Foundation Resources and Alto Ventures Drill 10 g/t Gold; Expand Main and East Zones at the East Coldstream Deposit, Northwestern Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/20/11 -- Foundation Resources Inc. (TSX VENTURE: FDN) -
Key Point Summary:
-- The Main and East zones of the East Coldstream Deposit are expanded by
180 and 120 metres, respectively and these drill results will be
included in the upcoming NI 43-101 resource estimate.
-- 10.0 g/t gold over 4.0 metres within 13.0 metre-wide zone averaging 3.49
g/t gold - Main Zone
-- 5.16 g/t gold over 2.0 m and 1.14 g/t gold over 10.0 within 56.0 metre-
wide zone averaging 0.50 g/t gold - Main Zone
-- 4.7 g/t gold over 2.0 m and 2.03 g/t gold over 2.0 m within 44.0 metre-
wide zone averaging 0.53 g/t gold - Main Zone
-- 1.29 g/t gold over 13.05 m and 1.12 g/t gold over 12.0 m within 42.55
metre-wide zone averaging 0.93 g/t gold - East Zone
Foundation Resources Inc. (TSX VENTURE: FDN) ('Foundation') and Alto Ventures Ltd. (TSX VENTURE: ATV) ('Alto') or together 'the Companies' are pleased to announce the results of three holes from the Main and East zones of the East Coldstream Deposit ('Deposit') on their Coldstream Property ('Property') in northwestern Ontario. More drill results from the Deposit will be reported as they become available. Of the 6,000 meter winter drilling program recently completed on the Property, approximately 3,000 metres were drilled with the objective of expanding all four zones (Main, North, East and Sanders) comprising the Deposit. The Deposit is currently subject to a NI 43-101 compliant resource calculation by Wardrop, a Tetra Tech Company (News Release dated March 01, 2011). The remaining 3,000 metres were utilized in exploring other areas of the Property such as the Iris Lake target where the Companies have discovered new high-grade gold mineralization (e.g., 8.39 g/t gold over 11.0 m) in three holes (News Release - March 22, 2011). The Iris Lake high-grade gold area is located approximately 1500 metres north of the East Coldstream Deposit. Foundation is the operator of this program and owns a 60% interest in the Property and Alto owns the remaining 40%.
'The management and board of both companies are very pleased to report continued drilling successes at the East Coldstream Deposit,' comments Foundation's president and director, Ike Osmani. Further, 'These drill hole results have demonstrated greater strike lengths from the Main and East Zones of the East Coldstream Deposit which should add significant gold resources to the historic resource calculated by Noranda in 1990 (234,000 ounces gold: Non-NI 43-101 compliant historic resource(i)).'
Table of Significant Gold Assays
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From To Width(ii) Gold(ii)
Drill Hole (metres) (metres) (metres) (grams /tonne)
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C-11-58
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(Main Zone) 64.00 120.00 56.00 0.50
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Including 110.00 120.00 10.00 1.14
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Including 110.00 112.00 2.00 5.16
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C-11-60
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(Main Zone) 158.00 202.00 44.00 0.53
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Including 158.00 160.00 2.00 4.70
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Including 192.00 194.00 2.00 2.03
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C-11-68
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(East Zone) 21.45 64.00 42.55 0.93
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Including 21.45 34.50 13.05 1.29
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Including 52.00 64.00 12.00 1.12
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(Main Zone) 226.00 239.00 13.00 3.45
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Including 230.00 234.00 4.00 10.00
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(ii) Mineralized zones generally start at 0.1 g/t gold and assay averages
may include minimal intervals of waste material. No top cuts of assays
were used.
All intervals are represented as down-hole core lengths with true widths estimated at 70 to 75 percent.
Of the three drill holes completed on the Deposit, two holes (C-11-58 and 60) expanded the Main Zone laterally by intersecting gold mineralization approximately 180 and 120 metres from the western limit of the previously defined Main Zone at their respective vertical depths of 100 and 160 metres. Drill hole C-11-68 expanded both the East and Main Zone laterally by intersecting mineralization approximately 120 metres from the western limit of the previously defined East Zone and 50 metres east of the Main Zone at their respective vertical depths of 15 and 180 metres. Drill hole C-11-68 intersected two significant gold intercepts, an upper and a lower. The upper 42.55 metre-wide intercept within the East Zone, averaged 0.93 g/t gold, including 1.29 g/t gold over 13.05 meters and 1.12 g/t gold over 12.0 metres. The lower intercept within the Main Zone has returned 10.0 g/t gold over 4.0 metres within 13.0 metre-wide zone averaging 3.49 g/t gold. Drill hole C-11-58 intersected 1.14 g/t gold over 10.0 metres within 56.0 metre-wide envelope, averaging 0.50 g/t gold. Drill hole C-11-60 returned 0.53 g/t gold over 44.0 metres including 4.70 g/t gold over 2.0 metres and 2.03 g/t gold over 2.0 metres.
Results from 23 holes are still pending and will be reported as they become available.
(i) A Qualified Person (QP), as defined in NI43-101, has not done sufficient work to classify this historical estimate as current mineral resources. Foundation is not treating the historical estimate as current mineral resources, as defined in NI43 -101, and thus the historical estimate should not be relied upon.
Quality Assurance/Quality Control (QA/QC)
Foundation has implemented a quality control (QA/QC) program which includes the use of commercially produced standards and blanks. Samples of split NQ core are transported by Company personnel to the sample preparation lab of ALS Chemex Laboratory in Thunder Bay where they were crushed and a 1000-gram pulp was prepared. The pulp was then shipped to ALS Chemex Laboratory in North Vancouver, B.C. for analyses. The gold assaying method uses a standard Fire Assay with ICP-AES technique on a 30-gram pulp material taken from a 1000g split from the submitted sample. For more details of QA/QC procedures, please refer to Foundations July 21, 2010 news release.
About the East Coldstream Deposit
The East Coldstream Deposit is hosted within mafic to intermediate metavolcanic rocks which have been intruded by dike/sill-like bodies of quartz-feldspar porphyries and gabbros. All these rock types have been variably altered (silica, hematite, carbonate, chlorite) and deformed by east- to east-northeast striking North Coldstream Shear/Deformation Zone. Gold is associated with 1 to 5 percent, fine-grained pyrite.
About the Coldstream Property
The 6234-hectare Coldstream Property is located along the Trans Canada Highway 115 km west of the City of Thunder Bay, Ontario. The area is road accessible and has excellent infrastructure with a major power line and CN rail line passing just north of the property. Skilled labour is readily available locally.
For more details regarding the Coldstream Property, please visit our website at www.foundationres.com.
Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person for the Coldstream Project supervised the drill program, has reviewed and approved the technical content of this news release.
About Foundation Resources Inc.
Foundation is a mineral exploration company focused on exploration and development of high potential gold properties in Canada and Mexico. Its Coldstream Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada. The San Rafael property is located approximately 150 km northwest of Durango in the Durango State, Mexico.
On behalf of the board,
Paul Chung, CEO
News release contains certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
CUSIP: # 350476107
ISIN CA3504761071
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Foundation Resources Inc.
Paul Chung, MBA
CEO & Director
604-681-0405 or 1-800-667-4470
604-687-4670 (FAX)
info@foundationres.com
Foundation Resources Inc.
Ike Osmani, M. Sc, P. Geo
President & Director
604-681-0405 or 1-800-667-4470
604-687-4670 (FAX)
info@foundationres.com
www.foundationres.com
Rain Communications
Nelson Da Silva
604 648-0523 (direct)
Rain Communications
Ralph Biggar
604-306-2525 (direct)