Northern Freegold Resources Ltd. (TSX VENTURE: NFR) is pleased to
announce an updated NI 43-101 mineral resource estimate for the
Nucleus deposit, located on the road accessible district scale
Freegold Mountain Project in the Yukon.
The new resource (at a 0.4 AuEq cut-off) contains 48.5M tonnes
grading 0.70 g/t gold, 0.90 g/t silver and 0.06% copper (1.1 M oz
Au, 1.4 M oz Ag, 67.8 M lbs Cu or 1.4 Moz AuEq) in the Indicated
Category and 41.5M tonnes grading 0.47 g/t gold, 0.98 g/t silver
and 0.07% copper (0.6 M oz Au, 1.3 M oz Ag and 62.0 M lbs Cu or
0.9Moz Au Eq)in the Inferred Category(as shown in Table 1). The new
resource indicates a substantial increase in total ounces, as well
as a significant portion of the resource being upgraded from an
Inferred to an Indicated resource category.
The new estimate includes 16 step-out drill holes from the 2010
program, and incorporates gold, silver and copper values at the
Nucleus Deposit. This reflects Management's understanding that the
Nucleus Deposit is part of a larger gold rich porphyry system
extending to the east. Management is currently evaluating the 2010
drill results from the adjacent Revenue Zone and the Titan
geophysical survey which encompassed the Nucleus and Revenue
(figure 1: http://media3.marketwire.com/docs/6755001.pdf) to
determine the context of the relationship to the larger porphyry
system and expects to report on the significance of this
relationship in the near future.
The Nucleus deposit mineralization begins at surface and is open
to expansion laterally and at depth. The existing resource estimate
tests only the upper reaches of a high chargeability and high
conductivity zone identified by the Titan 24 survey completed in
2010 (see attached figure 2:
http://media3.marketwire.com/docs/6755002.pdf). This zone extends
over an area 1.5 km wide by 1.5 km long at an approximate depth of
100 to 500 m below surface.
Table 1: Mineral Resource Estimate for Nucleus Deposit
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Gold Silver Copper Gold Equivalent
----------------------------------------------------------------------------
AuEq
(i)
Cut- Gra- Contained Gra- Contained Gra-
off de Au de Ag Gra- Contained de Contained
(g/t) Tonnes (g/t) ounces (g/t) ounces de % Cu lbs (g/t) ounces
----------------------------------------------------------------------------
Indicated
----------------------------------------------------------------------------
0.30 70,192,000 0.55 1,250,000 0.78 1,756,000 0.06 87,599,000 0.72 1,635,000
----------------------------------------------------------------------------
0.40 48,499,000 0.70 1,096,000 0.90 1,398,000 0.06 67,753,000 0.89 1,393,000
----------------------------------------------------------------------------
0.50 34,616,000 0.86 961,000 1.02 1,189,000 0.07 52,964,000 1.07 1,194,000
----------------------------------------------------------------------------
Inferred
----------------------------------------------------------------------------
0.30 64,210,000 0.38 783,000 0.85 1,751,000 0.06 84,390,000 0.56 1,153,000
----------------------------------------------------------------------------
0.40 41,449,000 0.47 627,000 0.98 1,307,000 0.07 62,026,000 0.67 898,000
----------------------------------------------------------------------------
0.50 26,939,000 0.59 509,000 1.05 912,000 0.07 41,593,000 0.80 691,000
----------------------------------------------------------------------------
(i)Gold equivalent (AuEq) is calculated based upon prices of US$846/oz for
gold, US$14.40/oz for silver, and US$3.31/lb for copper with no discount
for metallurgical recovery in contained metal figures (Note: total contained
AuEq values may not add exactly because of rounding).
Nucleus Zone Resource Estimate
The 2011 updated mineral resource estimate is based on an
additional 11 diamond (3073 metres) and 5 reverse circulation (RC)
(863 metres) step-out drill holes and 2380 assay values collected
from the 2010 drill program. A plan map showing the 2010 drill
holes and projected (to surface) resource outline can be seen in
figure 3 (To view figure 3, please visit the following link:
http://media3.marketwire.com/docs/6755003.pdf). The resource
estimate is categorized as indicated and inferred as defined by the
CIM guidelines for resource reporting. Mineral resources do not
demonstrate economic viability, and there is no certainty that
these mineral resources will be converted into mineable reserves
once economic considerations are applied.
The resource estimate is based on more than 29,000 assay values
from 318 drill holes (totaling greater than 49,000 metres). Assay
values were verified against drill logs and assay certificates.
Drill hole collar locations and down-hole surveys were checked and
verified. The mineral resource was estimated using 1.50 metre
composites of the assay values, with "zero" grade inserted into
intervals that were not sampled.
A geological model was constructed of the Au-Cu-Ag mineralized
zone. This model was used to constrain the composite values chosen
for interpolation and the ore blocks reported in the mineral
resource. A block model was constructed using 10 m x 10 m x 5 m
blocks in the x, y, and z direction respectively. Grades for gold,
copper and silver were interpolated into the blocks by the inverse
distance squared method using a minimum of 4 and maximum of 20
composites (within a minimum of two drill holes) to generate block
grades in the indicated category and a minimum of 2 and maximum of
12 composites to generate block grades in the inferred
category.
The indicated and inferred mineral resource estimate has been
prepared in compliance with the standards of NI 43-101 by Dr A.
Armitage, P. Geol., and J. Campbell, B.Sc., P. Geo., of GeoVector.
GeoVector is an Ottawa, Ontario consulting firm specializing in
resource estimation, project assessment and project management. Dr.
Armitage acted as the Qualified Person, as defined in NI 43-101 and
is independent of the Company. An updated NI 43-101 report will be
finalized and filed on SEDAR within 45 days of the date of this
news release.
Dr A. Armitage, P. Geol., is the Qualified Person, as defined by
NI 43-101, for the Freegold Mountain Project, including the Nucleus
Deposit, and has reviewed the technical information in this
release.
GeoVector has reviewed and approved the information in this news
release.
2010 Program
A total of 11 diamond drill holes and 5 reverse circulation
drill holes were drilled in the Nucleus zone in 2010. Assay results
from these holes continue to confirm that the Nucleus Deposit holds
excellent potential to expand and delineate an important
bulk-tonnage deposit that could support an open pit-style mining
operation. A few of the step-out holes highlighted in Table 2
indicate:
1. Potential for growing the resource; and
2. Copper and silver associated with gold mineralization
A complete table of the 2010 drill program showing broad,
continuous intervals of bulk-tonnage style gold, silver and copper
mineralization can be found at the end of the release.
Table 2: Select drill results from 2010 program
----------------------------------------------------------------------------
Length From To Interval Au Ag Cu Au_eq(1)
HOLE-ID (m) (m) (m) (m) (g/t) (g/t) (%) (g/t)
----------------------------------------------------------------------------
GRD10-164 301.00 18.00 32.00 14.00 0.85 1.64 0.02 0.93
96.24 300.84 204.60 0.13 1.04 0.08 0.37
Incl. 96.24 110.00 13.76 0.35 0.85 0.13 0.72
and 114.00 143.60 29.60 0.11 1.39 0.19 0.64
and 214.00 220.00 6.00 0.45 0.90 0.05 0.60
and 232.56 238.00 5.44 0.40 1.32 0.08 0.65
and 278.25 300.84 22.59 0.19 1.47 0.08 0.44
----------------------------------------------------------------------------
GRD10-165 280.00 68.82 149.85 81.03 0.12 1.13 0.10 0.43
Incl. 80.00 89.06 9.06 0.10 1.34 0.20 0.67
and 123.00 138.00 15.00 0.41 2.24 0.14 0.81
158.00 244.00 86.00 0.11 0.75 0.05 0.25
Incl. 159.45 165.00 5.55 0.24 1.48 0.11 0.55
and 192.72 196.78 4.06 0.34 2.52 0.11 0.67
----------------------------------------------------------------------------
GRD10-167 311.00 19.40 55.00 35.60 0.25 0.60 0.03 0.35
81.83 93.00 11.17 0.31 0.28 0.01 0.35
117.35 214.00 96.65 0.11 1.79 0.10 0.41
Incl. 117.35 145.00 27.65 0.18 2.29 0.13 0.58
and 154.70 158.63 3.93 0.31 6.27 0.23 1.04
and 190.30 208.17 17.87 0.14 2.57 0.14 0.56
----------------------------------------------------------------------------
GRD10-168 297.00 16.10 34.00 17.90 0.48 0.41 0.05 0.61
Incl. 21.65 34.00 12.35 0.65 0.46 0.04 0.76
44.00 65.87 21.87 0.44 0.51 0.03 0.53
114.75 136.94 22.19 0.33 0.54 0.04 0.46
180.34 193.00 12.66 0.24 0.39 0.03 0.32
216.83 239.00 22.17 0.22 0.59 0.03 0.31
252.00 256.20 4.20 6.76 1.10 0.05 6.92
267.52 296.23 28.71 0.51 0.85 0.05 0.66
Incl. 267.52 281.00 13.48 0.75 0.92 0.06 0.93
----------------------------------------------------------------------------
(1)Au equivalent metal prices: US$846.00/oz gold, US$3.31/lb copper,
US$14.40/oz silver (no discount for metallurgical recovery in contained
metal figures).
All core samples from diamond drilling completed by Northern
Freegold in 2010 followed NI 43-101 approved QA/QC protocols
including insertion of blanks, commercial standards and duplicate
core samples. Drilling and sample collection for 2010 was
supervised by Dr. A. Armitage, P. Geol. The program was performed
to industry standards. For the 2010 program, assay samples were
split and shipped to ALS Laboratory's (ALS) sample preparation
facility in Whitehorse. Samples submitted to this lab are prepared
for shipping by logging into the ALS system, prepared by drying,
crush to appropriate particle size and representatively split to a
smaller size for shipping. The prepped samples are shipped to the
main North American laboratory in North Vancouver, BC for final
pulverizing and analysis. Samples were analyzed for gold by fire
assay (FA) with an atomic absorption finish (AA) on 30 gram
samples. All samples having more than 1,000 ppm gold were
re-assayed by FA and a gravimetric finish. Each sample is also sent
for multi-element analysis by the ICP-MS method, which includes Cu,
Ag, Mo and W.
As part of in-house QA/QC ALS inserts certified gold standards,
which are purchased from CDN Resource Labs. Standards are inserted
and three pulp duplicates are analyzed for every 20 samples. Random
additional repeats are also analyzed as required. Results from all
internal QC samples and repeats are reported.
If there are any analyses of the certified gold standards that
fall outside of the acceptable range the entire batch of 20 samples
will be re-run. If there are any significant gold values returned
from the "blank" core samples the entire batch of 20 samples will
be re-run. Upon completion of the 2010 assaying 5% to 10% of the
core sample pulps from 2010 drilling program will be submitted to
another lab for check assaying. No sample batch re-runs have been
necessary on the 2010 gold assay results received to date.
Third Party check assays were completed at Acme Analytical
Laboratories (Vancouver) Ltd.
2011 Exploration Program
Planning for a significant follow up exploration program for
2011 at Freegold Mountain is underway. 3D modeling of existing
drill and resource results, combined with the Titan geophysical
survey is being utilized to delineate targets to expand resources
and test the major Titan geophysical anomalies. Details of the
program will be released when finalized.
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.
2010 Nucleus Drill Hole Program (Holes GRD10-164, 165, 167, 168 already
reported in Table 2)
----------------------------------------------------------------------------
Length From To Interval Au Ag Cu Au_eq(1)
HOLE-ID (m) (m) (m) (m) (g/t) (g/t) (%) (g/t)
----------------------------------------------------------------------------
Nucleus (Diamond)
----------------------------------------------------------------------------
GRD10-166 37.00 Abandoned at 37 metres due to bad ground
----------------------------------------------------------------------------
GRD10-169 323.00 266.20 269.50 3.30 0.65 0.88 0.12 0.98
297.00 302.00 5.00 0.24 1.90 0.03 0.35
316.20 323.09 6.89 0.35 2.29 0.04 0.49
----------------------------------------------------------------------------
GRD10-170 148.00 No Significant Assays
----------------------------------------------------------------------------
GRD10-171 102.00 106.68 4.68 0.38 0.41 0.10 0.65
111.45 115.30 3.85 0.58 1.61 0.06 0.77
----------------------------------------------------------------------------
GRD10-172 363.00 39.30 49.85 10.55 0.36 1.30 0.01 0.41
51.89 54.00 2.11 0.41 0.00 0.03 0.49
78.00 80.16 2.16 0.41 1.90 0.01 0.47
----------------------------------------------------------------------------
GRD10-173 333.00 22.00 47.35 25.35 0.23 0.73 0.02 0.30
169.80 188.65 18.85 0.17 0.40 0.03 0.24
250.40 260.10 9.70 0.52 0.52 0.02 0.58
263.35 333.45 70.10 0.12 0.82 0.06 0.29
----------------------------------------------------------------------------
GRD10-174 309.00 74.68 77.72 3.04 1.27 0.39 0.02 1.34
82.50 108.00 25.50 0.20 0.66 0.04 0.31
128.00 138.00 10.00 0.16 0.50 0.03 0.25
168.86 191.00 22.14 0.11 0.67 0.03 0.21
260.00 275.00 15.00 0.33 1.19 0.07 0.53
288.00 307.00 19.00 0.15 0.73 0.04 0.27
----------------------------------------------------------------------------
Nucleus (RC)
----------------------------------------------------------------------------
NRC10-001 155.00 117.35 124.97 7.62 0.16 8.36 0.03 0.4
----------------------------------------------------------------------------
NRC10-002 172.00 135.64 158.50 22.86 0.18 0.39 0.05 0.32
----------------------------------------------------------------------------
NRC10-003 171.00 45.72 62.48 16.76 0.31 0.82 0.01 0.34
----------------------------------------------------------------------------
NRC10-004 155.00 64.01 155.45 91.44 0.15 0.38 0.04 0.27
Incl. 73.15 76.20 3.05 0.27 2.50 0.02 0.36
and 94.49 103.63 9.14 0.63 0.36 0.06 0.80
and 108.20 112.78 4.58 0.21 0.40 0.04 0.31
----------------------------------------------------------------------------
NRC10-005 191.00 126.49 137.16 10.67 0.13 1.01 0.03 0.24
149.35 164.59 15.24 0.12 0.84 0.02 0.19
----------------------------------------------------------------------------
(1)Au equivalent metal prices: US$846.00/oz gold, US$3.31/lb copper,
US$14.40/oz silver (no discount for metallurgical recovery in contained
metal figures).
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 877.893.8757 604.893.8758 (FAX)
www.northernfreegold.com
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