Foundation Resources Inc.: Completed IP Geophysical Survey Identifies High Priority Drill Targets on Span Lake Claims of the Coldstream Property, Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/16/11 -- Foundation Resources Inc. (TSX VENTURE: FDN)(FRANKFURT: 52F) ('Foundation') and Alto Ventures Ltd. (TSX VENTURE: ATV) ('Alto') are pleased to announce the completion of a ground induced polarization ('IP') geophysical survey on their Span Lake claims at the Coldstream Property ('Property'), Northwestern Ontario. The 22-line-kilometre IP survey, using a Scintrex IPR-12 multichannel time domain transmitter and a Scintrex TSQ3 3000W time domain receiver, was carried out by JVX Ltd. of Richmond Hill, Ontario. The surveyed area, covering the southern-half of the Span Lake claims, occurs adjacent to the Moss Lake Gold Mines project which contains a NI 43-101 compliant resource of 1.1 million ounces gold in 'indicated' and 520,000 ounces gold in 'inferred' categories (Moss Lake Gold Mines Ltd. - News Release dated July 14, 2010).
The purpose of the survey is to define a potential extension of the Moss Lake Gold Deposit onto the Span Lake claims and find new drill targets based on chargeability/resistivity responses in areas of thick overburden and scarce bedrock exposure.
In the Span Lake area, gold is mainly associated with chargeable pyrite within highly resistive host rocks (sheared and silicified) of intermediate to felsic metavolcanics and quartz-feldspar porphyry intrusions. Preliminary interpretation of the survey identified three areas (IP-1, IP-2 and IP-3) of strongest chargeable bedrock responses coincident with strong to moderate resistive anomalies (Figure 1). Within these three areas, nine high priority drill targets are selected. The southwestern targets within the IP-1 are located potentially on-strike to the North Zone of the Moss Lake Gold Deposit. The southeastern anomaly (IP-2) suggests a potential extension of the QES Zone of the Moss Lake Gold Deposit.
'We are very pleased by the successful completion and the encouraging results obtained from the IP survey at Span Lake' comments Foundation's President and Director, Ike Osmani. Foundation and Alto are planning to drill this area in the next drilling program to confirm the existence of economic gold mineralization.
A 6000-summer drilling program is currently underway at the East Coldstream Deposit located about 8.0 km northeast of the Span Lake claims. Results from two drill holes of this drilling program have already been announced (News Release dated July 11, 2011).
Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person for the Coldstream Project has reviewed and approved the technical content of this news release.
To view the Figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/fdn0816_map.pdf
The Span Lake Claims
The Span Lake area consists of 27 claims (442 ha) representing the southern-most part of the 6,394 hectare Coldstream Property. The regionally extensive belt of intermediate and felsic metavolcanic rocks that hosts a number of gold occurrences and the Moss Lake Gold Deposit underlies the Span Lake claims. Gold on the Span Lake claims is mainly associated with pyrite and occurs within sheared/fractured and altered intermediate to felsic metavolcanic rocks, diorite, quartz-feldspar and feldspar porphyry intrusions. Typical alteration mineral assemblage, depending on the host rock composition, consists of silica, albite, sericite, hematite and biotite or k-feldspar as potassic minerals.
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)