- US$2.5 million program fully
funded by South32 under the Shorty Creek Option Agreement
- Freegold is the Operator
- Initial Drill Test of the Quarry Target and Additional
Drilling in the 1835 Area
VANCOUVER, BC, May 26, 2021 /CNW/ - Freegold Ventures Limited
(Freegold) (TSX: FVL) is pleased to announce that drilling on its
Shorty Creek copper gold project will commence in early July.
Preparations are currently underway for a 2,500 metre drill program
which is fully funded under the Shorty Creek Option Agreement with
a wholly owned subsidiary of South32 Limited (South32).
Under the Shorty Creek Option Agreement South32 has the
option to earn a 70% interest in the Shorty Creek project. To
maintain the option in good standing, South32 must contribute
minimum exploration funding of US$10.3
million over the 5-year option period. The 2020
program was confined to drill target refinement, which led to
several prospective target areas being further delineated which
will be drill tested during the 2021 program. On completion of each
annual program, South32 may exercise its option to subscribe for
70% of the shares of a newly formed project company by committing
US$30 million to the newly formed
company, less the amount of exploration expenditure contributed by
South32 during the option period. Freegold shall act at as the
Operator during the option period. The program will operate with
stringent COVID-19 protocols in place.
The Qualified Person for this release is Alvin Jackson, PGeo – Vice President Exploration
and Development for Freegold.
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.
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. Without limitation, statements
regarding potential mineralization and resources, exploration
results, and future plans and objectives of the Company are forward
looking statements that involve various risks. Actual results could
differ materially from those projected as a result of the following
factors, among others: changes in the price of mineral market
conditions, risks inherent in mineral exploration, risks associated
with development, construction and mining operations, the
uncertainty of future profitability and uncertainty of access to
additional capital. See Freegold's Annual Information Form for the
year ended December 31st, 2020 filed
under Freegold's profile at www.sedar.com for a detailed discussion
of the risk factors associated with Freegold's operations. On
January 30, 2020, the World Health
Organization declared the COVID-19 outbreak a global health
emergency. Many governments have likewise declared that the
COVID-19outbreak in their jurisdictions constitutes an emergency.
Reactions to the spread of COVID-19 have led to, among other
things, significant restrictions on travel, business closures,
quarantines and a general reduction in economic activity. While
these effects are expected to be temporary, the duration of the
business disruptions and related financial impact cannot be
reasonably estimated at this time. Such public health crises can
result in volatility and disruptions in the supply and demand for
various products and services, global supply chains and financial
markets, as well as declining trade and market sentiment and
reduced mobility of people, all of which could affect interest
rates, credit ratings, credit risk and inflation. The risks to
Freegold of such public health crises also include risks to
employee health and safety and a slowdown or temporary suspension
of operations in geographic locations impacted by an outbreak. As a
result of the COVID-19 outbreak, the Freegold has implemented a
significant COVID management program and while the extent to which
COVID-19 may impact the Freegold is uncertain, it is possible that
COVID-19 may have a material adverse effect on
Freegold's business, results of operations and financial
condition.
SOURCE Freegold Ventures Limited