VANCOUVER, Jan. 11 /PRNewswire-FirstCall/ - Fire River Gold Corp. ("FAU" "Company") (FAU: TSX-VMonday, January 11, 2010. FAU's common shares will continue to trade on the TSX Venture Exchange and the CNSX under the symbol "FAU". Listing on OTCQX will provide Fire River Gold with greater access to the U.S. capital markets, increased U.S. investor visibility and an opportunity to diversify its shareholder base.
The New York based law firm, Berns & Berns will serve as Fire River Gold's Principal American Liaison ("PAL") on OTCQX regulatory matters and Moody Capital LLC will serve as the Company's exclusive OTCQX financial consultant/advisor for marketing the Company to U.S. investors and counselling it on the U.S. capital markets.
"We are pleased to be able to better serve the growing number of U.S. investors following Fire River Gold with the enhanced U.S.-based trading platform offered by OTCQX and the advisory services offered by Moody Capital LLC," said FAU's President and CEO, Harry Barr. "The OTCQX has earned a strong reputation for providing U.S. investors with improved liquidity, transparency, superior information, and easy access through their U.S. regulated broker-dealers. We believe that listing on the OTCQX is in the best interest of the shareholders and will better enable the Company to raise additional capital to further develop its projects and provide additional market liquidity."
About OTCQX
The OTCQX marketplace is the premier tier of the U.S. Over-the-Counter market. Investor-focused companies use the quality controlled OTCQX listing platform to offer investors transparent trading, superior information, and easy access through their regulated U.S. broker-dealers. The innovative OTCQX platform offers companies and their shareholders a level of marketplace services formerly available only on a U.S. exchange. For more about OTCQX, visit www.otcqx.com.
OTCQX provides a gateway to U.S. securities markets for international companies that are listed on a qualified non-U.S. exchange. More importantly, OTCQX distinguishes reputable international issuers from the other 9,000 over-the-counter (OTC) securities traded in the U.S. Only leading companies that have substantial operating businesses and provide ongoing, credible disclosure to the public are eligible for inclusion on the premium-tier OTCQX, which commenced trading on March 5, 2007. For more about OTCQX, visit www.otcqx.com.
About Fire River Gold Corp.
Fire River Gold Corp. ("FAU"completed its IPO at the end of May 2009 and is the newest member of the International Metals Group ("IMG"). The IMG team is composed of industry leaders in the fields of geoscience, engineering, finance, project acquisition, exploration and development, regulatory and government affairs, with over 100 years of combined experience working in Alaska. The primary focus of FAU is the exploration and development of gold projects in North America.
On August 13, 2009, FAU exercised its option to purchase a 100% interest in Mystery Creek Resources, Inc. ("MCR"), a wholly owned Alaskan subsidiary of Pacific North West Capital Corp. ("PFN") (PFN:TSX) (PAWEF:OTCBB) (www.pfncapital.com). MCR owns the Nixon Fork Gold mine in Alaska, a former high-grade gold mine, which has produced approximately 145,000 ounces at a production average of over 42 grams per ton (1.4 ounce per ton).
Through the sale of MCR (Nixon Fork Mine) to FAU, Pacific North West Capital became the largest shareholder of FAU. (See chart).
About International Metals Group
The International Metals Group (IMG) is an organization of professionals with a wealth of experience in all aspects of the mining industry.
Our group consists of a brain bank of project acquisition, exploration and development professionals, including dedicated CEOs, geologists, engineers, corporate finance, investor relations experts, corporate management, public company administrators, and regulatory and government affairs specialists. The companies within the group are able to share resources, costs and expertise, which provides a significant advantage in comparison to individual public companies.
For further information on the International Metals Group Companies, please visit: www.internationalmetalsgroup.com
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Highlights of Nixon Fork Mine
- Near Term Gold-Copper-Silver Producer
- Fully Constructed 200+ tpd Mill
- Mine Fully Permitted and Bonded
- Previous production average over 42 grams per ton (1.4 ounce per ton)
- Turn-key Mining-Milling Operation
- Significant Exploration Upside
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Facilities
Facilities at the Nixon Fork Gold Mine include a 200 tpd flotation plant with a gravity gold separation circuit. In 2008, a CIL gold leaching circuit was designed and purchased and approximately 60% installed to date. 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 1.2km long landing strip. Mining and processing operations at Nixon Fork are fully permitted and bonded.
2010 Re-evaluation Program in Progress
The 2009 $1,250,000 program is slated to be completed by January 2010. The objective of the program was to complete a re-evaluation of the mine, mill, under ground resource and provide a comprehensive study to re-process the tailings pond by the first half of 2010. The report will come out in stages, with the first milestone being the completion of the tailings study.
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, approximately 150,000 tonnes of mill tailings are in place (a previous study showed grades between 7 and 9 grams per ton) and 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 two stage drill program has been completed and a metallurgical study is in progress. A completed 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, to be completed by the Spring of 2011.
Surface Exploration 2010
As the last two operators of the project focused most of their financial efforts on underground development, the mine infrastructure, equipment, permitting and bonding, only a limited amount of their budget was spent on exploration. An 8000 m surface drill program is planned on a number of identified exploration targets.
Underground Exploration 2010
From 2004 through 2009 the previous operator spent approximately US$52 million on upgrades to the processing facilities, mine infrastructure permitting and bonding.
During 2007-2008, 9,381 meters of reserve-resource definition drilling was conducted and not released. The results are currently being evaluated and will be reported over the next the next 3-5 months.
In April/May 2010 a 12,000 meters underground exploration program is slated to begin with the objective of increasing the current resources.
A final underground production plan is slated for completion to start in the Spring of 2011.
For further information, please refer to FAU's news releases dated and June 29, 2009; August 13, 2009; North of 60 Mining News (Sept. 27, 2009) and the recent article written by The Northern Miner (Oct 26, 2009).
Golden Zone Project:
- NI 43-101 compliant mineral resource
- 14 targets are identified
- 2009 program in progress
- Excellent infrastructure, road access to property, 12 miles from
major highway and railroad, power nearby
In an effort to continue to add to the Company's overall gold ounce potential and development schedule, on October 8, 2009, the Company has completed a formal option agreement ("FOA") on the Golden Zone Project with Hidefield Gold PLC and Mines Trust Company.
History Golden Zone
The Golden Zone Project is located 240 km north of Anchorage, Alaska on the south flank of the Alaska Range. The project is accessible by road, just 19 km from the Parks Highway, which connects Fairbanks and Anchorage. A fully self contained camp and work facility is on site.
The project is an advanced stage gold-copper-silver system with approximately 20,100 meters of drilling, extensive trenching, soil sampling grids, multiple geophysical surveys, and metallurgical samples collected from core and the underground workings in the main Breccia zone.
The project hosts several mineralization styles including an igneous rock hosted breccia pipe, several replacement zones of mineralization in calcareous rocks, and mineralization hosted in volcanoclastic rocks. The Breccia target is the most advanced and hosts the mineral resource and the 2009 exploration program will evaluate the possible extension on this mineralization. The Breccia is being evaluated as a possible open pit target. At least fourteen targets are identified within the 8000 hectare property and all have limited exploration work completed to date.
A technical report prepared by William Ellis for Fire River reports the mineral resource contained on the property and is available on Sedar (www.sedar.com).
Exploration Update
In October 2009, a US$250,000 2009 program was completed and consisted of a trenching and mapping program that assayed for gold silver and copper. The trenching was south of the Breccia Pipe Resource area toward the GAS Prospect and was designed to further investigate mineralization encountered in drillhole 6004, which was completed in 2006. Trenching in the GAS area uncovered extensive hornfels alteration and a strongly altered fault zone. Trench 4 in the Copper King area discovered hornfels at the contact with a quartz porphyry intrusive body. The hornfels contained copper staining and this target has not been previously drilled. Trenching in Long Creek area also uncovered previously unknown quartz porphyry intrusive bodies. Previous drill core was re-logged and samples were collected for assay from intervals not previously sampled. Geochemical samples have been submitted to ALS Chemex for gold and multi-element analyses and results are currently being confirmed and reviewed. For further information on the Golden Zone Project, please visit www.firerivergold.com/.
Draken Property
FAU has completed an initial Phase I work program consisting of surface exploration program, detailed rock sampling, mapping, rock chip sampling and metallic sieve analysis on selected samples and is continuing to move forward with the Phase I exploration on its 100% owned Draken Project. FAU is waiting for a report and analytical results. Please refer to www.firerivergold.com for further information on the Draken Property.
Kansas Creek Property
Management is currently re-evaluating the data on the Kansas Creek Property with the objective of outlining a Phase I exploration program. Management expects to have recommendations and the commencement of Phase I exploration program for the spring of 2010. For further information on the Kansas Creek Property, please refer to FAU's news release dated June 19, 2009.
Richard Goodwin, P.Eng. is the Qualified Person for this press release.
About Pink OTC Markets Inc.
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On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.
(signed)
Harry Barr
President & C.E.O.
Disclaimer: This news release may contain certain "forward-looking statements". All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and available at www.sedar.com or filed with the Canadian National Stock Exchange. Any forward-looking statements are not guarantees of the Company's future performance and are subject to risks and uncertainties that could cause actual results, developments, and business decisions to differ materially from those contemplated by any forward-looking statements. Except as required by law, the Company undertakes no obligation to update any forward-looking statements.
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.
Cautionary Note to U.S. Investors
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not Pink OTC Markets Inc. are solely responsible for the accuracy of such news releases.
SOURCE Fire River Gold Corp.
