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MONTREAL,
QUEBEC, CANADA--(Marketwire - July 11, 2007) - Mackenzie I. Watson,
President and CEO of Freewest Resources Canada Inc. (TSX VENTURE:FWR)
today announces the acquisition of the Croon Lake uranium property (the
"Property") in Northwestern Ontario as well as the start-up
of diamond drilling at Clarence Stream in New Brunswick.
CROON LAKE,
NORTHWESTERN ONTARIO
The 100%-owned Property consists of 4 claims (1032 hectares) and is located
in the Arrel Lake map area, 48 kilometres northeast of the
Town of Nipigon in northwestern Ontario. It was
acquired from local Thunder
Bay prospectors under the terms of an option
agreement. Croon
Lake is road
accessible from Nipigon (total travel time of 45 minutes) and can
readily be explored year-round.
In 1978, Essex Minerals Company explored the Property locale in
programs involving geological mapping, prospecting, VLF electromagnetic
surveys, radiometric surveys and diamond drilling (4 short holes).
Prospecting by Essex resulted in the
discovery of 3 boulders returning assays of 0.210% U3O8 (4.2 lbs/ton)
and 0.300% U3O8 (6.0 lbs/ton). Follow-up work completed by Essex failed to locate the source of the
mineralized boulders, described as intensely altered mylonitized
diorite. In addition to the mineralized boulders, several highly
radioactive occurrences were discovered on the Property, largely
occurring within pegmatitic dikes and sills. None of the radioactive
occurrences were reportedly sampled. Essex Mineral Company recommended
additional work to trace the mineralized boulders to a bedrock source
that was never completed.
Recent prospecting by Freewest located 2 of the 3 Essex
boulders that were subsequently sampled. Four grab samples from the 2
boulders returned assays of 0.218% U3O8 (4.36 lbs/ton), 0.271% U3O8
(5.43 lbs/ton), 0.471% U3O8, (9.42 lbs/ton) and 0.577% U3O8 (11.54
lbs/ton). The presence of numerous equivalent uranium and equivalent
uranium/equivalent thorium radiometric anomalies located up-ice from
the boulders, provide immediate targets for exploration follow-up.
These anomalies coincide with a major north-northeast-trending magnetic
high that is suggestive of a major structural break.
Follow-up work and additional staking will be completed during August
in an effort to trace the high-grade uranium boulders to a bedrock
source.
The Property is underlain by Archean-age basement rocks comprising
granitic gneiss intruded by pegmatitic and diabasic dikes. It lies
immediately to the east of the Helikian-age Sibley basin or Nipigon
basin, a continental sedimentary basin that is currently being
extensively explored for various styles of uranium mineralization by
several companies, including Benton Resources Corporation (BTC:TSX-V)
and Rampart Ventures Limited (RPT:TSX-V).
Freewest can earn a 100% interest in the Property from the vendors by
making cash payments, issuing shares of Freewest Resources Canada Inc.
and incurring exploration expenditures totalling $120,000, 225,000 and
$154,000 respectively, over a 4-year period. The vendor retains a 3.0%
Net Smelter Return Royalty of which Freewest has the right to purchase
2.0% of, for the sum of $500,000 per each 0.5% increment.
CLARENCE STREAM,
NEW BRUNSWICK
Freewest also wishes to announce that is has commenced a deep drilling
program in the Central Zone locale on its Clarence Stream
property. Diamond drilling will test a 1000 metre-long portion of the
high-strain zone that hosts the Central Zone and a number of other
proximal gold deposits. Such drilling will test the zones at depths of
200 and 300 vertical metres with the prime object of increasing the
mineral resource of such proximal zones.
Assays recently obtained from the first hole of this program, returned
an intercept of 7.31 g/t gold over 3.50 metres (or 9.50 g/t gold over
2.5 metres) in drill hole CS07-262. Drilling will continue throughout
the summer and fall field with drill results being released as they
become available.
Glen Lutes, P. Geo. (New Brunswick) is
the qualified person on-site on the Clarence Stream
property. Donald Hoy, P. Geo. (Ontario), Vice President of Exploration
and a Director of Freewest Resources Canada Inc. is responsible for the
preparation of this news release.
Freewest is a well-funded mineral exploration company exploring for
gold, uranium and base-metals in Eastern Canada.
Corporate information can be accessed on the Internet at www.freewest.com.
Freewest's shares are listed on the TSX Venture Exchange under the
symbol FWR.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
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