Foundation Resources Inc.: Drilling Continues to Hit Gold at the East Coldstream Deposit, Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/18/11 -- Foundation Resources Inc. (TSX VENTURE: FDN) and Alto Ventures Ltd. (TSX VENTURE: ATV) -
Key Point Summary:
-- 38.25 metre-wide zone averaging 1.10 g/t gold including 5.14 g/t gold
over 5.20 metres: Hole C-11-66 (East Zone)
-- 31.0 metre-wide zone averaging 0.73 g/t gold including 1.05 g/t gold
over 14.0 metres: Hole C-11-67 (Main Zone)
-- 4.15 metre-wide zone averaging 1.12 g/t gold: Hole C-11-65 (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 four holes from the East and Main 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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From To Width(ii) Gold(ii)
Drill Hole (metres) (metres) (metres) (grams/tonne)
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EAST ZONE
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C-11-61 140.60 142.60 2.00 0.57
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C-11-65 90.55 96.55 6.00 0.72
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103.10 107.25 4.15 1.12
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143.00 145.00 2.00 1.01
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C-11-66 265.00 303.25 38.25 1.10
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includes 280.80 286.00 5.20 5.14
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MAIN ZONE
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C-11-67 98.00 129.00 31.00 0.73
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includes 98.00 112.00 14.00 1.05
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includes 102.00 105.20 3.20 2.86
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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 four drill holes, three (C-11-61, 65 and 66) were drilled into the East Zone and one hole (C-11-67) was drilled into the Main Zone. Hole C-11-65 was designed to pierce the least explored sections of the East Zone located between two major plunging mineralization zones at a vertical depth of 50 metres and between previous holes C-10-41 and 35 which were drilled by Foundation in 2010. Hole C-11-66 tested the down plunge extension of the East Zone at a vertical depth of 215 metres approximately 50 metres down plunge of good mineralization intersected in C-10-32 (1.84 g/t gold over 34.80 m). Drill hole C-11-67 was designed to twin Noranda's historical hole C-89-18 within the Main Zone in order to fulfill a NI 43-101 requirement for resource estimation on the Deposit.
Drill hole C-11-66 testing the down plunge extension of the East Zone intersected a 38.25 metre-wide zone averaging 1.10 g/t gold including 5.14 g/t gold over 5.20 metres. Hole C-11-65 testing the under explored area between two mineralized shoots within the East Zone intersected 1.12 g/t gold over 4.15 metres and 0.72 g/t gold over 6.0 metres. The twin hole C-11-67 within the Main Zone intersected 14.0 metres grading 1.05 g/t gold within a 31.0 metre envelope grading 0.73 g/t gold confirming gold mineralization from Noranda's historical holes.
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.
Ike Osmani, M. Sc, P. Geo
President & Director
604-681-0405 or Toll Free: 1-800-667-4470
604-687-4670 (FAX)
info@foundationres.com
Foundation Resources Inc.
Paul Chung, MBA
CEO & Director
604-681-0405 or Toll Free: 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)