Q&A with Fire River Gold (V.FAU) President & CEO Harry Barr

Which one of your gold projects is most advanced? How close are you to production? What type of mining operations are you pursuing (e.g. open pit, etc.)? Any estimates as to the cash costs?

The Nixon Fork Mine, production slated for summer 2011, underground, $600 per ounce

What geometrics does your company use to come up with your potential tonnage and drill targets?

The gold is found in steeply dipping pipe shapes, containing 50,000 to 150,000 ounce of gold. Most of our current resources are contained in two pipes (the 3000 and 3300). Expanding our resources is done by defining these pipes laterally and horizontally. Exploration is a matter of finding new pipes.

What distinguishes your company from other explorers in the region?

Our operation is fully permitted with all facilities in place. While we are still exploring for new ore – what we find, we get to immediately drop into a mine plan.

How much cash do you have? Do you have sufficient funding for the foreseeable future or will you be going back to the market for more capital?

We have $14.5 million, which is enough to take us to production, but we are working to establish a loan or draw-down facility to help us through commissioning and start up (the working capital).

What would you say is the biggest risk for investors in your stock?

The operation will be profitable if it can deliver high-grade ore from the mine, as it has in years past. If the mined grade is low, the mill capacity is too low to cover the slack with additional throughput.

What else do your shareholders have to look forward to in the coming year?

The best thing - Revenue from production.

Disclosure: Fire River Gold is a Stockhouse client