VANCOUVER — Fire River Gold (FAU-V) has found numerous bonanza- grade gold intercepts even before starting a drill campaign at its Nixon Fork gold mine near Mc- Grath, Alaska.
The company has been steadily releasing assay results from a reevaluation program on 9,400 metres of drilling completed by previous mine owner St Andrew Goldfields (SAS-T, STADF-O) in 2007 and 2008, which were never disclosed.
The latest results include 24 metres grading 27 grams gold per tonne in hole 53, 6.7 metres carrying 110 grams gold in hole 49 and 2.1 metres of 48 grams gold in hole 54.
The results propelled Fire River’s shares 11.5¢ or 27.1% to 54¢ on 3.7 million shares traded.
Earlier in June, the company released more results including 12.3 metres carrying 23.2 grams gold, 5 metres grading 19 grams gold and 1 metre of 49.8 grams gold, all from the same zone. Those results helped push the stock up 7¢ or 19.4% to 43¢ apiece on June 3.
Fire River debuted on the TSX Venture Exchange last November and had a 52-week high of 75¢ a share that month, before recently settling in the 35¢-45¢ per share range. The company is a spinoff of Pacific North West Capital (PFN-T), which created the new company to focus on gold assets while it continued to focus on platinum group and base metals.
Pacific North West originally optioned Nixon Fork for US$500,000 in late 2008, after St Andrew’s had suspended a limited production run on the site, despite investing US$52 million in the project. St Andrew had given up on Nixon Fork after encountering unexpected ground conditions, lower grade and poor gold recovery.
The project is a fly-in property described by Fire River as a “turn key operation,” fully permitted and bonded with significant infrastructure onsite.
The company has been going through all the data gathered on the site to better grasp the complex geology.
To help understand the rocks, Fire River has set up a 12,000-metre drill program slated for late June. The company would be hitting surface targets as well as underground drilling on the Crystal decline, which the company reports to be in excellent condition.
The company is funding the drill program with the proceeds of a recently completed $4.2-million private placement, in which it sold 10.6 million units at 40¢ apiece.
Fire River is also completing a preliminary economic assessment on the potentially rich tailings left onsite.
The first operator of the project produced 145,000 tons grading 42 grams gold, but at a recovery rate of 83%.
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