Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

January 23, 2008 12:44 ET

Northern Freegold Receives Approval for Acquisition of Severance Property in Dawson Range Gold Belt, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 23, 2008) - Further to a press release dated March 21, 2007, Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce it has received final acceptance from the TSX-Venture Exchange to acquire the Severance Property in the Dawson Range Gold Belt. Based upon encouraging results from NFR's Freegold Mountain Project and the intense interest in properties in the Dawson Range by other companies, NFR has negotiated an agreement whereby NFR can earn 100% interest in the Severance Property from Copper Canyon Resources Ltd. (TSX VENTURE:CPY). The Severance Property is located approximately 50 km to the west of the Freegold Mountain Project of NFR.

Severance Property

Exploration on the Severance Property including geophysics, soil geochemistry and geological mapping has identified a large area of coincident, anomalous gold, copper and molybdenum soil geochemistry suggestive of an intrusive-related or porphyry system. The IP chargeability and resistivity response is similar to that expected from a porphyry system. Soil geochemistry results (as per Scott Casselman, P. Geo. in a NI 43-101 report filed on SEDAR) have returned anomalous values to 2,680 ppb Au. Coincident with the gold is copper, molybdenum and arsenic; all considered key pathfinder elements associated with intrusion related gold-copper systems. A grab sample from silicified and quartz-veined granodiorite with 7% disseminated pyrite returned 1.2 g/t Au and 0.35% Cu. Samples from these programs were sent to Acme Analytical Laboratories in Vancouver, an ISO 9002 accredited facility. The soil samples were analyzed for 36 elements, including gold by ICP-MS after aqua regia digestion. Rock samples were analyzed for 36 elements by ICP-ES. Gold analyses were performed by fire assay with ICP-MS finish.

The property is underlain by granodiorite and monzonite of the Cretaceous Dawson Range Batholith. These rocks are intruded by Eocene quartz-feldspar porphyry dykes and plugs and are overlain by their volcanic equivalents, quartz-plagioclase porphyritic dacite of the Skokum Volcanic Suite.

NFR has the right to earn a 100% interest in the property through a series of staged payments and issuance of shares over 3 years totaling $50,000 and 300,000 shares. Five hundred thousand shares will be issued upon either a production decision on the property or a change in the control of NFR by another company (ie. a takeover). The vendor will retain an underlying 3% NSR, 2% of which may be purchased for $1.5 million. NFR and CPY have directors in common and are related parties in regard to the agreement on the Severance Property. These acquisitions have been approved by the non-related independent directors of both NFR and CPY.

Scott Casselman, P.Geo. recommended a Phase 1 $350,000 program of 800 m of drilling to test targets identified through geophysics and soil geochemistry. A $500,000 Phase II program contingent upon results of Phase I would include additional soil and geophysical surveys, and 1,000 m of diamond drilling. NFR intends to undertake the Phase I program during the 2008 field season and has the funds in place to carry out the program.

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

Northern Freegold is a Canadian-based resource exploration and development company which relies on local expertise and strong management to focus on development of economic reserves on the district-scale Freegold Mountain Project in the Yukon and the Burro Creek Project in Arizona.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

William (Bill) G. Harris, President and Chief Executive Officer

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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.
    Bernie Kennedy
    Investor Relations Manager
    1-877-489-4440
    Website: www.northernfreegold.com