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

Fire River Gold Corp.

June 16, 2010 09:00 ET

Fire River Gold Announces High Grade Gold Results Nixon Fork Gold Mine, Alaska: 27 g/t (0.79 opt) Gold Over 24.0 m (78.7 ft)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2010) - Fire River Gold Corp. (TSX VENTURE:FAU)(OTCQX:FVGCF)(PINK SHEETS:FVGCF)(FRANKFURT:FWR) -

News Release Highlights:

  • 27 g/t (0.79 opt) gold over 24.0 m (78.7 ft) in hole N07U053

    • including 30 g/t (0.89 opt) gold over 5.1 m (16.7 ft)

    • including 82 g/t (2.40 opt) gold over 3.8 m (12.7 ft)

    • including 58 g/t (1.68 opt) gold over 2.0 m (6.56 ft)

  • 110 g/t (2.21 opt) gold over 6.7 m (22.0 ft) in hole N07U049

  • 48 g/t (1.39 opt) gold over 2.1 m (6.8 ft) in hole N07U054

  • Results pending for 28 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) continues to announce high grade assay results 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 next 12 holes completed in 2007 (N07U0047 to N07058). New significant intercepts include N07U049 returning grades of 110 g/t (2.21 opt) gold over 6.7 metres (22.0 ft) and 27 g/t (0.79 opt) gold over 24.0 m (78.7 ft) in hole N07U53 including 30 g/t (0.89 opt) gold over 5.1 m (16.7 ft), including 82 g/t (2.40 opt) gold over 3.8 m (12.5 ft) and including 58 g/t (1.68 opt) Au over 2.0 metres (6.6 ft) 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 2 for these 12 drill holes; it includes results of previously unreported drill holes.

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 included in a resource assessment of the mine. The geologic evaluation (re-logging) of the 9400 metres is complete.

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
N07U049 3.7 10.4 22.0 6.7 2.21 110 3300 zone
N07U053 1.9 25.9 78.7 24.0 0.79 27 3300 zone
including 1.9 7.0 16.7 5.1 0.89 30 3300 zone
including 15.5 19.3 12.5 3.8 2.40 82 3300 zone
including 23.2 25.2 6.6 2.0 1.68 58 3300 zone
N07U054 11.0 13.1 6.9 2.1 1.39 48 3300 zone
N07U055 10.3 21.6 37.1 11.3 0.92 31 3300 zone
including 10.3 12.4 6.9 2.1 2.50 86 3300 zone
including 15.6 21.6 19.7 6.0 0.85 29 3300 zone
N07U056 2.4 4.5 6.9 2.1 0.32 11 3300 zone
  13.8 18.3 14.8 4.5 2.95 101 3300 zone
N07U057 23.5 24.4 2.9 0.9 1.29 44 3300 zone
N07U058 12.0 15.0 9.8 3.0 1.09 37 3300 zone

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.

Table 2: List of Gold intercepts for Drill Holes N07U047 to N07U058

Hole From To Length Length Au Au  
Number (metres) (metres) (metres) (feet) (gpt) (opt) Location
N07U047 16.9 17.1 0.2 0.7 8 0.23 3300 zone
N07U047 22.6 24.2 1.6 5.25 65 1.89 3300 zone
N07U048 3.5 6.3 2.8 9.19 13 0.38 3300 zone
N07U048 12.7 14.7 2.0 6.56 65 1.89 3300 zone
N07U048 15.3 18.0 2.7 8.86 146 4.25 3300 zone
N07U049 1.2 2.5 1.3 4.27 8 0.22 3300 zone
N07U049 3.7 10.4 6.7 22 110 3.20 3300 zone
N07U050 0.0 1.2 1.2 3.9 19 0.56 3300 zone
N07U050 2.2 2.8 0.6 2.0 10 0.29 3300 zone
N07U050 4.0 5.6 4.8 15.8 78 2.28 3300 zone
including 7.0 8.8 1.8 5.9 160 4.66 3300 zone
N07U051 4.5 5.5 1.0 3.3 12 0.35 3300 zone
N07U051 10.4 11.8 1.4 4.6 8 0.22 3300 zone
N07U052 3.5 6.5 3.0 9.8 10 0.29 3300 zone
N07U052 12.5 16.5 4.0 13.1 50 1.46 3300 zone
N07U052 29.0 30.5 1.5 4.9 4 0.12 3300 zone
N07U053 1.9 25.9 24.0 78.7 27 0.79 3300 zone
including 1.9 3.8 1.9 6.2 59 1.71 3300 zone
including 6.4 7.0 0.6 2.0 67 1.93 3300 zone
including 7.7 10.3 2.6 8.5 12 0.33 3300 zone
including 13.4 16.8 3.4 11.2 40 1.17 3300 zone
including 18.3 19.3 1.0 3.3 207 5.99 3300 zone
including 23.2 25.9 2.7 8.9 44 1.28 3300 zone
N07U054 8.2 9.2 1.0 3.3 4 0.11 3300 zone
N07U054 11.0 13.1 2.1 6.9 48 1.39 3300 zone
N07U055 5.0 6.6 1.6 5.3 6 0.18 3300 zone
N07U055 10.3 21.6 11.3 37.1 31 0.91 3300 zone
including 10.3 12.4 2.1 6.9 86 2.49 3300 zone
including 15.6 17.5 1.9 6.2 33 0.95 3300 zone
including 19.0 21.6 2.6 8.5 43 1.25 3300 zone
N07U056 2.4 4.5 2.1 6.9 11 0.32 3300 zone
N07U056 13.8 19.8 6.0 19.7 78 2.26 3300 zone
N07U057 1.8 3.0 1.2 3.9 4 0.11 3300 zone
N07U057 6.1 6.9 0.8 2.6 4 0.11 3300 zone
N07U057 9.0 11.0 2.0 6.6 4 0.11 3300 zone
N07U057 14.9 17.0 2.1 6.9 4 0.11 3300 zone
N07U057 23.5 24.4 0.9 3.0 44 1.29 3300 zone
N07U058 4.2 5.2 1.0 3.3 9 0.26 3300 zone
N07U058 12.0 15.0 3.0 9.8 37 1.08 3300 zone

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 33 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 a 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 metres to as much as 40 metres. http://www.firerivergold.com/s/NewsReleases.asp?ReportID=405506

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 Mine, Nixon Fork showing mineralized zones. http://www.firerivergold.com/s/NewsReleases.asp?ReportID=405506

Table 3: A comparison of the Original 2007 assays with the check assays from 2010 (field duplicates)

ORIGINAL ASSAYS   Field Duplicates
  CHECK ASSAYS
Hole From To Length Au   From To Length Au
Number (metres) (metres) (metres) (gpt)   (metres) (metres) (metres) (gpt)
N07U047 22.6 24.2 1.6 65   22.7 24.1 1.4 77
N07U048 12.7 18.0 5.3 99   12.9 18.0 5.1 128
including 16.5 18.0 1.5 261   16.5 18.0 1.5 264
NO7U049 3.7 10.4 6.7 110.30   4.3 10.4 6.1 54
N07U050 4.0 8.8 4.8 78   4.3 8.8 4.5 82
including 7.0 8.8 1.8 160   6.4 8.8 2.4 145
N07U051 4.5 5.5 1.0 12   5.8 7.2 1.4 7.52
N07U052 12.5 16.5 4.0 50   12.5 16.5 4.0 57.65
including 13.8 14.8 1.0 76   13.8 14.8 1.0 127
NO7U053 1.9 25.9 24.0 27   1.9 25.2 23.3 19
including 1.9 7.0 5.1 30   1.9 7.0 5.1 20
including 15.5 19.3 3.8 82   15.2 19.3 4.1 31
including 23.2 25.2 2.0 58   23.2 25.2 2.0 68
NO7U054 11.0 13.1 2.1 48   11 13.1 2.1 46
NO7U055 10.3 21.6 11.3 31   10.3 21.3 11.0 21
including 10.3 12.4 2.1 86   10.3 12.2 1.9 39
including 15.6 21.6 6.0 29   15.6 21.3 5.7 28
NO7U056 2.4 4.5 2.1 11   2.4 4.6 2.2 8
NO7U056 13.8 18.3 4.5 101   13.7 18.3 4.6 108
NO7U058 12.0 15.0 3.0 37   12.0 14.9 2.9 49

Significant bi-product of the Nixon Fork Gold Mine includes copper and silver credits. 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 were approximately 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, 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. 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.

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.

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