www.freegoldventures.com
VANCOUVER, March 31, 2014 /CNW/ - Freegold Ventures Limited
(TSX: FVL, Frankfurt: FR4N) ("Freegold") has initiated a
comprehensive review of the high grade potential of it's Golden
Summit Project.
- Golden Summit (Dolphin/Cleary Resource Area) is advancing at
the Preliminary Economic Assessment Stage.
- 17 km strike length – with over 80 documented but virtually
unexplored high grade lode gold occurrences
- Potential for additional bulk-tonnage gold occurrences at
Golden Summit within one or more of the other high grade vein
swarms in the project area
Over the past several years Freegold has successfully delineated
a sizeable bulk tonnage resource at the Dolphin/Cleary deposit on
the western end of its Golden Summit project and has been
systematically evaluating this significant prospect, now at the
Preliminary Economic Assessment stage. While Freegold's
multi-million ounce Dolphin-Cleary deposit and several other +1
million ounce deposits in the Fairbanks District exemplify the bulk tonnage
potential of the historic production from the Golden Summit project
was derived exclusively from mesothermal gold-quartz vein deposits
that have seen limited exploration since the 1940's. With average
production grades in excess of 34 grams of gold per tonne (g/t), no
production from deeper than 125 meters below surface and limited
drilling that extends mineralization in excess of 600 meters below
surface, the high-grade mineralization at Golden Summit represents
a virtually untapped source of potential resources within a road
accessible, infrastructure-rich, mining friendly jurisdiction.
Golden Summit has well-documented placer production of
over 6.75 million ounces of placer gold recovered from the streams
that drain the project area. Less well known are the over two dozen
past producing lode gold mines on the Golden Summit project which
produced at least 525,000 ounces of lode gold. These past producers
include the district's largest high grade historic underground
mines, including the Cleary Hill Mine which produced 281,000 ounces
grading 44.5 g/t (1.3 oz/t), the American Eagle which produced
60,000 ounces grading 44.5 g/t (1.3 oz/t), the Hi Yu Mine which
produced 110,000 ounces grading 54.8 g/t (1.6 oz/t) and the Newsboy
Mine which produced 36,000 ounces grading 34 g/t (1.0 oz/t). These
larger mines are surrounded by over 80 documented but virtually
unexplored high grade lode gold occurrences that stretch over a 17
kilometer strike length within the Golden Summit project area.
Over 19,000 strike-meters of mineralized gold-quartz
vein-bearing shear zones have been identified in the Golden Summit
project area. These northwest and northeast trending gold-bearing
structures tend to cluster into discrete vein swarms where many of
the past-producing mines have been developed. These vein swarms
host the highest grade historic lode gold mines, with 11 of the
highest grade mines having an average head grade of over 44.5 g/t
(1.3 oz/t). With the exception of the Newsboy and Cleary Hill mines, none of the past producing
mines were exploited below 125 meters depth. However, Freegold's
past exploration efforts have not only shown that high grade gold
vein densities are far higher than historic records indicate, but
high grade gold mineralization (+30 g/t) occurs to depths of at
least 600 meters in all three of the vein swarms in which Freegold
has conducted deeper core drilling. Mineralization remains open to
depth in these vein swarms and the potential for deep high grade
gold resource remains untested in the other vein swarms that have
been identified on the Golden Summit project.
Freegold's industry-leading experience in the prolific Fairbanks
Mining District has not only been instrumental in determining why
and where bulk tonnage gold deposits may occur, but the reasons why
the Golden Summit project is host to the highest density of high
grade lode gold mines and prospects in the district. Perhaps more
importantly, Freegold is embarking on a process to exploit its
unmatched expertise to prioritize, explore and build new resources
on the most promising high grade gold targets on the Golden Summit
project. And just as there are high grade gold-bearing veins that
appear to be critical to the formation of the multi-million ounce
Dolphin/Cleary deposit, the Company anticipates that additional
bulk-tonnage gold occurrences will be identified at Golden Summit
as ancillary benefits of exploration within one or more of the high
grade vein swarms on the project.
The Qualified Person who has reviewed the technical disclosure
contained in this release is Curtis J.
Freeman, M.Sc., PGeo who is the primary geological
consultant for the project.
Freegold closes Private Placement
Freegold is pleased to announce that it has closed a
non-brokered private placement of 2,827,323 ("Units"), priced
at $0.23 per Unit to raise gross
proceeds of $650,284. Each Unit
consist of one common share (a "Share") and one common share
purchase warrant (a "Warrant"). Each Warrant will entitle the
holder to acquire an additional Share at a price of $0.30 per Share for a period of 12 months and at
a price of $0.35 per Share for a
period of an additional 12 months for a total of 24 months from the
date of closing. Each Warrant is subject to accelerated
expiry provisions such that if at any time after the expiry of any
resale restriction governing the subscribed Shares, Freegold's
common shares trade on the TSX at or above a volume weighted
average trading price of $0.50 per
common share for 10 consecutive trading days, Freegold may give
notice to the holders that each Warrant will expire 30 days from
the date of providing such notice. All securities issued bear
a legend restricting resale until July 29,
2014.
A finder's fee of 8% cash or 7% cash + 7% broker/finder's
warrants will be paid on a portion of the placement.
The Company would like to thank its shareholders for their
continued support.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on the exploration of
gold projects in Alaska. In
addition to the Golden Summit Gold Project, the company holds a
100% in lease interest in the Rob Gold Project near Sumitomo Metal
Mining's Pogo Gold Mine in the
Goodpaster Mining District of Alaska and has an exploration agreement with
option to lease the Vinasale Gold project in central Alaska which hosts an indicated NI 43-101
resource of 3,410,000 tonnes averaging 1.48 g/t Au for 162,000
ounces of gold: and an inferred resource of 53,250,000 tonnes
averaging 1.05 g/t Au for 1,799,000 ounces of gold utilizing a
cutoff value of 0.5 grams/tonne (g/t) as a possible open pit
cutoff. The resource estimate was completed by Giroux
Consultants Ltd.
Some statements in this news release contain forward-looking
information, including without limitation statements as to planned
expenditures, exploration programs and the potential for the
discovery of high grade resources. These statements address future
events and conditions and, as such, involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the statements. Such factors include without limitation
the completion of planned expenditures, the ability to complete
exploration programs on schedule and the success of exploration
programs.
SOURCE Freegold Ventures Limited