Friday, August 6, 2010

Property Vend-Ins for Dopes - Nixon Fork

The big promo dopo poochie push a doodle is all about the vast and unlimited potential of a mined out property called Nixon Fork in Alaska.


Before we get into all the breathlessly spewed details, a body needs to examine how the property came into Fire River Gold hands and what the consideration was.

Harry Barr's "flagship" company in a stable of mutts is Pacific North West Capital (PFN.t) a Toronto Stock Exchange listing company currently bid $ .08. In it's currently diluted form PFN owns 12.9% of Fire River Gold, is a deemed insider and is required to report its trades. PFN acquired the Nixon Fork property via the acquistion of Mystery Creek Mines, a subsidiary of St Andrews Gold (SAS.t) for $ 500,000.

The property was subsequently vended-in to Fire River Gold under the following terms ...

- US$50,000 on signing of the letter agreement
- US$450,000 over a six (6) month period
- Issued a total of US$2.5 million in Company’s shares at a deemed price of $0.45 per share. (6.5 million) In addition (1) million share purchase warrants at an exercise price of $0.50 for a period of 24 months from the date of issue.
- The Company refunded $773,766, expenses incurred by PFN from 1 May until 22 September 2009

So the mark-up to FAU shareholders from a common director with fiduciary responsibility was exponential and another 6.5 million FAU shares and 1 million cheap warrants went into the Harry Barr either. Indeed,on the PFN website the gain is reported as unmitigated Barr brilliance ...

"PFN sold the Nixon Fork Gold mine in July 2009 for a 500% gain and will participate in the upside of the Nixon Fork Gold Mine through its majority ownership of FAU."

Fodder for promotional fuforall would certainly not be missed by a man like Harry Barr, particularly when the search for more private placement funding never ends. Unfortunately a fully experienced VSE promoter missed a little something and got slapped stupid by the British Columbia Securities Commission. (BCSC)

Fire River Gold clarifies Nixon Fork disclosures 2009-12-08 - News Release

As a result of a review by the British Columbia Securities Commission,
Fire River Gold Corp. is issuing the following news release to clarify its disclosure about mineral resource estimates and estimates of potential mineral deposits at the Nixon Fork project.

Fire River Gold has disclosed mineral resource and reserve estimates prepared by Scott Wilson Roscoe Postle Associates (SWRPA) in a technical report dated Oct. 2, 2006, for St. Andrews Goldfields, the prior operator of the project, in several 2009 news in Stockwatch (June 29, July 27, Aug 13, Oct. 8, Nov. 12, Nov. 16 and Nov. 19) and has used that material on the website and in promotional material provided by the company.

The company was not aware that by disclosing these estimates, it was required to file a new technical report prepared by an independent qualified person validating or replacing the estimate, and it did not do so.

Recent discussions with authors of the SWRPA report indicate that the former owners encountered unexpected ground conditions, lower grades, and lower recoverability. The resource and reserve estimates in the SWRPA report should not be relied upon.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:FAU-1671098&symbol=FAU&news_region=C


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And this was not the only Fire River BCSC slapdown,there was another.

Fire River cancels option agreement for Golden Zone 2010-03-29

FIRE RIVER GOLD TERMINATES ITS OPTION ON THE GOLDEN ZONE PROJECT

Fire River Gold Corp. has elected to terminate its option agreement with Hidefield Gold PLC, Hidefield Gold (Alaska) Inc. and Mines Trust Company on the Golden Zone project in central Alaska. The joint venture partners were provided a 30-day notification of this decision on March 19, 2010. The company made this decision in order to focus its effort on the Nixon Fork gold mine project, also in central Alaska.

"The Golden Zone is a good exploration property that does not match our corporate profile," commented Harry Barr. "The Nixon Fork mine is a permitted near-term producer, and the Golden Zone represents a much longer commitment. We have to be careful to not divert our effort, resources and expenditures from our core project, which is yielding good results."

At the time this decision was made, the company's NI 43-101 technical report, "Golden Zone gold-polymetallic prospect, upper Chulitna district, Alaska," dated Aug. 24, 2009, was determined by the British Columbia Securities Commission (BCSC) to be non-compliant. As the company has elected to terminate the agreement, it will not be taking any steps to rectify the issues put forth by the BCSC and is retracting its previous disclosures of the resource estimates made for the Golden Zone project.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:FAU-1702639&symbol=FAU&news_region=C


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Since PFN is reporting we can examine the FAU share dispositions at http://sedi.ca/

Issuer name: Fire River Gold Corp.
Insider's Relationship to Issuer: 3 - 10% Security Holder of Issuer
Security designation: Common Shares

00 - Opening Balance-Initial SEDI Report
1581103 2009-10-02 2010-02-19 Direct Ownership :

45 - Compensation for property +6,415,000 0.4500 6,415,000

1619836 2010-03-31 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -50,000 0.4200 6,365,000

1619838 2010-04-14 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -20,000 0.4400 6,345,000

1619883 2010-04-14 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -15,000 0.4500 6,330,000

1619885 2010-04-14 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -19,500 0.4600 6,310,500

1619887 2010-04-19 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -10,000 0.4450 6,300,500

1619891 2010-04-19 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -1,500 0.4350 6,299,000

1619892 2010-04-19 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -2,000 0.4250 6,297,000

1619896 2010-04-19 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -508,000 0.4200 5,789,000

1619899 2010-04-19 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -9,000 0.4150 5,780,000

1619903 2010-04-19 2010-04-19 Direct Ownership :
10 - Acquisition or disposition in the public market -1,087,000 0.4100 4,693,000

1625372 2010-04-19 2010-04-29 Direct Ownership :
10 - Acquisition or disposition in the public market -5,000 0.4600 4,688,000

1625374 2010-04-20 2010-04-29 Direct Ownership :
10 - Acquisition or disposition in the public market -40,500 0.5000 4,647,500

1633110 2010-05-07 2010-05-11 Direct Ownership :
10 - Acquisition or disposition in the public market +35,000 0.3840 4,682,500

1634323 2010-05-11 2010-05-12 Direct Ownership :
16 - Acquisition or disposition under a prospectus exemption +1,825,000 0.4000 6,507,500

1636162 2010-05-13 2010-05-14 Direct Ownership :
10 - Acquisition or disposition in the public market -15,000 0.4500 6,492,500

1652409 2010-06-09 2010-06-10 Direct Ownership :
10 - Acquisition or disposition in the public market -20,000 0.4600 6,472,500

1658214 2010-06-21 2010-06-21 Direct Ownership :
10 - Acquisition or disposition in the public market -47,500 0.6400 6,425,000

1660532 2010-06-23 2010-06-24 Direct Ownership :
10 - Acquisition or disposition in the public market -50,000 0.6500 6,375,000

1660533 2010-06-23 2010-06-24 Direct Ownership :
10 - Acquisition or disposition in the public market -50,000 0.6700 6,325,000

1660535 2010-06-23 2010-06-24 Direct Ownership :
10 - Acquisition or disposition in the public market -50,000 0.6800 6,275,000

Security designation: Warrants (Common Shares)
1581107 2009-10-02 2010-02-19 Direct Ownership :

00 - Opening Balance-Initial SEDI Report Common Shares
1581108 2009-10-02 2010-02-19 Direct Ownership :

45 - Compensation for property +1,000,000 1,000,000 0.5000 2011-10-02 Common Shares +1,000,000 1,000,000

1634329 2010-05-11 2010-05-12 Direct Ownership :
16 - Acquisition or disposition under a prospectus exemption +912,500 1,912,500 0.6000 2011-11-11 Common Shares +912,500 1,912,500