VANCOUVER, March 28, 2013 /PRNewswire/ - Fire River Gold Corp. (TSXV: FAU), (OTCQX: FVGCF), (FSE: FWR) (the "Company" or "Fire River") reports the following operations update.
Underground exploration and definition drilling continues in both the Crystal and Mystery mines. Once the 385/J5A drift is completed in the next couple of months, additional definition drilling will be completed of the J5A orebody to explore between the drift and the intrusive contact of the Crystal Mine. Future drill targets in the Mystery mine include along the M252drift to further define the M-4 ore prospect.
|2013 U/G Exploration Drilling||3,339 meters|
|2013 Definition Drilling||3,507 meters|
|2013 Total||6,846 meters|
The Company implemented a new mine plan effective December 31, 2012 supported by an updated geological model.
Currently, ore is being produced from both the Crystal and Mystery mines. In February, higher than anticipated gold grades were encountered in the M250 stope of the Mystery mine, which is attributed to the new mine plan. Ramp development continues at a rapid pace in the M300 stope.
Mining statistics for February and March to date, 2013 include the following:
|Period||Mined Ore Tonnes||Mined Waste Tonnes||Development Metres|
*As of 25 March 2013
Mill statistics since January 31, 2013 include the following:
*As of 26 March 2013
While the Company has made progress in its efforts to become cash-flow positive and has markedly improved its gold production over the course of the past year, this progress has been interrupted by certain events beyond the Company's control. As a result the pace of progress has been insufficient to generate the sustained productions levels necessary to achieve commercial production to date in fiscal 2013. In particular, the Company's milling throughput for February and March has been negatively impacted by continued inclement weather, logistical challenges relating to air deliveries of key production supplies and fuel, and unscheduled downtime for equipment repair of the Larox filter, secondary cone crusher and ball mill motor. In the current fiscal year, the Company's cash flows have also been hindered by certain liabilities that arose from reconciling concentrate shipments from the second quarter of fiscal 2012. While these liabilities have been successfully resolved by the Company this resolution did negatively impact current fiscal year cash flows.
Current drill results have been positive for the long term prospects of the Company; however, as a result of the foregoing issues, the Company's short-term earnings and cash flows remain constrained and the Company has grown increasingly dependent on its senior creditor, Waterton Global Value, L.P. for short term funding requirements. As of March 28, 2013 the Company owed Waterton Global Value, L.P. $6.8 million for prepayments under the existing Gold and Silver Supply Agreement (for more information see Managements Discussion & Analysis for the period ended January 31, 2013). As a result of the foregoing the Board of Directors has decided to explore all strategic options.
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.