Foundation Resources Inc.: Drilling Indicates Continuity of Gold Mineralization at the Newly Expanded East Coldstream Deposit, Northwestern Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/11/11 -- Foundation Resources Inc. (TSX VENTURE: FDN) -
Key Point Summary:
-- 23.0 metre-wide zone averaging 1.04 g/t gold within 47.0 metre-wide
mineralized envelope grading at 0.72 g/t gold: Hole C-11-62 (North Zone)
-- 16.0 metre-wide zone averaging 1.06 g/t gold including 2.62 g/t gold
over 4.0 m: Hole C-11-62 (Main Zone)
-- 23.0 metre-wide zone averaging 1.0 g/t gold including 2.66 g/t gold
over 5.75 m: Hole C-11-64 (Main Zone)
-- 12.0 metre-wide zone averaging 1.14 g/t gold within 38.0 metre-wide
mineralized envelope grading 0.54 g/t gold: Hole C-11-64 (North 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 more holes from the Main and North 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. 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). Foundation is the operator of this program and owns a 60% interest in the Property and Alto owns the remaining 40%.
Table of Significant Gold Assays
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Gold(ii)
From To Width(ii) (grams/
Drill Hole (metres) (metres) (metres) tonne)
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C-11-62
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(Main Zone) 25.00 41.00 16.00 1.06
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including 35.00 39.00 4.00 2.62
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(North Zone) 87.00 134.00 47.00 0.72
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including 87.00 114.00 23.00 1.04
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C-11-64
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(Main Zone) 104.00 110.30 6.30 1.52
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135.00 158.00 23.00 1.00
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Including 152.25 158.00 5.75 2.66
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(North Zone) 216.00 254.00 38.00 0.54
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including 216.00 228.00 12.00 1.14
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C-11-69
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(Main Zone) 100.00 106.00 6.00 0.74
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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.
Holes C-11-62 and 64 are infill holes to determine continuity of gold mineralization between the core of the Main Zone and drill holes C-11-58 and 60 (News Release April 20, 2011). Holes C-11-58 and 60 have 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. In addition to expanding the Main Zone, drill hole C-11-64 also extended the western limit of the previously defined North Zone's mineralized core by 65 metres at a vertical depth of 200 metres.
Drill holes C-11-62 and 64, each intersected an upper and a lower mineralized intercept, corresponding well with the interpreted Main and North zones, respectively. Hole C-11-62 intersected an upper 16.0 metre-wide intercept within the Main Zone, averaging 1.06 g/t gold, including 2.62 g/t gold over 4.0 meters. The lower intercept, corresponding to the North Zone, returned 1.04 g/t gold over 23.0 metres within a 47.0 metre-wide envelope averaging 0.72 g/t gold. Drill hole C-11-64 also intersected two gold intercepts, an upper and lower, corresponding to the Main and North zones. The upper intercept averages 1.0g/t gold over 23.0 metres including 2.66 g/t gold over 5.75 metres. The lower intercept, corresponding to the North Zone, returned 1.14 g/t gold over 12.0 metres within a 38.0 metre-wide envelope averaging 0.54 g/t gold. Drill hole C-11-69 returned 0.74 g/t gold over 6.0 metres.
About 2011 Winter Drilling
Of the 6,000 meters winter drilling program recently completed on the Property, approximately 3,000 metres were drilled with the objective of expanding the four zones (Main, North, East and Sanders) at the East Coldstream Deposit. The remaining 3,000 metres were utilized in exploring other areas of the Property such as the Iris Lake 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.
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.
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 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.
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
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)