Monday, December 12, 2011

Sprott to the rescue ... don't you worry, much

Check out the Penny Stock Journal for whats moving.
To the semi-amazement of this humble scribe that ultimate risk taker Sprott has ponied up the dough ... but it sure ain't coming for free.

"Fire River Gold Corp. has closed the previously announced secured credit facility with Sprott Resource Lending Partnership.

The company received the first drawdown of $1-million on Nov. 15, 2011, and the second and final drawdown of $6.5-million on Dec. 9, 2011. The funds drawn under the credit facility are secured against all of the assets of the company and its subsidiaries. Funds drawn under the credit facility are repayable on or before Nov. 15, 2012, and accrue interest at a fixed rate of 12 per cent per annum."

Forget the so called "equity" here there isn't any left and how long is this swack of cash actually going to last?

Not very if that $ 2.6m monthly cash burn continues and it appears there's little to stop it unless that plant gets shuttered for the winter ... a so called "temporary" shut-down to conserve fuel is right citizens, it needs to be 4 months long and lay off a few excess office staff slugs too.

Saturday, November 12, 2011

Sprott debt for Dummies - Update

November 17, 2011 - The deadline for executing a binding loan agreement has come and gone and there has been no announcement from this Co. A "term sheet" is not a binding contract, something Sprott proved conclusively in BC Supreme Court by getting served its arse in the Aurcana matter. (AUN.v)

Its appearing more and more probable even Sprott has finally woken up to the many problems of this thinly disguised public dope show. WITHOUT that funding this promo is done like dinner and a body can take that to the bank.

On the concentrate front there is undisclosed and unconfirmed word on the street that the material shipped by these flaming geniuses is contaminated with the deadly poison arsenic ... an outcome that, if true, has surely pissed off the refiner greatly. That is a dead rookie mistake that is unforgivable in mining circles and very,very costly to clean-up, forget the extreme expense of reprocessing that concentrate into something saleable.

In a final, last gasp effort to squeeze the last possible juice outta this lemon before that brick wall of insolvency hits there's NEWS of another round of ultra rock bottom dilution and 12% fully secured cash from mercenary Sprott to tide these free spenders over for a few months, at very most.

This Denmark has reeked since day one and isn't this money spinner SUPPOSED to be whallowing in ridiculously high cash flow by now?
One would suppose so given how Mr. Goodwin has been spewing with gusto about multiple bags of SOMETHING being shipped out of Nixon Fork over the past few months. The undisclosed problem this time out, apparently, is that whatever the hell is in those bags is extremely troublesome to refine and nobody is eager to actually pay for it. This monkey is guessing the complex sulfides at 68% recovery these dopes managed to scratch out after 2 years of trying require extensive and expensive processing to extract any minerals at all.
And guru my behind hole, does not this very space contain the following prophetic brilliance from March 11, 2011 ...

"The additional $7m won't keep this guaranteed white elephant in cash until next spring so ANOTHER dilutive share issue will obviously be required to keep the improbable dream alive, and who will be the next dope to step forward when in excess of $ 15m has been burnt off with zero return possible?"

So o.k. Not just any dopey rube hick dumbarse has stepped into the breech, but massive orge Sprott. Lets assume our ultra brainsmarts, highly degreed SprottTards read this blog and actually know the difference between their very often dead wrong arseholes and a worthless, water filled hole in Alaska.

Sprottites must be assuming FAU will rack the credit to the max before defaulting on November 15, 2012. If we accept this minor leap of faith Sprott would take over the entire smoozle at Nixon Fork, de-facto control FAU, and have roughly 12,000 ozs left in the tailings.

Perhaps not that bad a deal considering they get plenty of dead free FAU shares at rock bottom AND enough time to unload said worthless paper at retail levels as they, naturally, tout the krap out of it.

Fire River Gold is a sickening blueprint on how the public takes it right up the kazoo from those who care not at all, and in that regard provides valuable insight in how to examine ANY Venture deal a body is considering throwing their money away on.

Sunday, October 16, 2011

BCSC stands on guard for thee ... NOT

Below is the complaint delivered in person to the British Columbia Securities Commission regarding Fire River Gold many, many moons ago. Has there been so much as a whisper since? Of course not. Is this the case for EVERY matter the BCSC "deals" with? Absolutely NOT. (Read on dear gentle citizen)

This matter is directly related to grotesquely flawed disclosure of material information related to the Nixon Fork gold mine in Alaska by Fire River Gold. It is also related to improper activity contrary to the public interest by internet chat site in facilitating and promoting this deception through systemic censorship of facts related to their paying advertiser, Fire River Gold.

The complainant has documented Fire River Gold in blog form since August 2010. ( The initial reason for this was the track record of Mr. Harry Barr in the venture securities marketplace and his association with individuals known to be of questionable character. Upon initial review, the complainant’s interest was immediately stoked by the terms of the property vend-in from Mr. Barr’s “flagship” Pacific Northwest Holdings. PFN

The terms for the Nixon Fork property vend-in by Pacific Northwest Holdings to Fire River Gold amounted to a 650% mark-up on the property, along with the repayment of all funds expended by PFN. A written off property acquired for $ 500,000 had been flipped from one corporate hand to another at a paper profit approaching $ 4 million in a few months. That was interesting business.

From the outset it was clear that a large amount of money had been spent drilling and studying the Nixon Fork property in great detail by previous operators. Many tens of millions invested and a partially completed CIL circuit left to rust. There HAD TO BE a compelling reason why that very large investment was abandoned for what appeared to be a comparatively small sum.

Almost immediately the complainant suspected a water problem. There are compelling hints in public documents on file with the Alaska Government. Water tables are discussed in the operating and reclamation plans. There are a score of references in the material to an engineering study by Golder Associates on grouting and pumping the Nixon Fork mine workings. An internet search with the terms “Nixon Fork” and “water” brings a direct quote from the former chief executive of the operator/vendor of the Nixon Fork property, St Andrews (SAS.t) referring to the then ongoing Golder Associates study and the fact ore was below the water table. An engineering study by ground water professionals had obviously been completed yet I was not able to find any evidence of it on Sedar.

Reviewing the SAS material that was posted on Sedar I learned mining at Nixon Fork had been suspended supposedly due to the installation of equipment, with an oblique reference to “ore face availability issues” and the need for more drilling to “better define” the ore zones. SAS was nearing financial crisis and was floating a rights issue and private placement at that time. The next assumption was that SAS wanted to downplay problems at Nixon Fork long enough to complete its financings.

That seems logical considering the Nixon Fork property was written down to zero immediately after the funds were in the treasury. This would explain why the Golder Associates Study was not filed on Sedar. With the property written off, that study was no longer relevant to the company’s affairs and thus disclosure would no longer be required … a turn of events that would bury the matter to the relief of SAS management.

It was against this background that ALL disclosures of Fire River Gold moving forward were examined with a critical eye. The first objectionable disclosure was that the tailings pond contained “150,000 to 170,000 tons”. Since production records were kept since commercial operations began the amount of tailings could be estimated with certainty and that figure was at very least 25% lower than the minimum or 45% less than the maximum being held out by Fire River Gold. It should be noted that after the contradiction was posted on the blog with a link, that particular material on the Fire River Gold website was removed. Eventually a PEA confirmed the figure to be 114,000 tons of tailings.

Another disclosure, an often repeated mantra and one still posted, was that Nixon Fork was “Fully Permitted and Bonded”. That is only partially true as the mine does NOT have an EPA water discharge permit. That undisclosed fact has great significance if the mine has a water issue, a conclusion that I felt was certain.

Fire River Gold found itself in the position to be able to release the 3 year old cores from the SAS drilling program. It would have been recorded at the time that the drill was hitting water but that fact was never disclosed nor was there any hint in any news release of water issues. Instead it was a long string of carefully dribbled out assays, most apparently quite positive as SAS had drilled and re-drilled the same C3000 and C3300 zones multiple times since they contain the only remaining continuous ore zones on the Nixon Fork property … all beneath the natural water table.

While this was occurring Fire River Gold, and the rest of the Barr stable, relied on Agoracom for its publicity needs. As the OSC moved in to censure Agoracom due to conduct contrary to the public interest, Fire River Gold turned to advertising on Stockhouse. Immediately the content on the Fire River thread on Stockhouse was subject to continuous censorship. The complainant personally posted messages that contained only the following sentence. “Golder Associates Study” as a topic and in the body the simple question … “Where is the Golder Associates study?” Without fail the message was censored out of existence and the profile used to create it deleted, within a few hours at most. It seemed very clear that part of the “deal” between Fire River Gold and Stockhouse involved the continuous removal of material that Fire River Gold did not want revealed in the public domain.

This reprehensible conduct is contrary to the public interest.
The long string of news releases continued as the 3 year old core assays were exhausted and new results from Fire River Gold drilling replaced them. Once again the bulk of the holes were directed at the C3000 and C3300 zones where good results would be assured. At no time was there any hint of water problems in any release despite the certain fact the drill was hitting water. In fact, direct quotes from soon to be President Mr. Richard Goodwin contradicted the existence of a water table entirely. The man stated unequivocally that there was “no evidence” of a water table.

That was and is a deliberate falsehood, fully meant to deceive.

During this period tens of millions was raised from underwriters. It is unclear if these underwriters were aware of the very real danger of a major water table issue or not. It seems unlikely ANY investor would turn a blind eye to the fact that upwards of 95% of the reported ore at Nixon Fork was under the natural water table and that a critical engineering report addressing that fact was missing. One must say “unclear” because BOTH underwriters issued strongly bullish “Buy” recommendations to the public. It is hard to fathom that a single individual like myself could do far better due diligence than full-time professionals.

It should be noted that a series of PEAs on processing the tailings and resuming underground mining all returned VERY good numbers, numbers that were and are being breathlessly regurgitated by both Fire River Gold and PFN. These extremely bullish projections rely 100% on the ore being mineable, and that critical factor was NEVER disclosed with the numbers, or in the studies themselves for that matter.

Despite these many hints and clues the first real evidence and admission from Fire River Gold came on May 16, 2011. The Company finally admitted in a news release to having the Golder Associates study the entire time. It is incomprehensible how an engineering report that addresses a critical mining issue to the Company’s flagship property CANNOT be considered highly material and requiring disclosure. The contents of this report REMAIN undisclosed.

On June 17, 2011 another directed me to material filed on the CNQ database. (Fire River Gold was initially listed on the CNQ)
This material is a geological report that explains in exacting clarity the water table problems at Nixon Fork and is dated August 22, 2009. Upon yet another review of Sedar I did, eventually, find the document. It was filed at the same time as at least 7 other documents. It truly was equivalent to finding a needle in a haystack and in my opinion that’s exactly what the intent was.

At this point I simply cannot continue to watch the public get completely screwed without taking the time and effort to complain about the matter to the BCSC. This is outrageous and insulting … first that a career promoter spanked numerous times by the BCSC has no fear of consequences whatsoever and secondly, from the available evidence, it appears others have no qualms about it either as long as they stand to profit.

AT A MINIMUM I expect the BCSC to demand disclosure of the Golder Associates report.


So there we go and could it possibly get any more clear cut for the BCSC with the direct bloody admission from the co that it has ALWAYS had highly critical and undisclosed information since day one?

Well apparently this is not obvious enough to motivate the BCSC at all, not even for a phone call to tell these idiots to follow the damn rules.

So what DOES get the BCSC's immediate attention? How about a tip from a former career civil servant at the Venture exchange with 18 years at the taxpayer teat? Yes dear citizen a complaint from an individual named Mr. Donald Gordon started an INSTANT BCSC investigation that, after 15 months of legal expenses certainly cost the taxpayer well in excess of six figures.

The scope of the agreed to settlement to end the heinous matter? ... $ 15k and $10k of that is the BCSC fine. NO I'm not making this horsechit up.

And what of this Abbastar Resources, that glowing juggernaut of Venture propriety that is being fearlessly lead by Mr. Gordon?

Of course there was a failed PP at a nickle BEFORE a 1 for 4 rollback, and there is the small matter of half a million in liabilities with zero assets to speak of. Certainly over a year not meeting the lowest of listing requirements and is the BCSC concerned one single iota about the public dopes exposed to this paper?

Monday, September 26, 2011

New Money Tree Required ASAP

Check out the Penny Stock Journal for whats moving.

Utterly insulting Fire River Gold has released quarterly numbers and cash burn has come in bang on the management estimate of $ 2.5m per month.

Before we award medals to this executive for accuracy in their disclosure practices we need to note that 2 months ago there was $ 7.5m in cash. At the current stupido rate of cash burn this co will be closing in on insolvency in a score of weeks ... exactly as predicted in this space.

And the real kicker is that the hastily constructed, $ 7m CIL circuit will sit idle over the winter because the only feed for it (tailings) is frozen solid until May ... yet another prediction surely bound to come to pass.

An internet poster suggested the Golder Associates report was leaked long ago to a few lucky mutts, and that the upshot from the engineers was that it is not feasible to stop the engress of water from aquifiers, lack of a permit to do so notwithstanding. That is a very good reason to permanently withhold public disclosure from a group of career securities miscreants.

The market has begun to recognize this lame promotion for what it obviously is and one can only hope small public holders see through this hyperbole while they still have two cents to rub together.
Penny Stock Journal

Saturday, July 9, 2011

The Devil in the Details.

The big picture can be tough nut to crack on the Venture Exchange when very critical pieces are being deliberately withheld. This time the picture cannot possibly be any clearer after comparing the old and krappy 43-101 from August 2009 to the new and improved 43-101 from October 2010.

While its obvious the later was copied very nearly verbatim from the former there are differences and glaring omissions. The "perched water table" has become "perched water tables", but the largest change is the disappearance of several sentences of extremely critical disclosure.

"Due to the karst nature of the skarn and host limestone country rock, this water table is persistent and difficult to model."

"The water table varies from 140 meter to 168 meter in elevation."

Finally the all important recommendation (and disclosure that the mine workings are below the natural water table) has gone MIA completely ...

"Initial hydrology modeling and possible drilling to determine best way to eliminate water from workings that go below current water table."

So whats the upshot here citizens? Its a game of pea under the walnut shell. Now you see it, now you don't. The first 43-101 could not sell ice cubes to the Inuit with that particular wording included, notwithstanding there is no hint of the missing Golder Associates study. The "new and improved" is much better in that uncomfortable verbiage is gonzo. Viola, multi-millions from dum dums unconcerned with the intimate details becomes readily available and the grotesque cost of the "new and improved" 43-101 from a new author, 13 months after the first, is money well and truly spent.

Tuesday, July 5, 2011

Burn Me Arse this Time, err again

After what seems like eons tracking this ridiculous promotion this monkey had thought it impossible to aggrevate the offensive insults being dished up ad nauseum.

Wrong again. In the face of months asking for answers to the questions even a child would ask this Company has managed to deny the obvious again ... and with unbridled gusto.
From the NEWS released today (July 5, 2011)

"There is much speculation, but few facts known about the groundwater situation in the mine."

Grrrrrr - a - fukkin Doodle !!!

How is it still POSSIBLE for this company to claim ignorance when there is an encylopedia of information about the water table issue at Nixon Fork, most of which contained in a report from professional ground water engineers that has been obviously and deliberately withheld from public disclosure for YEARS?

Spanked twice by the BCSC over disclosure issues already and does this group care one damn iota about another?

This promotion has gone from unbelievable to outrageously sickening. If this is an example of how easy it is to clearly and obviously chit on every rule in the securites book while getting filthy rich, well, WTF are the rules for exactly and why should ANYBODY respect them?

A stinging indictment of the Venture Exchange, the BCSC, and even the brokerages who have no problem turning a blind eye as long as it pays.

A body COULD NOT find a more blatent and outrageous fraud, yes fraud, against the public interest and this monkey has better than 25 years experience to draw apon to make that self-evident assessment.

Thursday, June 23, 2011

Liar Liar Pants on Fire ...

As usual the devil is in the details and special kudos are once again directed to "nor-easter" who spelled it out, but this monkey did not clue in immediately. So whats the latest obvious falsehood? (yawn)
After further perusal of our "smoking gun" it appears there can be no underground dam constructed without an EPA permit allowing it ...

1) Underground disposal: requires an Environmental Protection Agency(EPA)Underground Injection Control (UIC) permit.

So IF dam construction is/has taking place as Mr. Goodwin has informed the world, it may be illegal because NO additional ground water studies have been completed as required for the permitting process. This dopey Co cannot possibly have a UIC permit.

So what a pickle of a dilemma. If we take the man at his word he has confirmed beyond question that the Co may be acting illegally in constructing that dam without an EPA permit.

This Company MUST be relying on semantics to save itself from regulatory sanction. Is an underground dam an attempt to dispose of water? Sure as chit seems that way to me, and I have often wondered how one builds something that every miner's life depends on without an engineering study. This blogger is referring the question to the state of Alaska ... Film at 11:00

Here is the e-mail sent to the Alaskan powers that be ...

"Secondly, a Vancouver promotion called Fire River Gold is restarting the Nixon Fork Mine and has stated recently that it is nearing completion of an underground dam. This appears to me to be an attempt to dispose of water underground and as such would require a permit. Please advise if this is incorrect. It should also be noted that it appears NO engineering work has been completed for this dam. If so it represents a MAJOR danger to underground workers in my opinion."

While we wait on several levels of governance to formulate a response we can peruse some the requirements to actually build and operate a dam in Alaska.

What dam safety permits are required to construct and operate a dam in Alaska? Glad you asked again citizen ... damn yer good at this dam business.

A Certificate of Approval to Construct, Modify, Remove or Abandon A Dam is required prior to new construction, major modification or repair, removal, or abandonment. A Certificate of Approval to Operate A Dam is required before a new or modified dam can be put into operation.

What is required to obtain certificates of approval?

To obtain a Certificate of Approval to Construct, Modify, Remove or Abandon A Dam, plans, specifications, engineering reports and other information prepared by a qualified Alaska registered civil engineer must be submitted for review and approval along with the appropriate application fee.


Well thank goodness lives are not gonna be put into serious jeopardy from shameless securites mutts looking for suckers to sell their worthless paper to ... one hopes.

Thursday, June 16, 2011

The Smoking Gun & Bloody Knife

After many moons of following this promotion in excruciating detail this scribe must pass the highest possible KUDOS to the superior due diligence skills of a poster named "nor-easter" at This individual found what was under this incredulous monkey's nose the entire time ... a report from 2009 that describes the water table problems at Nixon Fork in COMPLETELY unmistakable and undeniable detail.
And what excuse will this determined blogger use to explain the oversight? One must remember we are dealing with a promoter with a lifetime's experience at this sort of thing, and sometimes blind luck is the only thing preventing any poochie from getting shorn on the horrid Venture exchange bordello.

In this case the document was filed on Sedar late and along with 8 countem 8 other documents, including the AIF, proxy materials, notice of meeting, statements of qualified person, a second technical report, "other", etc etc.

Clever Mr. Barr, only the VERY determined with an extreme attention to detail (or very lucky) would find that needle in the haystack.
So what do we have here? Glad you asked citizen. Lets ponder some of this grotesquely contradicted pooh.

"One of the hurdles for expanding mining operations at the project is the primary water table, which sits at approximately 300 m (1,000 feet) below surface. In addition, there is a secondary, perched water table located approximately 140 m (450 feet) below surface."

"Due to the karst nature of the skarn and host limestone country rock, this water table is persistent and difficult to model."

"The water table varies from 140 meter to 168 meter in elevation."
And one of the MAJOR recommendations of the report ...

"Initial hydrology modeling and possible drilling to determine best way to eliminate water from workings that go below current water table."

Well. There is no confusion possible about the definition or existence of a water table at Nixon Fork, and since this report was prepared in August 2009, anything contradicting it thereafter can only be considered a deliberate and sickening falsehood to perpetuate a securities fraud on the public.

With this in mind lets briefly review some of the statements made by this management since ...

"The mine is currently dry. Slimes have been mucked from the bottom of the ramp leaving 1 foot of water. Past operators experienced seasonal inflows into the mine from the spring melt. This has not been our experience over the past two seasons."

"The water table has not been defined at present."

"Although there were resources declared at depth on 3300 (and we will likely do so in our own resource estimate), there is no obstruction to mining below it other than that this is a zero discharge facility and, yes, we do not have an EPA waste water discharge permit."

"The mine is a fairly dry - at present there is about 3 ft of water at the bottom of the mine in the main ramp, so there is no obvious evidence of a water table."

"at present water isn’t an obvious physical barrier to deeper mining."

This blogger has said from day one this isn't rocket science and that remains true today. The only question required has changed only slightly. Its gone from WHERE the Golder Associates study is to WHY this management is withholding its disclosure. It should be absolutely clear, even to the deliberately obtuse, that it remains hidden for a reason, and that reason has everything to do with dead worthless paper being offloaded onto the public by career promoters contrary to virtually every securities law in existence.

Monday, May 16, 2011

"The mine is currently dry"

Yes of course it is. The mine is bone dry and any dope can see that with their own eyes. And that self same dope won't be asking where the water came from in the first place or where its supposed to go.

Amazingly insulting doublespeak but that stupidity is absolutely, positively, nothing new with this group.
Is this the exciting part citizens? Hell bloody no, get a load of the following ...

"The mine is currently dry. Slimes have been mucked from the bottom of the ramp leaving 1 foot of water. Past operators experienced seasonal inflows into the mine from the spring melt. This has not been our experience over the past two seasons.

A 200,000 gallon dammed reservoir is being constructed at the 190 metre level and is nearing completion. Seasonal groundwater inflow, if experienced, will be pumped into this reservoir, which will then be used as the source of drill water throughout the mine. The old ramp bottom will be used as a sump for both development drives. Rather than extend the old ramp, the new down ramp was located in the less permeable limestone as per the recommendations of an existing Golder Associates report from 2006."

So after MORE THAN 2 years of denying its content entirely as this promo lured risk capital by the multi-millions, this Co has finally admitted to HAVING the darn thing all along.

Awesome work boyz. With this brand of management what could possibly go wrong now? Why not release the very material Golder Associates report? If denial of its existence isn't the excuse for continuous and deliberate failure to disclose what (the flying, damn fork) is it now?

Monday, April 25, 2011

Escrow release = Barr Pay Day

Absolutely nothing puts things into perspective any better than todays' news of an escrow release.

As loyal readers know these shares are Mr. Barr's founders shares and are basically free ... given as a reward for all that selfless hard work in bringing this can't miss proposition of a lifetime into the public sphere.

"On 19 June 2008, the Company issued 4,300,000 common shares of the Company at .001 per common share for cash proceeds of $4,300. (These are your ultra cheap principal seed shares and are escrowed for a specified period)"

So lets see here. Thats 2.7m free trading shares at a cost of less than $ 2,700 or $ 1.4 million bucks off the backs of complete dum dums. Money for nothing indeed and does anybody fail to see the point of grotesque failure to disclose now?

It is a day like today that exemplies the movement of dopey capital from those believing highly ridiculous promises of greatness and those greedily dishing them out on a daily basis.

Tuesday, April 5, 2011

Underground dam to save the day = Pfffftttt !!!

There has been a corporate update from Fire River Gold.
Newly installed grand head frommage Mr. Richard Goodwin has released "feel good" news today to placate the growing public masses as they finally begin to question that $ 55m market cap for a written off property acquired for $ 500k
Highly observant types will recognize Mr. Goodwin no longer claims "150-170k tons of tailings" nor that Nixon Fork is "fully bonded and permitted" nor that "the C3000 zones will be the first to be mined". All of which is past the point of grossly insulting. The newly polished pooh is about 6 months worth of ore from the upper portion of the Crystal Mine. (Highly, and I do mean HIGHLY doubtful in a thin width, deeply sloped ore shoot environment.)

Sadly the brand spanking new poopage has mearly changed texture and consistancy, not the all important black or white character of veracity ... "The Crystal ramp is being deepened to access the down dip of extensions of both the 3000 and 3300 zones (which represent our highest grade resources). There is currently 3 ft of water at the bottom of the mine. A 200,000 gallon reservoir is being constructed in the middle of the Crystal Mine. Water from the bottom of the mine and the advancing ramp face will be pumped to this reservoir, which will be used as the source of mine water for drilling and for wetting muckpiles. The ramp has been advanced 24 ft so far and is being driven as a priority heading."

The bottom of the shaft has gone from "fairly dry at present" to "3 ft of water at the bottom" and where is the engineering work to allow construction of a suddenly required underground dam for a ridiculously low 200k gallons?

I suppose one is still expected to believe Alaskan evaporation will come to the rescue to offload the oceans of excess water at Nixon Fork.

More absolutely improbable and unbelievable rubbish and it never seems to end from this company.

Friday, March 11, 2011

What bloody next department

After our obligatory management change of top echelon Barrian types we are immediately bombarded with a plethora of news including yet ANOTHER $ 7m financing which brings our fully diluted number to something in excess of 115,000,000 shares.

Does it not raise the slightest suspicion that even more dilutive millions are required to make Nixon Forked fly when the PEA made promises of ...

a)Capital costs to resume production are estimated to be $6.3 M with a projected payback of 3 months.

b)the project delivers an IRR of 549% and NPV of $60.9M on an undiscounted cash flow of $64.3M

c)a two year production forecast at a production rate of 150 tonnes per day with an average mined grade of 30.1 g/t.

With these kinds of numbers one would be encouraged mightily to suppose immediate and instant cash flow from copious gold bricks that would be flooding the FAU treasury faster than water engress into the mine shaft.

Well that obviously isn't what this "braintrust" is counting on, is it. Among the patently insulting is the disclosure that cash burn is expected to run $ 2.5m per month, which may be the first grain of truth from this Company in eons.

This humble scribe has another, far more likely cascade of events. The $ 6.3m CIL circuit may be operational by late July, giving all of 60 days of feed from 8 gms/ton tailings before they are frozen solid for another year.

At 85% recovery and 150 tons per day that amounts to a whopping 36 ozs per day at a cash cost around $ 440. Will that plant net $ 500,000 per month before all other overhead and expenses?

After 60 days there will be no other feed available and a body can make book on that. That plant will sit idle over the winter while fixed costs keep adding up. By then the PEA and 30 gm/ton material will be a proven, water logged lie.

The additional $7m won't keep this guaranteed white elephant in cash until next spring so ANOTHER dilutive share issue will obviously be required to keep the improbable dream alive, and who will be the next dope to step forward when in excess of $ 15m has been burnt off with zero return possible?

Wednesday, March 2, 2011

Goodbye Mr. Harry Barr, sort of

There was an announcement of the resignation of Mr. Harry Barr as president and CEO of Fire River Gold today ...

"Harry Barr has elected to step down as president, chief executive officer and director of Fire River Gold Corp. and its Alaskan subsidiaries. Mr. Barr will concentrate his efforts on the other member companies of the International Metals Group, as president and CEO of Pacific North West Capital Corp., El Nino Ventures and Next Gen Metals Inc."

While relinquishing apparent control there is no question whom the main man at Fire River Gold is. Not only can Mr. Barr be far removed from this ridiculous promotion when it inevitably crashes and burns in a few moons, he has installed not one but TWO whipping boys when it does so.

Lets call this maneuver what it is ... another stroke of Barr brilliance as Fire River Gold moves fully into distribution phase. The man has protected that grossly enriched buttock at the most critical time AND he now has full deniability as the groundwork gets laid for the NEXT promotion.

OF COURSE he wants nothing more to do with nebulous water tables and undisclosed material facts ... he has other, far more expendable monkeys for that onerous, bag holding duty.

Kudos Mr. Harry Barr for giving us a textbook example of how promotion is done on the Venture exchange bordello.

Tuesday, March 1, 2011

Distribution Phase for Sheeple

With the required touts of zero ethics locked and loaded, as well as copious free trading shares numbering in the millions available for public distribution, the time has come to unload this wholley worthless paper before the reality of zero mineable ore at Nixon Fork comes home to roost in a few months.

Options for the paid help at levels that are no problemo for multi, multi-bag Mr. Harry Barr and all the mouths have been fed. Now its a race to find the bigger sucker before somebody else does it.

Feb 28/11 Feb 23/11 Pacific North West Capital Corp. Direct Ownership Common Shares 10 - Disposition -100,000 $0.580
Feb 25/11 Feb 25/11 Goodwin, Richard Mervin Direct Ownership Common Shares 10 - Acquisition in the public market 1,750 $0.540
Feb 22/11 Feb 22/11 Cacos, Spiros Direct Ownership Options 50 - Grant of options 40,000 $0.550
Feb 20/11 Feb 17/11 Russell, R. David Direct Ownership Options 50 - Grant of options 40,000
Feb 20/11 Feb 15/11 Pacific North West Capital Corp. Direct Ownership Common Shares 10 - Disposition -502,500 $0.540
Feb 18/11 Feb 14/11 Lawrence, Kevin Direct Ownership Options 50 - Grant of options 40,000 $0.550
Feb 18/11 Feb 14/11 Barr, Harry Direct Ownership Options 50 - Grant of options 85,000 $0.550
Feb 18/11 Feb 14/11 Goodwin, Richard Mervin Direct Ownership Options 50 - Grant of options 85,000 $0.550
Feb 18/11 Feb 14/11 Holmes, Linda Direct Ownership Options 50 - Grant of options 40,000
Feb 17/11 Feb 14/11 Guanzon, Robert Direct Ownership Options 50 - Grant of options 50,000 $0.550

Thursday, February 17, 2011

PEAs for the Terminally Obtuse

The delayed Snowden PEA has hit the fan with predictable suspension of rational disbelief and the contradictions are obvious to a child.

"The current resource is sufficient to sustain a two year production forecast ..."

That's lame as hell IF every oz could be scooped up with a plastic shovel at the surface, but lets not get ahead of ourselves.

"During the first year, mining only occurs in the 3000 and 330 zones of the Crystal Mine. The Mystery Mine begins production in the 18th month."

One assumes the "330 zones" is actually the "C3300" zone, and has this blogger not wasted enough greenhouse gas explaining why that is not gonna happen anytime soon and certainly NOT without an EPA water discharge permit?

There are 101k assumed mineable tons with 87.5k of that in the Crystal zones (C3000 and C3300). 90% of this multi-million dollar fantasy riding on ore that cannot be mined. Is there 6 months worth of mineable sulfide ore available, scratched from multiple sources (Southern Cross & Mystery) that St Andrews somehow missed? Even that optimistic assumption seems a very large stretch.

And what of that nebulous water table? Well holy krap, this ultra dopey promotion has finally admitted, sort of, that there's a problem in the henhouse.

"Mining to Depth: Approximately 50% of the mineral inventory is at depth in the Crystal Mine. At present this is a zero-discharge operation. The water table has not been defined at present. The mine is quite dry with inflows of <1.0 l/s, though the water level at the bottom of the mine is known to fluctuate seasonally by as much as 6 vertical metres. The Company has several plans in place to facilitate mining to depth, including the installation of dammed reservoirs in the mine to contain mine water, recycling mine water for drill requirements, using spraying misters to evaporate excess water."
Yeah sure. Alaskan evaporation will save the day, if underground dams won't do the trick, don't be bloody damn ridiculous.

More utterly frikkin insulting smoke and mirrors, and EVERY possible plan was examined in detail by St Andrews at great expense and discarded as not feasible. And the water table is "not defined" ? Absolutely defined according to the environmental assessment filed with the Alaska government ... or the Golder Associates study on grouting and pumping ... if we had it of course.
"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."

Wednesday, February 16, 2011

Fleecing the Stupid Sheeple

There has been yet another "analyst" report breathlessly touting the vast potential of Nixon Fork and Fire River Gold.

This time out our grossly incredulous and badly beaten brow is being treated to copious bullchit from Mr. Michael Fowler, M.Sc, MBA (Senior Mining Analyst) and Mr. Leonie Soltay, M.Sc (Mining Analyst)
Is this the same Loewen, Ondaatje, McCutcheon Limited that loaded up on millions of wholesale units in late 2009? Well gee whiz it sure bloody is. So what kind of ridiculous stupidity are these highly qualified professionals with unassailable reputation dishing up for the public and presumably their clients?

How about 50,000 ozs gold production a year, annual cash flow of $ 36m by 2012, and a conservative target price of $ 1.40? Before we get our unbelieving lather in a tizzy dissecting the patently insulting lets take a quick gander at the disclaimer ...

"The information contained in this report is drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does LOM assume any responsibility of liability."

Well O.K. Its grossly misleading garbage, acknowledged as such, and liability is expressly denied to everyone who reads it. Now we know where we stand exactly.

The first assault on our fine sensibilities is the amazing ESP powers of our "analysts". Our boyos have intimate knowledge of what was going through the heads of previous operators at Nixon Fork and have no difficulty spewing it as gospel fact.

"Nevada Goldfields closed the mine because of low gold prices. St. Andrews failed to meet production targets because of excessive mine dilution probably caused by insufficient definition drilling of the ore body and consequently closed the mine in 2007."

Nevada Goldfields closed the mine because of ore face issues as the water table was encountered in the C3100 and C3300 zones (and insolvency) and St Andrews failed to meet production targets for the same reason after expending millions studying the problem AND they did extensive definition drilling before writing the project off completely.

Our brilliant analysts then go on to describe the indicated reserves in those zones and darn it, is there a whisper anywhere about the heavily referenced Golder Associates Study on grouting and pumping OR the fact every gram is below the water table? Weeeeeell, not exactly. "The underground portion of the drill program is focusing on ore definition and expanding ore resources, particularly in the 3300 zone, 3500, 3100 and other areas."

It goes on (and on) ...

"with approximately 94% of resources close to current mine development or on surface in tailings, the company is in a position to bring production back on‐stream in a short time frame."

Lets be extremely blunt with the truth. This is no analysis of a mining project by professionals. This is a grotesque tout from paid whoores with a special interest in lying like sidewalks so that worthless paper can be cashed out on the public.

Thursday, February 3, 2011

The Enigma up the Mystery Creek

The unanswered question with this improbable promotion is why the Golder Associates study on grouting and pumping was never posted on by St Andrews. By absolute rights a body would expect a report this material to be found there.

The answer to that question is very straightforward after delving through St Andrews news releases around that period.

"St Andrew issued to holders of record of its outstanding common shares on May 7, 2007, 1.9 rights for each common share held, pursuant to the Rights Offering in which St Andrew intends to raise gross proceeds of up to approximately $124 million."

"St Andrew Goldfields Ltd. announces that it intends to conduct a non-brokered and brokered private placement offering of common shares for expected gross proceeds of up to $20.0 million."

SAS had over 144 million reasons to keep the problems at Nixon Fork under wraps for as long as possible and thats exactly what they did. The excuse eventually given when SAS stopped production entirely, besides the oblique reference to "ore face issues", was that it was ...

" ... in order to concentrate its efforts on better defining the existing mineral resources and identify new zones of gold-copper mineralization at the property ..."

So SAS continued drilling and did NOT release the damning Golder Study because doing so would have jeopardized a VERY badly needed capital infusion. By the time the dough was safely tucked away the entire Nixon Fork property was written down to zero.

When that happened there was no longer any obligation to release the Golder Study, or the acculmulated drill results, because they were no longer material or relevant to company affairs. Another obvious motivation was the fact it would show clearly that management was playing "hide the wiennie" with its financial backers at a critical time.

Friday, January 21, 2011

NSI for Dummies

Yet another set of drill results that demonstrate in clarity exactly how hopeless things are at Nixon Fork, but this time, at least, the company has decided to do its shareholders and the public a favour and report the dusters instead of ignoring them completely. NSI means No Significant Intercept and the drill is hitting barren rock far more often than not.

And the only significant intersections are once again from the C3000 zone, and how many times is it possible to breathlessly spew about that which CANNOT be mined?

We should not ask because that is ALL this promotion can possibly do to lasso obtuse public live ones to this diluted paper.

Pretty pictures that obviously take a great deal of time to prepare once again fail to show the location of the water table, and without an appreciation of where that is, every bit of propaganistic eye candy is designed 100% to mislead, not inform.

This Co has not added a single mineable oz and certainly over seven figures has been blown on drilling thus far. Its St Andrews all over again and who can be so stupid as to gleefully repeat the same grossly expensive mistakes of others?

Well, a promoter looking to unload a great deal of ridiculously cheap paper on the public at a multi-bag is the exception to that rule, but what excuse does the public have in swallowing the same rubbish, over and over, while losing all their money?

This is far from rocket science and a potential investor need ask only one thing of Mr. Harry Barr and Fire River Gold ... where are the material facts contained in the Golder Associates study on pumping and grouting? If that study and its contents continues to be witheld this deal needs to be avoided like the plague that it very clearly is.

A body could take the logical next step and wonder what it means for insiders to bail on dopey public types while failing to disclose the missing and highly material facts that are obvious to all ... even ridiculously hard to motivate BCSC types.

Insiders have not been blowing out their paper in significant quantities YET, but lets get serious here, whats the point of running a promotion if not to unload worthless paper on ultra dumb sheeple incapable of understanding the fundamentals of their "investment"?
Meanwhile a semi-creative (duh) google search containing the keywords "water" and "Nixon Fork" returns the following in 24 point bold font for public types (from July 2004) ...

MINING NEWS: Permitting issues delay Nixon Fork startup

Additional water discharge permit needed at shuttered mine; Mystery Creek plans to produce gold by re-treating tailings."

And gee whiz, scroll down slightly and there's more from November 6, 2006 ...

"The existing gold resource at Nixon Fork includes some mineralization that lies below the existing water table, about 1,000 feet down from the mine's surface level. Accessing that ore is a technical issue the company is still working to resolve, which includes testing work that is in the process, Jones said."

Monday, January 17, 2011

Golder Associates for Dummies

The Venture Exchange is a minefield of half-truths, misrepresentations and outright lies. Sometimes even the proper questions are less than obvious, even to fully jaded and experienced types.

Fire River Gold is the exception to the rule because there has been a great deal of technical information about Nixon Fork filed with the government of Alaska and all of it is public domain.

The very obvious question needing to be answered for Fire River Gold shareholders is ridiculously simple. Where is the Golder Associates study on grouting and pumping?

Referenced half a dozen times in the material available to anyone sitting at their computer, this study will reveal in detail why the ore reserves and drill results breathlessly reported ad nauseum are irrelevant to any investment decision.

It defies common sense that St Andrews would spend many millions to study the water problem at Nixon Fork in great detail and then walk away from that investment without mining the ore. Grouting and pumping failed to stop water ingress into the mine shaft and that is the only possible conclusion of the Golder Associates study. Its as simple as that. If there was a feasible solution to mining that ore St Andrews would have certainly found it.

We do know for a fact that pumping could not lower the water table significantly and that efforts to drill wells to dispose of the waste water and retain "zero-discharge" status failed due to permafrost. At an absolute minimum this Co will require an EPA discharge permit to even attempt to lower the water table through pumping again.

If the ore in the only continuous zones at Nixon Fork is impossible to mine because its below the water table, shareholders and the public should know about it. Its a material fact. The should and the reality are two different things on the Venture exchange however, particularly when there is a massive mountain of wholesale paper waiting to be unloaded on obtuse public types.

Wednesday, January 12, 2011

Nothing to see Here

Fire River Gold has released more drill results from Nixon Fork and the market is not impressed, probably because the holes are all from the C3300 and C3100 zones.

"Fire River Gold Corp. is pleased to announce results obtained from the 2010/2011 28,000 metre drill program at the Nixon Fork Gold Mine situated in AlaskaŹ¹s Tintina Gold Belt. The Company has received assay results of holes 1 through 10 (N10U‐001 ‐ N10U‐009)from the 3100 and 3300 Zone."

Does it matter one iota if those underwater zones are drilled 50 times or 50,000,000 times if its been proven beyond any possible doubt that there isn't a single gram of ore that can be mined?

The semantics seemed to have changed slightly with the delay in the PEA on underground mining as well. Last time out it was an "in-house" study with Snowden "supervising" and now its all about Snowden's study. A subtle clue perhaps that Snowden isn't comfortable with its name getting plastered over a highly partial "study" that is more about wishful management thinking than the stone cold facts required to justify a major investment for a public company.

It may have a large impact on the content of that report and one might speculate that this has spooked the market for FAU paper. It is this opinion that a negative PEA is the best possible result to avoid the annilation of millions of innocent bucks on a lost cause. Mr. Harry Barr, I am absolutely certain, could find much better uses for that kind of dough and stakeholders would be better off in the longer run.

Saturday, January 8, 2011

Fire River Gold in a Nutshell

It has been more than a few moons tracking the ultra amazing Mr. Harry Barr and Fire River Gold and it's past time for a reader's digest overview of that growing mountain of pooh in the obligatory nutshell.

To those just tuning in, the story is all about construction of a brand spanking new $ 7m CIL circuit that is charging forward despite the growing tardiness of an "in house" PEA on the resumption of underground mining supervised by Snowden that presumably will justify it all.

That makes great PR for career promoters but the simple fact is the majority of the ore at Nixon Fork, and all the proven ore, is below the natural water table. A fact that is likely already proven conclusively to this management through the non-public Golder Associates Study on grouting and pumping. This ore simply cannot be mined because Nixon Fork is a zero discharge facility and there is no way to either grout the workings or pump the water into wells through the permafrost. Pumping to lower the water table is not feasible, and even if it was an EPA permit to discharge the waste water would take at least 2 years to obtain.

St Andrews studied the matter in great detail, blew tens of millions, and could not touch a single gram of that ore while enjoying a truly horrid 68% recovery rate from the remaining sulfide ore scratched from elsewhere.

Remove the C3000 and C3100 zones from any mine plan and the economics at Nixon Fork make no sense whatever. Tailings are finite, can only be processed when not frozen, and will offer a very modest return in the final year, if stakeholders are very lucky.

It absolutely appears that a massive investment exceeding $ 7m will barely offer any return at all in a best case world, and in a ordinary world will end up in the bottom of the mine shaft in a few years without returning anything except losses for the holders of this equity.