Fire River Gold Announces Mineral Resource Estimate For the Nixon Fork Gold Mine, Alaska
Indicated Resources of:
121,690 tonnes grading 26.9 g/t (0.78 opt) in the mines plus
92,000 tonnes grading 7.9 g/t (0.23 opt) in the tailings for
3,995,000 grams (128,500 ounces) of contained gold
Inferred Resources of:
70,780 tonnes grading 27.8 g/t (0.81 opt) in the mines plus
48,000 tonnes grading 7.4 g/t (0.21 opt) in the tailings for
2,321,000 grams (74,600 ounces) of contained gold
94% of all resource ounces close to existing mine development
On going 28,000 metre drill program to expand resources
October 6, 2010. Vancouver, Canada - Fire River Gold Corp. (TSX-V: FAU; OTCQX: FVGCF; FSE: FWR) ("FAU" or the "Company") is pleased to report the results of a Mineral Resource Estimation recently completed on the Nixon Fork Gold Project, located in Alaska's Tintina gold belt. The resource estimate was completed by Giroux Consultants Ltd. of Vancouver, Canada. The total Indicated Resources are 3,995,000 grams (128,500 ounces) of contained gold plus an Inferred Resource of 2,321,000 grams (74,600 ounces) of contained gold.
The resource estimate was compiled by Giroux Consultants Ltd. and is inclusive of all mining and drill information available prior to FAU taking over the project in August 2009. The resource is based on 1,233 diamond drill holes from both surface and underground sites and a total of 17,693 samples that were assayed for gold. Note that the resource estimate comprises both the lode mining (hard rock in-situ resources) and an estimate for the tailings pond, which was the basis of the recent September 2010 Preliminary Economic Assessment "PEA", (see September 29, 2010 news release).
Table 1: Resource Estimate for the Nixon Fork Mine Project,
10 g/t cut-off grade (Giroux, 2010)
* Existing tailings estimated using a 5 g/t cut-off grade
It is important to note that 94% of all contained gold ounces are close to current mine development or (in the case of the tailings) on surface. This demonstrates two key facts: 1) the mine is poised to resume production, and 2) how under-explored the claim is at present, as 6% of the resource estimate is shared between four prospects.
The 3300 Zone is particularly important, as it is anticipated to be the first mining zone when production resumes. Approximately 40% of the hard rock resources are in this zone. A Preliminary Economic Assessment "PEA" is planned for later this year that will evaluate the viability of resuming production mining operations. This work will be done by Snowden Mining Consultants of Vancouver.
At present, the Company is conducting a 28,000 metre diamond drill program for exploration and ore definition purposes. A contractor's drill is currently operating on surface and has completed 4 holes in the Whalen, 7 in the North Star and 5 in the Southern Cross. A Company owned drill is also operating underground and has completed 6 holes in the 3100 zone, 11 in the 3300 zone, and 3 in the 3500 and 3550 zones. The Company is currently awaiting assay results. A new resource estimate, updated from the 2010 drill results is anticipated in 2011 which will incorporate all results from the 2010 drill program.
FAU's President & CEO, Harry Barr, noted "Management is pleased with this, our first mineral resource estimate. We look forward to the results of our upcoming assessment work and to expanding this resource further by our ongoing diamond drilling program."
This resource estimate will be included in a new NI 43-101 report and posted to Sedar within 45 days of this News Release.
Objectives: 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 early performance of the drill crews has prompted the Company to seek out and purchase a second unit and expand the mining department to accommodate four shifts of drilling per day. At present, the mine has a staff of nine 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 Corp.
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 39 g/t (1.12 opt). 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 1.5 km long landing strip. Fire River Gold Corp is a member of the International Metals Group.
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.
Posted: October 6, 2010