- US$2.5 million drill program
fully funded by South32 is underway
- Freegold is the Operator
- Drilling will test the Quarry Target as well as additional
targets in the 1835 Area
VANCOUVER, BC, July 15, 2021 /CNW/ - Freegold Ventures Limited
(Freegold) (TSX: FVL) (OTCQX: FGOVF) is pleased to report that
drilling is now underway on its Shorty Creek project. The 2021
program is expected to consist of 2,500 metres of drilling which is
fully funded under the Shorty Creek Option Agreement with a wholly
owned subsidiary of South32 Limited (South32). Shorty Creek lies
approximately 125 road kilometres northwest of Fairbanks, Alaska and 4 kilometres to the
south of Livengood and the all-weather paved Elliott Highway.
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.
Assays will be reported when received, compiled and
interpreted.
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-19 outbreak 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, Freegold has implemented a
significant COVID-19 management program in order to attempt to
mitigate risks to its employees, contractors and community. While
the extent to which COVID-19 may impact 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