Foundation Resources Inc.
TSX VENTURE : FDN

Foundation Resources Inc.

March 30, 2010 09:20 ET

Foundation Intersects 27.3 Metres of 4.88g/tonne Gold at Coldstream

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) is pleased to announce the results from the first two 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:

- 13.55 g/t gold over 3.0m intersected within a 27.28 m wide zone averaging 4.88 g/t gold

- Multiple higher-grade sections: 11.80 g/t gold over 1.20 m, within a 47.25 m wide zone averaging 1.30 g/t gold

- Results still pending from remaining seven completed drill holes

The first two holes (C-10-14 and C-10-15) are located 50 m apart from each other and were drilled at the Main Zone of the Deposit. Both drill holes intersected wide zones of gold mineralization, which include multiple higher grade intersections. Gold in both drill holes is associated with 1 to 8 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. Significant results are as follows:

Table of Significant Gold Assays


Drill Hole
From
(metres)
To
(metres)
Width
(metres)
Gold
(grams/tonne)
C-10-14 190.45 237.70 47.25 1.30
 Including: 192.30 198.20 5.90 3.01
  216.95 218.95 2.00 6.15
  227.30 229.75 2.45 9.62
  228.55 229.75 1.20 11.80
         
C-10-15 169.45 196.73 27.28 4.88
 Including: 193.73 196.73 3.0 13.55
         
 

Drill hole C-10-14 was drilled at 157 degrees/-50 degrees to a depth of 358.75 metres and C-10-15, located approximately 50 metres south-southwest of C-10-14, was drilled at 160 degrees/-54 degrees to a depth of 297.79 m. All intervals are represented as down hole core lengths, with the true widths estimated to be about 75% of core length. Assay results for the remaining seven holes completed in the 2010 program will be released as they become available.

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. 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.

CEO John Hiner commented, "We are obviously very pleased with these initial results. The goal of confirmation and expansion of the historic non NI 43-101 compliant Noranda's resource is high on our list, as it fits with our business model of developing and expanding existing ounces in areas like East Coldstream. We look forward to continued success as we move this resource toward a NI 43-101 compliant status."

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., is the Qualified Person 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,

John E. Hiner, Chief Executive Officer

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