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.