Fire River Gold Corp. announces option to acquire the Nixon Fork Gold Mine in Central Alaska



    
    ---------------------------------------------------------------------
    - Turn key mining operation
    - Mine fully permitted and bonded
    - Excellent potential for near term production
    - Significant exploration upside
    - Complete re-evaluation of the mine, mill, and resource in progress
    ---------------------------------------------------------------------

    CNSX: FAU
    

    VANCOUVER, June 29 /CNW/ - Fire River Gold Corp. (the "Company", "FAU")
(CNSX: FAU) is pleased to announce the signing of a letter agreement pursuant
to which it has acquired an option to purchase a 100% interest in Mystery
Creek Resources, Inc. (MCR), a wholly owned Alaskan subsidiary of Pacific
North West Capital Corp. (PFN) (PFN:TSX). MCR's assets include the Nixon Fork
Gold Mine, located 56 kilometres northeast of McGrath, Alaska. FAU will pay
US$50,000 on signing of the agreement. Subject to regulatory and shareholder
approval as may be required, FAU may exercise the option to pay a further
US$450,000 over a six month period and a total of US$2.5 million in FAU shares
at a deemed price of $0.45 per share. FAU will also issue PFN 1 million share
purchase warrants shares at an exercise price of $0.50 for a period of
twenty-four months from the date of issue entitling the Company to purchase an
additional 1 million common shares. FAU will also refund all expenses incurred
by PFN from May 1st 2009 until the finalisation of this transaction which will
not exceed CDN$1,250,000.
    Currently, PFN is expending a 2009 budget of CDN$1.25 million with the
objective of conducting a comprehensive re-evaluation of mine
reserves/resources, metallurgy, tailing production scenarios, completion of
updated NI 43-101 technical report, financial analysis and update the mine
plan. These studies will form the basis for a planned re-start of mining
operations. In addition, FAU believes the current resource is not fully
explored. Management plans to complete its due diligence by August 5th 2009
and establish the appropriate strategy to continue the development of the
project.
    PFN will remain the operator of the Nixon Fork Gold Project until the
closing of this transaction. FAU's acquisition of the Nixon Fork Gold Mine is
subject to regulatory and shareholder approval as may be required.

    Nixon Fork Production History

    Nevada Goldfields Inc. (NGI) constructed and operated the Nixon Fork Gold
Mine high-grade underground gold mine from 1995-1999, recovering 137,749
ounces of gold and 2.1 million pounds of copper, with additional silver
credits. The average production grade was 42 grams per tonne (gpt) of gold,
with an average production cost of US$266 per ounce. The mine was closed in
1997 due to declining gold prices.
    St Andrew Goldfields Ltd (SAS) purchased the property in 2003. From 2004
through 2008 approximately US$54 million was expended on upgrades to the
processing facilities and mine infrastructure and new equipment. During this
time, 9,381 meters of reserve-resource definition drilling was conducted, an
updated reserve-resource estimate was completed and additional metallurgical
testing was completed. Limited production in 2007 resulted in recovery of
6,775 ounces of gold and 78,644 pounds of copper. The mine has been on care
and maintenance basis since late 2007.
    SAS commissioned Roscoe-Postle Associates of Toronto to complete NI
43-101 technical reports in 2003, 2005 and 2006, which reviewed the mineral
reserve-resource of the property and completed a financial analysis of
proposed mining operations. These reports are available from SAS reports filed
on Sedar, technical report dated Oct. 4, 2006, (6.1 MB-98 pages).
    Facilities at the Nixon Fork Gold Mine include a 200 tpd floatation plant
with a gravity gold separation circuit, a sulphide floatation circuit. In
2008, a CIL gold leaching circuit was purchased and approximately 60%
installed. The mine also includes a fleet of mining vehicles, a self-contained
power plant, maintenance facilities, drilling equipment, an 85 person camp,
office facilities and a 1.5km long landing strip.
    Mining and processing operations at Nixon Fork are fully permitted and
bonded. Approximately 150,000 tonnes of mill tailings that a previous study
showed averaged 8.1 grams per ton are being evaluated with the objective of
being processed in the CIL circuit.
    As the last two operators of the project focussed most of their financial
efforts on underground development, the mine infrastructure, equipment,
permitting and bonding, only a limited amount of their budget was spent on the
exploration upside on the Nixon Fork project. However, several new exploration
targets were identified and FAU management plans to focus on these and other
areas throughout the claim block with the objective of outlining new
resources.
    The acquisition of the Nixon Fork Gold Mine allows FAU to continue the
development of a near term gold production opportunity. In addition, FAU is
completing Phase I exploration on its 100% owned Draken Project and it is
scheduled to be concluded by mid August. In addition, management is reviewing
the data on its newly acquired Kansas Creek Gold Project.
    Management's objective is to continue to aggressively acquire advanced
stage gold projects.
    Curt Freeman M.Sc., P.Geo. is the qualified person responsible for this
press release.

    About Fire River Gold

    Fire River Gold is a public company focussed on gold exploration in North
America and is currently advancing its 100% owned Draken Project in Alaska.
FAU is also reviewing and compiling historic exploration data on its 100%
owned Kansas Creek gold project in Alaska to develop a 2009 exploration
program. Fire River trades on the CNSX under the symbol FAU.
    Fire River Gold Corp. and Pacific North West Capital Corp. share
directors in common who have abstained from voting on the Nixon Fork
transaction.

    
    On behalf of the Board of Directors

    Spiros Cacos
    Director

    The Canadian National Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release
    

    Disclaimer: This news release may contain certain "forward-looking
statements". All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks and
uncertainties. 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 the Company's expectations are
disclosed in the Company's documents filed from time to time with the British
Columbia Securities Commission and available at www.sedar.com or filed with
the Canadian National Stock Exchange. Any forward-looking statements are not
guarantees of the Company's future performance and are subject to risks and
uncertainties that could cause actual results, developments, and business
decisions to differ materially from those contemplated by any forward-looking
statements. Except as required by law, the Company undertakes no obligation to
update any forward-looking statements.





For further information:

For further information: Tel: (604) 685-1870, Fax: (604) 685-8045,
Email: info@firerivergold.com or visit www.firerivergold.com, 2303 West 41st
Avenue, Vancouver, B.C., Canada, V6M 2A3

Organization Profile

Fire River Gold Corp.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890