Foundation Resources Inc.
TSX VENTURE : FDN

Foundation Resources Inc.

May 19, 2010 08:30 ET

Foundation Resources Commences Work Program at Coldstream

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) is pleased to announce the commencement of the 2010 summer exploration program on its East Coldstream project ("the Project") in Ontario. The exploration program will consist of a minimum of 8,000 m of diamond drilling as well as surface work consisting of line-cutting, ground geophysics (IP survey), prospecting, mapping and sampling of the Iris Zone, Span Lake Zone and areas adjacent to the East Coldstream Deposit (the "Deposit"). The main objective of the current diamond drilling program is to further define and expand the East Coldstream deposit. The recently completed 9-hole, 2,090 metre winter diamond drilling program by Foundation, generated positive results and confirmed the continuity of gold mineralization between widely spaced, historical holes at the Deposit. In 1991 Noranda calculated the Deposit contained a non-NI 43-101 compliant historic resource of 5.1 million tonnes grading 1.4 g/t gold (234,000 ounces contained gold). A Qualified Person (QP), as defined in NI43-101, has not done sufficient work to classify this historical estimate as current mineral resources. Foundation is not treating the historical estimate as current mineral resources, as defined in NI43-101, and thus the historical estimate should not be relied upon.

Key objectives of 2010 summer program:

* Continue drilling to add more ounces to the historic resource

* Drill testing adjacent to the historic resource for expansion both laterally and to depth

* Expansion of the property grid and an IP survey in selected areas

* Prospecting, mapping and sampling along expanded grid lines

The expansion of the grid lines would allow the linking of the Deposit by means of geophysical (IP) and geological (mapping, prospecting and sampling) survey data with other significant gold mineralization in the area, such as the Iris (30.7 g/t gold over 1.15 m channel sample) and Goldie (15.8 g/t gold in grab sample) zones located north and south of the historic resource, respectively. The purpose of this is two-fold: 1) to identify new drill targets adjacent to the Deposit so that it can be expanded both laterally and at depth, and 2) to generate and/or add new drill targets at the Iris and Goldie zones. A drilling program is also planned in the Span Lake area to confirm gold-bearing zones drilled by Inco in the 1980s, and test the potential continuity of the Moss Lake gold deposit (NI 43-101 compliant inferred resource of 1.5 million ounces contained gold) on to the southern-most claims in the Span Lake area of the property.

2010 Winter Drilling:

Results from the 2010 Winter program were very positive as they represent some of the best grades and widths drilled on the Coldstream property to date. The drilling results also demonstrated potential for increased grades (4.88 g/t gold over 27.3 m in C-10-14) and widths (111.3m averaging 1.12 g/t gold in C-10-16 testing the Main Zone) of the historical resource (see Foundation news releases dated March 29 and April 6, 2010). Results from drill hole C-10-22 testing the Sanders Zone are particularly significant (27.46 m averaging 1.16 g/t gold, including 10.05 g/t gold over 2.10 m – Foundation news release dated April 21, 2010) as this hole is located approximately 500 m northeast of the Main Zone and 125 m south of the East Zone. The Sanders Zone was not included as part of the historical resource estimate completed in 1991, which provides significant potential for this area.

Encouraged by the very positive drilling results, the Company believes there is potential to increase the size of the Deposit with additional drilling and continue to advance the deposit towards a NI 43-101 complaint resource estimate.

About the Coldstream Property:

The East Coldstream Deposit, which occurs within the 5,394 hectare Coldstream Property, is located along the Trans Canada Highway 115 km west of the City of Thunder Bay, Ontario. The area is road accessible and has excellent infrastructure with a major power line and CN rail line passing just north of the property. Skilled labour is readily available locally. Mineralization at the East Coldstream Deposit is hosted in intensely sheared, silicified and iron-carbonate altered mafic to felsic metavolcanics and porphyries in a zone extending northeast over a 1.5 km strike length. Foundation has an option to earn up to a 70% interest in the Coldstream property from Alto Ventures Ltd.

For more details regarding the Coldstream Property, please visit our website at www.foundationres.com.

Ike Osmani, P. Geo., is the Qualified Person for Foundation who has reviewed and approved this news release.

About Foundation Resources Inc.:

Foundation is a mineral exploration company focused on exploration and development of high potential gold properties in Canada and Mexico. Its Coldstream Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada. The San Rafael property is located approximately 150km northwest of Durango in the Durango State, Mexico.

Investor Relations Appointment:

Foundation Resources Inc. has renewed its investor relations contract with Rain Communications Inc., headquartered in Vancouver, BC for a term of six months.

On behalf of the board,

Paul Chung, President

News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

CUSIP: # 350476107

ISIN CA3504761071

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rain Communications
    Nelson Da Silva
    604-648-0523 (direct)
    or
    Rain Communications
    Ralph Biggar
    604-306-2525 (direct)
    or
    Foundation Resources Inc.
    Voice: (604) 687-7551
    1-800-667-4470
    (604) 687-4670 (FAX)
    info@foundationres.com
    www.foundationres.com