Northern Freegold Announces 2013 Exploration Plan for Freegold Mountain Project, Yukon
26.06.2013 | The Newswire
Vancouver, BC: June 26, 2013. Northern Freegold Resources Ltd. (NFR: TSX-V, NFRGF: OTCQX) is pleased to announce the exploration plan for the Freegold Mountain Project ("Freegold"), in the Yukon, Canada. The project is 100% owned by Northern Freegold (the "Company"), and is road accessible, located 70 km west of Carmacks, Yukon in the Dawson Range.Recent work on the Freegold project has been focused on the Nucleus and Revenue deposits where Northern Freegold has developed significant gold-copper-molybdenum-silver resources and recently completed a NI 43-101 compliant Preliminary Economic Assessment ("PEA") which demonstrated the potential technical and economic viability of a new gold with copper and molybdenum mine on the property (see news release dated February 20, 2013). The PEA incorporated the latest NI 43-101 mineral resource estimates for both Nucleus and Revenue deposits.
Table 1: Mineral Resource Estimate for Nucleus Deposit (see news release dated January 9, 2013)
----------------------------------------------------------------------
|Indicated
|
|--------------------------------------------------------------------|
|Cut-off|Tonnes |Au |Ag |Cu
|
|AuEq | | | |
|
|(g/t) | | | |
|
| |
|-------------------------------------------------|
| | |Grade|Ozs |Grade|Ounces |Grade|lbs
|
| | |(g/t)| |(g/t)| |(%) |
|
|--------------------------------------------------------------------|
|0.20 |93,733,089|0.480|1,445,425|0.81 |2,427,268|0.05
|110,726,000|
|--------------------------------------------------------------------|
|0.25 |71,904,900|0.567|1,310,039|0.85 |1,967,789|0.06 |88,544,244
|
|--------------------------------------------------------------------|
|0.40 |36,137,402|0.849|986,549 |1.01 |1,175,181|0.06 |50,631,288
|
|--------------------------------------------------------------------|
|0.50 |25,889,606|1.023|851,603 |1.11 |924,040 |0.07 |37,782,715
|
|--------------------------------------------------------------------|
|0.75 |12,797,289|1.492|613,956 |1.49 |613,661 |0.07 |19,023,554
|
|--------------------------------------------------------------------|
|Inferred
|
|--------------------------------------------------------------------|
|Cut-off|Tonnes (x |Au |Ag |Cu
|
|AuEq |1,000) | | |
|
|(g/t) | | | |
|
| |
|-------------------------------------------------|
| | |Grade|Ozs |Grade|Ounces |Grade|lbs
|
| | |(g/t)| |(g/t)| |(%) |
|
|--------------------------------------------------------------------|
|0.20 |86,660 |0.34 |956,000 |1.3 |3,545,000|0.04 |80,127,000
|
|--------------------------------------------------------------------|
|0.25 |60,398 |0.41 |801,000 |1.5 |2,876,000|0.04 |52,244,000
|
|--------------------------------------------------------------------|
|0.40 |29,182 |0.55 |518,000 |2.0 |1,866,000|0.04 |27,725,000
|
|--------------------------------------------------------------------|
|0.50 |13,432 |0.73 |315,000 |2.2 |952,000 |0.04 |11,610,000
|
|--------------------------------------------------------------------|
|0.75 |3,781 |1.27 |155,000 |2.3 |283,000 |0.03 |2,601,000
|
----------------------------------------------------------------------
Table 2: Mineral Resource Estimate for the Revenue Deposit (see news
release dated January 18, 2012)
-----------------------------------------------------------------------------------
|Cut-off|Tonnes |Gold |Silver |Copper
|Molybdenum |
|AuEq |(x | | | |
|
|(g/t) |1,000) | | | |
|
| |
|-----------------------------------------------------------------|
| | |g/t |Ounces |g/t |Ounces |% |Pounds |%
|Pounds |
|---------------------------------------------------------------------------------|
|0.30 |157,619|0.27|1,345,000|2.49|12,605,000|0.11|370,517,000|0.03
|103,560,000|
|---------------------------------------------------------------------------------|
|0.40 |128,719|0.30|1,232,000|2.76|11,420,000|0.12|331,554,000|0.03
|98,409,000 |
|---------------------------------------------------------------------------------|
|0.50 |100,983|0.34|1,119,000|3.14|10,194,000|0.13|286,871,000|0.04
|89,606,000 |
|---------------------------------------------------------------------------------|
|0.60 |80,841 |0.38|994,000 |3.40|8,831,000 |0.13|239,407,000|0.05
|84,527,000 |
|---------------------------------------------------------------------------------|
|0.70 |61,541 |0.43|850,000 |3.64|7,211,000 |0.15|199,568,000|0.06
|76,941,000 |
-----------------------------------------------------------------------------------
i)Gold equivalent (AuEq) for the Nucleus Resource is calculated based upon 3 year trailing average prices (at the time of the resource estimate) of US$1,455/oz for gold, US$27.55/oz for silver and US$3.65/lb for copper and assumes metallurgical recoveries of 97% for gold, 51% for silver and 43% for copper (Note: total contained AuEq metal values may not add exactly because of rounding).- ii)Gold equivalent (AuEq) for the Revenue Resource is calculated based upon prices of US$1,016/oz for gold, US$15.82/oz for silver, US$2.95/lb for copper and US$15.82/lb for molybdenum, and assumes 100% metal recovery with no discount for metallurgical recovery in contained metal figures (Note: total contained AuEq metal values may not add exactly because of rounding.)
- iii)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.
Both the Nucleus and Revenue deposits remain open as to depth and width providing future potential to significantly increase the size of the resources. Exploration data on the property clearly indicates that substantial potential exists for scaling up the project economics, and this upside includes:
-Numerous mineralized showings occur outside the current NI 43-101 resource areas with similar characteristics to Nucleus or Revenue, which have seen minimal exploration and have the potential to develop into additional mineral deposits;
-Twelve priority geophysical anomalies associated with significant soil copper and gold geochemical anomalies have been identified for further exploration and have the potential to develop into additional mineral deposits. This includes the three kilometre long zone between the Nucleus and Revenue deposits.
2013 Exploration Plan
During the 2013 exploration program, the Company will initially focus on several areas to the east of the Nucleus and Revenue deposits. Prior exploration here has shown the potential for high grade epithermal veins through to low grade bulk tonnage systems. These include three target areas, Seymour, Goldstar/Discovery and Goldy, which have all had work done in the past but where no recent systematic exploration has been completed. The proposed 2013 exploration program will consist of prospecting, geological mapping, soil sampling, hand and excavator trenching. The objective of the program is to generate additional areas of mineralization for follow up by diamond drilling. All three of these exploration targets are accessible from the Company's Bow Creek camp which is road accessible from Carmacks.
Seymour
Previous exploration in this area has involved mapping, grid soil and rock geochemistry, magnetic and VLF electromagnetic geophysical surveys and limited hand and mechanized trenching. Three porphyry targets (Stoddart, Castle, and Cabin) occur proximal to an epithermal style IP anomaly in the target area. Showings in the area have received some mechanized trenching. Historic work in the Seymour target area has been sporadic; as a result there are large holes in the existing geochemical sampling coverage and a lack of documented follow-up exploration on known geochemical anomalies. This provides anopportunity to discover new zones of significant gold mineralization.
In 1981, a series of linear gold in soil anomalies, referred to as the Northwest Zone, was outlined by a grid soil geochemical survey. Widely spaced grid soil sampling (100m stations on lines 100m apart) by Chevron in 1985 to 1986 further delineated the anomaly, outlining at least six linear west-northwest trending anomalies with maximum values of 844 ppb Au, 11 ppm Ag 2,550 ppm As and 165 ppm Cu covering an area of 1,500m x 2,000m.
Reconnaissance sampling by Midnight Mines Ltd., in 1994 and 1996, confirmed significant gold in soil anomalies in the Northwest Zone with values of 574 ppb Au, 21.3 ppm Ag and 3,790 ppm As at the later defined Amanda showing and 127 ppb Au, 5.3 ppm Ag and 482 ppm Cu at the later defined Lucinda showing. In 1986 Noranda completed a 353 sample soil survey (50m stations on lines 100m apart) on the Elephant claims to the south of the Northwest Zone, covering the drainage basin of Guder Gulch. Boulders of magnetite carrying free gold have been recovered from active placer mining operations in this gulch suggesting the possible occurrence of an Augusta-type gold bearing magnetite skarn in the headwaters. Sampling in 1987 returned 2,200 ppb Au, 5.8 ppm Ag and 2,560 ppm As from fractures within the schist, probably similar in style to the massive pyrite stringers, up to 10 cm wide, reported from the bedrock of the placer operation in Guder Gulch.
Old hand trenches (referred to as the Melissa Showing) within the Northwest Zone gold in soil anomaly were sampled in 1985 and 1986, returning 0.76 g/t Au in 1985 and 1.03 g/t Au in 1986 from limonitic schist with quartz vein chips, proximal to a felsic porphyry dyke. Noranda conducted 242 line meters of mechanized trenching in six trenches in 1987 on the Elephant claims in the Guder Gulch area. The program was hindered by permafrost and failure to reach bedrock, but 2.14 g/t Au with 324 ppm As was obtained in Trench TGC-87-02. Prospecting and hand trenching conducted by ATAC Resources Ltd., from 2001 to 2003 yielded significant results from three separate zones. In 2004 eleven follow up excavator trenches were completed by ATAC, six on the Melissa, one on the Lucinda and four on the Jilly-Bob. Results are tabulated in the tables below:
Table 3: Significant 2001-2003 Trench Results - Seymour
--------------------------------------------------------------------
|Trench |Year|Showing |Gold |Silver |Width|Sample Description |
| | | |(g/t)|(g/t) |(m) | |
|------------------------------------------------------------------|
|pit |2003|Melissa |5.67 |52.8 |? |limonitic, 30 cm
|
| | | | | | |white quartz boulders|
| | | | | | |>1% Pb
|
|------------------------------------------------------------------|
|rock out |2001|Lucinda |2.14 |700 |? |limonitic quartz
vein|
| | | | | | |with up to 8.17% Pb |
|------------------------------------------------------------------|
|Seymour 1|2002|Lucinda |0.73 |217 |0.45 |quartz vein with |
| | | | | | |2.02% Pb |
|------------------------------------------------------------------|
|Seymour 2|2002|Lucinda |0.31 |119 |0.35 |quartz vein with |
| | | | | | |1.63% Pb |
|------------------------------------------------------------------|
|Seymour 3|2002|Lucinda |? |24.1 |0.40 |skarn with 0.3% Pb
|
|------------------------------------------------------------------|
|road cut |2002|Jilly-Bob|2.38 |237.4 |? |drusy, pitted quartz
|
| | | | | | |float with Pb, Bi, Sb|
|------------------------------------------------------------------|
|trench |2003|Jilly-Bob|1.57 |19.1 |0.35 |quartz, clay gouge, |
| | | | | | |rare galena pods |
--------------------------------------------------------------------
Table 4: 2004 Trench Results - Seymour
-------------------------------------------------------------------
|Trench Name|Showing |Gold |Silver |Width |Sample Description |
| | |(g/t)|(g/t) |(m) | |
|-----------------------------------------------------------------|
|TRS04-01 |Melissa |0.613|8.24 |31.5 |manganiferrous |
| | | | | |metasedimentary rocks |
|-----------------------------------------------------------------|
|TRS04-02 |Melissa |1.395|? |4.0 |feldspar porphyry dyke|
|-----------------------------------------------------------------|
|TRS04-06 |Jilly-Bob|3.25 |573 |1.8 |quartz vein |
|-----------------------------------------------------------------|
|TRS04-07 |Jilly-Bob|0.228|142 |0.7 |quartz vein |
|-----------------------------------------------------------------|
|TRS04-08 |Jilly-Bob|? |? |? |off vein trend and
|
| | | | | |insufficient depth |
|-----------------------------------------------------------------|
|TRS04-09 |Jilly-Bob|0.432|9.83 |7 |includes three quartz |
| | | | | |veins |
|-----------------------------------------------------------------|
|Including |? |9.79 |106 |0.1 |quartz vein |
|-----------------------------------------------------------------|
|TRS04-10 |Lucinda |? |16.6 |3 |0.2% Pb |
-------------------------------------------------------------------
Goldstar/Discovery
The Discovery Zone includes a number of shear hosted vein systems and magnetite skarn horizons which contain high grade gold mineralization. There has been historical exploration work done in the area dating back to the 1930's including geochemical sampling, trenching, prospecting, and diamond and percussion drilling targeting skarn mineralization. Although skarn horizons have historically returned high gold grades, the primary target of the exploration efforts will focus on evaluating the potential for a high-grade shear hosted gold deposit in the 1935 Shaft and Augusta Zones. Previous sampling from one of the dumps at the 1935 Shaft Zone returned assays
of 26.3 g/t Au from epithermal style vein material. Significant results are tabulated below for Dynasty's 1974 program on the Augusta - Margarete zones.
Table 5: Significant Trench Results - Goldstar, 1974
--------------------------------------------------------------------
|Trench Name |Gold (g/t)|Silver (g/t)|Width (m)|Sample |
| | | | |Description |
|------------------------------------------------------------------|
|Trench A |30.5 |326 |1.4 |magnetite, |
| | | | |limonite, |
| | | | |quartz |
|------------------------------------------------------------------|
|Trench B |6.17 |347 |1.5 |magnetite, |
| | | | |limonite, |
| | | | |quartz |
|------------------------------------------------------------------|
|Pit W of Trench B|26.1 |13.7 |grab |magnetite, |
| | | | |limonite, |
| | | | |quartz |
|------------------------------------------------------------------|
|Pit E of Trench B|33.3 |477 |grab |magnetite, |
| | | | |limonite, |
| | | | |quartz |
|------------------------------------------------------------------|
|Trench C |2.74 |120 |1.8 |magnetite, |
| | | | |metaseds |
|------------------------------------------------------------------|
|Trench D |4.46 |41.5 |1.5 |metaseds, |
| | | | |limonite |
|------------------------------------------------------------------|
|Trench E |6.86 |59.7 |0.6 |quartz vein |
|------------------------------------------------------------------|
|Trench F |3.77 |12.7 |1.8 |limonite, |
| | | | |jarosite, |
| | | | |magnetite |
|------------------------------------------------------------------|
|Trench G |11.31 |156 |1.5 |metaseds, |
| | | | |jarosite, |
| | | | |pyrite, cp |
|------------------------------------------------------------------|
|Trench H |7.54 |69.9 |0.6 |quartz vein |
|------------------------------------------------------------------|
|Trench K |6.86 |18.9 |4.0 |rusty metaseds|
|------------------------------------------------------------------|
|Trench T |6.17 |280 |2.1 |magnetite, |
| | | | |jarosite, |
| | | | |quartz |
|------------------------------------------------------------------|
|Trench U |41.83 |885 |1.1 |quartz vein |
--------------------------------------------------------------------
During 1987, Chevron completed 7.2 km of mechanized trenching on the Augusta - Margarete zones. Significant results are tabulated below:
Table 6: Significant Trench Results - Goldstar, 1987
-----------------------------------------------------------------
|Trench Name|Length (m)|Interval (m)|Gold (g/t)|Silver|Width (m)|
| | | | |(g/t) | |
|---------------------------------------------------------------|
|G-0 |140 |10.0-13.5* |13.8 |213 |3.5 † |
|---------------------------------------------------------------|
|G-1 |158 |106-111 |365.9 |106 |5.0 † |
|---------------------------------------------------------------|
|G-10 |364 |105.5-108.5*|7.21 |154 |3.0 † |
|---------------------------------------------------------------|
|? |? |304-314* |1.31 |54.0 |10.0 †
|
|---------------------------------------------------------------|
|G-5 |325 |80-85 |7.1 |3.0 |5.0 |
|---------------------------------------------------------------|
|G-23 |650 |315-320S |3.3 |4.1 |5.0 |
|---------------------------------------------------------------|
|H-1 |30 |0.0-5.0* |16.0 |28.0 |5.0 |
|---------------------------------------------------------------|
|H-10 |20 |0.0-10.0* |7.0 |28.8 |10.0 |
|---------------------------------------------------------------|
|incl. |? |5.0-10.0 |12.2 |'17.5 |5.0 |
|---------------------------------------------------------------|
|HM-1 |15 |10.0-11.0 |13.8 |58.0 |1.0 |
|---------------------------------------------------------------|
|HM-2 |20 |6.0-8.5* |6.7 |251 |2.5 |
|---------------------------------------------------------------|
|HM-3 |42 |30-35 |1.4 |4.4 |5.0 |
|---------------------------------------------------------------|
|HM-4 |23 |6.0-7.0 |13.4 |NSS |1.0 |
|---------------------------------------------------------------|
|HM-7 |35 |20-30* |1.1 |108 |10.0 |
|---------------------------------------------------------------|
|HM-10 |60 |30-35 |1.9 |30.8 |5.0 |
|---------------------------------------------------------------|
|HM-15 |19 |0.0-3.0 |4.7 |158 |3.0 |
|---------------------------------------------------------------|
|HM-21 |22 |0.0-5.0 |1.2 |59.0 |5.0 |
-----------------------------------------------------------------
* denotes weighted average +denotes 5kg samples
Goldy
The Goldy Zone includes a number of metre to decimetre scale shear hosted quartz veins and veinbreccia systems which have returned high-grade gold assays. Exploration of the Goldy Zone began in the 1930s, and since that time geochemical surveys, geophysics surveys, hand and mechanized trenching, drilling, and limited underground development has been conducted to follow up on the Goldy, Emmons Hill, Whale, Forbes, and Dart showings. Historical trenching in the Goldy area has returned significant gold-arsenic results including 1.6 g/t Au across 44m and 12.6 g/t Au over 2m and outlined a general north-south trending structure that may control mineralization. Other significant results have been obtained from the Forbes (1.2 g/t Au over 10m) and southwest of the Whale Exposure (1.9 g/t Au).
The primary focus of exploration efforts will follow up on gold-in-soil anomalies north of the Goldy showing through hand and mechanized trenching as well as four to six line km of soil sampling and prospecting encompassing the Dart showing to delineate the strike extension of the mineralized zone.
Corporate Update - Cost Reductions
Following the equity financing which the Company closed in April, the Company as of May 31st had cash of $1.67 million. The Company has no outstanding flow through share obligations. The proposed 2013 exploration program is fully funded. The Company benefits from the fact that it is debt free; its key Freegold project is 100% owned with no further payments due. Furthermore the Freegold property is in good standing relative to any assessment obligations until 2019.
Notwithstanding this, given the capital constraints in the mining industry, we continue to reduce the Company's G&A costs and manage the overall burn rate. In recent months we have reduced the Company's monthly G&A costs by over 66% on a comparable period in 2012 through several cost cutting measures such as an office relocation, a reduction in salaried staff and in staff salaries/fees, curtailment of Directors' fees and a slashing of investor relations costs. We will monitor this closely in the months ahead and make adjustments where necessary.
The Freegold Mountain project is located within the Dawson Range and covers an area in excess of 198 square kilometres (75 square miles). It is believed that the Nucleus Deposit and the Revenue Deposit along with the Stoddart Zone are all part of a large scale gold-rich porphyry system, which extends in an east-west direction for more than eight kilometres. The project has significant infrastructure advantages. It is located approximately 200 kilometres northwest of Yukon's capital and industrial center in Whitehorse. It is road accessible from Whitehorse, along the main Klondike Highway, a paved all-weather highway running from Whitehorse to Dawson City thence along a 70 kilometre government maintained road from Carmacks.
Paul Reynolds, B. Sc. P. Geo., Vice President Exploration for Northern Freegold Resources Ltd., is the Qualified Person, as defined by NI 43-101, for the Freegold Mountain Project and has reviewed the technical information in this release.
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About Northern Freegold
Northern Freegold Resources Ltd. (TSX.V: NFR; OTCQX: NFRGF) trades in Canada on the TSX Venture Exchange under the symbol "NFR" and in the United States on the OTCQX under the symbol "NFRGF". Northern Freegold is a growth oriented Canadian-based precious metals exploration and development company. Northern Freegold is focused on creating value through the advancement of the district scale Freegold Mountain project, which hosts one of the largest undeveloped gold and copper resources in the Yukon and the Burro Creek gold and silver property in Arizona. For maps and more information, please visit our website www.northernfreegold.com
On behalf of the Board of Directors
Signed "John Burges"
John Burges, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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, 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 testing and the estimation of reserves and resources; the need for cooperation of government agencies and First Nations 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 change.