Foundation Resources Inc.
TSX VENTURE : FDN

Foundation Resources Inc.

April 07, 2010 09:25 ET

111.3 Metre Wide Zone Averaging 1.12 g/t Gold Intersected by Foundation at Coldstream

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) is pleased to announce the results from three more holes of the recently completed 2010 winter drilling program on the East Coldstream Deposit (the "Deposit") located on its Coldstream Property in Ontario. Foundation has an option to earn up to a 70% interest in the Coldstream property from Alto Ventures Ltd.

Key points Summary:

  • 111.3m wide zone averaging 1.12 g/t gold: includes 3.41 g/t gold over 20.85m including 8.68 g/t gold over 6.30m
  • 67.95m wide zone averaging 1.10 g/t gold: includes 9.33 g/t gold over 5.05m
  • Results still pending from remaining 4 completed drill holes
Table of Significant Gold Assays
 
  From To Width Gold
Drill Hole (metres) (metres) (metres) (grams /tonne)
C-10-16 (Main Zone) 133.80 245.10 111.30 1.12
  Including: 177.40 198.25 20.85 3.41
  which also includes: 187.00 193.30 6.30 8.68
         
C-10-17 (Main Zone) 48.02 90.42 42.40 0.68
  Including: 53.41 54.06 0.65 7.58
  78.24 81.38 3.14 2.50
         
C-10-18 (North Zone) 89.05 157.00 67.95 1.10
  Including: 131.95 137.00 5.05 9.33
         
(Main Zone) 208.65 231.15 22.50 0.88
  Including: 208.65 216.25 7.60 1.48
  227.70 231.15 3.45 2.21

Of the three holes, two were drilled (C-10-16 and C-10-17) at the Main Zone and the third (C-10-18) was drilled to intersect both the North and Main zones. All three drill holes intersected wide zones of gold mineralization, which includes multiple higher grade intersections. Gold in these drill holes is associated with up to 10 percent disseminated to blebby pyrite, and occurs within strongly sheared and hydrothermally altered (silica, albite, sericite, magnetite and hematite) zone of mafic to intermediate metavolcanics and quartz-feldspar porphyry intrusive rocks.

Drill hole C-10-16 was drilled at 155°/-59° to a depth of 276.46 metres, C-10-17 drilled at 157°/-47° to a depth of 160.63 metres, and C-10-18 drilled at 160°/-58° to a depth of 285.60 metres. The holes are located approximately 100m southwest, 100m south and 240 m west-southwest, respectively , to an earlier reported drill hole C-10-14 (News Release March 29, 2010). All intervals are represented as down hole core lengths, with the true widths estimated between 70 – 75 percent of core length. Assay results for the remaining four holes completed in the 2010 program will be released as they become available.

2010 Diamond Drilling:

The 9-hole diamond-drilling program, totaling 2,090 metres, was intended to in-fill gaps between the widely spaced historic drill holes to confirm and expand non-NI 43-101 compliant historical resources of 5.1 million tonnes grading 1.43 g/t gold (234,000 contained ounces of gold) calculated in 1991 by Noranda in three zones: the North, Main and East zones. Foundation is not treating the historical estimate as current mineral resources, as defined in NI 43-101, and thus the historical estimate should not be relied upon. Gold mineralization starts on surface and this resource estimate was based on relatively shallow drilling. An additional zone, the Sanders Zone, is situated east of this historical resource, and was drill-delineated by Lacana Mining Corp. and Alto Ventures Inc. in 1989 and 2006, respectively. Foundation tested the Sanders Zone as part of the current drilling program and will release results as they become available. The historical resource does not include the gold mineralization at the Sanders Zone, which could potentially increase the gold resources of the Deposit. The results of 2010 drill holes received to date have demonstrated greater widths at depth in the deposit, potentially providing a significant addition to the historic resource.

President Paul Chung commented, "These results support our belief that the mineralization continues at depth and down plunge from the previous drilling by Noranda, and fits well with our goal of confirmation and expansion of the historic non 43-101 compliant resource."

Quality Assurance/Quality Control:

Drill core processing included descriptive logging and selection of samples for geochemical analyses. The NQ2-size core was cut in two-halves using a stationary rock saw at the field camp in Kashabowie, Ontario. One-half of the core was delivered to the sample preparation lab of ALS Chemex Laboratory in Thunder Bay where they were crushed and a 1000-gram pulp was prepared. The pulp was then shipped to ALS Chemex Laboratory in North Vancouver, B.C. for analyses. The gold assaying method uses a standard Fire Assay with ICP-AES technique on a 30-gram pulp material taken from a 1000g split from the submitted sample. Any sample that exceeded upper detection limit of 10 ppm or grams was re-analyzed by the same Fire Assay method but with gravimetric finish. Commercially prepared standards and blanks were inserted by Foundation every 20 samples to insure precision of the results. ALS Chemex inserted its own standards, blanks and carried out duplicate analyses on sample pulps to ensure internal lab quality control. The lab for regular Fire Assay technique with an ICP-AES finish, inserted 1 blank at the beginning, 2 standards at random intervals, and 3 duplicates were analyzed at the end of the batch of every 84 samples. For the Fire Assay method with gravimetric finish, inserting 1 blank, 2 standards, and 1 duplicate followed the same procedure on a batch of every 20 samples.

About the East Coldstream Deposit:

The East Coldstream Deposit, which occurs within the 5,394 hectare Coldstream Property, is located along the Trans Canada Highway 115 km west of the City of Thunder Bay, Ontario. The area is road accessible and has excellent infrastructure with a major power line and CN rail line passing just north of the property. Skilled labour is readily available locally. Mineralization at the East Coldstream Deposit is hosted in intensely sheared, silicified and iron-carbonate altered mafic to felsic metavolcanics and porphyries in a zone extending northeast over a 1.5 km strike length.

For more details regarding the Coldstream Property, please visit our website at www.foundationres.com.

Ike Osmani, P.Geo., supervised the drill program, and is the Qualified Person for Foundation who has reviewed and approved this news release.

About Foundation Resources Inc.:

Foundation is a mineral exploration company focused on exploration and development of high potential gold properties in Canada and Mexico. Its Coldstream Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada. The San Rafael property is located approximately 150km north-west of Durango in the Durango State, Mexico.

On behalf of the board,

Paul Chung, President

News release contains certain "Forward­ Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward­ looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward­ looking statements.

CUSIP: # 350476107

ISIN CA3504761071

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rain Communications
    Nelson Da Silva
    Direct: (604) 648-0523
    or
    Rain Communications
    Ralph Biggar
    Direct: (604) 306-2525
    or
    Foundation Resources Inc.
    (604) 681-0405 or 1-800-667-4470
    (604) 687-4670 (FAX)
    info@foundationres.com
    www.foundationres.com