Northern Freegold Initiates Resource Expansion Program on Major Gold and Copper Target With 10,000 m Phase 1 Drill Program at Fr
May 11 2010 - 8:16AM
Marketwired Canada
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.
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