The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
FAU: TSX-V/FVCGF: OTCQX/FWR.F: Frankfurt
Chairman: R. David Russell
President and COO: Richard Goodwin
Chief Geologist: Jeff Levell
Fire River Gold Corp. fired up the mill at its Nixon Fork Mine July 4, placing the Vancouver B.C.-based junior on the short list of Alaska hardrock gold producers.
Though the 150-metric-ton-per-day operation is much smaller than its peers, gold grades in the 1-ounce-per-metric-ton range helps make up for some of what the mine lacks in stature.
When running at its full capacity, the reinstated operation is expected to churn out around 50,000 ounces of aurum a year.
About half of Fire River Gold's revenue from Nixon Fork, which is located some 35 miles (56 kilometers) northeast of McGrath, is from the sale of 1,000-ounce doré containing 60 percent gold and 30 percent silver.
Additional cash flow is being generated from the sale of a gold-rich copper concentrate.
The company shipped the first batch of this concentrate in mid-September.
The US$1.8 million advanced payment for this 42.6-metric-ton for this shipment marks the first payment from the renewed operations at Nixon Fork.
Nevada Goldfields Inc. constructed and operated the mill at Nixon Fork from 1995-1998.
That company reported recovering 137,749 ounces of gold and 2.1 million pounds of copper, with additional silver credits during roughly three-plus years.
It shuttered the mine in 1999.
The gravity and flotation circuits recovered some 80 percent of the gold during this past operation and Fire River is reporting similar recoveries.
The addition of a carbon-in-leach cyanide circuit is expected to boost the recoveries to around 96 percent.
With all three circuits in operation and the mill is running at its full 150-metric-ton-per-day potential, Nixon Fork is expected to produce some 3,800 ounces of gold per month throughout the winter.
By late spring of 2012, Fire River plans to ratchet up production again to 250 metric tons per day by re-processing tailings from the historical mining.
The tailings pond contains some 140,000 metric tons of pre-milled material estimated to average 7.6 g/t gold, most of which is expected to report to the cyanide circuit.
Fire River Gold will only run the tailings - which are locked up in ice during the cold Interior Alaska winter - through the mill during the summer months.
The underground workings at Nixon Fork are divided into two unconnected mines, Crystal and Mystery.
Based on re-assaying more than 10,000 meters of drill core left behind by the previous operator, Nixon Fork has underground resources of slightly more than 190,000 metric tons averaging 27 g/t gold - enough ore to keep the 150-ton-per day mill operating for four years.
Much of the underground drilling completed during the past year focused on confirming and expanding the deposits in the upper portion of Crystal, which is nearest the mill.
Enough ore has been delineated in this initial mine area to feed the mill between six and eight months.
Drilling in the lower portion of Crystal has returned encouraging results and is expected to add to the minable high-grade ore available in this area.
While mining the upper portions of Crystal, crews are driving a shallow ramp to Mystery Mine about 600 meters to the northeast and ramping down to the lower portions of Crystal.
Mystery currently has an indicated resource of 28,400 metric tons averaging 23.7 g/t gold.
The underground connection will not only provide easier access to this 20,900 ounces of the yellow metal, but also will provide a drill platform for the Southern Cross, J5A and 3100 zones - three promising targets between the two mines.
Fire River targeted these regions with surface drilling in 2011 and is completing a more comprehensive evaluation of these ore-bodies from underground.
Cash and Short-term Deposits: C$15.49 million (April 30, 2011)
Working Capital: C$11.51 million (April 30, 2011)
Market Capitalization: C$43.13 million (Sept. 18, 2011)
2303 West 41st Ave.
Vancouver, B.C., Canada V6M 2A3
Ph: 604-685-1870 Fax: 604-685 8045
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