Northern Freegold has 1 million oz. at Freegold Mountain

Vancouver – After three years of drilling Northern Freegold Resources (NFG-V) has defined an initial resource at its district-scale Freegold Mountain project.

The estimate evaluated two of the project’s mineralized zones: Nucleus, a gold target near the northwest end of the 35-km long, northwest-striking property, and Tinta, a polymetallic vein target close to the property’s southeast end.

Nucleus is now home to an inferred resource of 67.6 million tonnes grading 0.5 gram gold per tonne, for 1.08 million contained oz. gold. The deposit is still open in all directions and at depth. The estimate covers an area measuring roughly 2 sq. km and incorporated 167 drill holes totaling almost 29,000 metres.

After three years of work Northern Freegold has determined that Nucleus plays host to two distinct types of gold mineralization. Historical work focused on a north-south striking zone of disseminated gold associated with vein systems. Northern Freegold initially traced this zone as well but soon realized that higher-grade mineralization was instead carried through an east-west striking zone related to a series of mineralized intrusive dykes and sulphide replacement zones.

The company is currently advancing a drill program to test the continuity of the higher-grade structure to the east. Geologic modeling indicates the high-grade mineralization at Nucleus may be related to mineralization at the Revenue breccia zone, which sits 4 km to the east. The program is also targeting lateral and vertical extensions of certain high-grade intersections from last year, such as 9.4 metres of 70.2 grams gold.

To date Northern Freegold has completed 6,114 metres of diamond drilling in 24 holes this season. The company has two drill rigs turning.

The company is also working through a 2,000-metre rotary air blast (RAB) drill program to further refine potential diamond drill targets along the Nucleus-Revenue trend. In 2008 RAB drilling lead to step-out hole to the west of Nucleus, one of which intersected 4 metres of 70 grams gold. In addition, the company is planning to conduct additional ground geophysics to help in defining drill targets.

Northern Freegold is also initiating gold recovery metallurgical testing on composite bulk samples from selected high and low grade material. The work will involve gravity and bottle roll cyanidation tests.

At Tinta, which is 20 km southeast of Nucleus, mineralization is contained in northwest-trending, sub-vertical quartz-carbonate-sulphide veins. The main zone at Tinta has been mapped for 1.6 km and includes two underground levels that were developed but never put into production. The steeply dipping, epithermal veins would likely be amenable to underground mining.

In 2008 Northern Freegold concentrated on the central 700-metre segment of strike at Tinta. The resource along that 700-metre segment, which sits within 3 separate veins, now totals 1.4 million inferred tonnes grading 1.62 grams gold, 44.93 grams silver, 0.26% copper, 0.84% lead, and 1.4% zinc. Contained metal totals 70,000 oz. gold, 2 million oz. silver, 8 million lbs. copper, 25.7 million lbs. lead, and 42.8 million lbs. zinc.

The Tinta vein system remains open along strike in both directions and to depth.

The 166-sq. km Freegold Mountain project is located 200 km northwest of Whitehorse, within an active area of the Tintina Gold Belt. The area includes Capstone Mining’s (CS-T) producing Minto mine to the north, Western Copper’s (WRN-T) Casino and Carmacks deposits to the west and east, and Underworld Resources’ (UW-V) White Gold project to the northwest. Northern Freegold’s large land package includes at least 20 identified mineralized zones.

The project is road-accessible. Power lines are located along the Klondike Highway, which runs 30 km from the Freegold project boundary; the Carmacks copper deposits will require a 12-km power line extension, which will bring power to within 7 km of Freegold Mountain. And the project covers land that is settled with respect to First Nations land claims.

After closing a $3-million private placement and a $5-million financing in May, Northern Freegold has roughly $11 million in the bank.

Northern Freegold’s share price lost a penny on news of the resource estimate to close at 58¢. The company has a 52-week trading range of 13.5¢ to 75¢ and has 70 million shares outstanding.