Fire River Gold Corp.
The Tintina Gold Province in Alaska is known for providing some of the very first placer and lode gold discoveries in northern North America, according to the U.S. Geological Survey, but its historical significance is not its only claim to fame. Modern extraction methods have helped firms reach previously known but economically restrictive gold resources, and Fire River Gold Corp. is one such operation finding success in such an endeavor.
Based in Vancouver, Fire River Gold is transitioning from being a company focused on gold exploration to being focused on gold production at its Nixon Fork Gold Mine in central Alaska. The company acquired Nixon Fork in June 2009, and expects to begin gold production this summer.
“It is an exciting time for the company as we make the transition from junior explorer to operator by bringing the Nixon Fork Gold Mine back into production,” President and COO Richard Goodwin says.
The company is excited about its prospects at Nixon Fork, he explains, because it has no debt and is well-funded with approximately $18 million in its treasury. Additionally, the Nixon Fork mine has a history of high-grade production, low political risk and facilities already in place, requiring less of a capital investment from Fire River Gold.
At this point, the company is actively diamond drilling for ore definition and resource growth, as well as preparing to begin its surface exploration program. Within the Nixon Fork mine itself, Fire River Gold is developing stopes and stockpiling ore, extending the access ramp to depth and connecting the Crystal and Mystery mines. The zone between the Crystal and Mystery mines is the company’s best target for expansion of the resource base, it says.
Additionally, at Nixon Fork’s mill, the company is refurbishing the existing mill and enhancing the gravity recovery. It is on track to complete the carbon-in-leach plant this summer.
“The mining group is led by the Mine Manager Leonard Therrien, a 30-year veteran gold miner from Marathon, Ontario, where he worked on the mines in the Hemlo camp,” Goodwin says. “There are approximately 45 employees at site, 20 of which are miners. They are conducting underground diamond drilling using two company-owned Hagby drills, which are continuously staffed. This work is going very well, with total weekly footages steadily improving, with between 600 and 900 meters drilled each week.
“The miners also have completed an extension rehabilitation program for the secondary egress and ventilation raise, inclining ladders, installing grated platforms, and applying mesh to the walls where necessary,” he continues. “Numerous ventilation short circuits have also been sealed, providing stronger flows through the mine than during its last operating season.”
Strong Indications
In addition to its Nixon Fork Gold Mine, Fire River Gold has an interest in the Kansas Creek Project and the Draken Gold Project, which was the company’s first acquisition.
Located in the Bonnifield District of the central Alaska Range in central-interior Alaska, the Kansas Creek Project consists of 28 state of Alaska mining claims covering a 16.8-square-kilometer area. Placer gold was discovered in the district in 1906 and approximately 80,000 ounces of gold have been recovered form alluvial deposits through 2008. The company’s objective is to explore the project for lode gold potential. A three-phase program totaling more than $1 million has been recommended. Management is currently reviewing the data on the project with the objective of outlining a Phase I exploration program.
The Draken Project covers 960 acres and is located in southeast-central Alaska. Fire River Gold completed a Phase 1 surface exploration program in summer 2009, as well as a detailed ground radiometric survey, ground magnetometer survey and trenching and rock sampling at the Draken Project.
Fire River Gold’s focus, however, remains on the Nixon Fork mine. “While the Nixon Fork Gold Mine is the central focus for the company, we are already investigating avenues for expansion,” Goodwin says.