Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

August 13, 2009 09:10 ET

Northern Freegold Drills 25 Metres of 2.45 g/t Gold Including 5 Metres of 6.82 g/t Gold At the Nucleus Zone on Its Freegold Mountain Property, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2009) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce initial 2009 drill hole results from 9 diamond drill holes completed on its Nucleus Zone at its district scale Freegold Mountain Property located in the Yukon. All 9 holes were designed to test the higher grade east-west component of gold mineralization, test the model and expand the continuity of structures controlling the higher grade gold mineralization. The drill results reflect the ongoing expansion of the Nucleus Zone where an initial gold resource of 1.082 million ounces was recently announced (67.57 million tonnes @ 0.5 g/t with 0.3 g/t cutoff; see news release dated July 27, 2009). Drilling is continuing on the Company's Nucleus Zone with 26 drill holes totaling 7100 metres now completed as part of a planned 12, 000 metre drill program this season.

Highlights:

- 7 of 9 holes intersected shear hosted gold bearing sulphide replacement mineralization and related breccia zones

- These intersections coupled with data generated from last year's interpretation show the sulphide rich replacement bodies to be tabular in shape, east-west oriented and moderate to steeply dipping

- This drilling defined the continuity of the tabular sulphide rich replacement bodies hosted within the shear zone extending the bodies another 50 metres (GRD09-131) to the west for a total of 250 metres (see attached map).

- Hole GRD09-131 returned 25.08m of 2.45 g/t gold including 5.11 m of 6.82 g/t gold

- Hole GRD09-125 intersected 2.0 m of 21.6 g/t gold within same tabular body

- Hole GRD09-129 intersected 1.96 m of 22.80 g/t gold within same tabular body

To view the Drill Hole Plan Map Nucleus Zone please click on the following link: http://media3.marketwire.com/docs/nfr813map.JPG

The Company has completed additional drilling both along strike and to depth within this shear hosted gold mineralization zone in order to further define the mineralization. The Nucleus Zone is open in all directions and to depth. 3-D geologic modeling has identified important new east-west structures associated with mineralization in the Nucleus Zone. Revenue mineralization, 4 km to the east, might be related to the east-west trending mineralized dykes recognized and modeled at Nucleus.

Bill Harris, CEO & COO commented "We are pleased that the initial drill holes targeting the shear hosted gold zone and sulphide rich replacement mineralization were successful in confirming the model and expanding the structures controlling the higher grade mineralization. The recognition that the higher grade intersections are now better defined tabular bodies is significant in expanding the potential at the Nucleus Zone. This initial drilling indicates the success of the exploration program currently underway in confirming the newly recognized controls of the higher grade mineralization and to test the potential for expansion of the Nucleus Zone along the mineralized trend."



---------------------------------------------------------------------------
Length(m)
/Azimuth
(degrees)
/Dip From To Interval Interval Au Au Cu
Hole No. (degrees) m m m feet g/tonne oz/ton %
---------------------------------------------------------------------------
GRD09-121 141.74/ 49.00 58.63 9.63 31.59 0.91 0.03 0.36
Incl. 0/ 52.19 55.78 3.59 11.78 1.60 0.05 0.67
Incl. -60 52.19 58.63 6.44 21.13 1.10 0.03 0.52
And 80.68 81.32 0.64 2.10 1.03 0.03 0.29
---------------------------------------------------------------------------
GRD09-123 182.88/ 4.57 19.00 14.43 47.34 0.87 0.03 (ii)
Incl. 0/ 7.00 10.00 3.00 9.84 2.33 0.07 (ii)
And -50 31.00 32.50 1.50 4.92 1.51 0.04 (ii)
And 35.89 38.10 2.21 7.25 0.64 0.02 (ii)
And 55.25 56.50 1.25 4.10 1.17 0.04 0.14
And 74.68 81.88 7.20 23.62 1.35 0.04 0.14
And 122.08 122.62 0.54 1.77 3.20 0.10 (ii)
---------------------------------------------------------------------------
GRD09-124 111.26/ 7.62 26.76 19.14 62.80 0.55 0.02 (ii)
Incl. 0/ 18.20 26.76 8.56 28.08 0.78 0.02 (ii)
And -50 100.00 104.00 4.00 13.12 0.72 0.02 0.11
---------------------------------------------------------------------------
GRD09-125 239.27/ 5.40 12.70 7.30 23.95 0.95 0.03 (ii)
And 0/ 38.50 40.50 2.00 6.56 6.59 0.19 (ii)
And -57 65.30 69.70 4.40 14.44 0.53 0.02 0.10
And 78.80 80.80 2.00 6.56 1.73 0.05 (ii)
And 134.00 137.20 3.20 10.50 13.84 0.40 0.13
Incl. 135.20 137.20 2.00 6.56 21.60 0.63 0.18
And 186.30 190.30 4.00 13.12 2.03 0.06 0.31
---------------------------------------------------------------------------
GRD09-127 283.47/ 43.06 49.05 5.99 19.65 0.51 0.01 (ii)
Incl. 0/ 46.80 47.24 0.44 1.44 2.14 0.06 (ii)
And -58 68.58 74.04 5.46 17.91 1.62 0.05 0.19
Incl. 73.30 74.04 0.74 2.43 7.41 0.22 0.25
And 96.60 98.00 1.40 4.59 1.01 0.03 0.27
And 130.55 134.74 4.19 13.75 2.89 0.08 0.11
---------------------------------------------------------------------------
GRD09-129 272.8/ 51.82 52.63 0.81 2.66 1.44 0.04 0.16
0/ 60.71 62.00 1.29 4.23 1.28 0.04 (ii)
-50 103.04 105.00 1.96 6.43 22.80 0.67 0.12
---------------------------------------------------------------------------


---------------------------------------------------------------------------
Length From To Interval Interval Au Au Cu
Hole No. m m m m feet g/tonne oz/ton %
---------------------------------------------------------------------------
GRD09-131 301.76/ 8.87 10.67 1.80 5.91 1.62 0.05 (ii)
And 0/ 34.49 35.44 0.95 3.12 1.68 0.05 0.11
And -50 44.46 50.33 5.87 19.26 1.31 0.04 0.18
And 73.53 107.62 34.09 111.84 1.95 0.06 0.15
Incl. 73.53 98.61 25.08 82.28 2.45 0.07 0.15
incl. 93.50 98.61 5.11 16.77 6.82 0.20 0.41
And 185.92 188.26 2.34 7.68 1.42 0.04 0.19
And 220.82 222.00 1.18 3.87 3.32 0.10 (ii)
And 255.52 258.70 3.18 10.43 1.10 0.03 (ii)
---------------------------------------------------------------------------
Results less than 2.5 g/t/m gold were not reported in this table, unless the
grade was greater than 1 g/t gold
1 Au composite intervals were calculated from Au ppb if Au values less than
1,000 ppb; if Au values were greater than 1,000 ppb fire assay g/tonne
values were used
2 Au oz/ton values were converted by dividing Au g/tonne value by 34.2857
3 Percent values were calculated from ppm results; if Cu value was greater
than 10,000 ppm lab reported % values were used.
(ii)Cu value is less than 0.1%


GRD09-122 and GRD09-126 encountered no significant mineralization as GRD09-122 crossed a shear zone and then went down dip and parallel to the schist foliation (non-mineralized) and GRD09-126 encountered a fault zone.

Nucleus Zone

The main objective of the Company's drill program in 2008 was to confirm and expand historical results on a bulk tonnage, potentially open-pitable intrusion related gold mineralized system. An initial NI 43-101 compliant gold resource of 1.082 million contained gold ounces (67.57 million tonnes @ 0.5 g/ with 0.3 g/t gold cutoff) was recently announced incorporating 2008 and earlier drill hole results (see news release dated July 27, 2009). At the Nucleus Zone, the resource is open for further expansion in all directions and to depth and geologic modeling shows east-west oriented gold mineralization that may be related to the mineralization at the Revenue breccia zone 4 kilometers to the east.

The new geological model for the initial resource estimate in the Nucleus Zone demonstrates a higher-grade east-west component for the gold mineralization which is parallel to a series of mineralized intrusive dykes and sulphide replacement zones and a broad, north-south component of more disseminated gold mineralization. The initial set of 2009 drill holes were positioned to test the higher grade east-west component of gold mineralization, test the model and expand the continuity of structures controlling the higher grade gold mineralization. To further test and potentially expand the initial NI 43-101 compliant inferred resource, Northern Freegold has designed a 12,000 m 2009 multi-faceted diamond drill program to:

- Confirm the new geological model which could potentially lead to discovery of additional higher grade mineralization

- Target lateral and vertical extensions of high grade mineralization intersected in 2008 (such as Hole GR08-099 which intersected 9.36 m of 70.19 g/t gold including 1.27m of 410.00 g/t gold - news release January 14, 2009)

- Step out to follow up on geochemical and/or geophysical anomalies and targets generated by previous/ongoing drilling to extend Nucleus Zone mineralization which is open in all directions and to depth.

G&T Metallurgical Services Ltd. has been commissioned by the Company to conduct preliminary gold recovery metallurgical testing on separate composite bulk samples from selected drill holes ( greater than 70kg each) representing the lower grade and higher grade material. The metallurgical testing will involve gravity and bottle roll cyanidation tests on each composite to determine the proportion of gold that can be recovered by gravity followed by the proportion of gold that can be recovered by cyanide leaching at different grinding sizes and different cyanide concentrations.

In conjunction with the diamond drill program, the company has just completed a rotary air blast (RAB) drill program (21 drill holes totaling 1,241 metres) to further refine potential diamond drill targets along the Nucleus-Revenue mineralized trend. In 2008, RAB drilling lead to step out diamond holes to the west which intersected 4.0 m of 68.95 g/t gold including 0.96 m of 256.00 g/t gold (news release March 26, 2009).

Geological teams are conducting geological mapping, stream sediment sampling and have re-logged historic drill holes focused along and past the 4 kilometers trend encompassing the Nucleus and Revenue Zones. Preliminary results from this detailed surface mapping, incorporated with existing geophysical, geological and geochemical data indicate a potential link between the mineralization at Nucleus with the geochemical anomaly and mineralization at Revenue. Additional ground geophysics is underway with a total of 120 kilometres of ground magnetic and radiometrics surveying currently being conducted to further support and refine drill targets along this trend. The recognition in the geologic modeling of the importance of the east-west orientation for higher-grade mineralization supports the view that the recognized mineral occurrences on the Freegold Mountain property are related and form part of a much larger system than previously recognized.

Quality Control and Assurance. The holes were drilled by a skid mounted diamond drill with NTW core size (5.6 cm/2.2 inches in diameter). All core samples from diamond drilling are split and sent to EcoTech Laboratory in Whitehorse for sample preparation and then to EcoTech Laboratory in Kamloops for analysis. Blanks, commercial standards and duplicate core samples are included in each batch. To determine Au levels at the ppb level (detection limit 5-1000 ppb) 30 g samples are fire assayed then digested in aqua regia solution and analyzed by atomic absorption. Over-limit values are re-assayed by fire assay and then digested with aqua regia and then re-analyzed by an atomic absorption instrument (detection limit 0.03 g/t). Other elements are analyzed by a 29 elements package (ICP-AES analysis). Additional check-analyses will be carried out by ALS-Chemex in North Vancouver. Intervals reported in this release do not necessarily represent true widths of mineralization.

About the Freegold Mountain Project

The road accessible Freegold Mountain Project is located 200 km northwest of Whitehorse, the capital of the Yukon and is situated within an active exploration and mining area in the Tintina Gold Belt of the Yukon which includes the producing Minto Mine of Capstone Mining Corp. to the north, Casino Deposit and Carmacks Copper Deposit of Western Copper Corporation to the west and east, and the White Gold Property of Underworld Resources to the northwest. NFR controls 166 square km (64 square miles) within the district scale Freegold Mountain Project. Within the project expanse are at least 20 identified mineralized zones, including the Nucleus, Revenue and Tinta. Many of the additional prospects on the Freegold Mountain Project are discussed in the full 43-101 technical report.

The Freegold Mountain Project is well situated within the stable, mining supportive jurisdiction of the Yukon. In 2003, control of resource management and development was devolved from the federal Canadian Government to the Territory. Decisions on resource development in the Yukon are now made in the Yukon. As a result of the Umbrella Final Agreement which provides a template for settlement of First Nation Land Claims in the Yukon, a single assessment approach has been developed for projects and activities in the Yukon, including resource projects. The Yukon Socioeconomic Environmental Assessment Act was developed in conjunction with First Nation and Yukoners. Eleven of the 14 First Nations in the Yukon have settled their Land Claim negotiations. The Freegold Mountain Project is located within the traditional territories of two settled First Nations: Little Salmon Carmacks First Nation and the Selkirk First Nation.

The Freegold Mountain Project is located on the Freegold Mountain Road, a government maintained gravel road. The Freegold Road connects to the Klondike Highway, an all weather paved highway, which connects to Whitehorse, the capital of the Yukon, and the major supply centre for the Yukon. Powerlines located along the Klondike Highway are at present 30 km from the Freegold Project boundary. The Carmacks Copper deposit will require a 12 km power line to connect to the power grid along the Klondike Highway. From this location, the power line would be within 7 km of the Freegold Mountain project boundary.

Other projects in the Tintina Gold Belt are the producing Fort Knox mine operated by Kinross Gold and the recently discovered Livengood Project of International Tower Hill Mines Ltd., both located in Alaska. The open-pit Fort Knox mine contains proven and probable resources of 252.8 Mt at an average grade of 0.47 g/t gold as of December 31, 2008 (www.kinross.com). Fort Knox is currently commissioning a run of mine heap leach facility to complement their current milling operations. In 2008, the Fort Knox Mine produced 329,105 ounces of gold. The Livengood Project reported in June of 2009 an indicated resource of 235.0 Mt at an average grade of 0.69 g/t gold and an inferred resource of 280.6 Mt at an average grade of 0.59 g/t gold at a 0.3 g/t gold cutoff (www.ithmines.com). Directly within the Freegold Mountain Project area, the Carmack Copper Deposit of Western Copper Corporation has received it permits and the Casino Deposit (4.4 billion lbs copper, 8.0 million ozs gold and 475 million lbs molybdenum) has entered into the Yukon Environmental Assessment Process (www.westerncoppercorp.com). These reserves and resources have not been verified by the qualified person and the information is not necessarily indicative of the mineralization at Freegold Mountain.

The technical information disclosed in this release has been reviewed and approved by Dr. Fabrizio Colombo, P.Geo.

Northern Freegold is a well financed rapidly advancing Canadian-based precious metals exploration and development company, which brings local expertise and strong management to focus on the development of economic mineral resources on the district-scale Freegold Mountain gold and copper project in the Yukon and the Burro Creek gold and silver property in Arizona.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

William G. Harris, CEO & COO

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes certain "forward-looking statements" All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statemenets. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NFR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and First Nation groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NFR's forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NFR assumes no obligation to update the forward looking statements if management's beliefs, opinions, projections, or other factors should they change.

Cautionary Note Regarding Reserve and Resource Estimates

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource and reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. No assurance can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an adverse change in mineral prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and recovery rates from estimates.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northern Freegold Resources Ltd.
    Debbie James
    Investor Relations Manager
    877.893.8757 or 604.893.8757
    604.893.8758 (FAX)
    www.northernfreegold.com