Northern Freegold Resources Ltd.

Northern Freegold Resources Ltd.

March 21, 2007 11:45 ET

Northern Freegold Acquires Additional Properties in Dawson Range Gold Belt, Yukon

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2007) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce an increase in its land position in the Dawson Range Gold Belt through acquisition of 2 additional properties, the Tad/Toro and the Severance. NFR has negotiated agreements (subject to regulatory approval) whereby NFR can earn 100% interest on the Tad/Toro Property from private vendors and 100% interest on the Severance Property from Copper Canyon Resources Ltd. (TSX VENTURE:CPY). The Tad/Toro Property is located 25 km to the northwest of the 166 sq. km Freegold Mountain Project of NFR, and the Severance Property is located 50 km to the west of the Freegold Mountain Project (see map on

Based upon encouraging results from NFR's Freegold Mountain Project and the intense interest in properties in the Dawson Range from other companies (including the Minto Project of Sherwood Copper scheduled for production in the 2nd quarter of 2007, and the Carmacks Copper Project of Western Copper in the permitting process), NFR's acquisition of these 2 properties expands NFR's major land position in this active mineral belt. Based upon discussion with other property owners in the Dawson Range, there will be at least 7 drill programs in the Dawson Range, in addition to the drill program being planned for NFR's Freegold Mountain Project.

Both of these acquisitions are related party transactions, with an officer of NFR holding a 10% interest in the Tad/Toro Property and the officer's siblings holding 40% of the Tad/Toro Property. 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.

Tad/Toro Property

The 24.5 sq. km Tad/Toro Property is located along the Big Creek Fault, the same structure controlling the mineralization at the Freegold Mountain Project. Based on historical work on the property including geological mapping, sampling, geophysics, trenching and diamond drilling the Tad/Toro has the potential to host gold-copper+/-molybdenum mineralization similar to that of the Casino Deposit to the northwest, and the Nucleus Zone, located within the Freegold Mountain Project of NFR to the southwest. The geological environment, host rocks, structures alteration and mineralization at Tad/Toro are similar to the Nucleus Zone which appears to be part of a high level porphyry gold-copper system grading to epithermal. Historical drilling carried out in 1969 targeted copper values in a porphyry body. Re-analysis of a portion of this core for gold in 1986 by Noranda returned encouraging gold values in three holes: T-2 gave 0.51 g/t gold over 37.0 m (including 1.0 g/t gold over 8.2 m); T-12 gave 1.23 g/t gold over 4.9 m; and drill hole T-14 gave 1.68 g/t gold over 7.0 m.

Historical work at Tad/Toro has defined several drill targets, which could be better defined with a multi-parameter airborne survey and additional analyses on historical drill core. Access to the property is via an existing tote trail, known as the Casino trail which is used year round to access active hardrock and placer projects at Sonora Gulch and Hayes Creek (the location of the Tad/Toro Property). Nuggets of tetradamite and other bismuth-gold telluride minerals in placer concentrates have been recovered from placer operations on the Tad/Toro Property.

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. The vendors will retain an underlying 3% NSR, of which 2% may be purchased for $1.5 million.

Severance Property

The target at the 6.3 sq. km Severance Property is intrusive hosted gold mineralization. Historical work on the property includes geophysics, soil geochemistry and geological mapping. Soil geochemistry results 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. An airborne survey over the property would help define drill targets.

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 control of NFR by another company. The vendor will retain an underlying 3% NSR, of which 2% may be purchased for $1.5 million.

Bill Harris, President & CEO commented "The Tad/Toro and Severance properties will complement our significant land package at our district scale Freegold Mountain project. The similarities of the geological environment, host rocks, structures, alteration and mineralization within these properties to the Freegold Mountain Project is exciting."

The Freegold Mountain Project covers an area in excess of 64 square miles (166 square km) and several road accessible mineralized zones including a historical resource of 225,080 contained ounces in the Tinta Hill Zone and a target of 418,000 to 463,000 ounces in the Nucleus Zone (i). The Nucleus Zone, which is under option from ATAC Resources Ltd. (TSX VENTURE:ATC) has not been verified as a current resource and should not be relied upon.

Historical work on the Freegold Mountain property dating back to 1930 indicates that the property holds significant potential to host bulk-tonnage gold-copper porphyry style mineralization such as that seen at Kinross Gold's Fort Knox deposit in Alaska (2 million ounces of gold from proven and probable reserves of 82.1 million tonnes grading 0.74 g/t) and Northgate Minerals' Kemess deposits in northern British Columbia which host 3.0 million ounces of gold and 944 million pounds copper from measured and indicated resources of 306 million tonnes grade 0.31 g/t to 0.40 g/t gold and 0.07 to 0.18% copper.

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.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

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

(i)The table below outlines the historical resources published in 3 zones including Tinta Hill, Goldstar and Goldy and a potential target (Nucleus) contains approximately 441,000 ounces (historical results-considered by management to be reliable and relevant, though not conforming to current 43-101 standards). For more information, please refer to the detailed NI 43-101 compliant technical report filed on SEDAR by Northern Freegold on August 2, 2006 and found at

Zone Tonnage (tonnes) Grade (g/t) Contained Au ounces
Tinta Hill 700,000 10.0 225,080
Margarete 123,800 4.5 17,913
Augusta 77,000 4.1 10,151
Goldy 54,000 2.7 4,688
Nucleus 13,000,000 to 0.8 to 418,006 to 463,002
18,000,000 1.0 Average: 440,514

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
    (877) 489-4440