Tuesday, January 22, 2008
Northern Freegold Receives Approval for Acquisition of Tad/Toro Property in Dawson Range Gold Belt, Yukon
Vancouver, BC: January 22, 2008. Further to a press release dated March 21, 2007, Northern Freegold Resources Ltd. (NFR: TSX-V) is pleased to announce it has received final acceptance from the TSX-Venture Exchange to acquire the Tad/Toro Property in the Dawson Range Gold Belt. Based upon encouraging results from NFR's Freegold Mountain Project and the intense interest in properties in the Dawson Range by other companies, NFR has negotiated an agreement whereby NFR can earn 100% interest in the Tad/Toro Property from private vendors. The Tad/Toro Property is located adjacent to the Nit Property recently acquired by NFR (November 21, 2007 press release) and 25 km to the northwest of the 166 sq. km Freegold Mountain Project of NFR.
The Nit and Tad/Toro Properties are located along the Big Creek Fault, the same structure controlling the mineralization at the Freegold Mountain Project. Based on historical work on the property including geological mapping, sampling, geophysics, trenching and diamond drilling the Tad/Toro has the potential to host gold-copper+/-molybdenum mineralization similar to that of the Casino Deposit to the northwest, and the Nucleus Zone, located within the Freegold Mountain Project of NFR to the southwest. The geological environment, host rocks, structures alteration and mineralization at Tad/Toro are similar to the Nucleus Zone which appears to be part of a high level porphyry gold-copper system grading to epithermal and returned 75 m of 4.26 g/t Au (see December 6, 2007 release).
Historical drilling carried out in 1969 targeted copper values in a porphyry body. Re-analysis of a portion of this core for gold in 1986 by Noranda Exploration Co. Ltd. returned encouraging gold values in three holes: T-2 gave 0.51 g/t gold over 37.0 m (including 1.0 g/t gold over 8.2 m); T-12 gave 1.23 g/t gold over 4.9 m; and drill hole T-14 gave 1.68 g/t gold over 7.0 m (as reported by Noranda, with no reference as to which lab prepared and assayed these results, or whether the lab was accredited). Sampling of another unsplit interval from T-12 during 2007 due diligence work for the preparation of the NI 43-101 compliant report, returned significant results of 1.13 g/t gold and 8.7 g/t silver over 7.9 m, including 5.07 g/t gold and 29.5 g/t silver over 0.9 m. The quartz feldspar porphyry phase of the Tad Porphyry has strong similarities to the quartz feldspar porphyry bodies in the Freegold Project area of NFR which have a strong association with gold +/- copper mineralization. The presence of significant previous gold-silver drill intercepts with some disseminated copper and molybdenum mineralization despite limited previous sampling and the delineation of significant gold-silver mineralization in a previously unsampled interval of core warrants follow up. A technical report prepared in accordance to NI 43-101, has been completed by a qualified person and will be posted on Sedar, which verifies this data.
Historical work at Tad/Toro has defined several drill targets, which could be better defined with a multi-parameter airborne survey and additional analyses on historical drill core. Access to the property is via an existing tote trail, known as the Casino Trail which is used year round to access active hardrock and placer projects at Sonora Gulch and Hayes Creek (the location of the Tad/Toro Property). Nuggets of tetradamite and other bismuth-gold telluride minerals in placer concentrates have been recovered from placer operations on the Tad/Toro Property.
Rock samples from several existing trenches collected during an exploration program under the supervision of independent consulting geologist, Jean Pautler, P. Geo., on the Nit and Tad/Toro properties (see November 21, 2007 release) did not yield significant results, possibly due to poor exposure and sloughed condition of the trenches. These zones require additional prospecting and sampling to adequately evaluate them. All samples were sent to EcoTech Laboratory in Kamloops for analysis and results are pending. Gold is analysed on 30 gram pulps by fire assay. Gold values greater than 1000 ppb are reanalysed by gravimetric fire assay. Other elements are analysed by 28 element ICP analysis after aqua regia digestion. The Ecotech Laboratory in Kamloops is an ISO 9001 certified and accredited facility.
NFR has the right to earn a 100% interest in the property through a series of staged payments and issuance of shares over 3 years totaling $50,000 and 300,000 shares. Five hundred thousand shares will be issued upon either a production decision on the property or a change in the control of NFR (i.e. takeover). The vendors will retain an underlying 3% NSR, of which 2% may be purchased for $1.5 million. This acquisition is a related party transaction, with an officer of NFR holding a 10% interest in the Tad/Toro Property and the officer's siblings holding 40% of the Tad/Toro Property.
Dependent upon personnel and availability of machinery, NFR intends to conduct a first phase $150,000 1,000 line km multi-parameter airborne geophysical survey over the property to aid in the delineation of drill targets during the 2008 field season. Dependent upon the survey, a $600,000 2,000 m drill program may follow. NFR is well funded to cover the cost of both of these programs.
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 the Burro Creek Project in 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.