Mr. Blane Wilson reports
FIRE RIVER GOLD PROVIDES OPERATIONS UPDATE
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.
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.
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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