Saturday, October 23, 2010

Money for Nothing

In a world of precious and scarce capital, the abject stupidity of those playing with the money of others becomes crystal clear yet again with the announcement of $ 7m unit offering at $ .45, this time to pay for the CIL circuit.

Notwithstanding there is a PEA due in a score of weeks, current drill assays have gone MIA, and released numbers related to tailings that are laughable in the extreme ... there are dopes with more money than brains still ready to roll the bones on this fully lost cause right now.

God Bless them, Mr. Barr is always ready to oblige.

Stuck stakeholders listening to sweet nothings about a higher share price for the past 6 months got knee capped with ANOTHER boatload of treasury paper going out the door at rock bottom, yet again. It begs the question what fool is actually using the public market to buy this paper when Mr. Barr has plenty available at wholesale, with inticements included to help make the investment decision easier.

For those keeping track of such things, 86,097,389 FD outstanding plus another 15,555,555 units gives a FD number of 101,652,941. SP goes down yet FD market cap keeps going up, waaaaay up ... what an "investment".

"This financing represents a "GO" decision on production at the Nixon Fork Mine site, and the funds from the private placement will be used for the completion of the CIL circuit, preserving the cash on hand for ongoing development and evaluation work, diamond drilling, and to prepare the mine for the eventual resumption of production," says Harry Barr, President & CEO of Fire River Gold Corp."

FAU - (104 0.44 - 0.45 15) 0.44 -0.02 229,600

Tuesday, October 19, 2010

Water Table Primer

Niether the public nor Fire River Gold shareholders are privy to the Golder Associates study on grouting and pumping at Nixon Fork. We do however have access to the environmental assessment which describes ground water conditions, something that this management apparently needs.

"There are three groundwater systems in the mine area. The first is found in the hilltops with their shallow cover of loess and weathered bedrock, which acts as an aquifer over the impermeable granitic intrusion. Surface water infiltration into the hilltops is forced to seep out of the hills as springs at high elevations. None of the early core drilling in the mine area found free water in the bedrock. However, as mining and core drilling depths increased ground water has been encountered. Ground water filters into the lower shaft of the Crystal mine at depths that varies with the season."
"The second groundwater system is found in the surface aquifers or active layers of the creek beds that thaw seasonally. Seismic investigations indicate at least 90 ft of alluvium above bedrock at one location in upper Ruby Creek. The entire cross section, however, appears to have a shallow active layer underlain by permafrost. Two exploratory wells were drilled in May 2004 in the Ruby Creek drainage to see if the area could be used for shallow injection of ground water pumped from around the mine workings. Each hole encountered permafrost to bedrock and the effort was abandoned."

"The third groundwater system is the regional water table that is encountered at the base of the Crystal mine. The water elevation in the bottom of the Crystal mine varies seasonally but it has reached an elevation of approximately 475 ft (145 meters) above sea level in the mine or about 800 ft (244 meters) below the surface of the Crystal portal.

"Groundwater flow in the regional water table is likely most significant in the permeable contact zone between the granitic intrusion and the carbonate rocks. Surface water flows appear to have large losses to the subsurface at this contact zone. Based on topography, the regional water table should discharge to the major river valley streams to the west, east and south."

Golder Associates
Thomas G Krzewinski, PE, Sr. Geotechnical Engineering
Jan F. Deick, Sr. Project Hydrogeologist
Bob Dugan, Office Manager
Steve Anderson, P.E., Senior Project Engineer

Wednesday, October 6, 2010

Grams for Dummies

In a novel and desperate effort to pump up the ridiculous paucity of "ore" at Nixon Fork the Co has released the numbers in grams.

"Fire River Gold Corp. has provided the results of a mineral resource estimation recently completed on the Nixon Fork gold project, located in Alaska's Tintina gold belt. The resource estimate was completed by Giroux Consultants Ltd. of Vancouver, Canada. The total indicated resources are 3,995,000 grams (128,500 ounces) of contained gold plus an inferred resource of 2,321,000 grams (74,600 ounces) of contained gold."

Short History
Symbol Report Date Volume Change

FAU - V 2010-09-30 600,000 500,000
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 - (0.5 0.475 - 0.48 5.0) 0.47 -0.02 772,400

As we know from the SAS operating plan, the ore in the C3000 and C3300 zones is below the water table and cannot be mined, even IF the Co had an EPA water discharge permit. Notwithstanding the conclusively proven and public evidence, here is what the Co has to say about that ore ...

"The 3300 zone is particularly important, as it is anticipated to be the first mining zone when production resumes. Approximately 40 per cent of the hard rock resources are in this zone. A preliminary economic assessment (PEA) is planned for later this year that will evaluate the viability of resuming production mining operations. This work will be done by Snowden Mining Consultants of Vancouver."

Here are the indicated "resource" numbers for C3000 and C3300 ...

3000 15,500 37.3 1.09 577,840 18,578
3300 68,900 27.5 0.80 1,891,305 60,809

So we can instantly subtract 83,400 ozs from the indicated leaving 45,100, which includes the 23,300 ozs in tailings.

Subtract that and the Co has reported a whooping 22,000 "new" ozs from 5 different sources.

Clearly, and I mean VERY clearly, the numbers here DO NOT support the investment of another $ 6.6m to restart operations at Nixon Fork. Thus far this Company is attempting to sell a hole full of water and virtually nothing else.