Wednesday, September 29, 2010

Numbers and Tailings PEA

Check out the all new Penny Stock Journal for whats moving.
The market was unimpressed with FAU paper and it closed off slightly on big volume on Friday.

Scotia was responsible for 881,000 in selling with a major cross for 550,000 containing the bloodshed.

FAU (22 0.51 - 0.52 15.5) 0.52 -0.01 1,156,100

It was a red letter day for number hounds as the Co has released both a PEA for tailings and quarterly numbers.

"Fire River Gold Corp. has released the results of a preliminary economic assessment (PEA) for the completion of a 250-tonne-per-day cyanidation circuit and the implementation of leaching at the Nixon Fork gold mine in Alaska's Tintina gold belt. The report is entitled "A Preliminary Economic Assessment for Recovering Gold from Tailings at Nixon Fork Mine using a CIL Process," and is prepared by George Rawsthorne, PEng, who is independent of the company. This study will be included in an NI 43-101-compliant technical report that will be released over the next 45 days."


The study demonstrates a potentially strong economic benefit to the company ..."

Friday, September 17, 2010

Hello R. David Russell

Check out the Zenyatta blog !

Material from Alaska Department of Natural Resources.

R. David Russell, Lead Director

Welcome new "lead" director of Fire River Gold, Mr. R. David Russell. Just hours after highly ridiculous and questionable comments from Mr. Richard Goodwin regarding the non-existence of "obvious" water tables, we have a new voice in support of the patently insulting.

Will Mr. Russell continue to play the "duh" card, or will the spin be morphed into something slightly better? Only time will tell with only one certainty ... Bill Gates could become president of this co and it STILL would not change the economics at Nixon Fork one iota.

September 22, 2010

The string of carefully dribbled out, 3 year old assays continued today and the market responded with big volume but virtually no price movement.

FAU - (3.0 0.57· 0.58 8.0) 0.58 +0.01   682,100

FAU.v Short Position

Short History
Symbol Report Date Volume Change

FAU - V 2010-09-15 100,000-166,000
FAU - V 2010-08-31 266,000 196,500
FAU - V 2010-08-15 69,500 -45,500
FAU - V 2010-07-31 115,000 47,500
FAU - V 2010-07-15 67,500
FAU - V 2010-06-30 67,500 67,500
FAU - V 2010-05-31 -5,000

Friday, September 10, 2010

Mission:Impossible - Richard Goodwin

Response from Fire River Gold - re FAU has zero ore.

Spiros asked me to address some of your questions, which I have combined as follows:

Q - ALL recently released drill cores from the C3300 Zone are BELOW the water table and that is ore that cannot be mined. The Nixon Fork Mine has no EPA permit to discharge waste water. But that doesn’t matter much because the water CAN NOT be pumped out. Nor can the workings be grouted. Records indicate that there CAN be no more than 112,000 tons in the tailings.

A- Several clarifications are required:

1) Most of the 2007 and 2008 core is from the upper portion of the mine on 3300 zone, most very near the portal. The underground drilling that we are doing right now is also in the upper portion of the mine, where we have very prospective ground for adding to the resource.

The water table is at the 150 "P" level and the latest 3 year old assays, as a single example, are from the 220 level. This statement is a deliberate falsehood.

2) Although there were resources declared at depth on 3300 (and we will likely do so in our own resource estimate), there is no obstruction to mining below it other than that this is a zero discharge facility and, yes, we do not have an EPA waste water discharge permit. The mine is a fairly dry - at present there is about 3 ft of water at the bottom of the mine in the main ramp, so there is no obvious evidence of a water table. This is apt to change with seasonality, but at present water isn’t an obvious physical barrier to deeper mining. The prior operator did look at grouting to blind off the bottom of the mine and some physical work was done to accomplish this. I have no opinion at present as to whether or not this program would be successful or if it is even required for deeper mining.

A body needs "no obvious evidence of a water table" because that is proven beyond any doubt in the operating report filed with the Government of Alaska. A negative engineering study from Golder and Associates followed and only the obtuse would dare suppose this management hasn't perused that as well. Quite obviously this brain trust must feel the very public content of a critical document is not in English.

4) Past production is reported to be 140,500 tonnes from two mining campaigns. Allowing that 9% of this tonnage went to concentrate leaves 128,000 tonnes of tailings. Our estimates indicate more than this to be present in the pond. The “112,000 tons” you quote comes from the old technical report, but was actually 112,000 tonnes (123,500 tons) and this was estimated before the most recent 2007 mining campaign.

Then why is this promo, to this very day, touting 150,000 to 170,000 tons in tailings?

I trust this answers some of your questions.

Absolutely not. It raises far more questions related to fiduciary responsibility and proper disclosure.

Richard Goodwin
Vice President, Mining


A total of approximately 122,400 tonnes* of ore were produced and processed by the Nixon Fork facility while in operation."

""The existing 116,000 tonnes (128,000 tons) of tailings in the Nixon Fork tailings pond will be hydraulically removed from the tailings pond and reprocessed through the Nixon Fork mill. This will take approximately twelve months spread over time that the pond is not frozen. "

"between 150,000 tonnes and 170,000 tonnes of mill tailings are in place (at a grade of between 7 and 9 grams per tonne) which are currently being re-evaluated."

There is no such thing as a “half lie” when it comes to public company disclosures. An example like this leads to deeper questions about every aspect of this company’s integrity. The company is caught in a web of its own deception, one that bodes extreme danger for the investing public.

Tuesday, September 7, 2010

Water Table, EPA discharge permit and SAS

Throughout the Fire River Gold promotion it has been stated over and over again that the Nixon Fork mine is "fully permitted and bonded".

Like most propaganda from career promoters this is NOT entirely correct.

According to the St Andrews operating plan there are systemic water problems at the Nixon Fork mine.

The only possible way to deal with water below the water table if grouting fails is to continuously pump it out. In order to do that a permit to discharge waste water is required from the Environmental Protection Agency. Fire River Gold does not have this permit in place for Nixon Fork.

"Future operations below the water table (150 level) may require a National Pollutant Discharge Elimination System (NPDES) permit issued by the Environment Protection Agency (EPA). A study on the feasibility of grouting off the water inflow is currently underway by Golder Associates Inc. Preliminary results suggest that a combination of grouting and pumping may be successful. If the amount of water to be discharged is in excess of what can be applied to the land under the Solid Waste Management Plan, then it will be necessary to begin the NPDES permit process once it is decided to continue mining at depth. It is anticipated the NPDES process will take approximately 18 months to two years to complete."
"Groundwater was encountered on or below the P Level. A permanent sump is to be installed below the P Level. Some of the mine discharge water will be used as makeup water for the mill, but it may be necessary to irrigate with the excess water or obtain a water discharge (NPDS) permit for the facility to allow disposal of excess water. Golder Associates is investigating the possibility of grouting the groundwater being generated below the P Level and have expressed the preliminary opinion that the formations can be grouted and the water inflow stopped."

"NGI and MCRI’s exploration programs located ore bodies below the mine’s natural water table. MCRI had the ground water tested and it was found to meet drinking water standards. “Pump” tests were also performed to determine if the mine’s water table could be lowered sufficiently to permit the ore to be mined safely and economically. Based on an analysis of these tests it is currently not cost effective to pump the volume of water believed necessary to lower the water table for mining".

"MCRI continues to look for ways to mine the ore below the water table. MCRI also investigated ways to dispose of ground water if it were to be pumped to the surface. Injection wells were considered and two geotechnical test wells were drilled. These wells found permafrost extending all the way to bedrock prohibiting the use of shallow injection wells."

We have no way of knowing for certain what the final conclusions of the Golder study were, but, given the fact SAS walked away after the technical report and after an additional $ 4.5m investment, we must assume grouting completely failed. If it had succeeded the ore from C3300 would certainly have been mined.

There is a significant impact on Nixon Fork economics by removing this ore from the resource estimates and mine plan ...

"Sensitivity was also tested on the scenario in which zone C3300 would not be extracted due to insufficient grouting techniques. In the case where this zone is not mined, approximately 33,000 tonnes of probable reserves would be removed from the mine plan. The resulting reserve base would amount to 93,000 tonnes at a grade of 29.85 g/t Au. With this effect, the pre-tax NPV reduces from US$3.6 million in the base case to (US$1.2 million)."

It is relevant to review the material dished up for St Andrews' stakeholders as Nixon Fork was mothballed ...

"Mine development scheduled for completion in the second quarter of 2007 for the opening up of three additional mining areas and mining stopes and to progress mine operations at a sustainable levels fell behind schedule during the quarter due to equipment and mining personnel shortages and ore face availability issues encountered at the upper portion of the Crystal deposit. The Company believes it has rectified the issue by revising its mine plan to accelerate mine development of the lower portion of the deposit."

An observer would naturally pick ore face availability as the primary reason for stopping production and the importance of deep ore in restarting Nixon Fork is made very clear.

"Since the suspension of production activities at the Nixon Fork Gold Mine in the fourth quarter of 2007, a total of approximately 5,700 metres of definition drilling has been completed to better define the irregular geometry of the gold mineralization for improved future mining recovery and dilution. The definition drilling program was completed by the end of March 2008 and the Company is currently in the process of analyzing the data collected. The Company expects to complete an updated reserve and resource estimate in the second half of 2008 (see Advance Exploration Update)."

We know for certain another resource calculation never saw the light of day so whatever calculations were done didn't accomplish a thing in improving the economics at Nixon Fork.