FAU: TSX.V
FVGCF: OTCQX
FSE: FWR
VANCOUVER, Oct. 3, 2011 /CNW/ - Fire River Gold Corp. and Mystery Creek Resources Inc. (TSX.V:
FAU), (OTCQX: FVGCF), (FSE: FWR) (collectively "the Company") is pleased to announce the discovery of
the new 3550 Zone at the Nixon Fork Mine Project. It is actually the
down dip extension of previously mined ore body called the Hi Grade
Recreation Zone, which was mined to a depth of 50 m from surface (to
330 mASL) in the 1920s, as depicted in Figure 1. The zone was found to
bottom out in the original mining program, and diamond drilling
performed by the company and prior operators could not establish the
existence of a down-dip extension.
Figure 1: The New 3550 Zone at the Nixon Fork Mine Project
(http://www.firerivergold.com/I/misc/3550White.jpg)
Applying a horizontal offset evident in the 3300 Zone to the 3550 Zone,
our geologists deduced that it was possible that the down-dip extension
existed, but that all drill holes intended to test the extension were
drilled too short. Accordingly three longer holes were planned and
drilled to test the theory, which yielded very positive initial results
in the form of mineralized zones with visible gold, usually an
indicator of high grade mineralization.
The 3000 and 3300 zones extend continuously from surface at
approximately 400 mASL to 90 mASL and neither has been "bottomed out".
Approximately 185,000 ounces of gold has been extracted in the modern
era (from 1993 to present), almost all of which has been from the 3000
and 3300 zones. Both have been mined from the main ramp to a depth of
160 mASL. Current mining activities are also concentrated on these two
zones. The 3550 Zone could represent a "triplet" to these two
significant zones, and provide the opportunity to significantly
increase our resources and mine life. If the 3550 zone demonstrates the
same vertical continuity as the two other zones, its location is ideal
for minimizing the capital cost and time requirement to establish
access for mining, as the entire vertical extent will be close to
existing development.
Assays from the first holes are anticipated over the next few weeks and
will be released when validated. The Qualified Person for this news
release is Richard Goodwin, P.Eng, President & C.O.O for Fire River
Gold.
About Fire River Gold Corp.
Fire River Gold Corp.'s Nixon Fork Mine is operated by Mystery Creek
Resources, a wholly owned subsidiary of Fire River Gold, which is based
in Anchorage, Alaska.
The Nixon Fork Mine, located in the resource rich Tintina Gold Belt, is
Alaska's newest operating gold mine and is projected to produce 50,000
ounces of gold per year.
Operations started in July of 2011, with plans to ramp up to full
production by late fall 2011. This year-round mining program will be
producing both concentrate and doré bars. Fire River Gold will be
replenishing what is mined on an annual basis by further drilling
exploration targets on surface and underground thereby extending the
life of the operation and receiving further benefit from the strong
metals market.
Fire River Gold has a stable platform for growth due to its strong
financial position, a talented and experienced management team and
Board of Directors who have the experience to execute on Fire River
Gold's strategy.
Nixon Fork is a past producing mine with a high grade production history
(42 g/t), and a low capital requirement due to pre-existing
infrastructure. Fire River Gold has no debt.
On behalf of the Board of Directors,
Richard Goodwin
President & C.O.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. 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. We seek safe harbour.
<p> Tel: +1 604 685 1870 Fax: +1 604 685 8045<br/> Email: <a href="mailto:info@firerivergold.com">info@firerivergold.com</a> or visit <a href="http://www.firerivergold.com">www.firerivergold.com</a><br/> 2303 West 41st Avenue, Vancouver, B.C., Canada, V6M 2A3<br/> </p>