Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

July 02, 2008 09:10 ET

Northern Freegold Drilling of Vein Extension Intersects 19.7 Feet of 4.08 g/t Gold and 25.46 g/t Silver at Burro Creek Gold/Silver Property, Arizona

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 2, 2008) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce results from the final ten diamond drill holes at the Burro Creek Gold/Silver Property located in northwestern Arizona, U.S.A. The main focus of the drill program was to confirm and update historical results on an open pit type epithermal gold/silver mineralized zone on the property and to drill test areas on the property with potential to discover additional mineralization within the extensive epithermal vein system. The drill program was completed April 11, 2008 with 33 holes, totaling 8,414 feet (2,565 m) drilled along the vein system.

Burro Creek Property Highlights

- Hole BC08-047 intersects 19.7 feet of 4.08 g/t gold and 25.46 g/t silver within vein extension 500 feet to the northwest of previous drilling and historical resources

- Sampling of historic adit excavated into the vein near holes BC08-028 & 29 returns 12.01 feet of 8.78 g/t gold and 152.25 g/t silver including 3.00 feet of 20.90 g/t gold and 428.00 g/t silver

- greater than 1 mile known strike length of vein system up to 150 feet wide, open in both directions and to depth

- Portion of vein 1,000 feet long and 750 feet deep was fully permitted for open pit mining operations in mid 1980s

- Excellent infrastructure with Arizona State Highway 93, parallel high tension powerlines within 1.6 km of deposit; water rights secured on the property

To view the Drill Hole Plan Map Burro Creek July 2, 2008 and the Northern Freegold Resources Burro Creek Pad R please view the following link: http://media3.marketwire.com/docs/northernfreegoldburrocreekmapandburrocreekpadr.pdf.

Bill Harris, CEO commented "The results from the Burro Creek drill program confirm historical results and reflect Northern Freegold's goal of developing resources and building reserves. The program was also successful in indicating the potential to expand resources within the vein system along strike, as well as the potential for portions of the Burro vein system to return bonanza grade gold values. Northern Freegold will be evaluating the results and program at Burro Creek, to determine the next step for the Burro Creek property."



Burro Creek Drill Results Holes BC08-46 to 55 and Adit A3
----------------------------------------------------------------------------

Au Au Ag Ag
Length From To Thickness Thickness g/ oz/ g/ oz/
Hole No. m m m m feet tonne ton tonne ton
----------------------------------------------------------------------------
BC08-046 39.62 5.33 14.48 9.15 30.0 1.65 0.048 34.53 1.007
including 7.27 14.48 7.21 23.7 2.07 0.060 39.01 1.108
Including 7.27 9.97 2.70 8.9 2.42 0.071 43.35 1.264
----------------------------------------------------------------------------
BC08-047 74.37 25.03 25.91 0.88 2.9 0.31 0.009 92.00 2.683
And 50.40 56.39 5.99 19.7 4.08 0.119 25.46 0.743
Including 52.25 56.39 4.14 13.6 5.16 0.151 30.84 0.899
Including 52.25 53.34 1.09 3.6 4.12 0.120 55.76 1.626
----------------------------------------------------------------------------
BC08-048 45.72 24.38 30.82 6.44 21.1 0.71 0.021 64.93 1.894
Including 25.91 28.77 2.86 9.4 1.16 0.034 113.91 3.322
----------------------------------------------------------------------------
BC08-049 39.59 35.64 38.10 2.46 8.07 0.81 0.024 47.15 1.375
and 47.85 48.49 0.64 2.10 0.83 0.024 43.00 1.254
----------------------------------------------------------------------------
BC08-050 51.82 32.00 34.48 2.48 8.1 0.72 0.021 31.62 0.922
And 40.58 42.43 1.85 6.1 0.51 0.015 12.56 0.366
----------------------------------------------------------------------------
BC08-051 99.06 59.26 81.68 22.42 73.6 0.76 0.022 16.60 0.484
Including 60.96 66.75 5.79 19.0 1.53 0.045 30.50 0.890
----------------------------------------------------------------------------
BC08-052 103.63 48.17 84.67 36.50 119.8 0.26 0.008 32.25 0.941
Including 74.08 84.67 10.59 34.7 0.72 0.021 37.90 1.105
Including 74.08 77.40 3.32 10.9 0.78 0.023 90.29 2.633
Including 76.43 77.40 0.97 3.2 1.50 0.044 163.00 4.754
And 94.16 94.80 0.64 2.1 3.80 0.111 4.00 0.117
----------------------------------------------------------------------------
BC08-053 59.44 40.81 41.20 0.39 1.28 1.88 0.055 6.00 0.175
----------------------------------------------------------------------------
BC08-054 NSR - did not intersect vein
----------------------------------------------------------------------------
BC08-055 73.15 8.02 11.40 3.38 11.1 0.43 0.013 44.59 1.301
Including 10.53 11.40 0.87 2.9 0.78 0.023 24.00 0.700
And 68.19 69.32 1.13 3.7 1.14 0.033 13.00 0.379
----------------------------------------------------------------------------
BC08-A3
(adit
channel
sample) 6.41 2.75 6.41 3.66 12.01 8.78 0.256 152.25 4.441
Includes 4.58 6.41 1.83 6.00 16.83 0.491 234.50 6.840
Includes 4.58 5.49 0.92 3.00 20.90 0.610 428.00 12.483
----------------------------------------------------------------------------


Drilling Status

Holes BC 08-46 was drilled at an obtuse angle to the strike and dip of the vein, due to topographical constraints for pad location. The drilling confirmed mineralization within the vein at this location returning 23.7 feet (7.21 m) of 2.07 g/t gold and 39.01 g/t silver.

Holes BC08-047 to -052 were a series of holes drilled in a radial pattern from the same pad on a previously unexplored extension of the vein, on the north side of Burro Creek. The surface expression of the vein at this location was narrow, however the drilling intersected the vein in every hole, and showed that the vein is more extensive to depth. The results returned from these holes warrant additional exploration of the vein extension. Results from the vein intersections are outlined in the table above, as well as in the plan map and section, and can be seen at www.northernfreegold.com.

Nine adits, totaling approximately 1,066 feet (325 m) were driven on the main exposure of the Burro Vein, all prior to 1913. In 2008, channel chip sampling was completed on the west face every 3 feet (0.9 m) over 112 feet (34.1 m) perpendicular to the vein within historical adits 1 and 3. In 1984, historical adit 3 was sampled every 5 feet from 5 to 25 feet returning 4.97 g/t gold (0.145 oz/ton) and 12.0 g/t silver (0.35 oz/ton) (see NI 43-101 report referenced below). Channel chip sampling of the historical adit 3 in 2008 (BC08-A3) up dip from Holes BC08-028 and BC08-029 returned 12.01 feet of 8.78 g/t gold and 152.25 g/t silver.

The Burro Creek Property

The Burro Creek Property is located 1 mile (1.6 km) off State Highway 93 in Mohave County, Arizona, 65 miles (105 km) southeast of Kingman, Arizona, and 164 miles (265 km) southeast of Las Vegas, Nevada. The 3000 acre property consists of four patented mineral claims and 150 surrounding unpatented mineral claims.

The Property covers a low-sulphidation epithermal vein system that has been traced for over 1 mile (1.7 km) and exhibits widths of up to 150 feet (45 m). A NI 43-101 report dated July 17, 2007 entitled "Evaluation Report of the Burro Creek Project" has been completed by J. Pautler, P. Geo., an independent qualified person. Previous reverse circulation, diamond drilling and underground development conducted on the property focused on a 1,000 foot (300 m) strike length in the central block of the exposed vein system and outlined a historical gold and silver resource of 2.6 million tons with an average grade of 0.03 oz gold and 1.1 oz silver per ton. These historical results reported in the NI 43-101 report are considered by management to be reliable and relevant, though not conforming to current NI 43-101 standards.

The Property was fully permitted to commence production in the 1980s, but the production decision was deferred due to a decline in the gold price. At that time, the intent was to place the existing resource into production, and continue to expand the resource through exploration funded by the ensuing profits.

Quality Control and Assurance

The holes were drilled by a skid mounted diamond drill with NTW core size (5.6cm/2.2 inches in diameter). All core samples from diamond drilling are split and sent to ALS Chemex Laboratory in Reno for analysis. Blanks, commercial standards and duplicate core samples are included in each batch. All samples from the channel chip sampling were also sent to ALS Chemex Laboratory. Gold is analysed on 30 gram pulps by fire assay followed by aqua regia digestion and Atomic Absorption Spectrometry (AAS). Gold values greater than 1000 ppb are reanalysed by gravimetric fire assay. Silver is analysed by aqua regia digestion and Atomic Emission Spectrometry (AES). Other elements are analysed by 28 element ICP analysis after aqua regia digestion. Additional check analyses and assays will be carried out by EcoTech Laboratories in Kamloops. Intervals reported in this release do not necessarily represent true widths of mineralization.

The technical information disclosed in this release has been reviewed and approved by Susan P. Craig, P. Geo.

Northern Freegold has also revised its investor relations program. As of May 1st, 2008, this program includes the full time employment of Sarah Longhurst in the head office of Northern Freegold. Ms. Longhurst's salary is $5,400 per month and she will be granted 50,000 stock options set at $0.77, vesting over a two year period and expiring in three years. Northern Freegold has additionally revised its contract with BMK Communications Inc. with an adjusted monthly retainer of $1,000. Ms. Longhurst holds an MBA and brings over 10 years of communications and marketing experience to the company. She will focus on raising market awareness and providing a conduit between management and its shareholder base. In addition, Northern Freegold has granted incentive stock options to employees and consultants of the company for the purchase of a total of 155,000 shares at an exercise price of $0.77 per share, expiring July 1, 2011.

Northern Freegold is a well financed 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 Arizona.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

Susan P. Craig, President

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.
    Sarah Longhurst
    Investor Relations Manager
    (604) 893-8757 or 1-877-893-8757
    Website: www.northernfreegold.com