Northern Freegold Resources Commences Drilling at Freegold Mountain, Yukon
06.06.2012/2012/70 Vancouver, BC - Northern Freegold Resources Ltd. (NFR: TSX-V) The Board of Directors of Northern Freegold Resources Ltd. is pleased to announce ("Northern Freegold" or the "Company") that the XNUMX exploration program has commenced on the road-accessible Freegold Mountain Project, located XNUMX km west of Carmacks, Yukon in the midst of the Dawson Range. The program consists of a diamond drilling program, excavator excavations and basic environmental studies. There is currently a diamond drill rig on site in the Nucleus Zone where drilling began last week.
The ongoing phase of the drill program consists of 3.500 drill meters on the gold dominated Nucleus deposit. The budget is 1,4 million $, half of which was previously paid in 2012. The funding for the rest of the program is available. The aim of the drill program is to focus on the high priority objectives that are designed to extend the existing resource in the key areas and to optimize the opencast mining plan.
John Burges, President & CEO said, “We are pleased to have started drilling on Nucleus. Given the current challenges in the markets, we believe it makes sense to scale back the program for this year and start drilling the Nucleus deposit where we will focus on increasing our gold resource. The work of this phase of the work focuses on the key areas that are important to us in completing the first pre-economic feasibility study for the project. With this we will show the economic potential of the Freegold Mountain project. "
The Nucleus Zone has a reported resource of 1,1 million ounces Au, 1,4 million ounces Ag, 67,8 million pounds Cu, or 1,4 million ounces AuEq (at 0,4 AuEq threshold) within the 48,5 million T with 0,70 g / t gold, 0,90 g / t silver and 0,06% copper and 0,6 million ounces Au, 1,3 million ounces Ag and 62,0 million pounds of Cu or 0,9 million ounces AuEq within the 41,5 million T with 0,47 g / t gold, 0,98 g / t Silver and 0,07% copper in the inferred category (see table below).
The Nucleus Deposit, Revenue Deposit, and Stoddart Zone are all believed to be part of a large gold-rich porphyry system that extends east to west for more than eight kilometers. The system exhibits the same geological characteristics as other porphyry occurrences in the region, including the Casino Porphyry Project, which owns ~ 90 Km to the northwest with multi-million ounces of gold resources and reserves and multi-billion copper resources and reserves. The parties point out that past results or discoveries on the site are not necessarily indicative of results that could possibly be made on the Freegold Mountain site.
Mineral Resource Estimate for the Nucleus Occurrence
(1) Gold equivalent (AuEq) calculated based on 846 USD / ounce of gold, 14,40USD / ounce of silver and 3,31 USD / pound for copper at no discount for metallurgical yield in metal numbers (Note: total AuEq values may be due to rounding be inaccurate).
(2) The resource estimate is categorized into indicated and inferred as determined in the CIM resource reporting guidelines. Mineral resources are not necessarily economically recoverable, and there is no assurance that these mineral resources will be economic in degradable reserves.
(3) The Indicated and Inferred Mineral Resources have been prepared in accordance with NI 43-101 standards by Dr. Ing. Armitage, P. Geol. And J. Campbell, B. Sc., P. Geo. made by GeoVector Management Inc. GeoVector of Ottawa, Ontario. The consulting firm specializes in resource estimates, project planning and project management.
The project is managed by GeoVector Management Inc. of Ottawa, Ontario, www.geovector.ca under the direction of A. Sexton, M.Sc., P.Geo.
Paul Reynolds, B.Sc., P.Geo., Vice President Exploration for Northern Freegold Resources Ltd. is a Qualified Person under the terms of the NI 43-101 and has also verified the technical information contained in this news release.
About Northern Freegold Resources Ltd.
Northern Freegold is financially well-positioned and is making rapid progress as a Canadian precious metals exploration and development company. This is due to the local expertise and strong management fully focused on the development of the economic mineral resource at the Freegold Mountain Gold and Copper Project in Yukon and Burro Creek Gold and Silver Areas in Arizona.
Northern Freegold Resources Ltd.
On behalf of the Board of Directors
Drawn "John Burges"
John Burges
CEO and President
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Danger! Reserves and Resource Estimates Risk Disclosure This press release has been prepared in accordance with the requirements of Canadian securities law. These requirements differ from the requirements of the US Securities Act unless otherwise stated, all resources and reserve assumptions in this press release are compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian Securities Administrators as the standard for all publications that an issuer makes regarding scientific and technical information regarding mineral projects. Canadian standards including NI43-101 differ greatly from the requirements of the United States Securities and Exchange Commission ("SEC") and resource and reserve information provided here may not be comparable to information provided by US companies. In particular and without limiting the general terms “resource”, this is not the same as the term “reserves”. Investors should understand that "inferred mineral resources" have great uncertainties about their existence, economy and legal effectiveness. It cannot be said with certainty that parts or all of them can be upgraded to a higher category. Estimating the amount of resources and reserves is complex and based on significant subjective assumptions and forward-looking information, including assumptions based on the evaluation of geological, geophysical, technical and economic data from an existing ore body. These dates vary from time to time as a result of a variety of factors such as new information arising from development activities, evolving production history and the re-evaluation of production viability. Changes in the data situation and / or assumptions can lead to changes in resources and reserves. No guarantee of the indicated levels of minerals that could possibly be produced. Current production can deviate greatly from expected production and of course be strongly influenced by falling mineral prices. Reserves can become uneconomical. Variations can also occur in ore grades and recovery rates.
