Fire River Gold Selects Snowden to Prepare Preliminary Economic Assessment for the Nixon Fork Gold Mine Project, Alaska
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/01/10 -- Fire River Gold Corp. (TSX VENTURE: FAU)(OTCQX: FVGCF)(FRANKFURT: FWR) ('FAU' or the 'Company') is pleased to announce that as part of its ongoing development of the Nixon Fork Gold Mine Project, the Company has engaged Snowden Mining Industry Consultants Inc. 'Snowden' to prepare a Preliminary Economic Assessment (PEA) to evaluate the economic viability of resuming underground commercial production. The study will present a preliminary mine plan for the project, including dilution and recovery analysis, stoping method selection, production and development forecasts, capital and operating cost estimations, revenue projection, and a financial model. The tentative date for completion of the study is mid December 2010.
This will be the third significant technical report that the Company will publish in 2010, the first being an updated NI 43-101 Resource Estimate (scheduled for September) and the second being a PEA evaluating the completion a carbon-in-leach 'CIL' circuit to reprocess the historic tailings pond. The Snowden PEA will incorporate the results of the prior two studies.
The Company is actively drilling the orebody both from surface and underground as part of a 28,000 meter drill program, which will be continued through winter and completed in spring of 2011. For timeliness, the results of this program will not be incorporated into the Snowden PEA.
About Snowden Mining Industry Consultants Inc.
Snowden is a premium provider of consulting services, technology solutions and technical training to the Mining and related sectors. During the last 22 years, it has built a track record providing clients with the information and solutions necessary to optimise their investment in the resources sector.
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 (http://www.firerivergold.com/s/NixonFork.asp) is a fully permitted and bonded mine with past production values averaging 1.4 opt (42 gpt). 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 approximately 60% 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.
In July 2010 FAU announced a diamond drill program of up to 28,000 metres initially focusing on surface targets, particularly of known mineralized zones which have the potential to provide additional resources to the mill. The underground drill program is designed to expand resources, particularly in the area of the 3300 zone, as well as test three to four prospective zones. Nixon Fork is located within Alaska's Tintina Gold Belt, which hosts numerous world class deposits. Fire River Gold Corp. is a member of the International Metals Group (http://www.internationalmetalsgroup.com/).
On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.
Harry Barr, President and C.E.O.
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. We seek safe harbour.
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.
Contacts:
Fire River Gold Corp.
Harry Barr
President and C.E.O.
+1 604 685 1870
+1 604 685 8045 (FAX)
info@firerivergold.com
www.firerivergold.com