VANCOUVER, Aug. 13, 2019 /CNW/ - Freegold Ventures Limited
(Freegold) (FVL: TSX), is pleased to announce the
commencement of the 2019 drilling program at Shorty Creek. The 2019
program is fully funded under the agreement with a wholly owned
subsidiary of South32 Limited (South32) whereby South32 has the
option to earn a 70% interest in the Shorty Creek property.
To maintain the option in good standing South32 must contribute
minimum exploration funding of US$10
million over a 4-year option period with minimum exploration
expenditures of US$2million in Years
1 and 2 and US$3 million in Years 3
and 4 for an aggregate of US$10
million. South32 may exercise its option to subscribe
for 70% of the shares of a newly formed project company by
committing US$30 million to the newly
formed company, less the amount of exploration expenditure
contributed by South32 during the option period following the
completion of each annual program. Freegold shall act at as
the Operator during the option period.
The 2019 program consisting of induced polarization surveys and
geochemical surveys commenced in May. A severe wildfire fire
in the area hampered the start of the drilling program, which was
originally anticipated to start mid-July. The 2019 drill
program will consist of 2,000 metres and will be aimed at further
expanding the mineralization at Hill 1835 and further testing of
the Hill 1710 target area. Total expenditures for 2019 are
anticipated to be US $2.3
million.
Located 120 km northwest of Fairbanks, the Shorty Creek project was
identified as having significant porphyry potential by Freegold in
late 2014. Shorty Creek hosts a cluster of magnetic anomalies
commonly seen in porphyry districts. Drilling has been largely
concentrated on the Hill 1835 area; however, it is only one of the
potentially significant targets within the property area.
Twelve widely spaced historic holes drilled to an average depth of
500 metres have expanded the mineralized zone to over a 750 x 400
metre area with each hole intersecting significant and consistent
copper, gold, silver and tungsten mineralization over broad widths
from base of oxide material (average depth~ 90 metres). The target
remains open both laterally and to depth.
Two (2) km to the northwest of Hill 1835 is Hill 1710, which
hosts a large copper and molybdenum geochemical anomaly coincident
with a 6 km long broad magnetic anomaly. Initial drill testing in
2016 consisted of four holes testing 1.6 km of this magnetic
feature. Drilling intersected porphyry style mineralization, with
copper grades increasing to the northeast. The magnetic anomaly
extends another 2.5 km to the northeast from the limits of the 2016
drilling.
Other exploration targets within this promising 100 square
kilometre property include the Quarry target, where oxidized
porphyritic rock with stockwork veining returned values of 500 ppm
copper in rock samples. Quarry lies 3 km north northeast of Hill
1835 at the northern end of an 11 km long magnetic high. Sampling
at Quarry has confirmed both the presence of copper mineralization
and quartz feldspar porphyry outcrops.
The Qualified Person for this release is Alvin Jackson, P.Geo – Vice President
Exploration and Development for the Company who has reviewed and
approved the scientific and technical information contained in this
press release.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on exploration in
Alaska and holds through leases
the Golden Summit Gold Project, near Fairbanks as well the Shorty Creek Copper
–Gold Project near Livengood.
About South32
South32 is a globally diversified mining and metals company. It
produces bauxite, alumina, aluminium, energy and metallurgical
coal, manganese, nickel, silver, lead and zinc at its operations in
Australia, Southern Africa and South America. It is also the owner of a high
grade zinc, lead and silver development option in North America and has several partnerships
with junior explorers with a focus on base metals.
Some statements in this news release contain forward-looking
information, including without limitation statements as to planned
expenditures and exploration programs. These statements address
future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. Such factors include
without limitation the completion of planned expenditures, the
ability to complete exploration programs on schedule and the
success of exploration program.
SOURCE Freegold Ventures Limited