Fire River Gold Announces New Ore Zone Discovered at the Nixon Fork Mine
October 3, 2011
Vancouver, BC, Canada - Fire River Gold Corp. and Mystery Creek Resources Inc. (TSX.V: FAU), (OTCQX:
FVGCF), (FSE: FWR) (collectively "the Company") is pleased to announce the discovery of the new 3550
Zone at the Nixon Fork Mine Project. It is actually the down dip extension of previously mined ore body
called the Hi Grade Recreation Zone, which was mined to a depth of 50 m from surface (to 330 mASL) in
the 1920s, as depicted in Figure 1. The zone was found to bottom out in the original mining program, and
diamond drilling performed by the company and prior operators could not establish the existence of a
down-dip extension.
Figure 1: The New 3550 Zone at the Nixon Fork Mine Project
To view the map
please follow the link:
http://www.firerivergold.com/I/misc/3550White.jpg
Applying a horizontal
offset evident in the 3300 Zone to the 3550 Zone, our geologists deduced that it was possible that the
down-dip extension existed, but that all drill holes intended to test the extension were drilled too
short. Accordingly three longer holes were planned and drilled to test the theory, which yielded very
positive initial results in the form of mineralized zones with visible gold, usually an indicator of
high grade mineralization.
The 3000 and 3300 zones extend continuously from surface at approximately
400 mASL to 90 mASL and neither has been "bottomed out". Approximately 185,000 ounces of gold has been
extracted in the modern era (from 1993 to present), almost all of which has been from the 3000 and 3300
zones. Both have been mined from the main ramp to a depth of 160 mASL. Current mining activities are
also concentrated on these two zones. The 3550 Zone could represent a "triplet" to these two significant
zones, and provide the opportunity to significantly increase our resources and mine life. If the 3550
zone demonstrates the same vertical continuity as the two other zones, its location is ideal for
minimizing the capital cost and time requirement to establish access for mining, as the entire vertical
extent will be close to existing development.
Assays from the first holes are anticipated over the
next few weeks and will be released when validated. The Qualified Person for this news release is
Richard Goodwin, P.Eng, President & C.O.O for Fire River Gold.
About Fire River Gold Corp.
Fire
River Gold Corp.'s Nixon Fork Mine is operated by Mystery Creek Resources, a wholly owned subsidiary of
Fire River Gold, which is based in Anchorage, Alaska.
The Nixon Fork Mine, located in the resource
rich Tintina Gold Belt, is Alaska's newest operating gold mine and is projected to produce 50,000 ounces
of gold per year.
Operations started in July of 2011, with plans to ramp up to full production by
late fall 2011. This year-round mining program will be producing both concentrate and doré bars. Fire
River Gold will be replenishing what is mined on an annual basis by further drilling exploration targets
on surface and underground thereby extending the life of the operation and receiving further benefit
from the strong metals market.
Fire River Gold has a stable platform for growth due to its strong
financial position, a talented and experienced management team and Board of Directors who have the
experience to execute on Fire River Gold's strategy.
Nixon Fork is a past producing mine with a high
grade production history (42 g/t), and a low capital requirement due to pre-existing infrastructure.
Fire River Gold has no debt.
On behalf of the Board of Directors,
"Richard Goodwin"
Richard
Goodwin
President and COO
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. The TSX
Venture Exchange or its Regulation Services Provider have not reviewed and do not accept responsibility
for the adequacy or accuracy of the contents of this news release, which has been prepared by
management. We seek safe harbour.
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