as a result of diamond drilling minus subtractions due to mining.
Table 3: Comparison of 2011 and 2010 Lode Resources Net of Mining (at 10 g/t Au)
Analysis and Discussion
These results are very positive, as they demonstrate the viability of the company's stated objective: to replenish what is mined on an annual basis. A total of 6,200 ounces was extracted through mining to 13 October 2011, but diamond drilling activities replaced the extracted ounces and added approximately 8,400 ounces of indicated resources net of mining. All of the mining occurred in the 3300 zone, yet this zone gained approximately 6,000 ounces of indicated resources because of increases due to drilling.
There was no mining in the 3000 zone. The table shows an increase in indicated resources due to expansion of the ore zone and the conversion of inferred resources to indicated resources.
The 3550 Zone is a new discovery that is being actively drilled (refer to news releases on October 3 and November 1, 2011). The company expects to continue to expand resources in this area over the next six months.
The results of this resource update will be included in a new NI43-101 Technical Report, which will be filed on SEDAR before the end of January 2012.
The Qualified Person for this news release is Richard Goodwin, P.Eng, President & C.O.O. for Fire River Gold Corp.
On behalf of the Board of Directors,
President and COO
Cautionary Note Regarding Forward-Looking Statements
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. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. We seek safe harbour.
Posted: December 27, 2011