Nixon Fork - a tiny Alaska gold mine

January 17, 2013

The Nixon Fork Gold Mine is located in central Alaska. Operations started in July 2011, with a near term production target of 30,000 oz/Au by end of year 2012, projecting an increase to 40,000 oz/Au per year in 2013.

The Nixon Fork Mine is a past producing mine with a high grade production history that was sustained over a five year period of operations. Fire River Gold Corp. (ticker FAU on TSX-V) is Alaska’s newest gold producer, with an annual production target rate of 50,000 ounces of gold to be produced on its wholly owned Nixon Fork Gold Mine located in the resource rich Tintina Gold Belt. Operations started in July 2011, with a near term production target of 30,000 oz/Au by end of year 2012, projecting an increase to 40,000 oz/Au per year in 2013, ramping up to a projected 50,000 ounces in 2014. This year-round mining program produces both gold-rich copper concentrate and doré bars, with silver as a by-product. Fire River Gold will attempt to replenish what is mined on an annual basis by further drilling exploration targets on surface and underground thereby extending the life of the operation.

The updated resource estimate compiled in the NI 43-101 Technical Report from February 2012 demonstrated the mine’s ability to accomplish its operating plan: to replenish what is mined on an annual basis. Quarterly projections for production levels are estimated to be approximately 9,000 oz. of gold per quarter in 2012 at a cash cost estimate of approximately $842 per oz. The mill is able to produce 150 tonnes a day via gravity and flotation.

Fire River Gold Corp. (ticker FAU on TSX-V) is a tiny company with a market cap of less than $20 M. Its shares trade at $0.06.

Commentary

In an industry dominated by giants like Barrick and Agnico-Eagle, it is nice/interesting to see a tiny company operate a small mine.

Sources

• a)http://www.firerivergold.com/s/NixonFork.asp?ReportID=508154



• b)http://www.firerivergold.com/i/pdf/2012q3.pdf