Northern Freegold Summarizes 2011 Exploration Program at the Freegold Mountain Project, Yukon
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/11/12 -- Northern Freegold Resources Ltd. (TSX VENTURE: NFR)(OTCBB: NFRGF)(FRANKFURT: 8NG) -
Highlights
-- Drilling successfully provided data to upgrade Revenue Zone Target
Deposit to Inferred Resource. A N.I. 43-101 compliant resource estimate
for the Revenue Zone is pending
-- Drilling at Revenue Zone extends known mineralization an additional
250 m east, 300 m north and 250 m depth;
-- Geophysics identifies multiple high-priority targets for mineralization
at Stoddart Zone, 6 km from Revenue
-- New institutional marketing campaign initiated
Northern Freegold Resources Ltd. is pleased to provide a summary of the results from the successful 2011 exploration program at the Freegold Mountain project, Yukon.
Northern Freegold President and CEO John Burges commented, 'We are very pleased with the progress made in 2011 at Freegold Mountain. The drilling at the Revenue Zone has given us the data we need to upgrade the Target Deposit into an inferred resource. Furthermore, we have greatly expanded the area of known mineralization at Revenue, and defined a number of highly prospective porphyry drill targets at the Stoddart Zone. In 2012 we will continue to work to build additional resources, and we believe that the Freegold Mountain project will emerge as a leading gold-copper porphyry deposit.'
The district-scale Freegold Mountain project includes three main zones that the Company believes are all part of a large-scale gold-copper-molybdenum porphyry system: the Nucleus deposit, the Revenue Zone, and the Stoddart zone. The system extends in an east-west direction for more than 8 kilometres. The project hosts a significant NI 43-101 resource at the Nucleus Deposit and directly adjacent to it to the east, a substantial Target Deposit at the Revenue Zone:
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Nucleus Deposit NI 43-101 Resource Summary (Feb. 2011)
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AuEq Gold Silver Copper
(M oz) (M oz) (M oz) (M lbs)
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Indicated 1.4(1) 1.1 1.4 67.8
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Inferred 0.9(2) 0.6 1.3 62
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(1) 48.5 Mt at 0.70 g/t Au, 0.90 g/t Ag and 0.06% Cu; (2) 41.5 Mt at
0.47 g/t Au, 0.98 g/t Ag and 0.07% Cu; 0.4 g/t AuEq cutoff; AuEq calculated
based upon prices of US$846/oz for Au, US$14.40/oz for Ag and US$3.31/lb
for Cu
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Revenue Zone Target Deposit Summary (Feb. 2011)
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Potential Potential Potential Potential
Range of Gold Silver Copper Molybdenum
Potential Ounces Ounces Pounds Pounds
Tonnes (grade) (grade) (grade) (grade)
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40-110 Mt 0.7-1.1 M oz 5.0-10.0 M oz 130-280 M lbs 9-18 M lbs
(0.3-0.5 g/t) (2.7-3.7 g/t) (0.11-0.14%) (0.007-0.011%)
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The potential quantity and grade of the Revenue Target Deposit is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Revenue Target Deposit being delineated as a mineral resource.
The main purpose of the 2011 exploration drill program was to provide sufficient data to upgrade the Au-Cu-Ag-Mo Revenue Zone from Target Deposit to Inferred Resource. Twenty seven (27) drill holes totaling approximately 12,375 metres were completed, with a total of 6,800 core intervals sampled for assay. Highlights of the drilling are reported in Table 1. These include multiple holes with mineralized intervals over 100 metres in length and in particular, hole RVD11-019 that returned 304.8 metres averaging 0.47 g/t gold, 3.68 g/t silver, 0.12% copper and 0.02% molybdenum, for a gold equivalent value of 0.95g/t. Data from the drill program data are currently being incorporated into the geological model. The first NI 43-101 resource estimate for the Revenue Zone is pending.
The Target Deposit is defined over 1500 metres in an east-west direction, and from surface to a depth of 250 metres. Step-out drill holes such as RVD11-20, 22 and 14 expanded the mineralized zone 200 metres to the north and an additional 250 metres at depth. In addition, Northern Freegold tested targets from the 2010 Titan-24 geophysical survey that lay nearly 500 metres to the east, and successfully identified new mineralization in all four holes, confirming the tremendous size potential of the Revenue porphyry system. The Revenue Zone remains open for further expansion laterally and to depth.
A map of the drill hole locations and the original news releases dated September 22, November 15 and December 29, 2011, are posted to the Company website: www.northernfreegold.com. Three-dimensional models of the project are available at: http://www.corebox.net/properties/freegold.
Table 1. Significant Gold, Copper, Silver and Molybdenum Intercepts From
the 2011 Revenue Zone Drill Program
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Length Au Ag Cu Mo AuEq
Hole # From To (m) (g/t) (g/t) (%) (%) (g/t)
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RVD11-014 282.2 492.3 210.1 0.20 1.94 0.07 0.01 0.46
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Incl. 300.9 330.7 29.8 0.39 1.54 0.18 0.02 1.02
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and 387.9 409.9 22.0 0.38 1.59 0.05 0.01 0.62
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and 452.6 465.5 12.9 0.50 1.64 0.13 0.03 1.10
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and 479.1 485.1 6.1 1.24 11.67 0.24 0.00 1.92
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RVD11-016 12.0 57.2 45.2 0.66 1.35 0.06 0.00 0.82
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RVD11-016A 322.8 342.8 20.0 0.01 0.77 0.05 0.05 0.63
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RVD11-016A 377.3 483.0 105.8 0.07 1.49 0.09 0.05 0.79
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Incl. 391.4 427.4 36.0 0.10 2.37 0.15 0.11 1.66
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RVD11-019 42.8 347.6 304.8 0.47 3.68 0.12 0.02 0.95
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Incl. 55.2 89.0 33.8 0.35 5.26 0.24 0.01 1.06
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and 141.5 263.2 121.7 0.93 6.20 0.16 0.03 1.64
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RVD11-020 192.9 222.5 29.6 0.47 2.58 0.07 0.00 0.69
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RVD11-020 242.4 399.1 156.7 0.16 2.53 0.10 0.00 0.42
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Incl. 338.3 351.2 13.0 0.63 9.01 0.32 0.00 1.45
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and 362.4 379.0 16.7 0.34 4.45 0.15 0.01 0.79
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RVD11-020 437.5 502.7 65.2 0.41 3.28 0.14 0.00 0.77
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RVD11-022 52.6 210.1 157.5 0.31 3.10 0.14 0.01 0.73
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Incl. 72.3 95.4 23.1 0.36 4.37 0.20 0.01 0.94
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and 102.9 147.3 44.4 0.42 4.53 0.19 0.01 0.99
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and 161.9 204.1 42.2 0.25 3.12 0.14 0.01 0.71
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RVD11-022 236.1 304.7 68.6 0.33 2.46 0.12 0.03 0.97
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RVD11-022 461.6 501.8 40.2 0.22 2.53 0.03 0.03 0.60
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RVD11-026 93.1 108.6 15.5 0.16 3.29 0.11 0.01 0.50
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RVD11-026 123.9 235.5 111.6 0.16 2.63 0.11 0.01 0.54
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Incl. 167.2 176.9 9.7 0.45 6.64 0.27 0.03 1.39
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and 194.6 215.5 20.9 0.23 4.20 0.19 0.02 0.94
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and 219.0 229.5 10.5 0.22 3.57 0.14 0.01 0.68
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RVD11-026 312.7 330.6 17.9 0.15 0.73 0.07 0.02 0.54
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RVD11-028 48.2 65.6 17.4 0.18 1.53 0.08 0.00 0.41
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RVD11-028 78.0 301.3 223.3 0.36 3.98 0.18 0.08 1.58
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Incl. 112.2 135.0 22.8 0.60 5.55 0.30 0.02 1.50
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and 146.7 272.3 125.6 0.44 5.15 0.21 0.13 2.29
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RVD11-031 235.7 374.4 138.6 0.26 1.85 0.08 0.02 0.69
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Incl. 288.7 296.1 7.4 2.16 14.02 0.77 0.04 4.39
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and 307.7 324.5 16.8 0.30 2.73 0.12 0.07 1.34
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RVD11-031 461.6 471.6 10.0 0.26 1.95 0.07 0.01 0.52
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RVD11-032 390.4 548.0 157.6 0.24 1.42 0.04 0.01 0.42
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Incl. 419.1 457.8 38.7 0.74 4.21 0.09 0.01 1.07
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(1) True widths unknown
(2) Au equivalent metal prices: US$1,016.00/oz gold, US$2.95/lb copper,
US$15.82/oz silver and US$34.88/kg molybdenum (3 yr average; no
discount for metallurgical recovery in contained metal figures).
The Stoddart Zone lies approximately six kilometres east of the Revenue Zone. Previous surface sampling and drilling returned anomalous gold, silver, copper and molybdenum values in disseminated sulphide mineralization, indicating the potential for significant porphyry mineralization similar to that seen in the Revenue Zone. Last summer the Company completed a 44 line-kilometer Titan-24 Geophysical survey targeting copper-gold porphyry mineralization up to 750 metres in depth. The survey successfully identified 37 anomalies in this area, with 12 of those classified as first priority targets that extend from the shallow subsurface to approximately 350 metres depth. One of the first priority targets corresponds to the area where previous near-surface drilling returned anomalous values, providing confidence that the Titan survey anomalies may lead to significant new mineralization throughout the Zone. (See original news release dated October 20, 2011 for additional details). Northern Freegold is confident that the Stoddart Zone, Revenue Zone and Nucleus Deposit form a large-scale gold-copper-molybdenum porphyry system and the Company is now finalizing its 2012 exploration program to continue to build resources throughout the property.
Quality Control
The project is being managed by GeoVector Management Inc. of Ottawa, Ontario http://www.geovector.ca under the supervision of A. Armitage, Ph.D., P.Geo. Dr. Armitage is the Vice President of Exploration for Northern Freegold and is the Qualified Person, as defined by NI 43-101, for the Freegold Mountain Project. Dr. Armitage has reviewed the technical information in this release.
All core samples from diamond drilling completed by Northern Freegold in 2011 follow NI 43-101 approved QA/QC protocols including insertion of blanks, commercial standards and duplicate core samples. For the 2011 program, core samples were split and shipped to ALS Laboratory's (ALS) sample preparation facility in Whitehorse. The prepped samples were shipped to the main North American laboratory in North Vancouver, BC for final pulverizing and analysis.
Corporate Update
Northern Freegold is pleased to announce that it has retained the Florida-based firm of Michael Baybak and Company, Inc. ('MBC') to conduct institutionally-oriented investor relations programs on behalf of the Company. Headed by Mr. Michael Baybak, MBC is a long-term institutional and media investor relations specialist in the natural resource sector, with a focus on introducing Canadian resource companies of merit to broader institutional and retail investor audiences.
The Company will pay MBC a monthly fee of $US6,500 for the one-year term of the agreement, cancelable upon 30 days' notice in writing at any time after the first six months of service.
Pursuant to the agreement, NFR will also grant incentive stock options to principals of MBC, in the amounts of 100,000 shares of the Company at $C0.35/share, 200,000 shares of the Company at $C0.50/share, and 200,000 shares of the company at $C0.75/share, with the options vesting as follows: 50% vesting June 30, 2012, 25% vesting September 30, 2012 and 25% vesting December 31, 2012. The option package is valid for a two-year term, subject to any required shareholder and regulatory approvals.
Neither MBC nor Mr. Baybak currently holds any securities of the Company. Other than the stock options granted to MBC, none of MBC or Mr. Baybak has any rights to acquire any additional securities of the Company.
About Northern Freegold
Northern Freegold is a well-financed, rapidly advancing Canadian-based precious metals exploration and development company. NFR brings wide-ranging 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.
Management believes the Revenue Target Deposit, the Nucleus Deposit and the Stoddart Zone are all part of a large scale gold-copper- molybdenum porphyry system, which extends in an east-west direction for more than 8 km. The system shows the same geological characteristics to other porphyry deposits in the region which host multi-million ounce gold resources and reserves with multi-billion pound copper resources and reserves. For maps and more information, please visit our website www.northernfreegold.com.
On behalf of the Board of Directors
John Burges, President and 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.
Neither 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.
Contacts:
Northern Freegold Resources Ltd.
Julie Hajduk
Investor Relations Manager
Toll Free: 1.877.893.8757 or 604.893.8757
604.893.8758 (FAX)
www.northernfreegold.com