VANCOUVER, BC, Feb. 22,
2023 /CNW/ - Freegold Ventures Limited ("Freegold" or
the "Company") (TSX: FVL) (OTCQX: FGOVF) is pleased to report
an updated Mineral Resource Estimate (the "Updated Mineral Resource
Estimate" or "Updated MRE") for its Golden Summit project located
near Fairbanks, Alaska. The
Updated Mineral Resource Estimate is based on a drill program
designed to expand, upgrade and increase the overall resource grade
at the Golden Summit project.
From 2020 to 2022, over 83,000 metres of drilling were completed
in 131 holes in the Dolphin Cleary Area of the Golden Summit
project. The Updated MRE has incorporated 128 holes of the drilling
completed, which has resulted in a significant increase in both the
overall resource grade and tonnage at Golden Summit. Assays for two
drill holes were not complete at the resource cut-off date
(February 6, 2023) and have
therefore not been incorporated in the Updated MRE.
The Updated Mineral Resource Estimate was prepared by Tetra Tech
Canada. A total of 72,196 assays were incorporated. Gold
composite values were capped at 30 g/t with a range restriction:
composites were used at their full value within 20 meters of the
composite location, beyond which, they were capped at 30 g/t, as
the drop in aggregate sum of the gold composite values after
capping was 6.2%, indicating that the outlier gold values had an
influence disproportionate to their number. Capping affected
approximately 0.07% of the population (31 samples)
The resource is pit constrained using a three-year trailing
average gold price of $1,792/oz.
The Updated Mineral Resource Estimate is restricted to the
Dolphin Cleary Area of the Golden Summit project. The
Dolphin-Cleary is the only area of the project to have a resource
delineated. The deposit at Golden Summit remains open, particularly
to the west and the southwest, where Freegold has outlined a strong
gold in soil geochemical anomaly that has not been drill
tested. Further southwest lies the historic Newsboy Mine,
which produced 40,000 ounces at an average grade of 1oz/t.
Other exploration targets within this remarkable project include
the Saddle Zone and the Hi Yu area both of which host historic
high-grade producers (Saddle Zone – American Eagle 60,000 ounces @
1.6 oz/t, Hi Yu – 110,000 ounces @ 1.6 oz/t).
Kristina Walcott, President and
Chief Executive Officer of Freegold, comments: "The Golden Summit
project represents one of the largest undeveloped gold resources in
North America. The 2023 exploration program is expected to
further expand upon the deposit as well as to test other targets
within this highly prospective property with additional drilling.
The past three years have been transformative for the Company,
having increased the in pit resource significantly since this
latest drill program began. Freegold continues to have one of
the lowest discovery costs per ounce in the industry at less than
~$4.00/oz. We are extremely
pleased with the results of our efforts and look forward to
completing an updated economic assessment later this year. "
The Updated Mineral Resource Estimate is divided into three
parts: Pit-Constrained Oxide, Pit-Constrained Primary, and Under
Pit.
Golden Summit
Pit-Constrained Oxide Au g/t
|
Cutoff Au
g/t
|
Row Labels
|
Tonnes
|
Au_gpt
|
Au Ounces
|
1.00
|
Indicated
|
2,479,000
|
1.78
|
142,000
|
1.00
|
Inferred
|
1,456,000
|
2.25
|
105,000
|
0.75
|
Indicated
|
4,139,000
|
1.41
|
187,000
|
0.75
|
Inferred
|
1,995,000
|
1.88
|
120,000
|
0.50
|
Indicated
|
10,209,000
|
0.93
|
304,000
|
0.50
|
Inferred
|
3,502,000
|
1.33
|
150,000
|
0.45
|
Indicated
|
12,301,000
|
0.85
|
336,000
|
0.45
|
Inferred
|
4,130,000
|
1.20
|
159,000
|
0.30
|
Indicated
|
22,544,000
|
0.63
|
455,000
|
0.30
|
Inferred
|
7,405,000
|
0.83
|
198,000
|
0.25
|
Indicated
|
29,056,000
|
0.55
|
513,000
|
0.25
|
Inferred
|
9,986,000
|
0.69
|
220,000
|
0.15
|
Indicated
|
52,030,000
|
0.39
|
657,000
|
0.15
|
Inferred
|
18,187,000
|
0.47
|
272,000
|
0.10
|
Indicated
|
67,321,000
|
0.33
|
718,000
|
0.10
|
Inferred
|
24,775,000
|
0.37
|
298,000
|
|
|
|
|
|
Golden Summit
Pit-Constrained Primary Au g/t
|
Cutoff Au
g/t
|
Row Labels
|
Tonnes
|
Au_gpt
|
Au Ounces
|
1.00
|
Indicated
|
95,429,000
|
1.81
|
5,554,000
|
1.00
|
Inferred
|
50,012,245
|
1.83
|
2,941,000
|
0.75
|
Indicated
|
276,938,000
|
1.36
|
12,122,000
|
0.75
|
Inferred
|
105,332,000
|
1.32
|
4,469,000
|
0.50
|
Indicated
|
349,648,000
|
0.99
|
11,128,000
|
0.50
|
Inferred
|
239,561,000
|
0.92
|
7,084,000
|
0.45
|
Indicated
|
407,544,000
|
0.92
|
12,011,000
|
0.45
|
Inferred
|
282,303,000
|
0.85
|
7,736,000
|
0.30
|
Indicated
|
646,571,000
|
0.71
|
14,854,000
|
0.30
|
Inferred
|
446,921,000
|
0.68
|
9,702,000
|
0.25
|
Indicated
|
741,813,000
|
0.66
|
15,697,000
|
0.25
|
Inferred
|
515,081,000
|
0.62
|
10,306,000
|
0.10
|
Indicated
|
979,714,000
|
0.54
|
17,086,000
|
0.10
|
Inferred
|
717,639,000
|
0.50
|
11,446,000
|
|
|
|
|
|
Golden Summit Under
Pitshell Au g/t
|
Cutoff Au
g/t
|
Row Labels
|
Tonnes
|
Au_gpt
|
Au Ounces
|
1.00
|
Indicated
|
779,000
|
2.02
|
51,000
|
1.00
|
Inferred
|
7,389,000
|
1.62
|
385,000
|
0.75
|
Indicated
|
1,600,000
|
1.42
|
73,000
|
0.75
|
Inferred
|
15,776,000
|
1.21
|
614,000
|
0.50
|
Indicated
|
4,820,000
|
0.87
|
135,000
|
0.50
|
Inferred
|
49,296,000
|
0.80
|
1,260,000
|
0.45
|
Indicated
|
5,897,000
|
0.80
|
151,000
|
0.45
|
Inferred
|
60,576,000
|
0.74
|
1,432,000
|
0.30
|
Indicated
|
11,712,000
|
0.58
|
219,000
|
0.30
|
Inferred
|
100,407,000
|
0.59
|
1,912,000
|
0.25
|
Indicated
|
15,676,000
|
0.50
|
254,000
|
0.25
|
Inferred
|
119,057,000
|
0.54
|
2,076,000
|
0.10
|
Indicated
|
37,179,000
|
0.31
|
367,000
|
0.10
|
Inferred
|
214,981,000
|
0.37
|
2,572,000
|
For the pit-constrained
resource, the mining, processing and G&A costs amount to
US$25.70/tonne which results in a cutoff grade of 0.45 g/t Au
(25.70/57.61 = 0.446 rounded to 0.45 g/t). The oxide portion of the
Pit-Constrained resource has an estimated processing cost of
approximately US$4.10/tonne, which translates to a cutoff grade of
0.12 g/t Au (4.10+1.9+0.9 =6.90/57.61 = 0.12). This has been
rounded up to 0.15 g/.t.For the underground resource, the mining
method is assumed to be block caving, with a cost of US$20.00 /
tonne, which translates to a cutoff grade of 0.75 g/t Au. The base
cases for both the pit-constrained and underground resources are
highlighted. Gold grades have been rounded from four decimal places
to two.
|
The 2020-2022 drill program focused exclusively on the Dolphin
Cleary Zone at the Golden Summit project and extended gold
mineralization over 1.5 km along strike and to depths of over 1,000
metres. Mineralization in the Dolphin Cleary Zone is hosted within
a broad structural corridor of gold mineralization comprised of the
Dolphin stock, a multiphase intrusive complex, and metasedimentary
rocks comprised of various schists within which are discrete
high-grade veins, veinlets, and areas of vein stockwork which
effectively form a vein swarm, that occasionally contain
exceptional high grades. The main Cleary Hill Vein swarm ("CVS") mineralization
dips to the south. It plunges southwest towards the Dolphin
intrusive, with the mineralization increasing in intensity closer
to the Dolphin intrusive and especially along the contact
margins.
The highway-accessible Golden Summit project is located
approximately 32 km northeast of Fairbanks, Alaska, and was the subject of an
intensive drill campaign between January
2011 and August 2013 in which
36,159 metres were drilled. Three resource updates were completed
each in accordance with National Instrument 43-101 – Standards
of Disclosure for Mineral Projects ("NI 43-101"). In
January 2016, a preliminary economic
assessment (the "2016 PEA") prepared in accordance with NI 43-101
was produced for the Company by Tetra Tech. Between 2013 and 2020
limited drilling was conducted (approximately 1,890 metres of
shallow oxide drilling). Since 2020, over 83,000 meters have been
drilled, representing the most focused exploration effort ever
undertaken on the Golden Summit project, and resulting in the
Updated Mineral Resource Estimate. The 2016 PEA has not been
updated in light of the Updated MRE, and the updated Mineral
Resource Estimate updates and replaces the mineral resource
estimate of the Company contained in the PEA. An updated PEA will
be completed later in 2023.
Freegold will file within 45 days an updated technical report
for the Golden Summit project, including a description of the
Updated Mineral Resource Estimate contained herein. Further
information regarding the Updated MRE will be set forth in this
report. An updated PEA is expected later in 2023.
Quality Control and Reporting
Protocols
The Company implemented a sample quality control/quality
assurance ("QA/QC") program. Drill cores were cut in half using a
diamond saw, with one-half placed in sealed bags for preparation
and subsequent geochemical analysis by ALS Chemex. All assays were
performed by ALS Chemex., with sample preparation conducted at the
ALS facility in Fairbanks, Alaska,
with subsequent studies conducted primarily using its Vancouver and Reno laboratories.
Core samples were prepared using the PREP-31BY package in ALS's
Fairbanks facility. Each core
sample was crushed to better than 70 % passing a 2 mm (Tyler 9
mesh, US Std. No.10) screen. A split of 1kg was taken and
pulverized to better than 85 % passing a 75-micron (Tyler 200 mesh,
US Std. No. 200) screen; a portion of this pulverized split is
digested by Four Acid and analyzed via ICP-AES (method code
ME-ICP61). Fire Assay analyzed all samples with an AAS finish,
method code Au-AA23 (30g sample size) and over 10 g/t are
automatically assayed using a FA Grav method, Au-GRAV21. Additional
Au screening was performed using ALS's Au-SCR24 method; select samples were dry-screened to
100 microns. A duplicate 50g fire assay was conducted on the little
fraction and an assay on the entire oversize fraction. Total Au
content, individual assays, and weight fractions are reported.
Analytical and assay procedures were conducted in ALS's
North Vancouver and Reno
facilities. A QA/QC program included laboratory and field standards
inserted every ten samples. Blanks were inserted at the start of
the submittal, and at least one blank every 25 standards, with
additional blanks inserted following samples of visible gold.
Core Samples were also prepared using the PRP80-1Kg using the
Bureau Veritas facilities. Each core sample is crushed to better
than 70 % passing a 2 mm (Tyler 9 mesh, US Std. No.10) screen. A
split of 1kg is taken and pulverized to better than 85 % passing a
75-micron (Tyler 200 mesh, US Std. No. 200) screen; a portion of
this pulverized split is digested by Four Acid and analyzed via
ICP-ES (method code MA200). Fire Assay analyzes all samples with an
AAS finish, method code FA-430 (30g sample size) and over 10 g/t
are automatically assayed using a FA Grav method, FA530. Additional
Au screening is performed using BV's FA632 method; select samples
are dry screened to 100 microns. A duplicate 50g fire assay is
conducted on the little fraction, as well as an assay on the entire
oversize fraction. Total Au content, individual assays, and weight
fractions are reported. Crushing was conducted at BV's Fairbanks facility, with subsequent analysis
conducted by its Vancouver, Reno
and/or Hermosillo facilities. A QA/QC program included laboratory
and field standards inserted every ten samples. Blanks are inserted
at the start of the submittal, and at least one blank every 25
standards with additional blanks inserted following samples of
visible gold.
Freegold has a full-service camp at Golden Summit with COVID-19
protocols in place.
Qualified Person and Technical
Information
The Updated MRE, with an effective date of 21 February 2023, was prepared by Tetra Tech
Canada. Greg Mosher, P. Geo and Maurie Marks, P.Eng of Tetra Tech Canada
are "Qualified Persons" for the Updated Mineral Resource
Estimate as defined in NI 43-101 and is considered to be
"independent" of Freegold for the purposes of NI 43-101. Greg
Mosher and Maurie Marks have
reviewed and approved the scientific and technical information
herein regarding the Golden Summit project. Greg Mosher
conducted a site visit to Golden Summit on November 11 – 12, 2022.
The full technical report, which is being prepared in accordance
with NI 43-101 by Tetra Tech Canada, will be available on SEDAR
(www.sedar.com) under the Company's issuer profile within 45 days
from this news release. The effective date of the Updated Mineral
Resource Estimate is February 21,
2023.
Alvin Jackson, P.Geo, Vice
President of Exploration and Development of the Company and a
"Qualified Person" as defined in NI 43-101, has supervised the
preparation of this news release and has reviewed and approved the
scientific and technical information contained herein.
About Freegold Ventures
Limited
Freegold is a TSX-listed company focused on exploration in
Alaska and holds the Golden Summit
Gold Project near Fairbanks and
the Shorty Creek Copper-Gold Project near Livengood through
leases.
Cautionary Statements Regarding
Estimates of Mineral Resources
This news release uses the terms measured, indicated and
inferred mineral resources as a relative measure of the level of
confidence in the resource estimate. Readers are cautioned that
mineral resources are not mineral reserves and that the economic
viability of resources that are not mineral reserves has not been
demonstrated. The mineral resource estimate disclosed in this news
release may be materially affected by geology, environmental,
permitting, legal, title, socio-political, marketing or other
relevant issues. The mineral resource estimate is classified in
accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum's "CIM Definition Standards on Mineral Resources and
Mineral Reserves" incorporated by reference into NI 43-101 ("CIM").
Under NI 43-101, estimates of inferred mineral resources may not
form the basis of feasibility or pre-feasibility studies or
economic studies except for preliminary economic assessments.
Readers are cautioned not to assume that further work on the stated
resources will lead to mineral reserves that can be mined
economically.
Cautionary Note Regarding
Forward-Looking Information
Some statements in this news release contain forward-looking
information, including, without limitation, statements as to
planned expenditures and exploration programs, potential
mineralization and resources, exploration results, the prospects,
if any, of the Dolphin Cleary deposit, timing and ability of the
Company to file an updated NI 43-101 technical report for the
mineral resource estimate disclosed in this news release, the
Golden Summit Project representing one of the largest undeveloped
gold resources in North America,
expected further testing at other targets at the Golden Summit
Project, and any other future plans. 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. See Freegold's Annual Information
Form for the year ended December 31st,
2021, 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. Reactions to the spread of COVID-19 continue to
lead to, among other things, significant restrictions on travel,
business closures, quarantines, and a general reduction in economic
activity. While there has been a reduction in these effects in
recent months, the continuation and re-introduction of significant
restrictions, business disruptions, and related financial impact,
and the duration of any such disruptions, cannot be reasonably
estimated at this time. 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. Such public health crises, as
well as global geopolitical 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. As a result of the COVID-19 outbreak,
Freegold has implemented a COVID management program and established
a full-service Camp at Golden Summit 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