Thursday, October 11, 2007
Northern Freegold Receives Approval for Acquisition of Burro Creek Gold/Silver Property, Arizona
Vancouver, BC: October 11, 2007. Further to the press release dated May 10, 2007, Northern Freegold Resources Ltd. (NFR: TSX-V) is pleased to announce it has received final acceptance from the TSXVenture Exchange to acquire a 100% interest in the Burro Creek Gold/Silver Property located in Mohave County, Arizona, U.S.A. from a private vendor. A NI 43-101 report commissioned by NFR, documents an open pit type epithermal gold/silver mineralized zone on the property with potential to expand known mineralization and discover additional mineralization within the epithermal vein system.
Burro Creek Property Highlights
The Burro Creek Property
- 1.7 km known strike length of vein system up to 45 metres wide, open in both directions
- Historical estimates from 300 m strike length and 230 m depth of vein was fully permitted for open pit mining operations in mid 1980s
- Excellent infrastructure with Arizona State Highway, parallel high tension powerlines within 1.6 km of deposit; water rights secured
The Burro Creek Property is located 1.6 km off State Highway 93 in Mohave County, Arizona, 105 km southeast of Kingman, Arizona, and 265 km southeast of Las Vegas, Nevada. The 2000 acre property consists of four patented mineral claims and 100 surrounding unpatented mineral claims, 50 of which were recently staked by NFR to cover strike extensions of the known vein system. This acquisition is a related party transaction as the private vendor of the property is an officer of NFR.
The Property covers a low-sulphidation epithermal vein system that has been traced for over 1.7 km and exhibits widths of up to 45 metres. A NI 43-101 report dated July 17, 2007 entitled "Evaluation Report of the Burro Creek Project" has been completed by J. Pautler, P. Geo., an independent qualified person. Previous reverse circulation, diamond drilling and underground development conducted on the property focused on a 300 metre strike length in the central block of the exposed vein system and outlined a historical gold and silver resource of 2.6 million tons with an average grade of 0.03 oz gold and 1.1 oz silver per ton. This historical resource estimate was completed in 1988 by K. Hanna, a Professional Engineer. Within this historical drill-proven resource, an open pittable resource of 1.2 million tons grading 0.04 oz gold and 1.470 oz silver per ton respectively with a 1:1 stripping ratio was defined in a historical independent positive feasibility study by A.J. Suchar in 1988, an independent Professional Engineer. These historical results reported in the NI 43-101 report are considered by management to be reliable and relevant, though not conforming to current NI 43-101 standards.
The Property was fully permitted to commence production in the 1980's by associates of the vendor, but the production decision was deferred due to a decline in the gold price. At that time, the intent was to place the existing resource into production, and continue to expand the resource through exploration funded by the ensuing profits.
NFR has negotiated an agreement with Coelton Ventures Ltd. (Coelton) whereby NFR can acquire 100% of Coelton's interest in the Burro Creek Property by issuing 1.0 million shares, making cash payments totaling $275,000 CDN and incurring exploration expenditures totaling $900,000CDN over a seven year period. The deemed price, for TSX-V filing purposes, of the 1.0 million shares is $0.68. Coelton has acquired 100 % of the mineral, water and geothermal rights on the Burro Creek Property patented claims (consisting of two patented mining claims and two patented millsite claims). The property also consists of 100 unpatented mining claims which are contiguous with the patented mining claims. The underlying vendors will retain a 3% NSR (2% of which can be purchased by making cash payments totaling $1,100,000 USD) and will receive a payment of $500 USD per month. to be included in and not in addition to, the royalty payments.
Bill Harris, President & CEO commented "Completion of the acquisition of the Burro Creek Property continues Northern Freegold's plan to develop resources and build reserves. We are excited about the excellent potential to expand the historical resources on this previously permitted project. The history, knowledge and expertise that Cor Coe, NFR's VP of Exploration, has regarding this property and other mines he has developed in Arizona, adds value to this acquisition. The year round field season on the Burro Creek Property will complement the April to November exploration season at our district scale Freegold Mountain project in the Yukon, and ensure that Northern Freegold will be reporting results year round."
The technical information disclosed in this release has been reviewed and approved by Susan P. Craig, P. Geo.
Northern Freegold is a Canadian-based resource exploration and development company which relies on local expertise and strong management to focus on development of economic reserves on the district-scale Freegold Mountain Project in the Yukon and Arizona.
Northern Freegold Resources Ltd.
On behalf of the Board of Directors
Signed "Bill Harris"
William (Bill) G. Harris
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.