Friday, March 30, 2007
Northern Freegold Signs Letter of Intent to Acquire Arizona Gold/Silver Property
Press Release #07-06
Vancouver, BC: March 30, 2007. Northern Freegold Resources Ltd. (NFR: TSX-V) is pleased to announce it has signed a Letter of Intent to acquire a 100% interest in the Burro Creek Gold/Silver Property located in Mohave County, Arizona, U.S.A. from a private vendor. NFR commissioned and is in receipt of a NI 43-101 compliant report which has identified the Property as having excellent potential for expanding the historical indicated epithermal gold/silver deposit and the discovery of additional deposits within the epithermal vein system, mineable by open pit methods, with the potential for additional underground resources.
Burro Creek Property Highlights
The Burro Creek Property
- Historical indicated gold and silver resource of 2.6 million tons grading of 0.03 oz gold per ton and 1.1 oz silver per ton, including an open pittable resource (over 300 m strike length and 230 m dip extent of the Burro Vein) with a 1:1 stripping ratio of 1.2 million tons grading 0.04 oz gold per ton and 1.47 oz silver per ton
- Located 1.6 km off Arizona State Highway and parallel high tension powerlines
- 1.7 km known strike length of vein system up to 45 metres wide, open in both directions
- Fully permitted for production by associates of the vendor in mid 1980s
- High grade sections within the epithermal vein system, including 10.7 metres of 0.16 oz gold per ton and 5.36 oz silver per ton in trench SBC-4 and 0.325 oz gold per ton over 1.5 metres in RC Hole # 88-36 (57.9m - 59.4m)
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 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 (subject to regulatory approval) 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. 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 "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."
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 now 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.