Northern Freegold Resources Ltd. (TSX VENTURE: NFR) is pleased to
announce an updated NI 43-101 mineral resource estimate for the
Nucleus deposit, which is located on the road accessible 198 square
kilometer Freegold Mountain Project in the Yukon Territory. The new
estimate shows an overall increase in grade and expansion of the
defined ounces and is open to expansion laterally and at depth. In
addition further drilling has defined a number of higher grade
zones which also remain open within the overall resource. Recent
metallurgical test work of higher and lower grade ore types shows
excellent gold recoveries. The Nucleus deposit is a near surface,
bulk tonnage, potentially open-pittable intrusion related gold
deposit.
Highlights
- NI 43-101 Inferred Resource of 1,004,000 contained ounces of
gold within 35.82 million tonnes @ 0.87 g/t gold (0.4 g/t cutoff)
which includes a higher grade zone of 184,000 contained ounces of
gold within 2.2 million tonnes @ 2.55 g/t gold (0.4 g/t cutoff)
- The grade of the Nucleus deposit has increased by 32% and the
contained ounces has increased by 31% from the initial NI 43-101
resource estimate released in July, 2009 based upon 0.4 g/t Au
cutoff
- Initial metallurgical testwork shows excellent gold recoveries
in the 92 to 98% range on material from the Nucleus deposit
- Nucleus deposit mineralization begins at surface and is open
to expansion in all directions and at depth
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Updated NI 43-101 Inferred Resource
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Total Higher Grade Zone
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Cutoff Grade Contained Grade Contained
Au (g/t) Tonnes Au(g/t) Au ounces Tonnes Au(g/t) Au ounces
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0.30 51,019,000 0.71 1,173,000 2,551,000 2.28 187,000
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0.40 35,821,000 0.87 1,004,000 2,243,000 2.55 184,000
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0.50 25,900,000 1.03 862,000 2,078,000 2.71 181,000
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Initial NI 43-101 Inferred Resource
(released July 27/09)
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Total
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Cutoff Grade Contained
Au (g/t) Tonnes Au(g/t) Au ounces
--------------------------------------------
0.30 67,570,000 0.50 1,082,000
--------------------------------------------
0.40 36,210,000 0.63 733,000
--------------------------------------------
0.50 20,470,000 0.77 509,000
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Bill Harris, Chairman & COO commented, "We are pleased with
the significant increase in both the grade and ounces in the
Nucleus deposit. The identification of higher grade zones and the
potential to expand upon them and possibly find others is of
significance. The updated 3D geologic modeling has identified a
number of priority targets for follow up that have the potential to
continue to expand the resource. Planning for the 2010 exploration
program is currently underway with a focus on expanding the
resource at Nucleus and to test the potential to define new
resources on the property in other target areas."
2009 Drill Program
The 2009 10,000m drill program was successful in expanding and
confirming the continuity of the overall Nucleus resource and
particularly in defining the geometry and controls to the higher
grade zones identified in 2008 drilling, allowing identification of
a higher grade resource. 3D geologic and resource modeling also
shows a number of NW trending gold mineralized corridors which
remain open to further expansion. The modeling also shows
mineralization to the north and south of the Nucleus resource which
warrant follow up. These areas will be the focus of drilling at
Nucleus in 2010.
The higher grade zones which formed a higher grade resource
remain open for further testing. These include a steeply dipping
ore zone on the east side of the Nucleus deposit which remains open
to the east, to the west and at depth. Selected drill holes from
within this zone intersected 34.09 m of 1.95 g/t gold, including
5.11 m of 6.82 g/t gold (GRD09-131(i)) and 46.96 m of 14.51 g/t
gold (GRD08-073(i)). A shallow south dipping zone on the west side
of Nucleus which remains open to north, south, west and at depth is
also part of the higher grade zone. Selected drill holes within
this zone intersected 5.20 m grading 18.26 g/t gold (GRD06-34(i));
11.10 m of 1.79 g/t gold (GRD07-51(i)) and 4.14 m grading 1.79 g/t
gold (GRD09-161(i)).
In 2009, NW trending corridors were defined by the drill program
which intersected zones of gold mineralization within these
structures both inside and outside of the initial resource model.
For example, hole GRD09-144(i), at the western end of one of the
corridors intersected 16.22 m at 2.96 g/t gold, while hole
GRD09-128(i) towards the eastern end within the same corridor
intersected 25.38 m of 1.25 g/t gold. In another NW trending
corridor, hole GRD09-15(i)1 returned 15.20 m at 1.40 g/t gold at
its western end, and hole GRD09-135(i) returned 59.81 m of 0.81 g/t
gold and 17.59 m of 1.89 g/t gold at its eastern end. The 2010
drill program will target the extension of these zones to the
northwest and southeast.
Further targets have also been identified to the north and south
of the Nucleus deposit from the resource modeling and drilling. The
southern edge of the Nucleus Zone contains higher grade material
and needs to be tested for the potential to host gold
mineralization similar to the northwest trending structures
mentioned above. The resource model also identified mineralization
further to the north of the Nucleus Zone from 2007 RAB drilling
which warrants follow up testing. Additional information including
a video of the deposit will be available www.northernfreegold.com
within a few days.
Also in 2009, a regional mapping program conducted in
conjunction with reinterpretation of a 2006 airborne geophysical
survey identified large-scale northwest-southeast structures with
potential to host mineralization within the Nucleus zone and on a
property wide scale. Based on this information, a number of new
targets were staked at Freegold Mountain at the end of the
season.
2010 Exploration Program
Planning for the 2010 exploration program at Freegold Mountain
is still underway. As noted above, the 2009 drill program and
updated model from the Nucleus deposit has identified drill targets
for possible expansion of the deposit area. Expanding the ounces at
the Nucleus deposit will be one of the main priorities for the 2010
program. In addition, there are several targets identified at the
Freegold Mountain project which with additional drilling, could
lead to the development of further resources. The regional program
conducted in 2009 in conjunction with reinterpretation of a 2006
airborne geophysical survey has identified several large scale
targets for testing in 2010. The 2010 program will be announced
once all compilation and and planning work is completed.
(i) results previously released, please refer to prior news
releases
Metallurgical Recovery Highlights
G&T Metallurgical Services Ltd. was commissioned by the
Company to conduct preliminary gold recovery metallurgical testing
on separate composite bulk samples that were respresentative of
bulk tonnage low grade oxidized and non-oxidized samples, as well
as higher grade sulphide-rich material that comprises the Nucleus
deposit.
Initial results indicate excellent overall gold recovery from
the material. Oxidized and non-oxidized samples averaging 0.59 g/t
gold and 0.54 g/t gold respectively returned recoveries of 98% gold
on a 48 hour cyanidation bottle roll test. Higher grade
sulphide-rich samples averaging 10.9 g/t gold recovered 86% gold on
a 48 hour cyanidation bottle roll test, which increased to 92% when
combined with gravity concentration.
Nucleus Zone Resource Estimate
Mineral resource estimates were carried out by Mr. Joseph
Campbell, B.Sc., P. Geo., President of GeoVector Management Inc.
and Dr. Allan Armitage, PhD, P.Geol (AB), a consulting geologist
with GeoVector Management inc. and independent Qualified Person's
as defined by National Instrument 43-101. The inferred mineral
resource was calculated using Gemcom GEMS 6.2.1 software.
The inferred mineral resource estimate for the Nucleus Zone
covers an area of approximately two square kilometres and is based
on 265 drill holes totaling approx. 42,000 metres and included
2006-2009 diamond and rotary air blast (RAB) drill holes completed
by NFR as well as historical drill hole data from 1988-2004
drilling. More than 25,000 assays were available to create the
resource estimate. The assay database was verified and domained
into subpopulations by rock type, oxidation level, drill method,
and drilling results by campaign. Verifications were also carried
out on drill hole locations, down hole surveys, lithology, specific
gravity values (SG), trench location and assay data, and
topographic information. Average SG values chosen for the resource
estimate were 2.63 for low grade ore and 2.80 for the higher grade
zones, and these were applied to all blocks within the respective
block models.
A review of grade distribution in the model shows a relatively
strong orientation in a northwest striking, near vertical
orientation. This orientation was used in the block models to
control the search ellipse for interpolation of grade within the
block model. The northwest grade orientation was also the strike
direction identified for most of the higher grade, sulphide
intersections.
The composites were domained into waste, low grade and high
grade ore populations by intersecting the points with the ore
models. Capping was carried out on the populations to limit high
values. The ore and massive populations were then used to
interpolate grade into their respective ore models.
For block modelling block size was set at 20x20x20 metre in
size. At the scale of the Nucleus deposit this provides a
reasonable size for discerning grade distribution, while being
appropriate for the +/- 50 meter hole spacing in the core of the
deposit. To generate block grades a search ellipse was set at
200x100x150 meters in the X, Y, Z direction respectively. The long
axis was oriented at 305o to reflect the observed preferential ore
control direction. The vertical component (Z) is the intermediate
direction based on the observed vertical structural control.
Interpolation was carried out using inverse distance squared
(ID2). The number of samples used to interpolate a block grade was
set at a maximum of 12. The majority of blocks had the maximum
number of samples. The size of the search ellipse and the number of
samples used filled almost all the blocks within the ore models
with grade.
Ore results were tabulated for a range of Au cut-off grades.
Based on spatial distribution of block grades a relatively
contiguous body is observed at a 0.40 g/t cut-off grade. At this
grade there is approximately 36Mt of ore at a grade of 0.87 g/t Au
for a total of 1.04 million ounces of gold.
Resource Classification
Mineral resources have been categorized using the classification
of the Canadian Institute of Mining, Metallurgy and Petroleum
(2000), with the relevant definitions provided below. This
classification is the basis for Technical Reports by Qualified
Persons in Canada, and the classification is virtually the same as
that of the JORC code (Australia) SME guidelines (USA) SAMREC
(South Africa) and that of the European Union.
An Inferred Mineral Resource can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed,
but not verified geological and grade continuity. The estimate is
based on limited information and sampling gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes.
Due to the uncertainty which may attach to Inferred Mineral
Resources, it cannot be assumed that all or part of an Inferred
Mineral Resource will be upgraded to an Indicated or Measured
Mineral Resource as a result of continued exploration. Confidence
in the estimate is insufficient to allow the meaningful
appreciation of technical and economic parametres or to enable an
evaluation of economic viability worthy of public disclosure.
Qualified Person and Quality Control/Quality Assurance
All core samples from diamond drilling completed by Northern
Freegold in 2009 followed NI 43-101 approved QA/QC protocols
including insertion of blanks, commercial standards and duplicate
core samples. Drilling and sample collection for 2009 was
supervised by Wade Barnes, P. Geo. The program was performed to
industry standards. For the 2009 program, assay samples were split
and sent to ALS Chemex Laboratory in North Vancouver and Alex
Stewart Group in Kamloops for sample preparation and analysis.
Third party checks were done at ALS Chemex, Alex Stewart Group and
Assayers Canada. The program included insertion of blanks and
reference standards for assay grade control, as well as duplicate
samples. Results were within accepted ranges. In addition the labs
performed in-house standards and assay duplicates on a batch basis
for in-lab quality control.
Dr. Alan Armitage, PhD., P. Geol (AB), a consulting geologist
with GeoVector Management Inc. has acted as the Qualified Person,
as defined in NI 43-101, for the mineral resource estimate
component of the technical report. Dr. Armitage is independent of
the Company under NI 43-101. A NI 43-101 report will be finalized
and filed on SEDAR within 45 days of the date of this news
release.
Wade Barnes, P. Geo., Senior Geologist with Northern Freegold is
a Qualified Person as defined by National Instrument 43-101, and is
responsible for quality control of exploration undertaken by the
Company and has reviewed and approved the technical information in
this release.
About the Freegold Mountain Project
The road accessible Freegold Mountain Project is located 200 km
northwest of Whitehorse, the capital of the Yukon and is situated
within an active exploration and mining area in the Tintina Gold
Belt of the Yukon which includes the producing Minto Mine of
Capstone Mining Corp. to the north, Casino Deposit and Carmacks
Copper Deposit of Western Copper Corporation to the west and east,
and the White Gold Property of Underworld Resources to the
northwest. NFR controls 198 square km (75 square miles) within the
district scale Freegold Mountain Project. Within the project
expanse are at least 20 identified mineralized zones, including the
Nucleus, Revenue and Tinta.
The Freegold Mountain Project is well situated within the
stable, mining supportive jurisdiction of the Yukon. In 2003,
control of resource management and development was devolved from
the federal Canadian Government to the Territory. Decisions on
resource development in the Yukon are now made in the Yukon. As a
result of the Umbrella Final Agreement which provides a template
for settlement of First Nation Land Claims in the Yukon, a single
assessment approach has been developed for projects and activities
in the Yukon, including resource projects. The Yukon Socioeconomic
Environmental Assessment Act was developed in conjunction with
First Nation and Yukoners. Eleven of the 14 First Nations in the
Yukon have settled their Land Claim negotiations. The Freegold
Mountain Project is located within the traditional territories of
two settled First Nations: Little Salmon Carmacks First Nation and
the Selkirk First Nation.
The Freegold Mountain Project is located on the Freegold
Mountain Road, a government maintained gravel road. The Freegold
Road connects to the Klondike Highway, an all weather paved
highway, which connects to Whitehorse, the capital of the Yukon,
and the major supply centre for the Yukon. Powerlines located along
the Klondike Highway are at present 30 km from the Freegold Project
boundary. The Carmacks Copper deposit will require a 12 km power
line to connect to the power grid along the Klondike Highway. From
this location, the power line would be within 7 km of the Freegold
Mountain project boundary.
Numerous multi-milllion ounce gold deposits occur in the Tintina
Gold Belt including the producing Fort Knox mine operated by
Kinross Gold Corporation and the Pogo mine operated by Sumitomo
Metal Mining in Alaska. Mutli-million ounce development stage
projects include the recently discovered Livengood Project of
International Tower Hill Mines Ltd., also located in Alaska. In
close proximity to the Freegold Mountain Project area, the Carmacks
Copper Deposit of Western Copper Corporation is in its final
permitting stage and the Casino Copper-Gold-Moly Deposit has
entered into the Yukon Environmental Assessment Process.
Northern Freegold is a well financed rapidly advancing
Canadian-based precious metals exploration and development company,
which brings local expertise and strong management to focus on the
development of economic mineral resources on the district-scale
Freegold Mountain gold and copper project in the Yukon and the
Burro Creek gold and silver property in Arizona.
Northern Freegold Resources Ltd.
On behalf of the Board of Directors
Susan P. Craig, President & 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.
Cautionary Note Regarding Reserve and Resource Estimates
This press release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which
differ from the requirements of U.S. securities laws. Unless
otherwise indicated, all resource and reserve estimates included in
this press release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining and Metallurgy
Classification System. NI 43-101 is a rule developed by the
Canadian Securities Administrators which establishes standards for
all public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Canadian standards,
including NI 43-101, differ significantly from the requirements of
the United States Securities and Exchange Commission ("SEC"), and
resource and reserve information contained herein may not be
comparable to similar information disclosed by U.S. companies. In
particular, and without limiting the generality of the foregoing,
the term "resource" does not equate to the term "reserves".
Investors should also understand that "inferred mineral resources"
have a great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an "inferred mineral resource"
will ever be upgraded to a higher category. The estimation of
quantities of resources and reserves is complex, based on
significant subjective assumptions and forward-looking information,
including assumptions that arise from the evaluation of geological,
geophysical, engineering and economic data for a given ore body.
This data could change over time as a result of numerous factors,
including new information gained from development activities,
evolving production history and a reassessment of the viability of
production under different economic conditions. Changes in data
and/or assumptions could cause reserve estimates to substantially
change from period to period. No assurance can be given that the
indicated level of mineral will be produced. Actual production
could differ from expected production and an adverse change in
mineral prices could make a reserve uneconomic to mine. Variations
could also occur in actual ore grades and recovery rates from
estimates.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Northern Freegold Resources Ltd. Debbie James Investor
Relations Manager 877.893.8757 or 604.893.8757 604.893.8758 (FAX)
www.northernfreegold.com
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