VANCOUVER, Feb. 19, 2020 /CNW/
- Freegold Ventures Limited (Freegold) (FVL:
TSX) is pleased to announce that South32 Limited (South32)
has committed to fund Year Two exploration which represents a
minimum US$2 million expenditure
towards further exploration at the Shorty Creek porphyry copper
project. The 2020 program is expected to be focused on additional
drilling on the Shorty Creek Project; more details on the proposed
program will be released over the coming months.
During the 2019 Year One program, a total of 1,542 metres (5
holes) were drilled and 100 km of induced polarization as well as
98 km of ground magnetic surveys were completed. A further 543 soil
samples were collected to expand target areas for future drill
programs (Link to the 2019 Shorty Creek Program Results) . The 2019
program was fully funded under an agreement with a wholly owned
subsidiary of South32 whereby South32 has the option to earn a 70%
interest in the Shorty Creek Project. 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$2 million 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.
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
holes previously drilled by Freegold to an average depth of 500
metres 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.
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, PGeo – 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