Northern Freegold Resources Commences Drilling at Freegold Mountain, Yukon
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/04/12 -- Northern Freegold Resources Ltd. (TSX VENTURE: NFR) (OTCQX: NFRGF) (FRANKFURT: 8N6) The Board of Directors of Northern Freegold Resources Ltd. ("Northern Freegold" or the "Company") is pleased to announce that the 2012 exploration program is underway on the road-accessible Freegold Mountain Project, located 70 km west of Carmacks, Yukon within the Dawson Range. The program will consist of diamond drilling, excavator trenching and environmental baseline studies. Currently a diamond drill is on site at the Nucleus Zone where drilling commenced last week.The current phase of the drilling program will consist of 3500-meters at the gold dominant Nucleus Deposit. It is budgeted at $1.4 million of which approximately half was pre-paid earlier in 2012. Funding for the balance of the program is in place. The objective of the drill program is to focus on high priority targets designed to expand the existing resource in key areas to optimize an open pit mine plan.
John Burges, President & CEO, commented, "We are pleased to commence drilling at Nucleus. In light of the current challenging market conditions we believe it is prudent to reduce the scale of this year's program and drill initially at the Nucleus Deposit, where we will focus on growing the size of our gold resource. The objective from this phase of work is to primarily focus on key areas that will be important for the completion of the first Preliminary Economic Assessment for the project which will start to demonstrate the economic potential of the Freegold Mountain project."
The Nucleus Zone has an Indicated resource of 1.1 M oz Au, 1.4 M oz Ag, 67.8 M lbs Cu or 1.4 Moz AuEq (at a 0.4 AuEq cut-off) within 48.5M tonnes grading 0.70 g/t gold, 0.90 g/t silver and 0.06% copper and 0.6 M oz Au, 1.3 M oz Ag and 62.0 M lbs Cu or 0.9 Moz AuEq within 41.5M tonnes grading 0.47 g/t gold, 0.98 g/t silver and 0.07% copper in the Inferred Category (as tabulated below).
It is believed that the Nucleus Deposit, the Revenue Deposit and the Stoddart Zone are all part of a large scale gold-rich porphyry system, which extends in an east-west direction for more than eight kilometres. The system shows the same geological characteristics to other porphyry deposits in the region, including the Casino Porphyry Project located approx. 90 km to the northwest, which hosts multi-million ounce gold resources and reserves with multi-billion pound copper resources and reserves. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Freegold Mountain property.
Mineral Resource Estimate for Nucleus Deposit
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Gold Silver
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AuEq(i)
Cutoff Grade Contained Grade Contained
(g/t) Tonnes (g/t) Au ounces (g/t) Ag ounces
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Indicated
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0.30 70,192,000 0.55 1,250,000 0.78 1,756,000
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0.40 48,499,000 0.70 1,096,000 0.90 1,398,000
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0.50 34,616,000 0.86 961,000 1.02 1,189,000
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Inferred
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0.30 64,210,000 0.38 783,000 0.85 1,751,000
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0.40 41,449,000 0.47 627,000 0.98 1,307,000
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0.50 26,939,000 0.59 509,000 1.05 912,000
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Copper Gold Equivalent
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AuEq(i)
Cutoff Grade Contained Grade Contained
(g/t) Tonnes % Cu lbs (g/t) ounces
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Indicated
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0.30 70,192,000 0.06 87,599,000 0.72 1,635,000
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0.40 48,499,000 0.06 67,753,000 0.89 1,393,000
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0.50 34,616,000 0.07 52,964,000 1.07 1,194,000
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Inferred
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0.30 64,210,000 0.06 84,390,000 0.56 1,153,000
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0.40 41,449,000 0.07 62,026,000 0.67 898,000
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0.50 26,939,000 0.07 41,593,000 0.80 691,000
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(1) Gold equivalent (AuEq) is calculated based upon prices of US$846/oz for gold, US$14.40/oz for silver, and US$3.31/lb for copper with no discount for metallurgical recovery in contained metal figures (Note: total contained AuEq values may not add exactly because of rounding).
(2) The resource estimate is categorized as indicated and inferred as defined by the CIM guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into mineable reserves once economic considerations are applied.
(3) The indicated and inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Dr. A. Armitage, P. Geol., and J. Campbell, B.Sc., P. Geo., of GeoVector Management Inc. GeoVector is an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment and project management.
The project is being managed by GeoVector Management Inc. of Ottawa, Ontario www.geovector.ca under the supervision of A. Sexton, M.Sc., P.Geo.
Paul Reynolds, B.Sc., P. Geo., Vice President Exploration for Northern Freegold Resources Ltd., is the qualified person, as defined by NI 43-101, and has reviewed the technical information in this news release.
About Northern Freegold
Northern Freegold Resources Ltd. (OTCQX: NFRGF)(TSX VENTURE: NFR) trades in the United States on OTCQX under the symbol "NFRGF", and in Canada on the TSX Venture Exchange under the symbol "NFR". Northern Freegold is a rapidly advancing Canadian-based precious metals exploration and development company. Northern Freegold brings wide-ranging expertise and strong management to focus on the development of its district-scale Freegold Mountain gold and copper project in the Yukon.
On behalf of the Board of Directors
John Burges, President and CEO
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes certain "forward-looking statements". All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the Company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NFR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and First Nation groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NFR's forward-looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NFR assumes no obligation to update the forward-looking statements if management's beliefs, opinions, projections, or other factors should they change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Northern Freegold Resources Ltd.
Julie Hajduk
Investor Relations Manager
+1 (604) 893-8757 or Toll Free: 1-877-893-8757
julie@northernfreegold.com
www.northernfreegold.com