Northern Freegold Resources Ltd. (TSX VENTURE: NFR) is pleased to
announce plans for its 2010 phase 1 drill program at the Freegold
Mountain Project in the Yukon Territory. Mobilization to the road
accessible, district scale (198 km2) Freegold Mountain Project will
begin mid May, with drills turning by June 1st.
2010 Phase 1 Program Objectives:
1. Continue to expand on the million ounce NI 43-101 inferred gold resource
at the Nucleus deposit; and
2. Drill test the large scale gold and copper soil anomaly (6 x 4 km) which
extends from the Nucleus deposit eastwards to beyond the Revenue Zone.
The Nucleus deposit remains open to further expansion and though
it is primarily a gold system with some copper enrichment, it is
now thought to be part of a much larger gold enriched porphyry
system which has been recognized at the Revenue Zone. The Revenue
Zone shows similar geological and mineralogical characteristics to
other deposits in the region which have developed multi-million
ounce gold resources with multi-billion pound copper resources.
Geologic modeling this winter has defined a number of priority
targets for drill testing this season with the primary objective of
increasing the overall resource at the Freegold Mountain project
and testing this large scale system.
Susan Craig, NFR's President & CEO commented "Management is
excited with the targets developed through the modeling efforts
this past winter and believe we have the potential for significant
resource expansion and possible discovery of a much larger system.
Our exploration team led by Dr. Allan Armitage has laid out a
systematic program to test the highest priority targets in Phase 1
of this program which should result in steady flow of news from the
project through the coming field season."
Nucleus Deposit 2010 Drill Strategy
A NI 43-101 inferred resource of 1.0 million ounces of gold has
been identified at the Nucleus deposit to date (35.82 Mt at a grade
of 0.87 g/t gold using a 0.4 g/t gold cutoff). The deposit is a
near surface, bulk tonnage, potentially open-pittable intrusion
related gold deposit. A higher grade zone containing 183,631 ounces
of gold (2.2 Mt of ore at a grade of 2.55 g/t, using 0.4 g/t
cutoff) has been identified in the resource. The Nucleus deposit is
open in all directions and at depth, and has potential for
significant resource expansion.
Northwest trending corridors of higher grade gold mineralization
will be priority targets for follow-up testing. For example, hole
GRD09-144, at the western end of one of these corridors intersected
16.22 m at 2.96 g/t gold, while hole GRD09-128 towards the eastern
end within the same corridor intersected 25.38 m of 1.25 g/t gold.
The 2010 phase 1 drill program will include 3,000 m of diamond
drilling (approx. 15 holes) to test the extension of these
corridors. A 1,500 m program of reverse circulation (RC) is also
planned for larger step-out drilling to the northeast. The
objective of these programs is to expand the resource at the
deposit.
Revenue Zone 2010 Drill Strategy
Modeling and data compilation at the Nucleus and Revenue zones
has identified a significant gold and copper soil anomaly covering
an area 6 km by 4 km (24 km2) (see attached maps). The million
ounce Nucleus gold deposit sits on the western side of this
anomaly. Review of the historical work in this area, the extensive
soil anomaly and geophysics suggests the potential for a large
porphyry Au +/- Cu +/- Ag +/- Mo system. The 2010 phase 1 drill
program will include 4,500 m of RC drilling to systematically test
several priority targets within the anomaly including the Granger,
Discovery and Guder targets. Limited historical drilling in these
target areas has identified results warranting follow up which may
lead to definition of new project resources.
The Granger target has historical drill results with significant
gold and silver values (see below), resulting in significant gold
equivalent values(1).
--------------------------------------------------------------------------
Hole No. Length From To Interval Au Ag Cu Mo Au equiv.
m m m M g/t g/t ppm ppm g/t
--------------------------------------------------------------------------
Granger
RVD07-01 190.55 5.51 14.20 8.69 1.69 2.73 293 6 1.81
And 28.05 33.47 5.42 0.52 1.00 335 1 0.72
--------------------------------------------------------------------------
Historic and recent drilling at the Discovery target intersected
wide intervals of gold +/- silver, copper and molybdenum which
result in significant gold equivalent values.
---------------------------------------------------------------------------
Hole No. Length From To Interval Au Ag Cu Mo Au equiv.
m M m M g/t g/t ppm ppm g/t
---------------------------------------------------------------------------
Discovery
GRDR80-01 75.00 33.53 70.10 39.62 0.41 5.30 2100 (i) 1.06
GRDR80-02 73.00 12.19 57.91 51.82 0.32 8.39 1377 (i) 0.83
GRDR91-01 103.00 23.32 10.271 79.39 0.87 (i) 3243 (i) 1.74
GRDR91-02 91.00 67.66 76.81 9.15 0.31 (i) 2367 (i) 0.94
GRDR91-03 104.00 73.76 79.86 6.10 1.06 (i) 75 (i) 1.08
GRS84-07 64.00 21.60 43.00 21.40 1.49 10.05 5083 (i) 3.03
GRS84-09 76.00 47.85 53.34 5.80 2.60 0.04 (i) (i) 2.60
RVD07-05 152.00 43.40 72.50 29.10 0.59 5.71 2084 102 1.42
RVD07-06 154.00 66.40 101.30 34.90 0.51 6.08 2166 67 1.31
---------------------------------------------------------------------------
(i) Not analyzed
Drill testing by NFR in the Guder target in 2007 returned
significant gold equivalent values of note. Historical drilling in
1991 intersected similar Au and Cu grades, which were not analyzed
for silver and molybdenum.
---------------------------------------------------------------------------
Hole No. Length From To Interval Au Ag Cu Mo Au equiv.
m m m M g/t g/t ppm ppm g/t
---------------------------------------------------------------------------
Guder
RVD07-02 125.00 69.25 75.00 5.75 0.23 3.23 1411 45 0.81
RVD07-04 130.00 59.00 100.58 41.58 0.32 6.18 2491 94 1.26
---------------------------------------------------------------------------
(1) Au equivalent metal prices: $US$846.00/oz gold, US$3.31/lb
copper, US$14.40/oz silver, US$21.80/lb molybdenum (3 yr average;
no discount for metallurgical recovery in contained metal
figures).
Dr. Allan Armitage, PhD, P. Geol (AB), Exploration Manager for
Northern Freegold is a Qualified Person as defined by National
Instrument 43-101 and will be responsible for quality control of
exploration undertaken by the Company and has reviewed and approved
the technical information in this release.
Investor Relations Update and Option Issuance
NFR is pleased to announce that it has hired Ms. Julie Hajduk as
Manager of Corporate Communications to assist the Company in
increasing its investor outreach, corporate communications and
financial public relations services. Ms. Hajduk brings over 15
years of experience in the capital markets including most recently
working as IR Manager and Corporate Secretary for Buffalo Gold Ltd.
Her services will include liaising with the national and
international investment community, arranging financial and
industry specific media and interviews for the Company, providing
shareholder and investor communication services, coordinating
advertising and public relations programs for the Company, and
other related services. She will receive $5,500 per month and
granted a total of 150,000 incentive stock options exercisable into
common shares at an exercise price of $0.32 per share to vest
quarterly over the following 12 months with an expiry date of May
12th, 2013 in accordance with TSX Policy and pursuant to NFR's
Option Plan. NFR has also granted 300,000 stock options to
consultants of the Company at an exercise price of $0.32, expiring
May 12, 2012.
About the Freegold Mountain Project
The road accessible Freegold Mountain Project is located 200 km
northwest of Whitehorse, the capital of the Yukon and is situated
within an active exploration and mining area in the Tintina Gold
Belt of the Yukon which includes the producing Minto Mine of
Capstone Mining Corp. to the north, Casino Deposit and Carmacks
Copper Deposit of Western Copper Corporation to the west and east,
and the White Gold Property of Underworld Resources to the
northwest. NFR controls 198 square km (75 square miles) within the
district scale Freegold Mountain Project. Within the project
expanse are at least 20 identified mineralized zones, including the
Nucleus, Revenue and Tinta.
The Freegold Mountain Project is located on the Freegold
Mountain Road, a government maintained gravel road. The Freegold
Road connects to the Klondike Highway, an all weather paved
highway, which connects to Whitehorse, the capital of the Yukon,
and the major supply centre for the Yukon. Powerlines located along
the Klondike Highway are at present 30 km from the Freegold Project
boundary. The Carmacks Copper deposit will require a 12 km power
line to connect to the power grid along the Klondike Highway. From
this location, the power line would be within 7 km of the Freegold
Mountain project boundary.
Numerous multi-million ounce gold deposits occur in the Tintina
Gold Belt including the producing Fort Knox mine operated by
Kinross Gold Corporation and the Pogo mine operated by Sumitomo
Metal Mining in Alaska. Multi-million ounce development stage
projects include the recently discovered Livengood Project of
International Tower Hill Mines Ltd., also located in Alaska. In
close proximity to the Freegold Mountain Project area, the Carmacks
Copper Deposit of Western Copper Corporation is in its final
permitting stage and the Casino Copper-Gold-Moly Deposit has
entered into the Yukon Environmental Assessment Process.
Northern Freegold is a well financed rapidly advancing
Canadian-based precious metals exploration and development company,
which brings local expertise and strong management to focus on the
development of economic mineral resources on the district-scale
Freegold Mountain gold and copper project in the Yukon and the
Burro Creek gold and silver property in Arizona.
Northern Freegold Resources Ltd.
On behalf of the Board of Directors
Susan P. Craig, President & CEO
Cautionary Note Regarding Forward-Looking Statements The
information in this press release includes certain "forward-looking
statements" All statements, other than statements of historical
fact, included herein including, without limitation, plans for and
intentions with respect to the company's properties, statements
regarding intentions with respect to obligations due for various
projects, strategic alternatives, quantity of resources or
reserves, timing of permitting, construction and production and
other milestones, are forward looking statements. Statements
concerning Mineral Reserves and Mineral Resources are also
forward-looking statements in that they reflect an assessment,
based on certain assumptions, of the mineralization that would be
encountered and mining results if the project were developed and
mined in the manner described. Forward-looking statements involve
various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from NFR's expectations include the
uncertainties involving the need for additional financing to
explore and develop properties and availability of financing in the
debt and capital markets; uncertainties involved in the
interpretation of drilling results and geological tests and the
estimation of reserves and resources; the need for cooperation of
government agencies and First Nation groups in the exploration, and
development of properties; and the need to obtain permits and
governmental approval. NFR's forward looking statements reflect the
beliefs, opinions and projections of management on the date the
statements are made. NFR assumes no obligation to update the
forward looking statements if management's beliefs, opinions,
projections, or other factors should they change.
Cautionary Note Regarding Reserve and Resource Estimates This
press release has been prepared in accordance with the requirements
of the securities laws in effect in Canada, which differ from the
requirements of U.S. securities laws. Unless otherwise indicated,
all resource and reserve estimates included in this press release
have been prepared in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Canadian Institute of Mining and Metallurgy Classification System.
NI 43-101 is a rule developed by the Canadian Securities
Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. Canadian standards, including NI
43-101, differ significantly from the requirements of the United
States Securities and Exchange Commission ("SEC"), and resource and
reserve information contained herein may not be comparable to
similar information disclosed by U.S. companies. In particular, and
without limiting the generality of the foregoing, the term
"resource" does not equate to the term "reserves". Investors should
also understand that "inferred mineral resources" have a great
amount of uncertainty as to their existence and great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of an "inferred mineral resource" will ever be
upgraded to a higher category. The estimation of quantities of
resources and reserves is complex, based on significant subjective
assumptions and forward-looking information, including assumptions
that arise from the evaluation of geological, geophysical,
engineering and economic data for a given ore body. This data could
change over time as a result of numerous factors, including new
information gained from development activities, evolving production
history and a reassessment of the viability of production under
different economic conditions. Changes in data and/or assumptions
could cause reserve estimates to substantially change from period
to period. No assurance can be given that the indicated level of
mineral will be produced. Actual production could differ from
expected production and an adverse change in mineral prices could
make a reserve uneconomic to mine. Variations could also occur in
actual ore grades and recovery rates from estimates.
To view the maps accompanying this news release, please click on
the following link:
http://media3.marketwire.com/docs/nfr511m.pdf.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Northern Freegold Resources Ltd. Julie Hajduk Investor
Relations Manager (604) 893-8757 or 1-877-893-8757 (604) 893-8758
(FAX) www.northernfreegold.com
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