Northern Freegold Identifies Initial
Target Deposit at Revenue Zone,
Freegold Mountain Project, Yukon
Vancouver, BC: February 24, 2011. Northern
Freegold Resources Ltd. (TSX-V: NFR) is
pleased to announce based on an evaluation of historic and 2010 drill
hole data from the Revenue Zone gold-rich porphyry system the following
target deposit:
Revenue Zone
Target Deposit Potential
Range of Potential Tonnes
|
Potential Ounces of Gold
(Grade)
|
Potential Ounces of Silver
(Grade)
|
Potential Lbs of Copper
(Grade)
|
Potential Gold Equivalent
Ounces* (Grade)
|
40 to 110
Million
|
0.7 to 1.1 M Ozs (0.3 to 0.5 g/t )
|
5.0 to 10.0 M Ozs (2.7 to 3.7 g/t)
|
130 to 280 M lbs (0.11 to 0.14%)
|
1.3 to 2.5 M Ozs
(0.7 to 1.0 g/t)
|
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Range of Potential Tonnes
|
Potential Lbs of Molybdenum
(Grade)
|
Potential Lbs of Tungsten
(Grade)
|
40 to 110 Million
|
9 to 18 M lbs
(0.007 to
0.011%)
|
10 to 16 M lbs
(0.006 to
0.011%)
|
*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)
The
reader should be cautioned that the potential quantity and grade is
conceptual in nature, that there has been insufficient exploration to
define a mineral resource and that it is uncertain if further exploration
will result in the target being delineated as a mineral resource.
The
target deposit extends from surface to a depth of 250 m and is located
adjacent to the Nucleus Deposit (see Figure 1). Management believes the
Revenue target deposit and the Nucleus deposit are part of a large scale
gold rich porphyry system. Indicated resources of 1.1 million
ounces gold, 1.4 million ounces silver and 67.8 million lbs copper (1.4 Moz AuEq)1 and
inferred resources of 0.63 million ounces gold, 1.3 million ounces silver
and 62.0 million lbs of copper (0.9 Moz AuEq)2 were recently announced for the
Nucleus deposit(see news release Feb. 22, 2011).
"The
2010 program at Freegold Mountain demonstrates
the potential for a multi-million ounce system encompassing the Nucleus
Deposit and the Revenue Zone" stated Susan Craig, President &
CEO, Northern Freegold Resources Ltd. " The scale of the anomaly from the Titan Survey,
combined with the resource in the Nucleus Deposit and the target deposit
in the Revenue indicate an open ended large scale gold rich system".
148.5 million tonnes at
0.70 g/t gold, 0.90 g/t silver and 0.06% copper at 0.40 AuEq cutoff; 241.4 million tonnes at 0.47 g/t gold, 0.98 g/t silver and 0.07%
copper at 0.40 AuEq cutoff
Large Scale Mineralized System Encompasses Nucleus Deposit and
Revenue Zone
Management
believes the system has potential to host multi-million ounce gold
resources with multi-billion pound copper resources similar to other
deposits in the region based upon:
- Titan
24 geophysical survey covering an 30 sq km area shows large scale
significant chargeability anomaly (near direct indicator of presence
of mineralization) throughout the area (refer to figure 1)
- Presence
of Nucleus deposit on edge of this anomaly;
- Proximity
of Revenue Target Deposit to Nucleus Deposit and recognition that
holes which returned significant results are located on the edge of
the significant chargeability anomaly.
- To
date, drilling in the Nucleus Deposit and the Revenue Target Deposit
has only tested a very small portion of the significant chargeability
anomaly seen in Figure 1.
2011 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 Titan geophysical
anomalies. Details of the program will be released when finalized.
2010 Program and Analysis
As
part of an evaluation to determine the potential of the Revenue Zone to
host a significant resource, Northern Freegold
completed a program of reverse circulation and diamond drilling totaling
7,165 m in 2010. The drill program was successful in delineating
significant near surface gold, copper and silver mineralization in the Guder and Discovery targets over an area of 450 m x
150 m x 200 m deep and 800 m x 150 m x 150 m deep respectively (see
news releases Sept. 16 and Nov. 22, 2010).
GeoVector
Management Inc., of Ottawa Ontario was contracted to conduct an
independent assessment of the potential resource incorporating the 2010
program, and historical drilling. The database is based upon more
than 130 shallow drill holes and ~6,000 assays..
The database includes assays from rotary airblast,
reverse circulation and diamond drilling conducted by Northern Freegold in 2010 and 2007 as well as assay data from
re-sampling of historic drill core in 2010.
Dr. A.
Armitage, P. Geol., is the Qualified Person, as
defined by NI 43-101, for the Freegold Mountain
Project, including the Revenue Target, and has reviewed the technical
information in this release.
Geovector has
reviewed and approved the information in this release.
Conference call Monday February 28,2011
Northern
Freegold is pleased to give investors an
opportunity to hear President & CEO Susan Craig discuss the
significance of the recently released resource and target deposit
calculations. Phone lines will be open following the update.
The call has been scheduled for Monday February 28th, 2011
commencing at 1:30 PM PST (4:30 PM EST). Participants may call in
to join the conference call at 416-340-8530 or Toll Free at 1-
877-240-9772. If you are unable to join us at the designated time,
please go to our home page at www.northernfreegold.com where you will find the audio copy of the
conference call. Also, you may call in at 905-694-9451 /
800-408-3053 Pass code: 5818145 for an
instant replay until March 14, 2011.
Please
see click on www.northernfreegold.com to see the figures and maps.
Northern Freegold is a
well-financed rapidly advancing Canadian-based precious metals
exploration and development company. NFR 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
Signed "Susan
P. Craig"
Susan P. Craig
President & CEO
The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
release.
Cautionary Note Regarding
Forward-Looking Statements
The information in this press releaseincludes 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.