VANCOUVER, BC, Feb. 26,
2025 /CNW/ - Freeman Gold Corp. (TSXV: FMAN) (OTCQB:
FMANF) (FSE: 3WU) ("Freeman" or the "Company") is
pleased to announce that it has commissioned a price sensitivity
analysis for the Company's 100 percent owned Lemhi gold project (the "Project"),
located in Idaho, USA. The study
will use the engineering, mine design, scheduling and general
layout of the Company's current Preliminary Economic Assessment
("PEA") for the Project and will use current gold prices and
costs. The Project is a near-surface high grade oxide gold deposit
with a pit constrained measured and indicated gold resource of
988,100 ounces ("oz") at 1 gram per tonne gold ("g/t
Au") and an inferred resource of 256,000 ounces at 1.04 g/t Au.
This reassessment, to be completed by Ausenco Engineering Canada
ULC ("Ausenco"), aims to provide a current evaluation of the
Project 's economic potential in response to significantly higher
gold prices than those used in the original October 13, 2023 PEA.
Ausenco undertook the previous economic analysis of the Project
and used a base case gold price of US$1,750/oz Au. The existing PEA incorporated
over 90,000 metres of drilling over 514 diamond and core holes.
Given the substantial increase in precious metals prices, the
Company anticipates updating the initial economic assessment will
demonstrate the Project's strong leverage to higher prices and
guide the Company on its approach for the Feasibility Study.
It is anticipated that the update will use a base case price of
US$2,200/oz Au with an analysis of
sensitivities from US$1,600/oz to
US$3,400/oz. The analysis will use
updated CAPEX and OPEX estimates and assess their impact, together
with the gold price, on a new financial model. This update will
utilize the mineral resource estimate and mine plan utilized in the
October 13, 2023 PEA.
"Using the current spot gold price, Lemhi would have a US$1,950/oz cash margin using the maiden PEA
all-in-sustaining cost of $957/oz
with significant additional upside at higher prices. The maiden PEA
showed an after-tax NPV (5%) of US$212
Million at $1,750/oz Au,"
commented Bassam Moubarak, the Company's Chief Executive Officer.
"This updated economic analysis using a US$2,200/oz Au base case should further enhance
the after-tax NPV (5%) and demonstrate the robustness of this
project."
This updated analysis will be completed in parallel to the work
on the initial Feasibility Study first announced on February 10, 2025. Ausenco's previous experience
and deep understanding of similar gold projects enables Freeman to
complete this analysis in a few weeks. The updated analysis is
expected to be completed and disclosed by March 31, 2025.
About the Company and Project
Freeman Gold Corp. is a mineral exploration company focused on
the development of its 100% owned Lemhi gold property. The Project comprises 30
square kilometres of highly prospective land, hosting a
near-surface oxide gold resource. The pit constrained National
Instrument 43-101 ("NI 43-101") compliant mineral resource
estimate is comprised of 988,100 oz Au at 1.0 g/t in 30.02 million
tonnes (Measured & Indicated) and 256,000 oz Au at 1.04 g/t Au
in 7.63 million tonnes (Inferred). The Company is focused on
growing and advancing the Project towards a production
decision.
The recently completed PEA shows: an after-tax NPV (5%) of
US$212.4 million and an internal rate
of return ("IRR") of 22.8% using a base case gold price of
US$1,750/oz; Average annual gold
production of 75,900 oz Au for a total life-of-mine ("LOM") 11.2
years payable output of 851,900 oz Au; LOM cash costs of
US$809/oz Au; and, all-in sustaining
cash costs ("AISC") of US$957/oz Au
using an initial CAPEX of US$190
million.
The technical content of this release has been reviewed and
approved by Dean Besserer, P. Geo.,
the VP Exploration for the Company and a Qualified Person as
defined by NI 43-101.
The technical report entitled "NI 43-101 Technical Report and
Preliminary Economic Assessment" is available on SEDAR+ and the
Company's website.
On Behalf of the Company
Bassam Moubarak
Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements: This press release
contains "forward‐looking information or statements" within the
meaning of Canadian securities laws, which may include, but are not
limited to, statements relating to exploration, results therefrom,
and the Company's future business plans, and statements regarding
the price sensitivity analysis and impact thereof on the evaluation
of the Project's economic potential. All statements in this
release, other than statements of historical facts that address
events or developments that the Company expects to occur, are
forward-looking statements. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects," "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ from those in the
forward-looking statements. Such forward-looking information
reflects the Company's views with respect to future events and is
subject to risks, uncertainties, and assumptions. The reader is
urged to refer to the Company's reports, publicly available through
the Canadian Securities Administrators' System for Electronic Data
Analysis and Retrieval + (SEDAR+) at www.sedarplus.com for a more
complete discussion of such risk factors and their potential
effects. The Company does not undertake to update forward‐looking
statements or forward‐looking information, except as required by
law.
SOURCE Freeman Gold Corp.
