Foundation Resources Inc.: Drilling Intersects 5.18 g/t Gold at the East Coldstream Deposit, Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/14/11 -- Key Point Summary:
-- 27.75 metre-wide zone averaging 0.75 g/t gold including 2.58 g/t gold
over 3.30 metres: Hole C-11-56
-- 12.10 metre-wide zone averaging 1.20 g/t gold including 3.45 g/t gold
over 3.00 metres: Hole C-11-59
-- 9.25 metre-wide zone averaging 1.78 g/t gold including 5.18 g/t gold
over 1.80 metres: Hole C-11-63
Foundation Resources Inc. (TSX VENTURE: FDN)(FRANKFURT: 52F) ('Foundation') and Alto Ventures Ltd. (TSX VENTURE: ATV) ('Alto') or together 'the Companies' are pleased to announce the results of last four holes from the Sanders and East zones of the East Coldstream Deposit ('Deposit') and twelve exploration holes from other areas of the Coldstream Property ('Property'), northwestern Ontario. 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. Alto owns the remaining 40%.
Table 1: Significant Gold Assays - East Coldstream Deposit
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From To Gold(ii) Width(ii)
Drill Hole Zone (metres) (metres) (grams/tonne) (metres)
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C-11-56 Sanders 145.25 173.00 0.75 27.75
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Including 145.25 149.50 1.93 4.25
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Including 165.70 169.00 2.58 3.30
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C-11-57 Sanders 7.60 10.00 1.82 2.40
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150.00 160.50 0.22 10.50
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C-11-59 Sanders 81.80 93.90 1.20 12.10
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Including 81.80 84.80 3.45 3.00
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C-11-63 Sanders 21.00 52.00 0.39 31.00
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East 208.00 217.25 1.78 9.25
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Including 213.80 215.60 5.18 1.80
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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 holes drilled at the Deposit, three (C-11-56, 57 and 59) were drilled into the Sanders Zone, whereas drill hole C-11-63 was deliberately drilled from the Sanders into the East Zone. Drill hole C-11-56 targeted the mineralization approximately 50 metres down plunge from drill hole C-10-39, confirming the depth of gold mineralization to over 100 metres of vertical depth. Drill holes C-11-57, 59 and 63 tested the western edge of the Sanders Zone at respective vertical depths of 130, 80, and 50 metres. All four holes intersected gold mineralization of variable lengths and grades as shown above in Table 1. Drill hole C-11-56 intersected the widest mineralization intercept of the four holes. It intersected a 27.75-metre wide mineralized zone averaging 0.75 g/t gold, including 1.93 g/t and 2.58 g/t gold over 4.25 m and 3.30 m, respectively.
Results of Exploration Holes
Of the 6,040 metres of drilling completed during the 2011 winter program, 15 holes totaling approximately 2,970 metres were drilled to test targets other than the East Coldstream Deposit. This drilling successfully discovered new high grade gold mineralization in the Iris Lake area, including 8.39 g/t gold over 11.0 m (see News Release dated March 22, 2011). The Iris Lake discovery is a new gold zone located approximately 1500 metres to the north of the Deposit and will be the focus of future drilling.
Exploration drilling to the south and southeast of the Deposit has also produced several significant gold targets for follow-up exploration. Results from the remaining exploration holes from the Iris Lake and other areas are listed below in Table 2.
Table 2: Significant Gold Assays - Exploration Holes
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Exploration From To Gold Width
Drill Hole Area/target (metres) (metres) (grams/ton) (metres)
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IL-11-08 Iris Lake 48.60 52.00 0.52 5.20
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C-11-50 South/Southeast 130.85 133.00 1.26 2.15
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C-11-51 South/Southeast 137.66 143.00 0.19 5.34
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C-11-52 South/Southeast 270.00 281.15 0.31 11.15
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(i)Holes IL-11-04, 05, 06, 07 and 09 are from the Iris Lake area and C-11-
53, 54 and 55 are from the south and south-east of the Deposit which have
yielded no significant gold values.
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 Foundation's July 21, 2010 news release.
Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person for the Coldstream Project who 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 6,234-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 gold and base metal properties in Canada and Mexico. Its flagship Coldstream gold project in the Shebandowan greenstone belt and Mitchell base metal property in the Birch-Uchi greenstone belt east of Red Lake occur within the Western Superior geological province of the Canadian Shield, noted for hosting prolific gold and base metal deposits in Ontario, Canada. The San Rafael gold-silver property is located approximately 150 km northwest of Durango in the Durango State, Mexico.
On behalf of the board,
Ike Osmani, President & Director
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
604-687-4670 (FAX)
info@foundationres.com
Foundation Resources Inc.
Ike Osmani, M. Sc, P. Geo
President & Director
604-681-0405
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)