Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

August 23, 2007 09:00 ET

Northern Freegold Acquires 100% Interest in Golden Revenue, Nitro and Sey Properties at Freegold Mountain Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce an increase in ownership at the Freegold Mountain Project through an acquisition of ATAC's (TSX VENTURE:ATC) entire interest in the Golden Revenue (includes Nucleus Zone), Nitro and Sey Properties. NFR has negotiated an agreement (subject to regulatory approval) whereby NFR can earn 100% interest in the above properties. The existing option and joint venture agreement whereby NFR could earn a 50% joint venture agreement on these properties has been cancelled.

Based upon encouraging results from the 2006 & 2007 work completed on the Nucleus, Revenue and Sey properties, NFR's acquisition of the entire property now solidifies NFR's 100% land ownership position at the Freegold Mountain Project. The first hole (GRD07-041) drilled in the 2007 program in the Nucleus Zone stepped out 50 m from the 2006 drilling and returned 72.35 m (237.30 feet) of 2.5 g/t Au and 0.14% Cu, including 2.0 m (6.56 feet) of 45.0 g/t Au. Hole GRD07-041 was drilled to a depth of 262 m (860 feet) in the southeast portion of the Nucleus Zone, downhill and to the east of Hole GRD06-15 which was drilled in 2006 and included the occurrence of visible gold within a long, low-grade intersection (62.0 m of 0.82 g/t Au). Hole GRD07-41 is located directly uphill from the Mechanic Creek placer gold workings where wire gold and large nuggets (up to 26.6 grams) are currently being recovered.

Up to 15,000 m of diamond drilling with two rigs is underway at Freegold Mountain for the 2007 exploration program. To date, a total of 8,660 m in 42 holes has been completed, the main focus of which is the Nucleus Zone. The second drill began its operation in the Tinta Zone at the eastern edge of the Project, completed holes in the Goldy and Dart Zones and has recently moved to the Rage Zone, located in the central area of the property (refer to map at www.northernfreegold.com for zone locations).

Bill Harris, President & CEO, commented, "This acquisition means that as we progress with our extremely aggressive development program at the Freegold Mountain Project, all of the gold-silver-copper resources discovered will accrue to NFR. The ability to control 100% of the property will enable NFR to develop the project and its resources in order to bring an elevated level of value to our shareholders."

The Freegold Mountain Project covers an area in excess of 64 square miles (166 square km) and several road accessible mineralized zones which include historical and non-43-101 compliant resources. Historical work on the property dating back to 1930 indicates that the property holds significant potential to host an intrusion related gold deposit or bulk-tonnage gold+/-copper porphyry style mineralization (ie Nucleus Zone) such as that seen at Kinross Gold's Fort Knox deposit in Alaska which has produced more than 3 million ounces in the past 10 years and still has a resource of 2 million ounces of gold from proven and probable reserves of 82.1 million tonnes grading 0.74 g/t. The Project also has potential to host other related deposit types such as intrusive hosted polymetallic vein systems (Tinta Hill), epithermal vein systems (Goldy) and skarn deposits (Margarete/Augusta), as well as other porphyry targets (Castle, Com, Nitro, Rage).

NFR can earn 100% interest in the Golden Revenue (including Nucleus Zone), Nitro and Sey Properties by issuing 1.9 million shares and $150,000 cash over 2 years. ATAC will also receive a 1% NSR on the above properties. An underlying 2% NSR on the Nucleus Zone has been purchased for 200,000 shares. 1.5% of an underlying 2% NSR on the Revenue Zone can be purchased for $600,000 cash. The existing option and joint venture agreement on the Golden Revenue (including Nucleus Zone), Nitro, and Sey Properties has been cancelled.

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