Fire River Gold provides operations update
VANCOUVER, Feb. 27, 2013 /PRNewswire/ - Fire River Gold Corp. (TSXV: FAU), (OTCQX: FVGCF), (FSE: FWR) (the "Company" or "Fire River") is pleased to provide this operations update. Since the previous operations update provided on November 29, 2012, the Company continues to make progress, both in mine development and milling operations.
The Company implemented a new mine plan effective December 31, 2012 and the January 2013 results of mining operations were encouraging.
The 2013 Mine Plan, focusing on high confidence targets and conservative grades is starting to produce results. Ore development headings, started in the latter part of 2012, continue to demonstrate continuity with good grade being realized. As confidence in the newly implemented mine plan increased during the month, infrastructure and resources were put in place to support additional development work and subsequent production.
The first production stope in the Mystery Mine was started and continues to deliver high grade ore. Additional adjacent mineralization has increased the size of the zone and we expect to exceed both the tonnage and grade forecast for this first production area. Additional production areas are being designed and a second Bazooka small diameter core drill has been purchased and is awaiting delivery to site. Future plans are to ensure resource identification and delineation keeps ahead of mining to sustain continued focus on the Mystery Mine.
In the Crystal Mine, we have been concentrating on mucking and hauling from two existing longhole stopes with broken ore. Our Hagby diamond drill is nearly finished the 3100 zone drill program; and resumption of development is being scheduled for the near future, with priority on nearby high confidence targets. Design work and planning for access to the 3550 zone is underway.
Mining statistics since October 31, 2012 include the following:
|Period||Mined Ore Tonnes||Mined Waste Tonnes||Development Metres|
Subsequent to the completion of the CIL (carbon in leach) circuit in November 2012, the operations team at Nixon Fork has made significant progress in the processing plant. December saw improvement take place, including repairs to the Larox tailings filter, purchasing of a second Larox filter, replacement of the rod mill liners, and repairs to the Falcon concentrator and the flotation cells. During this time, the mill was shut down for 7 days resulting in an unusually low plant availability in December.
Operating statistics since October 31, 2012 include the following:
"We are pleased to report that the first quarter of fiscal 2013 saw an increase in gold produced of 46% over the previous quarter, producing 4,435 ounces of gold, and 4,205 ounces sold. January production of 2,032 ounces far surpassed the previous monthly production record of 1,502 ounces set in February, 2012. Our operating team continues to work diligently at removing bottlenecks and ramping up production. We are seeing steady progress in all facets of our operations", said Blane Wilson, the Company's President and CEO.
During the quarter the Company entered into an agreement with a new fuel supply air carrier solely dedicated to delivering fuel and providing a portion of the freight service to the Nixon Fork project. This new fuel supplier will compliment our other freight and fuel service providers already in place and should significantly reduce downtime due to fuel shortages. We anticipate this service to be operational by early March 2013.
ON BEHALF OF THE BOARD OF DIRECTORS
FIRE RIVER GOLD CORP.
"Blane W. Wilson"
Blane W. Wilson
President and CEO
Cautionary Statement Regarding Forward-Looking Information
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. This news release contains forward-looking statements regarding the business and operations of Fire River Gold. In particular, statements regarding use of proceeds and production targets in the upcoming years are forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Fire River's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by Fire River with securities regulators. Fire River expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
SOURCE Fire River Gold Corp.