VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2011) - Northern Freegold Resources Ltd. (News - Market indicator) is pleased to announce an updated NI 43-101 mineral resource estimate for the Nucleus deposit, located on the road accessible district scale Freegold Mountain Project in the Yukon.
The new resource (at a 0.4 AuEq cut-off) contains 48.5M tonnes grading 0.70 g/t gold, 0.90 g/t silver and 0.06% copper (1.1 M oz Au, 1.4 M oz Ag, 67.8 M lbs Cu or 1.4 Moz AuEq) in the Indicated Category and 41.5M tonnes grading 0.47 g/t gold, 0.98 g/t silver and 0.07% copper (0.6 M oz Au, 1.3 M oz Ag and 62.0 M lbs Cu or 0.9Moz Au Eq)in the Inferred Category(as shown in Table 1). The new resource indicates a substantial increase in total ounces, as well as a significant portion of the resource being upgraded from an Inferred to an Indicated resource category.
The new estimate includes 16 step-out drill holes from the 2010 program, and incorporates gold, silver and copper values at the Nucleus Deposit. This reflects Management's understanding that the Nucleus Deposit is part of a larger gold rich porphyry system extending to the east. Management is currently evaluating the 2010 drill results from the adjacent Revenue Zone and the Titan geophysical survey which encompassed the Nucleus and Revenue (figure 1: http://media3.marketwire.com/docs/6755001.pdf) to determine the context of the relationship to the larger porphyry system and expects to report on the significance of this relationship in the near future.
The Nucleus deposit mineralization begins at surface and is open to expansion laterally and at depth. The existing resource estimate tests only the upper reaches of a high chargeability and high conductivity zone identified by the Titan 24 survey completed in 2010 (see attached figure 2: http://media3.marketwire.com/docs/6755002.pdf). This zone extends over an area 1.5 km wide by 1.5 km long at an approximate depth of 100 to 500 m below surface.
Table 1: Mineral Resource Estimate for Nucleus Deposit
*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)
Nucleus Zone Resource Estimate
The 2011 updated mineral resource estimate is based on an additional 11 diamond (3073 metres) and 5 reverse circulation (RC) (863 metres) step-out drill holes and 2380 assay values collected from the 2010 drill program. A plan map showing the 2010 drill holes and projected (to surface) resource outline can be seen in figure 3 (To view figure 3, please visit the following link: http://media3.marketwire.com/docs/6755003.pdf). 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.
The resource estimate is based on more than 29,000 assay values from 318 drill holes (totaling > 49,000 metres). Assay values were verified against drill logs and assay certificates. Drill hole collar locations and down-hole surveys were checked and verified. The mineral resource was estimated using 1.50 metre composites of the assay values, with "zero" grade inserted into intervals that were not sampled.
A geological model was constructed of the Au-Cu-Ag mineralized zone. This model was used to constrain the composite values chosen for interpolation and the ore blocks reported in the mineral resource. A block model was constructed using 10 m x 10 m x 5 m blocks in the x, y, and z direction respectively. Grades for gold, copper and silver were interpolated into the blocks by the inverse distance squared method using a minimum of 4 and maximum of 20 composites (within a minimum of two drill holes) to generate block grades in the indicated category and a minimum of 2 and maximum of 12 composites to generate block grades in the inferred category.
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. GeoVector is an Ottawa, Ontario consulting firm specializing in resource estimation, project assessment and project management. Dr. Armitage acted as the Qualified Person, as defined in NI 43-101 and is independent of the Company. An updated NI 43-101 report will be finalized and filed on SEDAR within 45 days of the date of this news release.
Dr A. Armitage, P. Geol., is the Qualified Person, as defined by NI 43-101, for the Freegold Mountain Project, including the Nucleus Deposit, and has reviewed the technical information in this release.
GeoVector has reviewed and approved the information in this news release.
2010 Program
A total of 11 diamond drill holes and 5 reverse circulation drill holes were drilled in the Nucleus zone in 2010. Assay results from these holes continue to confirm that the Nucleus Deposit holds excellent potential to expand and delineate an important bulk-tonnage deposit that could support an open pit-style mining operation. A few of the step-out holes highlighted in Table 2 indicate:
- Potential for growing the resource; and
- Copper and silver associated with gold mineralization
A complete table of the 2010 drill program showing broad, continuous intervals of bulk-tonnage style gold, silver and copper mineralization can be found at the end of the release.
1Au equivalent metal prices: US$846.00/oz gold, US$3.31/lb copper, US$14.40/oz silver (no discount for metallurgical recovery in contained metal figures).
All core samples from diamond drilling completed by Northern Freegold in 2010 followed NI 43-101 approved QA/QC protocols including insertion of blanks, commercial standards and duplicate core samples. Drilling and sample collection for 2010 was supervised by Dr. A. Armitage, P. Geol. The program was performed to industry standards. For the 2010 program, assay samples were split and shipped to ALS Laboratory's (ALS) sample preparation facility in Whitehorse. Samples submitted to this lab are prepared for shipping by logging into the ALS system, prepared by drying, crush to appropriate particle size and representatively split to a smaller size for shipping. The prepped samples are shipped to the main North American laboratory in North Vancouver, BC for final pulverizing and analysis. Samples were analyzed for gold by fire assay (FA) with an atomic absorption finish (AA) on 30 gram samples. All samples having more than 1,000 ppm gold were re-assayed by FA and a gravimetric finish. Each sample is also sent for multi-element analysis by the ICP-MS method, which includes Cu, Ag, Mo and W.
As part of in-house QA/QC ALS inserts certified gold standards, which are purchased from CDN Resource Labs. Standards are inserted and three pulp duplicates are analyzed for every 20 samples. Random additional repeats are also analyzed as required. Results from all internal QC samples and repeats are reported.
If there are any analyses of the certified gold standards that fall outside of the acceptable range the entire batch of 20 samples will be re-run. If there are any significant gold values returned from the "blank" core samples the entire batch of 20 samples will be re-run. Upon completion of the 2010 assaying 5% to 10% of the core sample pulps from 2010 drilling program will be submitted to another lab for check assaying. No sample batch re-runs have been necessary on the 2010 gold assay results received to date.
Third Party check assays were completed at Acme Analytical Laboratories (Vancouver) Ltd.
2011 Exploration Program
Planning for a significant follow up exploration program for 2011 at Freegold Mountain is underway. 3D modeling of existing drill and resource results, combined with the Titan geophysical survey is being utilized to delineate targets to expand resources and test the major Titan geophysical anomalies. Details of the program will be released when finalized.
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.
1Au equivalent metal prices: US$846.00/oz gold, US$3.31/lb copper, US$14.40/oz silver
(no discount for metallurgical recovery in contained metal figures).
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.