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.