Friday, March 11, 2011

What bloody next department


After our obligatory management change of top echelon Barrian types we are immediately bombarded with a plethora of news including yet ANOTHER $ 7m financing which brings our fully diluted number to something in excess of 115,000,000 shares.

Does it not raise the slightest suspicion that even more dilutive millions are required to make Nixon Forked fly when the PEA made promises of ...

a)Capital costs to resume production are estimated to be $6.3 M with a projected payback of 3 months.

b)the project delivers an IRR of 549% and NPV of $60.9M on an undiscounted cash flow of $64.3M

c)a two year production forecast at a production rate of 150 tonnes per day with an average mined grade of 30.1 g/t.


With these kinds of numbers one would be encouraged mightily to suppose immediate and instant cash flow from copious gold bricks that would be flooding the FAU treasury faster than water engress into the mine shaft.

Well that obviously isn't what this "braintrust" is counting on, is it. Among the patently insulting is the disclosure that cash burn is expected to run $ 2.5m per month, which may be the first grain of truth from this Company in eons.

This humble scribe has another, far more likely cascade of events. The $ 6.3m CIL circuit may be operational by late July, giving all of 60 days of feed from 8 gms/ton tailings before they are frozen solid for another year.

At 85% recovery and 150 tons per day that amounts to a whopping 36 ozs per day at a cash cost around $ 440. Will that plant net $ 500,000 per month before all other overhead and expenses?

After 60 days there will be no other feed available and a body can make book on that. That plant will sit idle over the winter while fixed costs keep adding up. By then the PEA and 30 gm/ton material will be a proven, water logged lie.

The additional $7m won't keep this guaranteed white elephant in cash until next spring so ANOTHER dilutive share issue will obviously be required to keep the improbable dream alive, and who will be the next dope to step forward when in excess of $ 15m has been burnt off with zero return possible?

Wednesday, March 2, 2011

Goodbye Mr. Harry Barr, sort of

There was an announcement of the resignation of Mr. Harry Barr as president and CEO of Fire River Gold today ...

"Harry Barr has elected to step down as president, chief executive officer and director of Fire River Gold Corp. and its Alaskan subsidiaries. Mr. Barr will concentrate his efforts on the other member companies of the International Metals Group, as president and CEO of Pacific North West Capital Corp., El Nino Ventures and Next Gen Metals Inc."

While relinquishing apparent control there is no question whom the main man at Fire River Gold is. Not only can Mr. Barr be far removed from this ridiculous promotion when it inevitably crashes and burns in a few moons, he has installed not one but TWO whipping boys when it does so.

Lets call this maneuver what it is ... another stroke of Barr brilliance as Fire River Gold moves fully into distribution phase. The man has protected that grossly enriched buttock at the most critical time AND he now has full deniability as the groundwork gets laid for the NEXT promotion.

OF COURSE he wants nothing more to do with nebulous water tables and undisclosed material facts ... he has other, far more expendable monkeys for that onerous, bag holding duty.

Kudos Mr. Harry Barr for giving us a textbook example of how promotion is done on the Venture exchange bordello.
http://firerivergold.blogspot.com/

Tuesday, March 1, 2011

Distribution Phase for Sheeple

With the required touts of zero ethics locked and loaded, as well as copious free trading shares numbering in the millions available for public distribution, the time has come to unload this wholley worthless paper before the reality of zero mineable ore at Nixon Fork comes home to roost in a few months.

Options for the paid help at levels that are no problemo for multi, multi-bag Mr. Harry Barr and all the mouths have been fed. Now its a race to find the bigger sucker before somebody else does it.


Feb 28/11 Feb 23/11 Pacific North West Capital Corp. Direct Ownership Common Shares 10 - Disposition -100,000 $0.580
Feb 25/11 Feb 25/11 Goodwin, Richard Mervin Direct Ownership Common Shares 10 - Acquisition in the public market 1,750 $0.540
Feb 22/11 Feb 22/11 Cacos, Spiros Direct Ownership Options 50 - Grant of options 40,000 $0.550
Feb 20/11 Feb 17/11 Russell, R. David Direct Ownership Options 50 - Grant of options 40,000
Feb 20/11 Feb 15/11 Pacific North West Capital Corp. Direct Ownership Common Shares 10 - Disposition -502,500 $0.540
Feb 18/11 Feb 14/11 Lawrence, Kevin Direct Ownership Options 50 - Grant of options 40,000 $0.550
Feb 18/11 Feb 14/11 Barr, Harry Direct Ownership Options 50 - Grant of options 85,000 $0.550
Feb 18/11 Feb 14/11 Goodwin, Richard Mervin Direct Ownership Options 50 - Grant of options 85,000 $0.550
Feb 18/11 Feb 14/11 Holmes, Linda Direct Ownership Options 50 - Grant of options 40,000
Feb 17/11 Feb 14/11 Guanzon, Robert Direct Ownership Options 50 - Grant of options 50,000 $0.550