Fire River Gold Corp.
TSX VENTURE : FAU
OTCQX : FVGCF
FRANKFURT : FWR

Fire River Gold Corp.

June 21, 2010 09:00 ET

Fire River Gold Announces 498 g/t (14.52 opt) Gold Over 3.0 m (9.8 ft) Nixon Fork, Alaska

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 21, 2010) - Fire River Gold Corp. (TSX VENTURE:FAU)(OTCQX:FVGCF)(PINK SHEETS:FVGCF)(FRANKFURT:FWR):

  • 498 g/t (14.52 opt) gold over 3.0 m (9.8 ft) in hole N07U061
  • Results pending for 25 additional underground holes and 7 additional surface holes
  • 2010 drill campaign scheduled to begin late June
  • Resource update Fall 2010

Fire River Gold Corp. (ʺFAUʺ or the ʺCompanyʺ) is pleased to announce bonanza gold results 498 g/t (14.53 opt) gold over 3.0 metres (9.8 ft) in hole N07U061 from the ongoing re-evaluation program on its Nixon Fork Gold Mine Project in Alaska. The Company has received assay results and completed careful review of two holes completed in 2007 (N07U061 to N07U062). New significant intercepts include 498 g/t (14.52 opt) gold over 3.0 m (9.8 ft) in hole N07U062 as part of the ongoing geological re-evaluation program for the Nixon Fork Gold Mine Project in Alaska. A complete list of significant intercepts is provided in Table 1. for these two drill holes.

Table 1: List of Previously Unannounced Drill holes completed in 2007.

Hole Number From
(metres)
To
(metres)
Length
(feet)
Length
(metres)
Au
(opt)
Au
(gpt)
Location
N07U061 1.5 4.0 8.2 2.5 0.38 13 3300 zone
N07U061 19.6 22.6 9.8 3.0 15.52 498 3300 zone
including 20.5 21.3 2.6 0.8 53.81 1845 3300 zone
N07U062 0.0 4.8 15.7 4.8 0.21 7 3300 zone
  10.2 14.4 13.8 4.2 0.65 22 3300 zone
Including 12.5 13.5 3.3 1.0 2.13 73 3300 zone
  20.2 22.0 5.9 1.8 0.2 7 3300 zone

During 2007 and 2008, the previous operator completed 9400 metres from mostly underground drill stations in 110 holes. The results for these holes were not reported by that operator and have never been include in a resource assessment of the mine. The geologic evaluation (re-logging) of the 9400 metres is complete.

Because the 2007 and 2008 results were not formerly reported, a careful review was initiated by FAU of all quality control and quality assurance procedures used by the former operator. Although original check assays from the 2007 drill program were not documented, it is clear, however, that certified standards were used. The re-sampling program of the 2007 drill core is essentially a modified field duplicate exercise of the original assay results.

The re-sampling of the remaining half‐cores, were fully analyzed except in rare cases where quarter‐cores were used. Sampling of core‐duplicates as compared to FAU's pulp‐duplicates can produce a high degree of variability in the results due to the ʺnugget effectʺ of gold mineralization that occurs at Nixon Fork. This nugget effect was clearly evident in the bonanza grades reported for the 2008 drilling.

Every effort has been made to replicate the previous sample intervals except when a previous sample crossed a lithological or mineralized boundary. In these cases the new 2010 samples were terminated at such boundaries. The differences in lengths of the intervals may account for some of the variability in gold grades. In general, the assays are in conformity, especially for a comparison of field duplicate samples in a high‐grade, coarse gold system.

Re-logging and sampling of the historic core is of critical importance to understanding the controls of gold mineralization as well as gaining confidence in the high grades. The differences in grades shown are typical of high grade, gold deposits with a significant nugget distribution.

For additional details, please refer to FAU's website: www.firerivergold.com under "news", which include the results from the first group of drill holes, the geological re-assessment program, historic site production, a description of the deposits, additional information on the QA/QC measures and a description of our planned 2010 exploration drilling program.

Figure 1. is a cross section through the 3300 gold zone in the Crystal decline. This zone as well as extensions of potential new zones to the south, was the focus of much of the underground drilling for 2007. The 3300 zone is a pipe-like in shape and varies in diameter from a minimum of 3.0 metres to as much as 40.0 metres. To view Figures 1 and 2, click here: http://www.firerivergold.com/s/NewsReleases.asp?ReportID=405950.

Underground drilling is typically completed in 'fan-like' arrays of drill holes show in Figure 2. These fans define the limits of the high grade zones in the 3300. Most of the drilling in 2007 was completed between the 280 and 200 levels of the Crystal decline.

Relogging and sampling of the 2007 and 2008 drill core has been completed. Geologic work will now focus on selected zones from the pre-2007 core library, particularly in areas of favourable targets and mineralization. Work will also begin on a new resource estimate scheduled for completion by Fall of 2010.

Other near term tasks to begin in June will be underground mapping and sampling with particular emphasis on fault and facture zones. Also, core drilling will commence in the later part of June with the initial focus on high quality near-surface targets.

Figure 2. Typical underground fan drill station in the Crystal MineNixon Fork decline showing mineralized zones. To view Figures 1 and 2, click here: http://www.firerivergold.com/s/NewsReleases.asp?ReportID=405950.

Table 2. A comparison of the Original 2007 assays with the check assays from 2010
 
(field duplicates).

ORIGINAL ASSAYS   CHECK ASSAYS
  Field Duplicates
Hole From To Length Au   From To Length Au
Number (metres) (metres) (metres) (gpt)   (metres) (metres) (metres) (gpt)
N07U061 1.5 4.0 2.5 13   1.5 3.8 2.3 18
  19.6 22.6 3.0 498   19.5 22.8 3.3 515
including 20.5 21.3 0.8 1845   20.5 21.3 0.8 1745
N07U062 0.0 4.8 4.8 7   2.4 4.8 2.4 10
  10.2 14.4 4.2 22   10.3 14.3 4.0 36
including 12.5 13.5 1.0 73   12.3 13.7 1.4 89
  20.2 22.0 1.8 7   21.3 24.9 3.6 19

The Nixon Fork Gold Mine produced significant bi-product copper and silver. Until the closure of the mine in 2007, reported copper production was 1.27 million lbs and silver production was 19,566 ounces from 106,137 tonnes mined. Historic recovered grades are about 0.6% for copper and 0.18 opt for silver.

The project is being managed by Richard Goodwin, P.Eng, VP Mining for Fire River Gold and is the Qualified Person for this news release.

About Fire River Gold Corp.

Fire River Gold Corp. is a near term production company with a superior technical team focused on bringing its flagship project, the Nixon Fork Gold Mine, back into production within the next 12 months. The Nixon Fork Gold Mine is a fully permitted and bonded gold mine with past production values averaging 1.4 opt (42 gpt). Facilities at the Nixon Fork Gold Mine include a 200 tpd floatation plant with a gravity gold separation circuit and 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 1.5 km long landing strip. Nixon Fork is located within Alaska's Tintina Gold Belt, which hosts numerous world class deposits. Fire River Gold is a member of the International Metals Group (www.internationalmetalsgroup.com).

On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.

Harry Barr, President and C.E.O.

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable. We seek safe harbour.

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