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December 18, 2008. Pacific North West Capital Corp.
announced the signing of a letter agreement pursuant
to which it has acquired an option, exercisable
until February 15, 2009, to purchase a 100% interest
in Mystery Creek Resources, Inc. (MCR), a wholly
owned Alaskan subsidiary of St Andrews Goldfields
Ltd. (SAS) (TSX: SAS). MCR's assets include the
Nixon Fork gold mine, located 56 kilometres
northeast of McGrath, Alaska. PFN has paid
US$100,000 on signing of the agreement. Subject to
regulatory approval and the satisfactory completion
of its due diligence review, PFN may exercise the
option by paying a further US$400,000, of which
US$100,000 is required to be paid on closing of the
purchase of the MCR shares and the balance is
required to be paid in three equal instalments on
May 1, July 1 and September 1, 2009.
June 29,
2009. Pacific North West Capital Corp.
announced that it has granted to Fire River Gold Corp.
("FAU") an option to acquire the outstanding shares
of Mystery Creek Resources, Inc. (MCR), a wholly
owned Alaskan subsidiary of PFN. MCR's assets
include the Nixon Fork gold mine, located 56
kilometres northeast of McGrath, Alaska. Fire River
Gold will pay PFN US$50,000 on signing of the
agreement. FAU may exercise the option by making
further payments totalling US$450,000 over a six
month period, and issuing a total of US$2.5 million
in FAU shares at a deemed price of $0.45 per share
for a total of 6,415,000 shares. Based on FAU's
share structure, the issued shares will give an
ownership interest of approximately 64% of FAU. FAU
will also issue PFN 1,000,000 share purchase
warrants entitling PFN to purchase 1,000,000 shares
at an exercise price of $0.50 for a period of
twenty-four months from the date of closing. FAU
will also refund all expenses incurred by PFN from
May 1st 2009 until the finalisation of this
transaction to a maximum of CDN$1,250,000. The
transaction is subject to satisfactory completion of
due diligence by FAU, and receipt of regulatory and
shareholder approvals as required. PFN will remain
the operator of the Nixon Fork Gold Project until
the closing of the transaction.
On August 13, 2009, FAU exercised its option to
purchase a 100% interest in Mystery Creek Resources,
Inc. ("MCR"), a wholly owned Alaskan subsidiary of
Pacific North West Capital Corp. ("PFN"). MCR owns
the Nixon Fork Gold mine in Alaska, a former
high-grade gold mine, which has produced
approximately 145,000 ounces at a production average
of over 42 grams per ton (1.4 ounce per ton).
Through the sale of MCR (Nixon Fork Mine) to FAU,
Pacific North West Capital became the largest
shareholder of FAU.
For more news releases regarding Fire River Gold
activities and its Nixon Fork Gold Mine, click
HERE
Nixon Fork Production History
Nevada Goldfields Inc. (NGI) operated the high-grade
underground gold mine from 1995-1999, recovering
137,749 ounces of gold and 2.1 million pounds of
copper, with additional silver credits. The average
production grade was 42 grams per tonne (gpt) of
gold, with an average production cost of US$266 per
ounce. The mine was closed in 1997 due to declining
gold prices. SAS purchased the mine in 2003. From
2004 through 2008 approximately over US$50 million
was expended on upgrades to the processing
facilities and mine infrastructure. During this time
9,381 meters of reserve-resource definition drilling
was conducted, an updated reserve-resource estimate
and additional metallurgical testing were
completed.
Limited production in 2007 resulted in recovery of
6,775 ounces of gold and 78,644 pounds of copper.
SAS commissioned Roscoe-Postle Associates of Toronto
to complete NI 43-101 technical reports in 2005 and
2006, which reviewed the mineral reserve-resource of
the property and completed a financial analysis of
proposed mining operations. These reports are
available from SAS reports filed on Sedar. |
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Facilities at the Nixon Fork Mine include a
200 tpd floatation plant with a gravity gold
separation circuit, a sulphide floatation circuit,
and a newly constructed CIL gold leaching circuit.
The mine also boasts a fleet of mining vehicles, a
power plant, maintenance facilities, an 85 person
camp, office facilities, and 5 aircraft landing
strips. The mine and equipment are currently
winterized and under a care and maintenance regime. |
