Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

October 22, 2009 09:10 ET

Northern Freegold Extends Gold Mineralization to the South From Resource Boundary in Step-Out Drilling at Nucleus Zone, Freegold Mountain Project, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2009) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce results from 11 additional drill holes in the Nucleus Zone at the district scale Freegold Mountain Project, located in the Yukon. In 2009, a total of 10,440 m were completed within 44 drill holes in the Nucleus Zone, where an initial inferred gold resource of 1.082 million ounces was announced (67.67 million tonnes @ 0.5 g/t gold with 0.3 g/t cutoff; see news release dated July 27, 2009). Step-out hole GRD-128 drilled to the south tested a poorly explored area and was successful in intersecting a significant length (25.38 m) of 1.25 g/t Au including 1.31 m of 11.50 g/t Au. This intersection extends mineralization to south and at depth of the current resource boundary.

The main objective of the Company's drill program in 2009 was to confirm and expand upon historical results within a bulk tonnage, potentially open-pittable intrusion related gold mineralized system. 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 enriched zones and a broad, variably oriented disseminated gold mineralization system. Upon recognition of the significance of the east-west trend of higher gold mineralization, all 2009 drill holes were drilled in a north or south direction to cross-cut these structures. The 11 holes reported in this news release represent fences of holes drilled north south across the Nucleus Zone and include step out holes to the south and east (refer to attached map or see www.northernfreegold.com).

To view the attached map please click on the following link: http://media3.marketwire.com/docs/nfr1022m.JPG

Highlights of the 11 holes in this release

Section 379325E

- North/south holes drilled through central Nucleus

-- Hole 128 drilled to the south (step-out) testing a poorly explored area was successful in intersecting significant length (25.38 m) of 1.25 g/t Au including 1.31 m of 11.50 g/t Au

-- Holes 130 and 132 drilled to the north were successful in potentially connecting/expanding higher grade portions of the resource; (GRD09-130 intersected 8.8 m of 1.97 g/t Au and GRD09-132 intersected 22.86 m of 1.08 g/t Au)

Section 379200E

- Testing mineralization in western Nucleus

-- Hole 139 drilled to the north intersected significant mineralization consisting of 1.00 g/t Au over 18.40 m

-- Hole 137 drilled to the south intersected 55.67 m of 0.52 g/t Au

Section 379400E

- Hole 135 tested an area within eastern Nucleus to fill in and extend higher grade portions of the resource

-- Successful as intersected 59.43 m of 0.81g/t Au; and 17.59 m of 1.89 g/t Au

Section 3793650/700E

- Stepped out to east and drilled north and south

-- Holes GRD09-133 and 140 intersected highly faulted ground whereas GRD09-134 did not intersect faulted ground yet intersected significant mineralization of 5.98 m of 1.56 g/t Au

Complete results are presented in the tables at the end of this release. Drill holes included in this press release can also be viewed a www.corebox.net. For an animated video showing Nucleus' current resource please click: http://www.northernfreegold.com/s/Home.asp.

The 2009 diamond drill program in and surrounding the Nucleus Zone was also successful in:

- Defining tabular nature of sulphide rich replacement mineralization in eastern section of the zone (see Aug. 13, 2009 news release)

- Expanding and confirming the continuity of structures controlling the higher grade gold mineralization

- Intersecting new and extending known sulphide enriched mineralization and sulphide rich breccias in step out holes in the western and southwestern portion of the zone

- Stepping out to follow up on geochemical and/or geophysical anomalies and targets generated by previous/ongoing drilling to extend Nucleus Zone mineralization

The 2009 program also included 1,241 m of rotary air blast drilling (21 holes) with follow up diamond drilling (assays pending). Also included in the 2009 program was detailed geological mapping and ground geophysics between the Nucleus and Revenue Zones (a distance of 4 km), as well as property wide stream sediment sampling and reinterpretation of airborne geophysics across the project. The 2009 geological mapping and ground geophysics (magnetic and radiometrics) program focusing along and past the 4 kilometre trend encompassing the Nucleus and Revenue Zones helped to define and follow up on historical gold and copper anomalies between the zones (please refer to attached figure). Gold and copper soil historical soil geochemistry has been digitized from contours produced by Archer, Cathro & Associates in 2004 based on original sample data collected in 2000. As can be seen from the attached figure, a large portion of the outline of the existing inferred resource at the Nucleus Zone has no indicative soil anomalies associated with it. The results received to date from the stream sediment samples within the Nucleus/Revenue Zone also indicate additional areas warranting follow up.

To view the attached figure please click on the following link: http://media3.marketwire.com/docs/nfr1022f.JPG

Bill Harris, CEO & COO commented "We are pleased that another successful exploration program has been completed at Freegold Mountain. 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. The detailed drill program in the Nucleus Zone has helped identify additional target areas to test and potentially expand resources. The strength and scale of anomalies identified between the Nucleus and Revenue Zones is significant. This work, in conjunction with review of historical soil data, the 2009 property wide stream sediment sampling program and reinterpretation of the property wide airborne geophysical survey will lead to prioritization of targets for the 2010 program at Freegold Mountain."

Sampling Methodology, Quality Control and Assurance

Drilling: 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.

Stream Sediment Sampling: Each sample was collected from several points along the active stream bed to produce a representative composite sample. The top part of the sediment was discarded to avoid spurious high content of Fe and Mn in oxide coating. Every sample collected was hand sieved in the field to a fraction of less than one-eighth inch. The sample was placed in a double layer plastic sample bag and labeled. Sample weight varied between four to twelve kilograms. Samples were submitted to ALS Chemex in Vancouver. Upon arrival at the laboratory, samples were dried and screened to 180 microns (80 mesh) and analyzed by ME-MS41, an ultra trace level method for 51 elements, including gold and mercury by aqua regia digestion of 0.5 g of sample and a combination of ICP-AES and ICP-MS analysis. In addition, AU-ST44 method was used to analyze for gold using a larger sample size of 50 grams. Samples exceeding the upper limit of Au detection of 0.1 ppm were automatically re-analyzed using an additional 50 gram sample of 80 mesh sediment and implementing the ore grade assay technique Au-OG44 using aqua regia digestion and ICP-MS finish with detection range between 0.01-100 ppm.

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 September of 2009 an indicated resource of 297.0 Mt at an average grade of 0.85 g/t gold and an inferred resource of 164 Mt at an average grade of 0.84 g/t gold at a 0.5 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 Wade Barnes, 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.

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.



Drill Hole Results
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Length(m) Inter- Inter-
Az (degrees)/ From To val val Au(1) Au(2) Cu(3)
Hole No. Dip(degrees) m m m feet g/tonne oz/ton %
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Section 379325E; Fence of holes drilled through central Nucleus
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GRD09-128 295.66 11.10 12.41 1.31 4.20 11.50 0.335 (i)
And 180/-55 34.00 36.00 2.00 6.41 1.03 0.030 (i)
And 113.30 138.68 25.38 81.34 1.25 0.036 (i)
Including 113.30 119.95 6.65 21.31 3.37 0.098 0.10
And 185.42 187 1.58 5.06 1.07 0.031 0.20
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GRD09-130 291.08 25.50 26.10 0.60 1.92 1.53 0.045 0.38
And 0/-55 37.70 46.50 8.80 28.20 1.97 0.057 (i)
Including 37.70 40.60 2.90 9.29 5.12 0.149 (i)
And 61.70 101.00 39.30 125.95 0.94 0.027 (i)
Including 61.70 73.40 11.70 37.50 1.25 0.036 (i)
Including 83.50 101.00 17.50 56.08 1.05 0.031 0.13
Including 83.50 89.00 5.50 17.63 1.89 0.055 0.13
And 124.30 126.40 2.10 6.73 1.10 0.032 0.21
And 246.50 247.70 1.20 3.85 1.40 0.041 (i)
And 255.00 256.30 1.30 4.17 1.74 0.051 0.46
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GRD09-132 455.68 0.00 80.77 80.77 258.85 0.79 0.023 (i)
Including 0/-65 0.00 22.86 22.86 73.26 1.08 0.032 (i)
Including 67.06 70.95 3.89 12.47 2.43 0.071 (i)
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Step-out holes to the east (3793650, 700E)
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GRD09-133 297.48 34.83 36.00 1.17 3.75 1.24 0.036 (i)
And 180/-50 149.87 151.00 1.13 3.62 2.93 0.085 0.17
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GRD09-134 272.8 38.10 44.08 5.98 19.16 1.56 0.045 (i)
And 180/-50 55.70 57.30 1.60 5.13 1.94 0.057 (i)
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GRD09-140 240.79 No significant results
0/-50
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Test conductor and soil anomaly to south (379450E)
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GRD09-136 368.81 65.41 70.53 5.12 16.7979 0.89 0.026 (i)
0/-50
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GRD09-138 208.79 63.40 67.90 4.50 14.7638 1.08 0.032 (i)
180/-50
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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
(i) Cu values less than 0.10%

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Length(m) Inter- Inter-
Az (degrees)/ From To val val Au(1) Au(2) Cu(3)
Hole No. Dip(degrees) m m m feet g/tonne oz/ton %
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Testing an area within eastern Nucleus to fill in an d extend higher grade
portion of the resource (379400E)
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GRD09-135 290.36 19.81 37.70 17.89 58.69 0.71 0.021 (i)
Including 0/-50 32.27 36.27 4.00 13.12 1.24 0.036 (i)
And 43.61 47.15 3.54 11.61 0.96 0.028 0.10
And 53.27 112.59 59.32 194.62 0.81 0.024 (i)
Including 60.98 71.00 10.02 32.87 1.14 0.033 (i)
Including 108.30 112.59 4.29 14.07 3.68 0.107 (i)
And 133.60 134.93 1.33 4.36 1.62 0.047 0.14
And 163.43 173.68 10.25 33.63 0.44 0.013 (i)
And 179.22 201.00 21.78 71.46 0.74 0.022 0.10
And 183.60 184.47 0.89 2.92 2.13 0.062 (i)
And 191.76 193.70 1.94 6.36 1.91 0.056 0.10
And 219.36 236.95 17.59 57.71 1.89 0.055 (i)
And 221.33 228.30 6.97 22.87 3.96 0.112 (i)
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Test mineralization in western Nucleus (379200E)
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GRD09-137 344.43 5.50 8.75 3.25 10.66 0.75 0.022 (i)
GRD09-137 180/-60 30.68 48.06 17.38 57.02 0.68 0.020 (i)
Including 35.37 41.50 6.13 20.11 1.11 0.032 (i)
GRD09-137 95.65 96.80 1.15 3.77 1.35 0.039 (i)
GRD09-137 139.81 141.41 1.60 5.25 6.65 0.194 (i)
GRD09-137 186.98 242.65 55.67 182.64 0.52 0.015 0.24
Including 204.20 205.66 1.46 4.79 3.22 0.094 0.12
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GRD09-139 295.66 29.10 35.50 6.40 21.00 1.26 0.037 (i)
Including 0/-50 33.20 34.40 1.20 3.94 4.22 0.123 (i)
GRD09-139 47.70 69.40 21.70 71.19 0.41 0.012 (i)
Including 62.00 64.00 2.00 6.56 1.20 0.036 (i)
GRD09-139 110.90 133.10 22.20 72.83 0.50 0.015 (i)
Including 124.95 126.20 1.25 4.10 2.51 0.073 (i)
GRD09-139 153.10 166.50 13.40 43.96 0.41 0.012 (i)
GRD09-139 173.80 188.00 14.20 46.59 0.51 0.015 (i)
Including 185.90 186.30 0.42 1.38 4.22 0.123 0.19
GRD09-139 236.80 255.20 18.40 60.37 1.00 0.029 (i)
Including 246.00 250.20 4.20 13.78 3.08 0.090 (i)
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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