Updated Nucleus Resource
On March 5th, we released an updated NI 43-101 mineral resource estimate for the Nucleus deposit, our most advanced target on NFR's road accessible 198 km2 Freegold Mountain Project in the Yukon Territory. The Nucleus deposit is a near surface, bulk tonnage, potentially open-pittable intrusion related gold deposit which is open to expansion laterally and at depth. The new estimate shows close to a 40% increase in grade and ounces at a higher cut-off grade. 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. NFR's management team is encouraged by the updated numbers, the identification of higher grade zones within the resource and the potential for expansion at the Nucleus deposit.
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|
Updated NI 43-101 Inferred Resource
(March 5, 2010) |
Initial NI 43-101 Inferred Resource (released July 27/09) |
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|
Total |
Higher Grade Zone |
Total |
|
Cut-off Au(g/t) |
Tonnes |
Grade Au(g/t) |
Contained
Au ounces |
Tonnes |
Grade Au(g/t) |
Contained Au ounces |
Tonnes |
Grade Au(g/t) |
Contained Au ounces |
|
0.30 |
51,019,000 |
0.71 |
1,173,000 |
2,551,000 |
2.28 |
187,000 |
67,570,000 |
0.50 |
1,082,000 |
|
0.40 |
35,821,000 |
0.87 |
1,004,000 |
2,243,000 |
2.55 |
184,000 |
36,210,000 |
0.63 |
733,000 |
|
0.50 |
25,900,000 |
1.03 |
862,000 |
2,078,000 |
2.71 |
181,000 |
20,470,000 |
0.77 |
509,000 |
2010 Resource Expansion Program at Freegold Mountain
The 2010 Phase 1 10,000 m drill program has 2 objectives:
1. Continue to expand on the million ounce NI 43-101 inferred gold resource at the Nucleus deposit; and
2. Drill test the large scale gold and copper soil anomaly (6 x 4 km) which extends from the Nucleus deposit eastwards to beyond the Revenue Zone.
Approximately 3,000 m of Diamond drilling is planned in the phase 1 program to test northwest trending higher grade gold mineralization. A 1,500 m program of reverse circulation (RC) drilling is also planned for larger step-out drilling to the northeast.
Over the winter, NFR was not only busy updating the resource calculation at the Nucleus Deposit, yet was also busy reviewing technical data and defining targets elsewhere on the Freegold Project. When the historical data entered into the system was reviewed in conjunction with the Nucleus Deposit, it became apparent that that the Nucleus deposit (which is primarily a gold system with some copper enrichment) is now thought to be part of a much larger gold enriched porphyry system which has been recognized at the Revenue Zone. The Revenue Zone shows similar geological and mineralogical characteristics to other deposits in the region which have developed multi-million ounce gold resources with multi-billion pound copper resources. A number of priority targets for drill testing this season have been identified by geological modeling, with the primary objective of increasing the overall resource at Freegold Mountain Project and testing this large scale system.
A significant gold and copper soil anomaly covering an area 6 km by 4 km (24 km2) has been identified, as can be seen in the maps below. Anomalies of this size are rare, and to have an anomaly of this magnitude with a million ounce gold deposit on the western side of the anomaly is even more unique
Gold in Soil Anomaly
Copper in Soil Anomaly
The 2010 phase 1 drill program will include up to 5,500 m of RC drilling to systematically test several priority targets within the anomaly including the Granger, Discovery and Guder targets. Limited historical drilling in these target areas has identified results warranting follow up which may lead to definition of new project resources.
Mobilization is underway to camp, and the first drill is expected to be turning by June 1, 2010..
Historic and recent drilling at the Discovery target intersected wide intervals of gold � silver, copper and molybdenum which result in significant gold equivalent values.
Kinross & Underworld- a boost to the Yukon
Kinross Gold Corp., one of the world's largest gold producers, recently acquired Underworld Resources Inc.at a premium of 36% to their share price. Underworld announced in January an indicated and inferred gold resource of 1.5 million ounces at the White Gold property in the Yukon.
Having Kinross Gold Corp., a major gold producing company, moving into the Yukon is a real boost for the mining industry and community. This major investment speaks very highly of what is happening in the Yukon and confirms the potential that is there. Investors have begun to pay attention to several other Yukon gold properties in the White Gold to Freegold Mountain area.
Northern Freegold is located just 100km southeast of the Gold area and offers investors to participate in a property with similar ounce potential for gold plus an already existing infrastructure such as road access and power.
White Gold to Freegold Mountain District - An Emerging Gold Belt
Outside of Underworld, the Minto Mine and the Casino Deposit, NFR is only company in the White Gold to Freegold Mountain district which has a NI 43-101 gold resource.
YGMA- Yukoners join forces-The Yukon Gold Mining Alliance
Seven mineral exploration, development and mining companies have joined together to form a new industry marketing consortium to promote the Yukon to the national and international investment community. NFR is proud to be a founding member of the YGMA.
"The purpose of the YGMA is to encourage investment in the Yukon and in companies with long-term commitments and investments in the territory," said YGMA Chair Scott Kent. "The Yukon already has a strong reputation as an excellent place to do business. However, our member companies have noted a lack of knowledge within the investment community about the Yukon and its potential for mineral exploration and mining."
The focus of the Yukon Gold Mining Alliance is on metals including gold, silver and copper. Strict qualifications for membership include identified investment and known resources in the Yukon, and adherence to social and environmental obligations.
The Yukon Gold Mining Alliance (YGMA) is a non-profit industry association with a current membership of seven companies working in Yukon mineral exploration and development. The YGMA's goals include:
� To liaise between the mining industry and financing sources;
� To work together to promote awareness of and strengthen investment in member companies and the Yukon;
� To collectively identify a group of established companies
The YGMA held successful day long seminars in Toronto and New York in late April, with a total of 120 mining analysts, fund managers, media and brokers in attendance. Senior representatives from the Yukon Government (including Ministers and the Senator from the Yukon) have participated in the YGMA events, endorsing that the Yukon is a good place to do business.
Northern Freegold Invests in Business with Yukon First Nations Project 2010 Team
NFR was a Shared Title Sponsor with Western Copper Corporation of the "Yukon First Nation Business Showcase & Development Program", which is part of Project YFN 2010. Project YFN 2010 is a tremendous people and project development story that took 70 Yukon First Nations artists and entrepreneurs to the world stage in Vancouver in February 2010, during the Olympic Winter Games. Legacy discussion from this project is ongoing.
Northern Freegold Participates in Exploration Assistant Training Program
NFR is one of several companies which have worked together to participate in an exploration assistant training program in conjunction with the Yukon Mine Training Association. The program will deliver a 12 day field course covering many aspects of the requirements to be a an exploration field assistant. Up to 16 local First Nation applicants will be participating in the course. Once the course is completed, applicants will begin 2 placements totaling 5 weeks at exploration programs underway by the companies. NFR is looking forward to hiring 2 of the participants at our Freegold Mountain Project upon completion of their training.
Marketing and Investor Relations
Upcoming Events
May 25h, 2010 Open House at the Westmark Hotel in Whitehorse
June 6, 2010 Vancouver Cambidge Show - part of YGMA booth
As the management team returns from our second successful marketing trip to Toronto and New York, I am optimistic and focused on ensuring a highly successful work program for the 2010 season. We are excited about the upcoming drilling program and determined that the Company remains strong Management is committed to continue to work diligently on your behalf to further develop the potential of all our projects.
We will continue to update you, our shareholders, through regular press releases, trade shows and our website. On behalf of the Board of Directors, and your Company's management, I wish to thank you for your continued support.
Susan P. Craig
President & CEO
Northern Freegold Resources