Foundation Resources Inc.
TSX VENTURE : FDN

Foundation Resources Inc.

April 21, 2010 09:20 ET

Foundation Intersects 10.05 g/t Gold Over 2.10 m Within a 27.46-Metre-Wide Zone at the Sanders Zone Located 500 m Northeast of Historic Resource at Coldstream

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) is pleased to announce the results from the last four 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:

- 47.92 m averaging 1.14 g/t gold intersected at the East Zone, including 9.69g/t gold over 1.08 m and 2.58 g/t gold over 6.37 m

- 27.46 m averaging 1.16 g/t gold intersected at the Sanders Zone located 500m northeast of the historical Deposit, including 10.05 g/t gold over 2.10 m

- Follow-up drilling to resume after spring break-up

Three (C-10-19, 20 and 21) of the four holes were drilled at the East Zone and the fourth (C-10-22) was drilled to intersect the Sanders Zone. The East Zone is located northeast of the previously reported Main Zone and each of the three holes intersected wide intervals of gold mineralization which include higher grade sections (see Table). Drill hole C-10-22 tested the Sanders Zone and intersected 27.46m averaging 1.16 g/t gold, including 10.05 g/t gold over 2.1 m.

Table of Significant Gold Assays

Drill Hole   From (metres)   To (metres)   Width (metres)   Gold (grams /tonne)  
C-10-19 (East Zone)   137.46   185.38   47.92   1.14  
  Including:   149.73   150.81   1.08   9.69  
    179.01   185.38   6.37   2.58  
                   
C-10-20 (East Zone)   149.75   169.90   20.15   0.67  
  Including:   149.75   151.40   1.65   4.10  
                   
C-10-21 (East Zone)   77.85   104.20   26.35   1.08  
  Including:   100.50   104.20   3.7   5.19  
                   
C-10-22 (Sanders Zone)   65.57   93.03   27.46   1.16  
  Including:   90.37   92.47   2.10   10.05  

Results from the 2010 winter program are very positive as they are some of best grades and widths drilled on the Coldstream property to date and they confirm continuity of gold mineralization between widely spaced historical holes. The drilling results also demonstrate the potential for increased grades (4.88 g/t gold over 27.3 m in C-10-14) and widths (111.3m averaging 1.12 g/t gold in C-10-16 testing the Main Zone) at the Deposit (see Foundation news releases dated March 29 and April 6, 2010). Results from drill hole C-10-22 testing the Sanders Zone are particularly significant as this hole is located approximately 500 m northeast of the Main Zone and 125 m south of the East Zone, and the Sanders Zone was not included as part of the historical resources estimated for the Deposit in 1991.

Encouraged by the very positive drilling results, the Company believes there is potential to increase the size of the historical Deposit with additional drilling and is planning a follow-up program to continue to advance towards a NI43-101 complaint resource estimate. The next phase of drilling is to commence after spring break-up.

Drill hole C-10-19 was drilled at 160°/-55º to a depth of 233.78 metres, C-10-20 drilled at 158º/-52º to a depth of 197.21 metres, C-10-21 was drilled at 163°/-55° to a depth of 127.10 metres and C-10-22 was drilled at 155º/-47º to a depth of 150.55 metres. All intervals are represented as down hole core lengths, with the true widths estimated between 70 – 75 percent of core length.

President Paul Chung commented, "In addition to highly favourable results obtained from the known historic resource area, drill results from the Sanders Zone are also very encouraging as drill hole C-10-22 is well outside of the historical resource thus indicating the potential for increasing this historic non-NI 43-101 compliant resource".

2010 Winter 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. Foundation tested the Sanders Zone by one drill hole (C-10-22), as part of the current drilling program, intersecting a 27.46-metre-wide mineralized zone averaging 1.16 g/t gold, including 10.05 g/t gold over 2.10 metres. The historical resource does not include the gold mineralization at the Sanders Zone, which may have potentially increased the size of the Deposit as demonstrated by the hole C-10-22 and other historical drill holes by Lacana and Alto. The results from all nine holes drilled in the 2010 winter drilling program are very encouraging, as the majority of them, particularly at the Main and North zones, have demonstrated greater widths at depth in the deposit.

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