Foundation Resources Inc.
TSX VENTURE : FDN

Foundation Resources Inc.

October 05, 2010 08:00 ET

Foundation Resources Inc.: 35.65 m Zone Averaging 2.10 g/t Gold Intersected at Coldstream's Newly Developed Sanders Zone, Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) ["Foundation" or the "Company"] is pleased to announce assay results obtained at the newly developed Sanders Zone from three recently completed drill holes of its 8,000 metre summer drill program on the East Coldstream Deposit (the "Deposit") located within its Coldstream Property in Ontario. Foundation, the operator of the program, has an option to earn up to a 70% interest in the Coldstream Property from Alto Ventures Ltd. ("Alto").

Key Point Summary:
  • 35.65 metre-wide zone averaging 2.10 g/t gold including 4.42 g/t gold over 9.00 m and 4.72 g/t gold over 4.50 m
  • 27.35 metre-wide zone averaging 1.06 g/t gold including 9.23 g/t gold over 2.20 m
  • The Sanders Zone is located approximately 500m northeast of the Main Zone and was not included in the historical resource (5.1 million tonnes averaging 1.4 g/t gold – Non 43-101 compliant resource*) calculated by Noranda in 1990
Table of Significant Gold Assays
 
Drill Hole From (metres ) To (metres ) Width (metres ) Gold (grams /tonne )
C-10-37 (Sanders Zone) 43.90   53.60   9.70   1.06  
                 
C-10-38 (Sanders Zone) 64.65   92.00   27.35   1.06  
    including 80.05   92.00   11.95   1.82  
    including 89.80   92.00   2.20   9.23  
                 
C-10-39 (Sanders Zone) 96.60   132.25   35.65   2.10  
    including 106.55   130.95   24.40   2.97  
    including 108.00   117.00   9.00   4.42  
    including 126.45   130.95   4.50   4.72  
                 

All intervals are represented as down-hole core lengths. True widths are estimated at 70-75 percent of core length.

Drill hole C-10-37 intersected near surface gold mineralization. Holes C-10-38 and C-10-39 tested the interpreted northeast-trending plunge line below C-10-37 and both intersected significant gold. Hole C-10-39 intersected multiple higher-grade gold intercepts (4.42 g/t gold over 9.0 m and 4.72 g/t gold over 4.50 m) within a 35.65 metre-wide mineralized zone averaging 2.10 g/t gold. Results from C-10-39 verify that gold mineralization extends down plunge and is open at depth. Foundation also tested the Sanders Zone with one drill hole (C-10-22) as part of the 2010 winter drill program, intersecting a 27.46 metre-wide mineralized zone averaging 1.16 g/t gold.

The Sanders Zone is one of the four mineralized zones that make up the northeast-striking East Coldstream Deposit, which is approximately 1.5 km long. The Sanders Zone, located approximately 500 m northeast of the main zone and 125 m south of the East Zone, was drill-tested by Lacana Mining Corp. ("Lacana") and Alto in 1986 and 2006, respectively. The Sander Zone drilling results from Foundations 2010 winter and current programs are particularly significant because they are not included as part of the historic resources (5.1 million tonnes averaging 1.4 g/t gold – Non 43-101 compliant resource*) calculated in 1990 by Noranda for three of the zones (North, Main and East zones).

Drilling continues to return positive results as the majority of holes drilled to date contain gold and have intersected wide mineralized zones with multiple intersections of high-grade gold mineralization in variable core lengths. Gold is associated with disseminated pyrite and occurs within strongly sheared and hydrothermally altered (silica, albite, sericite, magnetite and hematite) mafic to intermediate metavolcanic and intrusive quartz-feldspar porphyry rocks.

Additional results will be released as they become available. Please refer to Foundations July 20, 2010 news release for Quality Assurance and Quality Control procedures.

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

*(Not a NI43-101 compliant resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon). 

Ike Osmani, M.Sc., P. Geo., the President and the Qualified Person for Foundation supervised the drill program, 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 150 km northwest of Durango in the Durango State, Mexico.

On behalf of the board,

Paul Chung, CEO

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
    604-648-0510 (direct)