Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

December 03, 2009 09:15 ET

Northern Freegold Extends Gold Mineralization in Step-Out Drilling to the Southwest of the Nucleus Zone at Freegold Mountain, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 3, 2009) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to provide results from 6 additional drill holes in the Nucleus Zone at the district scale road accessible 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(1). The Nucleus Zone is a bulk tonnage, potentially open-pittable intrusion related gold mineralized system. The 6 holes fall within the large scale northwest trending brittle shear zone, identified from the 2009 field program, and first documented in the Nov. 19, 2009 release.

To view the map accompanying this news release please click on the following link: http://media3.marketwire.com/docs/nfr123map.JPG.

Highlights:

- Highlights from holes within this release include (see attached map):

-- Hole 153: 3.74 m of 4.43 g/t gold including 0.37 m of 38.70 g/t gold; and 1.80 m of 11.30 g/t gold

-- Hole 149: 12.84m of 0.81 g/t gold and 31.85m of 0.56 g/t gold

-- Hole 150: 6.49 m of 1.47 g/t gold

- These holes were drilled in the same area of the brittle shear zone outlined in the previous news release and continue to expand mineralization to the south and southwest of the Nucleus

- The northwest trending brittle shear zone, identified by integrating historical geophysical surveys, geological mapping and diamond drilling, is part of a large shear system within the Freegold Mountain Project. The brittle shear zone has the potential to host mineralization as seen by the following significant results returned from earlier holes from 2008(2) and 2009(3) such as

-- Hole 111: 7.90 m of 25.33 g/t gold and 2.55 m of 49.70 g/t gold

-- Hole 113: 3.60 m of 55.27 g/t gold including 0.73 m of 142.00 g/t gold

-- Hole 128: 1.31 m of 11.50 g/t gold and 25.38 m of 1.25 g/t gold

-- Hole 144: 4.47 m of 9.68 g/t gold and 17.10 m of 1.01 g/t gold

-- Hole 147: 2.27 m of 10.05 g/t gold, 0.42 m of 51.40 g/t gold & 2.00m of 9.68 g/t gold

- The Nucleus zone remains open in all directions and at depth.

(1) (67.67 million tonnes @ 0.5 g/t gold with a 0.3 g/t cutoff; see news release dated July 27, 2009).

(2) see news release dated March 26, 2009;

(3) see news releases dated Oct. 22, 2009 and Nov. 19, 2009

Bill Harris, CEO & COO commented "Management at Northern Freegold is very pleased that the newly identified brittle shear zone located along the south and southwest sides of the Nucleus deposit continues to return high grade gold values as well as long intervals of lower grade mineralization. Recognition that the brittle shear zone may be part of a larger system at the Freegold Mountain Project is also key in prioritizing drill targets for the 2010 program at Freegold Mountain. The brittle shear zone represents a significant new target for resource expansion."

Complete results for the 6 holes are presented in the tables at the end of this release. The remaining 6 holes will be released as they are received, compiled and interpreted. Drill sections and a 3D visualization can be viewed at ww.corebox.net or by following a link on the company's website at www.northernfreegold.com.

Sampling Methodology, 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). Core samples from diamond drilling were split and sent to both EcoTech Laboratory in Whitehorse for sample preparation and then to EcoTech Laboratory in Kamloops for analysis, as well as to ALS Chemex Laboratory in North Vancouver for sample preparation and analysis. Blanks, commercial standards and duplicate core samples were included in each batch. To determine Au levels at the ppb level (detection limit 5-1000 ppb (10,000 ppb at ALS)) 30 g samples were fire assayed then digested in aqua regia solution and analyzed by atomic absorption. Values over 1,000 ppb 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) at EcoTech, or re-assayed by fire assay followed by a gravimetric finish at ALS. Other elements are analyzed by a 29 elements (33 at ALS) package (ICP-AES analysis). Additional check-analyses are carried out by the lab which did not receive the original sample. Intervals reported in this release do not necessarily represent true widths of mineralization. The technical information disclosed in this release has been reviewed and approved by Wade Barnes, P. Geo.

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 called the Tintina Gold Belt. NFR controls 166 square km (64 square miles) within the district scale Freegold Mountain Project, containing at least 20 identified mineralized zones, including the Nucleus, Revenue and Tinta. Nearby projects include the producing Minto Mine of Capstone Mining Corp. the Casino and Carmacks Copper Deposits of Western Copper Corporation, and the White Gold Property of Underworld Resources to the northwest.

The Freegold Mountain Project is well situated within the stable, mining supportive jurisdiction of the Yukon which has a single assessment approach for developing projects 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 Road, a government maintained gravel road that connects to the Klondike Highway, an all weather paved highway leading to Whitehorse. Powerlines along the Klondike Highway are 30 km from the Freegold 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). 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.

Northern Freegold also announces it has granted incentive stock options to directors, employees and consultants of the company for the purchase of a total of 1,660,000 shares at an exercise price of $0.35 per share, expiring December 4, 2012 and 2014.

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

Susan P. Craig, President

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

---------------------------------------------------------------------------
Length(m)
Az
(degrees)/
Dip From To Interval Interval Au(1) Au(2) Cu
Hole No. (degrees) m m m feet g/tonne oz/ton (3)%
---------------------------------------------------------------------------
GRD09-148 12.38 not sampled, shut down because of ground conditions
180/-50
---------------------------------------------------------------------------
GRD09-149 300.23 0.00 36.58 36.58 120.01 0.47 0.014 (ii)
and 0/-50 81.65 94.49 12.84 42.13 0.81 0.023 (ii)
including 86.26 89.05 2.79 9.15 1.90 0.055 .14
and 131.15 137.17 6.02 19.75 0.71 0.021 (ii)
and 205.62 237.47 31.85 104.49 0.56 0.016 (ii)
including 205.62 206.96 1.34 4.40 5.99 0.175 (ii)
and 295.38 296.79 1.41 4.63 1.58 0.046 (ii)
---------------------------------------------------------------------------
GRD09-150 298.71 124.20 130.69 6.49 21.29 1.47 0.043 (ii)
including 0/-63 127.01 130.69 3.68 12.07 2.19 0.064 (ii)
and 142.89 143.82 0.93 3.05 1.47 0.043 (ii)
and 208.86 209.51 0.65 2.13 2.19 0.064 .16
and 211.84 213.66 1.82 5.97 1.03 0.030 .23
and 256.85 265.45 8.60 28.22 0.91 0.027 (ii)
including 262.28 265.45 3.17 10.40 1.97 0.057 .11
---------------------------------------------------------------------------
GRD09-151 240.80 10.90 13.10 2.20 7.22 2.01 0.059 (ii)
and 0/-60 51.00 52.10 1.10 3.61 4.17 0.122 (ii)
and 83.00 98.60 15.60 51.18 0.51 0.015 (ii)
and 125.50 140.70 15.20 49.87 1.40 0.041 (ii)
Including 135.20 137.20 2.00 6.56 8.00 0.233 (ii)
---------------------------------------------------------------------------
GRD09-153 391.89 24.38 38.82 14.44 47.38 0.55 0.016 (ii)
and 0/-50 118.52 123.37 4.85 15.91 0.62 0.018 (ii)
including 118.52 118.97 0.45 1.48 3.79 0.111 .29
and 306.26 316.42 10.16 33.33 0.83 0.024 (ii)
including 308.13 311.44 3.31 10.86 1.79 0.052 .12
and 327.96 331.7 3.74 12.27 4.43 0.129 (ii)
including 327.96 328.33 0.37 1.21 38.70 1.129 .38
and 352.57 353.84 1.27 4.17 1.01 0.029 (ii)
and 368.30 370.10 1.80 5.91 11.30 0.330 .10
---------------------------------------------------------------------------
GRD09-156 105.16/ NSR
0/-79
---------------------------------------------------------------------------
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 values less than 0.10%; NSR - No significant results


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