VANCOUVER, Jan. 16, 2015 /CNW/ - Freegold Ventures
Limited (TSX: FVL, Frankfurt: FR4N) ("Freegold) is pleased
to provide an update on the Company's progress through 2014.
- Positive Metallurgical Results from Golden Summit – 85%
Recovery in Column Leach Tests on Oxide Component
- Preliminary Economic Assessment – based on Staged Approach
Underway
- Substantial Oxide Potential Expansion Identified
- Significant Discovery Potential at Shorty Creek (Copper
–Gold, Copper – Moly Porphyry Targets)
Golden Summit Project, Alaska
Since 2011 the Company has been focused on resource delineation
and development with considerable success. The current NI 43-101
resource has now grown to 79,800,000 tonnes grading 0.66
grams/tonne for a total of 1,683,000 gold ounces in the indicated
category, and 248,060,000 tonnes grading 0.61 grams/tonne for a
total of 4,841,000 gold ounces using a 0.3 gram/tonne cutoff in the
inferred category. Included in the total resource is an indicated
oxide resource using a 0.20 gram/tonne cutoff of: 25,026,200 tonnes
grading 0.55 grams/tonne for a total of 439,000 gold ounces, and an
inferred resource of: 16,620,510 tonnes grading 0.47 grams/tonne
for a total of 253,000 gold ounces. The resource estimate was
completed by Giroux Consultants (August
2013). Freegold believes it can significantly expand
the current oxide resource with additional shallow drilling (60 –
70 metre holes) based on the results of extensive ground
geophysical, geochemical and geological mapping work carried out on
the property.
Early in the year Freegold signed Memorandum Of Understanding
("MOU") with the Alaska Department of Natural Resources ("DNR"),
Office of Project Management and Permitting ("OPMP") for engagement
with the State's Large Mine Permitting Team. The Large Mine
Permitting Team ("LMPT") offers multi-disciplinary expertise and is
involved from pre-permitting to post-closure of mines. Throughout
2014 additional baseline environmental and cultural resources work
has been completed as well as an extensive metallurgical program
utilizing both the services of SGS and McClelland Laboratories.
Tetra Tech of Golden,
Colorado was also engaged to complete a preliminary economic
assessment (PEA) on the current resource.
The initial development scenario currently under consideration
will examine a stand-alone valley heap leach operation focused on
the existing oxide portion of the resource, taking into account the
potential for oxide resource growth beyond, with a staged approach
to a larger milling scenario. A significant advantage with
respect to keeping the initial capital expenditure at a minimum to
develop Golden Summit is the superb supporting infrastructure in
the immediate vicinity of the property, as well as in the broader
region. The city of Fairbanks
(population 100,000) is a 30 minute drive via paved highway while
industrial scale grid power and rail transport are available
nearby.
Bottle Roll Results
Overall gold recoveries
from standard 48 hour bottle roll tests and 120 hour intermittent
agitation leach tests performed by SGS over the course of the
year from the as-received material (F80 850 -- 1550 µm) were as
follows: Oxide material averaged 88%, Transition material averaged
57%, Intrusive material averaged 56%, and Hornfels-Sulphide
material averaged 45% . Standard bottle roll testwork was carried
out on a variety of grind sizes however recoveries did not increase
substantially with finer grinds, with the exception of the
transition material which showed recoveries of greater than 70% are
achievable at a 75 micron grind size. In addition a series of tests
were completed, which included a variety of methods direct CIL
(carbon-in-leach), Pressure Oxidation (POX) --CIL, Flotation --CIL,
and Flotation-POX-CIL. The highest overall recovery was achieved by
POX-CIL with recoveries greater than 94.3%, and averaging 98.1%
under best conditions tested. The combination of Flotation-POX-CIL
resulted in recoveries of 92%, and although yielding lower recovery
than Whole Ore POX a significant advantage would be a much smaller
quantity of material would need to be treated - approximately
10% would be subject to POX.
Column Leach Tests
In the late fall of 2014, a
larger column leach test program was undertaken by McClelland
Laboratories of Sparks, Nevada
using -25 mm material. Results received in January 2015, were very encouraging demonstrating
an 85% recovery over the full 65 days the columns were run,
with 80% being achieved within the first 14 days.
While the completion of this additional work has resulted in a
delay to the completion of the PEA, it demonstrates that the
recovery on the oxide component does not appear to be sensitive to
grind size.
Shorty Creek
In addition to its activities at Golden Summit, Freegold also
acquired a new significant exploration property called Shorty Creek in July
2014. Fieldwork completed to date has included a ground
geophysical survey, soil sampling and additional claim
staking. The project represents the potential for both copper
– gold porphyry and copper – molybdenum porphyry deposits in two
areas of the project.
Limited previous drilling in the area of the copper – gold
porphyry target had returned significant intervals of gold
mineralization. The area of drilling in 1989 and 1990 was
restricted to a 500m by 200 metre area. Highlights include 67
metres grading 1.21 g/t gold and 58 metres grading 0.51 g/t gold
from surface*. A total of 2,094 metres of drilling were completed
with a maximum hole depth of 152 metres. The presence of
copper mineralization in conjunction with gold mineralization was
noted at depth in most of the historic drill holes with values of
up to 0.45% copper. Additional mapping has confirmed the presence
of quartz porphyry in the creek 30 metres below the depth of
previous drilling. Ground geophysics and soil sampling in the
vicinity of the drilling has now expanded the target area by
another 500 metres to the southwest and 400 metres to the
northeast. *(It should be noted that results above are
historical in nature, the Company has not verified them and they
should not be relied upon)
Another significant target was also identified as a result of
the ground geophysical and soil sampling program. 2.5 km to
the northwest of the copper – gold target the presence of a strong
chargeability anomaly coincident with strong copper values in soils
(up to 669 ppm Cu) covering a 2,000 metre x 1,000 metre area was
observed. Within the copper geochemical anomaly a strong molybdenum
core is present (up to 235 ppm Mo), which covers a 1,000 metre by
800 metre area in the central portion of the chargeability
anomaly. This represents another excellent drill target
area.
Several other strong magnetic highs have also been identified as
a result of a review of the airborne geophysical survey and will
require additional ground geophysics, geochemistry and further
geological mapping to delineate other potential drill targets
within this highly prospective property. Drill permits are
currently in place.
Vinasale
Freegold continues to hold its option to lease agreement with
Doyon Limited, an Alaskan Native Corporation. Exploration
since 2011 has delineated the current NI 43-101 resource of 3.41
million tonnes averaging 1.48 g/t Au for 162,000 ounces in the
indicated category and 53.25 million tonnes averaging 1.05 g/t Au
for 1,799,000 ounces of gold in the inferred category utilizing a
cutoff value of 0.5 grams/tonne (g/t) as a possible open pit cutoff
within the total blocks. The resource was calculated by Giroux
Consultants (March 2012).
Freegold would again like to thank its Shareholders for their
continued support. Despite difficult market conditions the Company
has made significant advancement on its current portfolio of
projects over the past 12 months.
We invite you to come visit us at the 2015 Vancouver
Resources Investment Conference on January
18 & 19. Personnel and project materials will be at the
State of Alaska mini Pavilion, Row
17-18 near the East Café. If you attend, we look forward to
providing you with an update on everything we have accomplished in
Alaska over the past year, as well
as provide you with a detailed look into what's ahead.
The Qualified Person for this release is Alvin Jackson, P.Geo – Vice President
Exploration and Development for the Company who has reviewed and
approved the contents of this press release.
Some statements in this news release contain forward-looking
information, including without limitation statements as to planned
expenditures and exploration programs. 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