VANCOUVER, BC, Oct. 26, 2020 /CNW/ - Freegold Ventures Limited
(TSX: FVL) ("Freegold") is pleased to provide an update on
exploration activities at Golden Summit, located near Fairbanks, Alaska. Drilling remains ongoing
and is expected to continue until mid-December. Drilling is planned
to resume in early February 2021 and
continue throughout 2021. The Company is well financed to carry out
its proposed programs.
The expanded 2020-2021 drill program has multiple
objectives:
- Determine the orientation of the higher-grade mineralization
successfully intercepted in GSDL2001 and GSDL2002,
- Expand the currently known resource,
- Upgrade the resource categories as part of the effort to
further advance the project, and
- Test other targets on the project that may have potential to
host additional resources.
Freegold's concept was that the vein system associated with
the historic high-grade Cleary Hill Mine extends west towards the
Dolphin intrusive. The initial two holes GSDL2001 and GSDL2002
supported this interpretation and intersected gold values up to
169.5 g/t over 2 metres. The orientation of the higher-grade
zones remains to be determined and will require considerable
additional drilling.
Holes GSDL2003, 2004, 2005, 2007, 2010 and 2011 lie west of the
Cleary workings toward the Dolphin intrusive. Holes GSDL2008,
GSDL2009 and GSDL2012 lie to the south and southwest of the Cleary
workings. The location of these holes is designed to assist in
determining the orientation of the higher-grade mineralization.
Setting up on holes GSDL2011 and GSDL2012 is currently in progress.
A third drill rig is onsite but awaiting a drill crew. All
holes are being drilled with HQ diameter core. Given the large
scope of the program, results will be reported as meaningful groups
of assays are received rather than on a hole-by-hole basis. Assay
reporting remains slow in Alaska
as a result of restrictions imposed by the COVID-19 pandemic.
Holes are being drilled to an average depth of 500 metres. The
current drilling represents the deepest drilling outside the
intrusive and within the schist on the project. A significant
portion of the current resource is hosted within the Dolphin
intrusive which is likely the source of the gold mineralization and
the results of the current drill program are expected to increase
the current resource significantly. An updated mineral resource
estimate is expected to be completed in 2021.
The Golden Summit project already hosts a significant gold
resource. A total of 36,159 metres were drilled and three NI 43-101
compliant resource updates were completed between January 2011 and August
2013. In January 2016, a
preliminary economic assessment (PEA) was produced by TetraTech
(Press release – January 26th, 2016).
Only blocks falling within the $1,300
conceptual pit are now reported as a Mineral Resource which
represents only a portion of the previous overall global mineral
resource (Press release – June
25th, 2013).
Pit
Constrained
|
Grade
(g/t)
Au
|
Tonnage
|
Contained
Ounces
|
Indicated
|
0.69
|
61,460,000
|
1,363,000
|
Inferred
|
0.69
|
71,500,000
|
1,584,000
|
|
US$1,300
Gold
|
Using a 0.3 g/t cut
off
|
The Dolphin/Cleary area is the only area of the Golden Summit
project that has been intensively drilled for resource definition.
The current resource remains open to expansion in all directions
and to depth. Drilling subsequent to the last resource update has
demonstrated the presence of higher-grade zones both within the
Dolphin Intrusive and in the adjacent country rock. The resource
area at present covers a 500 metre by 1.3km area.
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 1.3 oz/t, the American Eagle which produced 60,000 ounces
grading 1.3 oz/t, the Hi Yu Mine which produced 110,000 ounces
grading 1.6 oz/t and the Newsboy Mine which produced 36,000 ounces
grading 1.0 oz/t. There are 80 documented but relatively unexplored
high-grade lode gold occurrences within the Golden Summit project
and represent other significant exploration targets.
In addition to the ongoing drill program, Freegold has also
completed the acquisition of 13 federal mining claims by outright
purchase within the project area as part of its efforts to further
solidify its property position.
A summary of holes completed to date Summer/Fall2020
Program:
Hole
|
Dip
|
Azimuth
|
Total Depth
(m)
|
GSDL2003
|
-70
|
360
|
587.6
|
GSDL2004*
|
-70
|
360
|
420
|
GSDL2005
|
-80
|
360
|
645
|
GSDL2006**
|
-70
|
360
|
76.5
|
GSDL2007
|
-75
|
360
|
573
|
GSDL2008
|
-70
|
360
|
442.4
|
GSDL2009
|
-70
|
360
|
420.6
|
GSDL2010***
|
-70
|
360
|
518
|
*Hole was terminated
at 420m due to difficult hole conditions
|
** Hole was
terminated at 76.5m due to difficult hole conditions
|
*** Hole was
terminated at 518m due to difficult hole conditions
|
Drill core is being logged, photographed, and cut in half using
a diamond saw with one half placed in bags for subsequent
geochemical analysis. All assays are being performed by ALS Global
Ltd with sample preparation carried out at the ALS preparatory
facility in Fairbanks, Alaska with
subsequent analyses performed primarily using its Vancouver or Reno facilities. A sample
quality/quality assurance program is in place.
The disclosure of scientific and technical information contained
in this news release has been approved by Alvin Jackson, PGeo – Vice President Exploration
and Development for Freegold, who is a "Qualified Person" under
National Instrument 43-101.
Hole Location Map:
https://freegoldventures.com/site/assets/files/2155/fvl_10262020_map.pdf
About Freegold Ventures Limited
Freegold is a TSX
listed company focused on exploration in Alaska and holds through leases the Golden
Summit Gold Project, near Fairbanks as well the Shorty Creek Copper –
Gold Project near Livengood.
Cautionary Statement
This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plan". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, the Company's objectives, goals or
future plans, statements, exploration results, potential
mineralization, the estimation of mineral resources, exploration
and mine development plans, timing of the commencement of
operations and estimates of market conditions. Factors that could
cause actual results to differ materially from such forward-looking
information include, but are not limited to the Company being
unable to conduct its drill program at the golden summit project
within the time frame anticipated and the results of such program
not being as anticipated, failure to identify mineral resources,
failure to convert estimated mineral resources to reserves, the
inability to complete a feasibility study which recommends a
production decision, the preliminary nature of metallurgical test
results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political
risks, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets,
inflation, changes in exchange rates, fluctuations in commodity
prices, delays in the development of projects, capital, operating
and reclamation costs varying significantly from estimates and the
other risks involved in the mineral exploration and development
industry, and those risks set out in the Company's public documents
filed on SEDAR. Although the Company believes that the assumptions
and factors used in preparing the forward-looking information in
this news release are reasonable, undue reliance should not be
placed on such information, which only applies as of the date of
this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law. The term "Mineral Resource" used above is defined per
NI 43-101. Though Indicated Resources have been estimated for the
Golden Summit project, the PEA includes Inferred Mineral Resources
that are too speculative for use in defining Reserves. Standalone
economics have not been undertaken for the measured and indicated
resources and as such no reserves have been estimated for the
Project. Please note that the PEA is preliminary in nature,
that it includes inferred mineral resources that are considered too
speculative geologically to have economic considerations applied to
them that would allow them to be categorized as mineral reserves.
There is no certainty that the PEA will be realized. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
SOURCE Freegold Ventures Limited