20:36:13 EDT Mon 18 Jun 2018
Enter Symbol
or Name

Fire River Gold Corp
Symbol C : FAU
Shares Issued 316,157,031
Close 2013-03-27 C$ 0.035
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Fire River Gold to explore "strategic options"

2013-03-28 17:03 ET - News Release

Mr. Blane Wilson reports


Fire River Gold Corp. is releasing the following operations update.

Underground exploration and definition drilling continue in both the Crystal and Mystery mines. Once the 385/J5A drift is completed in the next couple of months, additional definition drilling will be completed of the J5A orebody to explore between the drift and the intrusive contact of the Crystal mine. Future drill targets in the Mystery mine include along the M252 drift to further define the M-4 ore prospect.

Drilling summary               Year to date

2013 UG exploration drilling   3,339 metres
2013 definition drilling       3,507 metres
2013 total                     6,846 metres

The company implemented a new mine plan effective Dec. 31, 2012, supported by an updated geological model.

Mining operations

Currently, ore is being produced from both the Crystal and Mystery mines. In February, higher-than-anticipated gold grades were encountered in the M250 stope of the Mystery mine, which is attributed to the new mine plan. Ramp development continues at a rapid pace in the M300 stope.

Mining statistics for February and March to date in 2013 are tabulated.

Period          Mined ore tonnes   Mined waste tonnes   Development metres

February, 2013             3,498                4,570                113.3
March, 2013*               1,905                4,571                124.5

*As of March 25, 2013.

Milling operations

Mill statistics since Jan. 31, 2013, are tabulated.

                     Tonnage  Tonnes         Plant         Gold
           Number  processed     per  availability   production  Recovery
Period    of days        (t)     day           (%)         (oz)       (%)

2013           28      4,784     171            82        1,677        74     
2013*          26      3,467     133          64.6        1,153      79.1    

*As of March 26, 2013.

While the company has made progress in its efforts to become cash-flow positive and has markedly improved its gold production over the course of the past year, this progress has been interrupted by certain events beyond the company's control. As a result, the pace of progress has been insufficient to generate the sustained productions levels necessary to achieve commercial production to date in fiscal 2013. In particular, the company's milling throughput for February and March has been negatively impacted by continued inclement weather, logistical challenges relating to air deliveries of key production supplies and fuel, and unscheduled downtime for equipment repair of the Larox filter, secondary cone crusher and ball mill motor. In the current fiscal year, the company's cash flows have also been hindered by certain liabilities that arose from reconciling concentrate shipments from the second quarter of fiscal 2012. While these liabilities have been successfully resolved by the company, this resolution did negatively impact current fiscal year cash flows.

Current drill results have been positive for the long-term prospects of the company; however, as a result of the foregoing issues, the company's short-term earnings and cash flows remain constrained and the company has grown increasingly dependent on its senior creditor, Waterton Global Value LP, for short-term financing requirements. As of March 28, 2013, the company owed Waterton Global Value LP $6.8-million for prepayments under the existing gold and silver supply agreement (for more information, see management's discussion and analysis for the period ended Jan. 31, 2013). As a result of the foregoing, the board of directors has decided to explore all strategic options.

We seek Safe Harbor.

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