Northern FreeGold Announces NI 43-101 Indicated and Inferred Resource Estimate at Burro Creek Property, Arizona
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/28/11 -- Northern Freegold Resources Ltd. (TSX VENTURE: NFR)(OTCBB: NFRGF)(FRANKFURT: 8NG) is pleased to announce that a NI 43-101 indicated and inferred resource estimated has been prepared for the epithermal gold-silver Burro Creek deposit located in northwestern Arizona, U.S.A. Based upon historical drill results and a 2,565 m program drilled by NFR, the resource expanded and updated historical results on an open pit type epithermal gold/silver mineralized zone on the property as well as adding mineralization within the extensive epithermal vein system which is still open for expansion along strike and to depth.
Burro Creek Property Highlights
-- NI 43-101 resource estimate includes
-- An indicated resource of 75,600 contained ounces of gold and
2,757,000 contained ounces of silver (at 0.5 g/t AuEq cut-off)
within 2.8 million tonnes grading 1.01 g/t gold and 36.77 g/t silver
-- An inferred resource of 43,200 contained ounces of gold and
2,236,000 contained ounces of silver (at 0.5 g/t AuEq cut-off)
within 2.2 million tonnes grading 0.60 g/t gold and 30.95 g/t silver
-- Excellent infrastructure with Arizona State Highway 93 and parallel high
tension powerlines within 1.6 km of deposit; water rights secured on the
patented mine property
-- The vein mineralization is open to NW and SE as well as at depth; only
300 m of vein drilled to date. The vein system outcrops 1.7 km from the
drilled area.
Mineral Resource Estimate for Burro Deposit
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AuEq(i) Gold Silver AuEq
Cut- Grade Contained Grade Contained Grade Contained
off(g/t) Tonnes (g/t) Gold (oz) (g/t) Silver (oz) (g/t) AuEq(oz)
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Indicated
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0.1 g/t 2,390,173 0.99 76,013 36.13 2,776,930 1.60 123,280
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0.5 g/t 2,331,871 1.01 75,567 36.77 2,756,778 1.63 122,491
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1.0 g/t 1,854,615 1.15 68,687 40.69 2,426,363 1.84 109,987
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2 g/t 597,424 1.68 32,234 53.68 1,031,131 2.59 49,785
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Inferred
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0.1 g/t 2,307,891 0.59 43,730 30.42 2,257,402 1.11 82,154
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0.5 g/t 2,247,069 0.60 43,243 30.95 2,236,113 1.13 81,304
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1.0 g/t 1,249,248 0.72 29,051 43.96 1,765,707 1.47 59,106
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2 g/t 87,778 1.18 3,327 63.06 177,973 2.25 6,356
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(i) Gold equivalent (AuEq) is calculated based upon prices of US$846.00/oz
gold and US$14.40/oz for silver with no discount for metallurgical recovery
in contained metal figures (Note: total contained AuEq values may not add
exactly because of roundings).
Susan Craig, NFR's President & CEO commented, 'The 43-101 resource Calculation at Burro falls in line with Northern Freegold's stated mission of developing resources and building reserves. Management can now more ably determine the future direction of exploration, development or disposition of this growing resource.'
Burro Resource Estimate
The 2010 Mineral Resource Estimate is based on 96 drill holes and more than 2,600 assay values. Assay values used in the resource estimate were verified against assays on 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-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 2 m blocks in the x, y, and z direction respectively. Grades for gold and silver were interpolated into the blocks by the inverse distance squared method using between 2 and 12 composites to generate block grades.
An average specific gravity (SG) of 2.51 was used based on extensive SG testing of representative core which determined a range of 2.03 to 2.89 for various mineralized rock types. No capping of composites was applied.
The indicated and inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Dr A. Armitage, Ph.D., 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, for the mineral resource estimate component of the technical report. Dr. Armitage has made a property examination and is independent of the Company under NI 43-101. A NI 43-101 report will be filed on SEDAR by end of day.
Mineralization remains open at depth and along strike. GeoVector recommends additional drilling to increase the overall resource at Burro Creek.
About the Burro Creek Property
The Burro Creek Property is adjacent to State Highway 93 in Mohave County, Arizona, 65 miles (105 km) southeast of Kingman, Arizona, and 164 miles (265 km) southeast of Las Vegas, Nevada. The 3000 acre property consists of four patented mineral claims and 100 surrounding unpatented mineral claims.
The Property covers a low-sulphidation epithermal vein system that has been traced for over 1 mile (1.7 km) and exhibits widths of up to 150 feet (45 m). Gold grades of up to 1.2 oz/ton (check) have been encountered over narrow widths within the vein highlighting potential for encountering higher grade resources.
The Property was fully permitted to commence production in the 1980s, but the production decision was deferred due to a decline in the gold price. At that time, the intent was to place the existing resource into production, and continue to expand the resource through exploration funded by the ensuing profits.
Conference call Monday February 28,2011
Northern Freegold is pleased to give investors an opportunity to hear President & CEO Susan Craig discuss the significance of the recently released resource and target deposit calculations at its Freegold Mountain Project in Yukon as well as the significance of the Burro Creek resource. Phone lines will be open following the update. The call has been scheduled for today, commencing at 1:30 PM PST (4:30 PM EST). Participants may call in to join the conference call at 416-340-8530 or Toll Free at 1- 877-240-9772. If you are unable to join us at the designated time, please go to our home page at www.northernfreegold.com where you will find the audio copy of the conference call. Also, you may call in at 905-694-9451 / 800-408-3053 Pass code: 5818145 for an instant replay until March 14, 2011.
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
William Harris, Chairman & COO
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Northern Freegold Resources Ltd.
Julie Hajduk
Investor Relations Manager
604.893.8757 or Toll Free: 877.893.8757
604.893.8758 (FAX)
www.northernfreegold.com