Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

January 14, 2010 09:15 ET

Northern Freegold Provides Update on Successful 2009 Program at Nucleus Zone, Freegold Mountain, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2010) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce the final results and provide an update on the 2009 Nucleus Zone program at the district scale, road accessible Freegold Mountain Project, located in the Yukon. In 2009, a total of 10,440 meters were drilled in 44 holes in the Nucleus Zone, where an initial inferred gold resource of 1.082 million ounces was announced1. The Nucleus deposit is a bulk tonnage, potentially open-pittable intrusion related gold mineralized system, open in all directions and to depth. To date, only 2% of the Freegold Mountain Project has been drilled.

Highlights:

The 2009 program was successful in:

  1. Confirming the continuity of the higher grade sulphide rich horizons within the Nucleus deposit;
  2. Potentially increasing the grade of lower grade portions within the resource;
  3. Defining further gold mineralization inside and outside the resource boundary; and
  4. Identifying a large scale shear zone along the southern edge of the Nucleus deposit which has potential to host additional mineralization.

Next steps:

  • Resource calculation update – first quarter 2010
  • 3D geological model is presently being updated to incorporate the 2009 drill holes.
  • Initial resource will be reviewed with the information from the updated geological model and an updated resource will be reported.
  • 2010 program planning to build ounces
  • Revised resource will provide areas to drill test in 2010 to expand ounces at Nucleus.
  • Over the next few months a strategic assessment is underway to prioritize targets to discover new ounces within large scale systems defined by the 2009 field work.

Bill Harris, CEO & COO commented, "Management at Northern Freegold is pleased with the success of the 2009 program at the Nucleus. We are looking forward to the updated resource calculation which will incorporate new mineralization inside and outside of the initial resource boundary, as well as connecting the higher grade horizons within the original resource. The discovery of the large scale shear zone along the southern edge of the Nucleus deposit represents a significant new target for resource expansion."

2009 Program Summary:

Confirmation of continuity of higher grade sulphide rich horizons

The isolated higher grade sulphide lenses first identified in the 2008 drilling (GRD08-068 which intersected 37.80 m of 10.41 g/t gold) on the east side of the Nucleus deposit were successfully connected into discrete horizons following the 2009 drilling program such as GRD09-131 which intersected 25.08 m of 2.45 g/t gold. The eastern sulphide horizons strike to the east and dip steeply to the south, extending for 175 m along strike and remain open to the west and at depth. In addition, drilling on the west side of Nucleus and relogging of historic drill core has identified similar sulphide lenses in that area. The western sulphide rich horizons also strike to the east but dip shallowly to the south. They stretch over 275 m along strike and remain open in all directions. Currently, there is a gap between the sulphide rich areas within the center of the Nucleus deposit. There is potential for the horizons to join, but deeper drilling is needed to test this. Of further note is a sulphide lens drilled in GRD09-157 (see table next page), in the southwest, which intersected 1.69 g/t Au over 3.43 m. This hole was stopped due to poor ground conditions. No horizons had been previously found in this area, so this opens up the potential for more sulphide horizons to be found throughout the Nucleus Zone. Please refer to selected 2008, 2009 drill hole results tables and map at end of release for reference.

To view the map accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/nfr114.jpg

Gold mineralization outside of the resource boundary and identification of large scale shear zone

The 2009 drill program, in conjunction with detailed geological mapping and ground geophysics has provided a better understanding and interpretation of the structures controlling the mineralization within and around the Nucleus Zone. This work has identified a northwest trending brittle shear zone, which has potential to host mineralization as evidenced by selected 2009 drill holes from outside the resource boundary:

  • Hole 128: 1.31 m of 11.50 g/t gold and 25.38 m of 1.25 g/t gold2
  • Hole 144: 4.47 m of 9.68 g/t gold and 17.10 m of 1.01 g/t gold2
  • 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 gold2

The brittle shear zone is located along the edge of a larger shear corridor oriented northwest across the Nucleus Zone. The larger shear corridor is composed of zones of ductile deformation grading outwards into zones of brittle deformation, where the rocks are stretched and broken, forming breccias and creating fractures. The brittle shear zone may extend across the entire Nucleus Deposit, and remains open to the northwest and southeast as well as at depth. Brittle shear zones are significant because breccias and fractures are good hosts for gold mineralization as the open spaces within them allow for the passage of mineralizing fluids which deposit gold and other metals.

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 releases dated Oct. 22, 2009 and Nov. 19, 2009

Drilling the gaps

The Nucleus resource contains lower grade portions due to lack of drilling. Some drillholes from the 2009 drill program targeted a few of these areas. GRD09-135 intersected 59.32 m of 0.81 g/t gold within a lower grade area of the resource. Of note is that GRD09-135 also intersected significant gold mineralization below the resource (6.97 m of 3.96 g/t gold). Increasing the grade of certain areas of the resource could potentially increase the amount of ounces.

Table of Remaining 2009 Drill Holes

  Hole No.   Length(m)   From   To   Interval   Interval   Au1   Au2   Cu3
  Az (o)/Dip(o)   m   m   m   feet   g/tonne   oz/ton   %
  GRD09-143   228.60/180/-50   No significant results
  GRD09-145   284.99/0/-60   14.30   40.70   26.40   86.61   0.45   0.01    **
  And     48.90   50.90   2.00   6.56   19.90   0.58   **
  And     122.50   123.00   0.50   1.64   1.40   0.04   **
  And     191.00   193.00   3.00   9.84   2.28   0.07   0.66
  GRD09-146   289.56/0/-52   57.77   84.90   27.13   89.01   0.71   0.02   0.10
  Including     79.00   84.90   5.90   19.36   2.39   0.07   0.27
  Including     83.40   84.90   1.50   4.92   8.13   0.24   **
  And     106.28   118.88   12.60   41.34   0.48   0.01   **
  Including     116.25   118.88   2.63   8.63   1.26   0.04   **
  And     158.55   160.18   1.63   5.35   2.05   0.06   **
  And     175.84   185.45   9.61   31.53   0.73   0.02   **
  Including     183.06   185.45   2.39   7.84   1.39   0.04   0.11
  And     195.07   198.65   3.58   11.75   0.88   0.03   0.50
  GRD09-157   102.72/0/-50   70.97   74.4   3.43   11.25   1.69   0.05   **
  GRD09-159   176.79/0/-50   26.82   28.30   1.48   4.86   1.12   0.03    **
  And     48.92   49.30   0.38   1.25   1.08   0.03   **
  And     90.00   130.50   40.50   132.87   0.61   0.02   **
  And     115.56   125.46   9.90   32.48   1.21   0.04   **
  Including     124.95   125.46   0.51   1.67   5.83   0.17   **
  GRD09-160   230.13/0/-65   No significant results 

Results less than 2.5 g/t/m gold were not reported in this table, unless the grade was >1 g/t gold
1Au composite intervals were calculated from Au ppb if Au values <1,000 ppb; if Au values were >1,000 ppb fire assay g/tonne values were used;
2Au oz/ton values were converted by dividing Au g/tonne value by 34.2857
3Percent values were calculated from ppm results; if Cu value was >10,000 ppm lab reported % values were used;
** Cu values <0.10%; NSR – No significant results
 

 

Drill sections and a 3D visualization can be viewed at www.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 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 10,000 ppb) 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-assayed by fire assay followed by a gravimetric finish. Other elements are analyzed by a 33 element package (ICP-AES analysis). Additional check-analyses are carried out at EcoTech Laboratory in Kamloops. 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.

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 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.

Nucleus Deposit

Selected 2007 & 2008 Results

Hole No. Length(m) From To Interval Interval Au Au Cu
  m m m feet g/tonne oz/ton  %
GRD07-041 262.13 66.85 139.20 72.35 237.30 2.50 0.07 0.26
GRD07-058 312.42 52.53 127.50 74.97 245.90 4.26 0.12 **
GRD08-068 224.03 42.20 80.00 37.80 124.02 10.41 0.30 0.29
GRD08-073 234.08 102.40 149.36 46.96 154.07 14.51 0.42 0.22
GRD08-099 303.38 109.64 119.00 9.36 30.71 70.19 2.05 0.21
GRD08-100 312.42 239.30 245.05 5.75 18.86 4.98 0.15 **
GRD08-111 208.79 29.65 37.55 7.90 25.92 25.33 0.74 **
GRD08-113 190.50 60.13 63.73 3.60 11.81 55.27 1.61 0.99
GRD08-114 280.42 21.00 25.00 4.00 13.12 68.95 2.01 **
GRD08-118 204.22 118.50 122.01 3.51 11.52 24.20 0.71 0.15

Selected 2009 Results

Hole No. Length(m) From To Interval Interval Au Au Cu
  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
 Including   52.19 55.78 3.59 11.78 1.60 0.05 0.67
 Including   52.19 58.63 6.44 21.13 1.10 0.03 0.52
GRD09-123 182.88 74.68 81.88 7.20 23.62 1.35 0.04 0.14
GRD09-125 239.27 135.20 137.20 2.00 6.56 21.60 0.63 0.18
GRD09-127 283.47 68.58 74.04 5.46 17.91 1.62 0.05 0.19
GRD09-128 295.66 113.30 138.68 25.38 81.34 1.25 0.036 **
GRD09-129 272.80 103.04 105.00 1.96 6.43 22.80 0.67 0.12
GRD09-130 291.08 37.70 46.50 8.80 28.20 1.97 0.057 **
And   61.70 101.00 39.30 125.95 0.94 0.027 **
 Including   61.70 73.40 11.70 37.50 1.25 0.036 **
 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
GRD09-131 301.76 73.53 98.61 25.08 82.28 2.45 0.07 0.15
GRD09-132 455.68 0.00 22.86 22.86 73.26 1.08 0.032 **
GRD09-134 272.8 38.10 44.08 5.98 19.16 1.56 0.045 **
GRD09-135 290.36 53.27 112.59 59.32 194.62 0.81 0.024 **
 Including   60.98 71.00 10.02 32.87 1.14 0.033 **
 Including   108.30 112.59 4.29 14.07 3.68 0.107 **
And   221.33 228.30 6.97 22.87 3.96 0.112 **
GRD09-139   236.80 255.20 18.40 60.37 1.00 0.029 **
Including   246.00 250.20 4.20 13.78 3.08 0.090 **
GRD09-144 270.67 66.80 83.02 16.22 53.22 2.96 0.086 **
 Including   67.66 72.13 4.47 14.67 9.68 0.282 **
And   206.93 224.03 17.10 56.10 1.01 0.029 **
GRD09-147 303.28 7.22 9.49 2.27 7.45 10.05 0.293 **
And   49.96 50.38 0.42 1.38 51.40 1.499 **
GRD09-149 300.23 81.65 94.49 12.84 42.13 0.81 0.023 **
GRD09-150 298.71 124.20 130.69 6.49 21.29 1.47 0.043 **
GRD09-151 240.80 125.50 140.70 15.20 49.87 1.40 0.041 **
GRD09-152 260.30 6.00 8.00 2.00 6.56 7.73 0.225 **
GRD09-153 391.89 327.96 328.33 0.37 1.21 38.70 1.129 .38
And   368.30 370.10 1.80 5.91 11.30 0.330  .10
GRD09-158 216.11 56.18 62.20 6.02 19.75 0.99 0.029 **

Results less than 2.5 g/t/m gold were not reported in this table, unless the grade was >1 g/t gold
1Au composite intervals were calculated from Au ppb if Au values <1,000 ppb; if Au values were >1,000 ppb fire assay g/tonne values were used;
2Au oz/ton values were converted by dividing Au g/tonne value by 34.2857
3Percent values were calculated from ppm results; if Cu value was >10,000 ppm lab reported % values were used;
** Cu values <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