Monday 5th December 2016

Resource Clips


Posts tagged ‘Fire River Gold Corp (FAU)’

Miners for pennies

January 8th, 2013

Gold producers Fire River and Galantas release Alaska and Northern Ireland drill results

by Greg Klein

An operating gold mine isn’t necessarily a fast track to profitability, which helps explain why Fire River Gold TSXV:FAU trades for pennies. But high-grade assays released January 8 could boost confidence in the company.

The results come from a 103-hole, 9,781-metre underground program at the Nixon Fork Project’s Crystal Mine in Alaska’s Tintina Gold Belt. Some highlights show:

  • 1,120 grams per tonne gold, 11 g/t silver and 0.02% copper over 1.5 metres
  • 126.3 g/t gold, 51.6 g/t silver and 3.63% copper over 5.99 metres
  • (including 219.13 g/t gold, 89.7 g/t silver and 6.17% copper over 3.34 metres)
  • 186.18 g/t gold, 51.6 g/t silver and 3.89% copper over 1.55 metres
  • 214 g/t gold, 1 g/t silver and 0.01% copper over 1.1 metres
  • 32.86 g/t gold, 1.8 g/t silver and 0.06% copper over 3.73 metres
  • (including 54.8 g/t gold, 2 g/t silver and 0.1% copper over 1.52 metres)
  • (including 25.5 g/t gold, 2 g/t silver and 0.01% copper over 1.52 metres)
  • 5.85 g/t gold, 3 g/t silver and 0.17% copper over 7.46 metres
  • 160.5 g/t gold, 80 g/t silver and 2.65% copper over 0.38 metres.
Underground drilling continues at Fire River Gold’s Nixon Fork project.

Fire River Gold has set a 2013 target of 35,000 gold ounces
for its Nixon Fork Project in Alaska.

True thicknesses are estimated at approximately 95%. Drilling continues.

Nixon Fork has produced 12,000 gold ounces since Fire River began production in July 2011. The company’s 2013 target is substantially higher—35,000 ounces with cash costs estimated at $800 to $900 an ounce. The company attributes the more ambitious goal to a number of improvements that followed a management shakeup last summer. By November Fire River announced its carbon-in-leach circuit was fully commissioned, mill throughput had increased from an average 86 tonnes per day to 126 tpd and better plant maintenance had further increased productivity.

Fire River shares opened January 8 at $0.075, a penny and a half above the previous close. The stock reached $0.08 but slid back to another $0.06 close.

Another producer trading for pennies, Galantas Gold TSXV:GAL operates the Emerald Isle’s only gold mine. Assays released January 8 from the open pit Omagh Gold Property in Ulster show short intervals but include “the best result so far on [the] Joshua Vein, possibly the best on the whole Galantas Northern Ireland gold licence,” according to president/CEO Roland Phelps.

Highlights from South Joshua include:

  • 23.6 grams per tonne gold, 38 g/t silver and 2.2% lead over 2.4 metres
  • (including 64 g/t gold over 0.8 metres)
  • 2 g/t gold, 2.7 g/t silver and 0.1% lead over 0.9 metres
  • 4.6 g/t gold and 11.4 g/t silver over 0.3 metres.

A Central Joshua assay shows:

  • 6.9 g/t gold, 25.1 g/t silver and 1.8% lead over 0.8 metres.

North Joshua highlights include:

  • 8.6 g/t gold, 48 g/t silver and 2.8% lead over 1 metre
  • 7.4 g/t gold, 10.6 g/t silver and 0.6% lead over 1 metre
  • 3.2 g/t gold and 1.2 g/t silver over 1 metre.

Intercepts are estimated true widths. Down-hole depths range from 29 metres to 92 metres.

The last phase of drilling totalled 16,347 metres but Galantas plans another 1,600 metres to follow up on South Joshua’s 23.6 g/t gold result. More assays are expected within eight to 10 weeks, the company stated.

Galantas shares opened January 8 at $0.04 and closed on the day’s high of $0.045.

PGMs in ONT

October 5th, 2011

Pacific North West is a N American Choice

By Ted Niles

Two things bode well for Pacific North West Capital Corp TSX:PFN and its River Valley PGM-gold project in Ontario. The first is the continuing growth in automotive manufacture, driven (so to speak) in large part by the burgeoning Chinese market. This means a concomitant increase in the production of autocatalysts, the largest single source of industrial demand for platinum group metals. The second is the social and political instability in South Africa, compounded by its ongoing electricity crisis, which threaten its status as the largest platinum producer, and second largest palladium producer, in the world.

Bill Stone, appointed Pacific North West’s President and COO September 7, adds, “Russia [the largest producer of palladium] consider their PGMs a state secret, so it’s difficult to determine what they have stockpiled and what they’re going to do. Part of our business model is to provide an alternative for PGM mining—which is North America. It’s a safer, less risky environment for PGM mining operations.”

Pacific North West is the N American Altenative

The particular location of the River Valley project provides yet another boon to the company. Sixty-kilometres east of Sudbury, River Valley is situated at the very heart of Canada’s nickel-copper mining industry. “There’s paved roads—you can drive right to the project—power is nearby, railway is nearby,” Stone reports. “Perhaps most important, Sudbury has nickel smelters and nickel refineries and nickel concentrators sitting there with excess capacity. In terms of moving the project forward into mining we don’t have to build a smelter or potentially even a concentrator. All of that is already present in the area.”

The 6,600-hectare River Valley project was originally optioned by Pacific North West in 1998. In 1999, it was optioned it to Anglo Platinum Ltd, the largest platinum-producing company in the world. Following the 2008 market crash and a change in management at Anglo Platinum, work effectively ceased at River Valley. In January 2011 Pacific North West acquired 100% interest of the project, and Anglo Platinum became the company’s major shareholder (9%). The joint venture yielded a 2006 NI 43-101 measured resource estimate of 342,000 ounces palladium, 112,400 ounces platinum and 19,600 ounces gold; indicated resources of 391,100 ounces palladium, 132,600 ounces platinum and 24,000 ounces gold; and 38,400 ounces palladium, 13,100 ounces platinum and 2,100 ounces gold inferred.

Stone remarks that it has been “six to seven years since the last report was done, and platinum prices, as well as gold and other metal prices, have changed since then. It’s time for an update. We’re doing drilling to produce a more robust and potentially larger resource.”

In addition to updating the resource, Pacific North West’s current 15,500-metre drill program will test new targets on the property. The company is also conducting an IP geophysical survey. The new resource estimate is planned for the end of 1Q 2012. From there, Stone says, the company will do one of two things: “If the results are as good as we hope, it may make sense to go directly into [a preliminary economic assessment]. But if we drill one of these IP targets and we find a new zone of mineralization, it may make more sense to drill that out and put it into a resource classification before we move into scoping.”

September 27 assays of the River Valley project include

  • 1.99 grams per tonne palladium, 0.69 g/t platinum, 0.12 g/t gold, 0.01 g/t rhodium, 0.02% nickel and 0.12% copper over 27 metres (including 2.57 g/t
  • palladium, 0.91 g/t platinum, 0.14 g/t gold, 0.01 g/t rhodium, 0.04% nickel and 0.2% copper over 12 metres)
  • 3.2 g/t palladium, 0.99 g/t platinum, 0.13 g/t gold, 0.01 g/t rhodium, 0.02% nickel and 0.16% copper over 9 metres (including 5.44 g/t palladium, 1.58 g/t platinum, 0.19 g/t gold, 0.02 g/t rhodium, 0.04% nickel and 0.27% copper over 4 metres)
  • 1.56 g/t palladium, 0.5 g/t platinum, 0.09 g/t gold, 0.01 g/t rhodium, 0.03% nickel and 0.13% copper over 19 metres (including 2.5 g/t palladium, 0.79 g/t platinum, 0.14 g/t gold, 0.01 g/t rhodium, 0.04% nickel and 0.19% copper over 5 metres)

Stone comments, “We’ve been reporting among the best, if not the best, intercepts that have ever been reported for the project. We’re very pleased with the way the results have been so far and anticipate further excellent results moving forward.”

We want to be at the leading edge of providing a North American alternative for platinum group mineral mining —Bill Stone

Pacific North West currently has $6.2 million in cash and securities and has no debt. Stone expects that the company will do a “small flow-through financing” this fall to ensure that it is adequately financed in the event that one of its new targets requires follow-up drilling.

As the company is primarily focused on exploration and development, Pacific North West is in the early stages of finding a joint venture partner for River Valley. Stone concludes, “We want to be at the leading edge of providing a North American alternative for platinum group mineral mining. What we want to do is find good projects and develop them to a certain point, then get a partner in to carry them on into mining. We’re interested in talking to some South African-based producers and some producers elsewhere looking for a safer place to be in the immediate to long term.”

Pacific North West Capital Corp’s TSX:PFN other major project is the Rock & Roll property in BC, which has indicated resources of 47,040 ounces gold and 5.73 million ounces silver. The company is also a major shareholder in Fire River Gold Corp TSX:FAU, whose Nixon Fork mine started production in July 2011. At press time, the company had 94.1 million shares trading at $0.165 for a market cap of $15.5 million.

Keep The Gold Line Moving

July 12th, 2011

Fire River Drills as it Mills in Alaska

By Greg Klein

As Americans celebrated the Fourth of July last week, some Americans and Canadians celebrated the rebirth of an Alaska mine. This was the day that Fire River Gold Corp cranked up the mill at its recently reopened Nixon Fork Mine in the Tintina Gold Belt. “We started up the mill on July 4 and ran on waste for two days,” President/COO Richard Goodwin reports. “Then we started running it on low grade, and we’ll be switching to full-on ore.”

Goodwin continues, “We do have a stockpile ahead of the mill of about 3,000 tonnes, and that’s what we’ll be chewing through while we continue to ramp up the mine to full production.” That’s slated for October, when both mine and mill will be operating near capacity. The company plans its first shipment of concentrate this month and will pour its first dore bar in August.

Fire River Drills as it Mills in Alaska

Nixon Fork has gone through two previous incarnations. “One was 1993 to 1998; that was Nevada Goldfields,” says Goodwin. “Then there was a very brief campaign, only about four or five months of mining in 2007 under St Andrew Goldfields.

“There were several factors behind the 2007 shutdown,” he adds. “The price of gold wasn’t really strong. I think it was around $750 to $900. Also they were contract-mining, which resulted in a very high mining cost. Probably those are the main reasons, but also they hadn’t done a lot of drilling at that point. They did their drilling afterwards, not before mining. Had they done their drilling before they went mining, they’d have had more success.”

July 7 Nixon Fork assays include 13.33 grams per tonne gold over 8.1 metres, 25.56 g/t over 5.4 metres (including 86.16 g/t over 1.4 metres), 40.93 g/t over 2.8 metres, 14.69 g/t over 4.4 metres, 57.01 g/t over 4.4 metres and 93.52 g/t over 8.1 metres (including 190.23 g/t over 1.9 metres). June 6 assays include 107.13 g/t over 8.4 metres (including 164.05 g/t over 5.1 metres), 33.28 g/t over 2.9 metres, 28.92 g/t over 3.1 metres, 20.44 g/t over 4.2 metres and 17.11 g/t over 5.8 metres. Fire River’s 28,000-metre 2011 drilling campaign continues.

“Our latest announcement is a bit different from our previous results over the last few months,” Goodwin says. “We’ve really come to the end of the ore definition phase, where we were hitting the stopes that were going to be mined early. You’ll see in the new results that there are two new areas being drilled, and this is more pure exploration where we’re looking for additional zones. We’ve pretty well defined our early-stage production adequately enough. We can’t really perfectly define it through drilling; you actually have to go inside the stope, mine it and test-hole drill it, which we’re doing right now. But we’re at a sufficient level of confidence to support our first six months of operation.”

According to a September 2010 NI 43-101 report, Nixon Fork has 105,168 gold ounces indicated and 63,256 ounces inferred, at a 10 g/t cut-off. A revised resource estimate should appear later this year.

The key here is to replenish what you mine on an annual basis. I believe the property has the potential to go for 10 years —Richard Goodwin

Goodwin points out that rehabilitating a recently used mine certainly has its advantages. “We didn’t add very much infrastructure,” he says. “They had spent about $18 million on upgrades and the start of the CIL [cyanide-in-leach] plant. We’re going to put in about $5 million to finish off the CIL plant. We did a study that estimated $7.6 million for the plant, but we’re actually putting it in much cheaper than that. We also got about $3-million-worth of equipment to upgrade the underground mining fleet. Pretty much everything else was in place.”

According to a February 2011 preliminary economic assessment, Nixon Fork will deliver an internal rate of return of 549% and net present value of $60.9 million over its first two years of operation, based on a gold price of $1,200 per ounce and operating costs of $447 per ounce.

The old mine also left substantial gold behind in the tailings pond, 34,664 ounces indicated and inferred at 7.6 g/t. By 2012, in addition to its mine feed, the plant will get an additional 100 tonnes per day of tailings.

At press time, Fire River had 99.2 million shares outstanding, trading at $0.50 for a market cap of $49.6 million.

Goodwin concludes, “The key here is to replenish what you mine on an annual basis. At this point it does not have a large resource—it’s only 200,000 tonnes, which represents about three to four years of mining. I believe the property has the potential to go for 10 years, but it’s a matter of doing the exploration in time to put those tonnes into the production forecast.”

Fire River President Richard Goodwin on Alaska assays of 71.4 g/t gold, 40.1 g/t silver, 2% copper over 5.9m

May 17th, 2011

“Nixon Fork is a past producer with very high grade. It operated for five years at a 42 g/t feed. The exciting thing is, with our ongoing drilling here, we’re continuing to identify the high grade. We’re a very imminent production story; we’re going to be firing up the mill in mid-June 2011, and getting into operations.

“These assay results are exciting but they’re not atypical. We have to find these really high spikes, and that’s what we target with the mining. You end up blending it and getting it down to about an ounce a ton. But it is exciting to have that high grade. It’s very rare that you can get those sorts of grades and those sorts of thicknesses. Usually you are only seeing grades like that over six inches, but these have the thickness attached as well.

“In 2011 we are continuing to stockpile ore for the June start-up. Then we are going to get into operation on two circuits—gravity and flotation—in June. We’ll start cyanidation in September-October. Our manpower is about two thirds of the way there, we’ve got to hire a few more bodies. Our plan is to try and produce in the order of 20,000 ounces this year.

“Nixon Fork was a very exciting opportunity, with everything in place and the ability to prove up the ounces. But to have all of the facilities in place waiting for those ounces was a very exciting opportunity for us.”

View Press Release Summary

View Company Profile

Fire River reports Alaska Gold Assays up to 28.8 g/t over 13.7m

March 16th, 2011

Fire River Gold Corp TSXV:FAU announced drill results from its Nixon Fork Gold Mine in the Tintina Gold Belt, Alaska. Highlights include 28.8 g/t gold over 13.7 metres (including 118.5 g/t over 1.3 metres), 202.7 g/t over 1 metre, 8.6 g/t over 1.5 metres and 6 g/t over 0.8 metres.

The Nixon Fork Gold Mine was acquired in September 2009. From 1995 to 2007, the project produced approximately 175,000 ounces of gold at an average grade of 39 g/t. The mining and processing facilities at Nixon Fork are permitted and bonded.

View Company Profile

Contact:
Fire River Gold Corp
604.685.8045

by Ted Niles