Foundation Resources Inc.
TSX VENTURE : FDN

Foundation Resources Inc.

September 22, 2010 08:15 ET

Foundation Resources Inc.: 45.95 m Zone Averaging 1.05 g/t Gold Intersected at Coldstream in Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 22, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) ("Foundation" or the "Company") is pleased to announce assay results from another five 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.

Key Point Summary:

  • 45.95 metre-wide zone averaging 1.05 g/t gold including 2.90 g/t gold over 10.55 m
  • 89.80 metre-wide zone averaging 0.62 g/t gold including 3.52 g/t gold over 4.05 m
  • 20.45 metre-wide zone averaging 1.37 g/t gold including 14.4 g/t gold over 0.95 m and 2.75 g/t gold over 4.30 m

Table of Significant Gold Assays

Drill Hole   From (metres)   To (metres)   Width (metres)   Gold (grams /tonne)
C-10-30 (East Zone)   142.10   231.90   89.80   0.62
Including   145.25   147.55   2.30   1.20
Including   155.80   159.50   3.70   1.44
Including   168.25   172.30   4.05   3.52
Including   178.25   180.25   2.00   1.26
Including   191.85   203.70   11.85   1.09
Including   212.20   215.50   3.30   1.97
                 
C-10-31 (East Zone)   156.75   172.05   15.30   0.61
                 
C-10-33 (East Zone)   165.30   185.75   20.45   1.37
Including   165.30   169.60   4.30   2.75
Including   184.80   185.75   0.95   14.40
                 
    202.90   213.65   10.75   1.07
Including   202.90   207.65   4.75   2.00
                 
    238.95   249.10   10.15   1.13
                 
C-10-34 (East Zone)   196.05   200.55   4.50   0.73
                 
    219.80   225.45   5.65   0.94
                 
    236.40   238.70   2.3   1.01
                 
C-10-36 (East Zone)   128.55   174.50   45.95   1.05
Including   128.55   134.90   6.35   2.14
Including   146.60   149.90   3.30   1.10
Including   163.95   174.50   10.55   2.90

All five holes (C-10-30, C-10-31, C-10-33, C-10-34 and C-10-36) were drilled into the East Zone. The East Zone, a 40m by 650m surface area, is one of the four mineralized zones which make up the northeast-striking East Coldstream Deposit, which is approximately 1.5 km long. Drill hole C-10-33 and C-10-36 intersected high-grade gold intercepts within a wide mineralized zone, verifying gold mineralization down plunge that is open at depth. The other three adjacent zones are the Main, North and Sanders zones. All the zones are open at depth. The principal purpose of these holes is to continue filling the gaps between well-mineralized historic holes to both confirm and expand the historic resource to NI 43-101 compliant standards.

Drill hole C-10-30 was drilled at 110°/-47º to a depth of 342.55 metres, C-10-31 was drilled at 158º/-52º to a depth of 282.55 metres, C-10-33 was drilled at 333°/-53° to a depth of 294.75 metres, C-10-34 was drilled at 331°/-45° to a depth of 328.27 metres and C-10-36 was drilled at 335°/-53° to a depth of 233.78 metres. All intervals are represented as down hole core lengths. True widths are estimated at 70-75 percent of core length.

Both the Main and East zones were also drilled during Foundation's 2010 winter drill program and results from drilling in these zones were previously reported on March 29, April 6, and 21 2010. Results obtained from eight holes under the current program were reported on July 20 and September 8, 2010. These eight holes were drilled into the North (C-10-23), Main (C-10-24, 25, 26, 27, 28, and 29) and East (C-10-32) 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.

The drill program is continuing and 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.

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.

Cambridge House Resource Investment Conference - Toronto

Foundation will be exhibiting at the Cambridge House Resource Investment Conference in Toronto on Sept. 25 to Sept. 26, 2010. Please visit the Company's booth at space 919 for an opportunity to meet and discuss Foundation's latest exploration successes and plans with our management team.

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

CUSIP: # 350476107

ISIN CA3504761071

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.

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)