Highlights:
- CIL circuit is now fully operational
- Fifty percent improvement in mill throughput since
management changes in July
- Plant availability has improved from an average of 60% for
the first half of the year to 80% in October.
- Plant throughputs in excess of 200 tonnes per day (tpd) have
recently been achieved on a number of days
- Fiscal fourth Quarter gold production of 3048
ounces.
VANCOUVER,
Nov. 29, 2012 /PRNewswire/ - Fire
River Gold Corp. (TSXV: FAU), (OTCQX: FVGCF), (FSE: FWR) (the
"Company", or "Fire River") is pleased to announce that the
commissioning of the CIL (Carbon
in Leach) circuit at the Nixon Fork gold project, which began on
April 18, 2012, is complete.
The commissioning process was more time consuming than was
expected, primarily due to difficulties in hiring experienced plant
personnel. The change of management at Fire River in mid-July
accelerated the plant commissioning process leading to the first
pour of dore' from the CIL circuit on August
12th. Dore' is now being poured on site on a
regular basis. In October almost half of the total gold produced
was poured as dore' on site, in a saleable form, and is now being
shipped on a regular basis to Johnson
Matthey for refining.
In the first half of the year, the processing
plant averaged 86 tpd. Mill throughput averaged 126 tpd in October
and is expected to further increase in Q1 2013. Recently in
November, we have seen a number of days exceeding 200 tpd.
Total gold produced from both the CIL and
flotation circuits at Nixon Fork during in the three month period
between August and October 2012 was
3,048 ounces.
Plant availability has been a major focus during
the ramping up of operations. From January through
July 2012, plant availability
averaged only 60% and reached a low of 42% in July. Coinciding with
the change in management, a more disciplined approach to plant
maintenance was implemented which is showing significant benefits.
Over the past three months, even with major failures involving the
Larox tailings filter, the rod mill pinion and the ball mill
coupling, the plant availability has averaged 76% with October
reaching 80%. Additional increases are expected in coming months as
improved operating and maintenance procedures continue to be
implemented.
Mill recovery during the first 6 months of the
year averaged 66%. With the completion of the CIL circuit, and
other operational improvements, the past 3 months have seen this
increase to 74%. Further improvements in recovery are expected in
the coming months as mill operations stabilize and further
enhancements are implemented.
Conversion to a dry stack tailings disposal
system in January 2012 resulted in a
significant reduction in mill throughput. The new management team
has been working to overcome this production bottleneck and in
October the mill achieved its highest monthly throughput for 2012,
126 tpd. October's throughput was up 50% from the January through
July period and is expected to increase another 50% over the next
two months. This will surpass the previous guidance on plant
capacity of 150 tpd and move closer to the current permitted
throughput rate of 250 tpd.
Grade from the mine was somewhat lower than
expected during the quarter. As a result, a mine operations' review
has been conducted which outlined a number of opportunities to
enhance the estimating and planning of mining activities. We are
now in the process of implementing the required changes to be able
to deliver on this front as well.
Having made significant progress with the
processing facility, our focus is now dedicated toward optimizing
the mine performance both in terms of grade and throughput. It is
anticipated that an updated mine plan, and results from recently
completed drilling will be made available to investors by the end
of this year. The low cash position exacerbated with a cash flow
negative operation has been mitigated with the financial support of
Waterton Global. Additional technical expertise has been deployed
at site in order to accelerate the development and implementation
of the required corrective measures.
The Company is pleased to announce that
Richard Wells has been appointed to
the Board of Directors. Mr. Wells was awarded the Canadian
Chartered Accountant designation in 2002 while working with
PricewaterhouseCoopers. While at PwC, Richard worked in the audit
practice, and serviced audit clients ranging from small privately
held manufacturing facilities to large multinational public
clients. Since 2005, Mr. Wells has been with Waterton Global
Resource Management. The Company has accepted the resignation
of David Fox and would like to thank
Mr. Fox for his contribution to the Board.
About Fire River Gold:
Fire River Gold Corp.'s flagship property is the
wholly owned Nixon Fork Gold Project located in the Tintina Gold
Belt, Central Alaska.
Operations at Nixon Fork recommenced in July
2011. Nixon Fork is a past producing mine with a high grade
production history, and a low capital requirement due to
pre-existing infrastructure. The mine operates year-round producing
both gold concentrate and doré bars. District scale
exploration potential provides additional upside for the
project.
ON BEHALF OF THE BOARD OF DIRECTORS
FIRE RIVER GOLD CORP.
"Blane Wilson"
Blane 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.