VANCOUVER,
March 28, 2013 /CNW/ - Fire River
Gold Corp. (TSXV: FAU), (OTCQX: FVGCF), (FSE: FWR) (the "Company"
or "Fire River") reports the following operations update.
Underground exploration and definition drilling
continues in both the Crystal and Mystery mines. Once the 385/J5A
drift is completed in the next couple of months, additional
definition drilling will be completed of the J5A orebody to explore
between the drift and the intrusive contact of the Crystal Mine.
Future drill targets in the Mystery mine include along the
M252drift to further define the M-4 ore prospect.
Drilling Summary |
Year-to-Date |
2013 U/G Exploration Drilling |
3,339 meters |
2013 Definition Drilling |
3,507 meters |
2013 Total |
6,846 meters |
The Company implemented a new mine plan effective December 31, 2012 supported by an updated
geological model.
Mining Operations
Currently, ore is being produced from both the Crystal and
Mystery mines. In February, higher than anticipated gold grades
were encountered in the M250 stope of the Mystery mine, which is
attributed to the new mine plan. Ramp development continues
at a rapid pace in the M300 stope.
Mining statistics for February and March to date, 2013 include
the following:
Period |
Mined Ore Tonnes |
Mined Waste Tonnes |
Development Metres |
Feb 2013 |
3,498 |
4,570 |
113.3 |
Mar 2013* |
1,905 |
4,571 |
124.5 |
*As of 25 March
2013
Milling Operations
Mill statistics since January 31, 2013 include the following:
Period |
Number
of Days |
Tonnage
Processed (t) |
Tonnes
Per Day |
Plant
Availability
(%) |
Gold
Production
(oz) |
Recovery
(%) |
Feb 2013 |
28 |
4,784 |
171 |
82 |
1,677 |
74 |
Mar 2013* |
26 |
3,467 |
133 |
64.6 |
1,153 |
79.1 |
*As of 26 March
2013
While the Company has made progress in its
efforts to become cash-flow positive and has markedly improved its
gold production over the course of the past year, this progress has
been interrupted by certain events beyond the Company's
control. As a result the pace of progress has been
insufficient to generate the sustained productions levels necessary
to achieve commercial production to date in fiscal 2013. In
particular, the Company's milling throughput for February and March
has been negatively impacted by continued inclement weather,
logistical challenges relating to air deliveries of key production
supplies and fuel, and unscheduled downtime for equipment repair of
the Larox filter, secondary cone crusher and ball mill motor.
In the current fiscal year, the Company's cash flows have also been
hindered by certain liabilities that arose from reconciling
concentrate shipments from the second quarter of fiscal 2012. While
these liabilities have been successfully resolved by the Company
this resolution did negatively impact current fiscal year cash
flows.
Current drill results have been positive for the
long term prospects of the Company; however, as a result of the
foregoing issues, the Company's short-term earnings and cash flows
remain constrained and the Company has grown increasingly dependent
on its senior creditor, Waterton Global Value, L.P. for short term
funding requirements. As of March 28,
2013 the Company owed Waterton Global Value, L.P.
$6.8 million for prepayments under
the existing Gold and Silver Supply Agreement (for more information
see Managements Discussion & Analysis for the period
ended January 31, 2013). As a
result of the foregoing the Board of Directors has decided to
explore all strategic options.
ON BEHALF OF THE BOARD OF DIRECTORS
FIRE RIVER GOLD CORP.
"Blane W. Wilson"
Blane W.
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.