Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

May 06, 2009 10:00 ET

Northern Freegold Earns 100% of Nucleus Zone, Freegold Mountain, Yukon

7,500 m Drill Program to Begin June 1, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2009) - Northern Freegold Resources Ltd. ("NFR") (TSX VENTURE:NFR) is pleased to announce that as of May 1st, it has fulfilled all commitments and exercised the option from ATAC Resources Ltd. ("ATAC") (ATC:TSX-V) to own 100% of the Golden Revenue, Sey & Nitro Groups of mineral claims at the Freegold Mountain Project in the Yukon Territory. These claims cover the Nucleus Zone, where a total of 106 drill holes, totaling 24,416 m have been drilled by NFR since 2006. The 2008, 53 hole 13,287 m program identified high grade gold mineralized zones up to 750 m from east to west, within the original low grade, bulk tonnage, near surface gold target. The high grade mineralization remains open in both directions.

Highlights:

- Option Exercised; NFR now owns 100% of Nucleus Zone

- 43-101 Compliant Resources Calculation Underway on Nucleus Zone; expected second quarter

- 2008 drilling produced 2 new high grade areas in Nucleus Zone, which now extend for up to 750 m and are open in both directions

- Geological modeling for Nucleus Zone over the winter months has provided a significantly different model and has opened up several new higher grade areas to target for drilling

- 7,500 m drill program to commence June 1, 2009 on Nucleus Zone

Bill Harris, CEO & COO, commented, "The exercise of the option from ATAC completes another significant stage in our progress at the Nucleus Zone and the Freegold Mountain Project. With the completion of a 43-101 compliant resource at Nucleus which will be 100% credited to NFR, we will reach a major milestone. We look forward to building that resource this season, with a significant drill program, focused on following up on the high grade targets within the Nucleus Zone. 2009 will be an exciting year for Northern Freegold."

Exercise of Option

Northern Freegold completed its final payment ($100,000 and 1,000,000 shares) to ATAC on May 1st and exercised the option on the Golden Revenue, Sey & Nitro Groups of mineral claims. These claim groups are subject to an underlying 1% NSR to ATAC, and there is also an underlying 2% NSR which applies only to the Revenue Zone, of which 1.5% can be purchased for $600,000.

Freegold Mountain Project and 2008 Program

The Freegold Mountain Project is a road accessible district scale property that covers 166 square km (64 square miles). Within the project expanse are at least 20 known mineralized zones, some with historical resource estimates (not compliant with NI 43-101). Northern Freegold has been actively drilling on five of those zones (2% of the total project area), two of which will have NI 43-101 compliant resource calculations completed (Nucleus and Tinta) by the end of the second quarter. Three zones are still at an exploration stage (Goldy, Stoddart, and Ridge).

The 2009 district scale Freegold Mountain Project is situated within the Dawson Range portion of the Tintina Gold Belt, characterized by plutonic rocks of the ca 100 million year old Cretaceous Dawson Range Batholith and Early Jurassic metaplutonic rocks, intruding Devono-Mississippian metavolcanic and metasedimentary rocks of the Yukon-Tanana terrane. The Dawson Range is a well-mineralized belt over 250 km long, extending from Mount Freegold northwesterly past the Casino copper-gold porphyry deposit. This belt is transected by the west-northwest trending Big Creek Fault, which provides the locus for many mineral occurrences including placer gold deposits, porphyry gold-copper mineralization, gold veins and breccias. The Freegold Mountain Project covers a 35 km long section of this belt.

In 2008, the following program was completed at Freegold Mountain:

- 22,330 m of diamond drilling in five zones, 97 holes

- 1,755 m of rotary air blast drilling in Nucleus Zone

- 25 line km of ground magnetics in Nucleus Zone

- 3.4 line km of IP geophysics in Goldy Zone

The Nucleus Zone produced two new high grade areas in 2008; gold (+ or - copper) skarns on the east side and gold-bearing sulphide veins on the west side. The two high grade areas within the low grade mineralization now stretch for 750 m. Short sections of skarn had been hit in earlier holes in other areas of the Nucleus Zone, some of which carried high gold grades. Several of the outlying skarn intersections will be followed up in 2009 drilling.

A total of 3,896 m of diamond drilling was completed in 17 holes in the Tinta Zone in 2009. Drilling on the Tinta Vein system increased NFR's understanding of the vein's location and appearance at depth, confirming the presence of parallel veins and splay veins and providing more evidence of multiple episodes of mineralization. The vein system is 1540 m long, the main vein is 1.6 m wide on average (though it pinches and swells vertically and horizontally) and drilling has shown it continues to a depth of at least 350 m. A NI 43-101 compliant resource is being calculated on the Tinta Zone.

In the central part of the Freegold Mountain project, 27 holes, or 5,147 m of diamond drilling were completed in the Goldy, Ridge and Stoddart Zones. Two previously undrilled zones (Stoddart and Ridge) continue to give encouraging results. The Ridge Zone was drilled over a 250 metre strike length, with 8 of 9 holes returning good grades of gold, silver, copper, lead and zinc. A new interpretation of the Goldy Zone following a deep intersection of a new target has shifted our understanding and uncovered the potential for a sizeable mineralized system.

The central part of the Freegold Mountain Project is an area rich in mineral occurrences, many of them high grade. This area also has the highest concentration of placer mines on the Freegold property. Metal zoning and the orientation of mineralization in the central part of the Freegold project suggest a larger mineralizing system. Many small, historical gold showings are located between Stoddart and Goldy. Surrounding them are the multi metal-bearing targets of Ridge, Stoddart and Tinta. The most common strike directions for the showings are northwest (parallel to the Big Creek Fault) and north.

Northern Freegold is a rapidly advancing Canadian-based precious metals exploration and development company, which brings local expertise and strong management to focus on the development of economic mineral resources on the district-scale Freegold Mountain gold and copper project in the Yukon and the Burro Creek gold and silver property in 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.
    Debbie James
    Investor Relations Manager
    877.893.8757 or 604.893.8757
    604.893.8758 (FAX)
    www.northernfreegold.com