Northern Freegold Resources Ltd.

Northern Freegold Resources Ltd.

November 05, 2009 13:06 ET

Northern Freegold Executes Option Agreement for Tad/Toro Property in Dawson Range Mining Camp, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2009) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce it has executed an option agreement with 0851045 BC Ltd. (a private B.C. Company) whereby 0851045 BC may earn a 100% interest from NFR on the Tad/Toro gold-copper+/-molybdenum property located in the Dawson Range, approximately 100 km northwest of Carmacks in southern Yukon Territory (see attached map). 0851045 BC Ltd. just announced plans to merge with Uldaman Capital Corp. (ULD.H: TSX-V).

To view the map accompanying this release please visit the following link:

The Tad/Toro property (Tad/Toro portion and Nit portion) consists of 310 quartz claims covering approximately 32 square kilometers within the Dawson Range copper-gold belt which hosts porphyry Cu-Au+/-Mo deposits, associated epithermal vein and breccias systems and peripheral polymetallic veins.

0851045 BC Ltd. has agreed to complete a total of $3,000,000 in exploration expenditures, pay NFR a total of $125,211 cash and issue 3,000,000 common shares to be released over 4 years. Recently NFR earned a 100% interest in the Tad/Toro portion through payments totaling $50,000 and issuance of 300,000 shares (with an underlying 3% net smelter return royalty (NSR)); and a 100% interest in the Nit portion of the property through issuance of 100,000 shares with an underlying 1% NSR. NFR may purchase the first 1% of the underlying 3% NSR on the Tad/Toro portion for $500,000. 0851045 BC Ltd. may purchase this 1% NSR if NFR chooses not do so, and may also purchase an additional 1% of the 3% NSR for $1,000,000. All terms and conditions agreed by 0851045 BC Ltd. will be assumed by Uldaman.

Three primary mineralization types are recognized within the Tad/Toro Property:

  1. Porphyry Cu-Mo-Au
  2. Porphyry Breccia
  3. Shear hosted and Mesothermal Quartz Veins

Historical work on the Tad/Toro property indicates Tad/Toro has the potential to host gold-copper+/-molybdenum mineralization similar to that of the Casino Deposit (7.9 million ounces Au 4.3 billion pounds Cu and 475 million ounces Mo, 45 km to the northwest. Previous results from the Tad/Toro Project include: 0.51 g/t gold over 37.0 m (including 1.0 g/t gold over 8.2 m) in drill hole T-2; 1.23 g/t gold over 4.9 m in hole T-12 and 1.68 g/t gold over 7.0 m in T-14. Sampling of an unsplit interval from T-12 during 2007 due diligence work returned significant results of 1.13 g/t gold and 8.7 g/t silver over 7.9 m, including 5.07 g/t gold and 29.5 g/t silver over 0.9 m (see news release dated August 27, 2009).

Work in the late 1990s at Tad/Toro outlined over 10 drill targets, many of which are focused on gold soil anomalies in conjunction with geophysical anomalies. Access to the property is via an existing tote trail, known as the Casino Trail which is used year round to access active hardrock and placer projects at Sonora Gulch (held by Northern Tiger) and Hayes Creek (the location of the Tad/Toro Property). The Casino Trail continues on from the end of the road which transects the Freegold Mountain Property. Nuggets of tetradamite and other bismuth-gold telluride minerals in placer concentrates have been recovered from placer operations on the Tad/Toro Property.

In September 2009, 982 line km of airborne geophysics (combined magnetic-radiometric) was flown over the property by 0851045 BC Ltd. Interpretation of this data to help define drill targets is underway along with a compilation of previous data on the property. Uldamen will prepare an updated 43-101 report on the Tad/Toro Property.

The technical information disclosed in this release has been reviewed and approved by Susan P. Craig, 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 statements. 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.

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)