Private investment for Clarence Stream (November 05, 2007)

A deal between Freewest Resources Canada (FWR-V, FWERF-O) and a private New Brunswick company, Rockport Mining, will put up to $7.5 million into the ground at the Clarence Stream and Otter Lake gold properties near Fredericton, N.B.

The agreement would see Rockport fund $3 million in exploration work, to be managed by Freewest, in the first year, with Rockport earning 30% of the property. To bring its interest to 50%, Rockport would have to fund a further $4.5 million in work, by the end of the fourth year of the agreement.

There is a further option to earn 15%, for a total 65% interest, by funding a final feasibility study on the properties. In that event, Rockport would also assist Freewest to finance its share of development costs.

The Clarence Stream deposit has an indicated resource of 648,000 tonnes at a grade of 7.3 grams gold per tonne (or 6 grams, based on cutting back high assays to 30 grams per tonne). A further inferred resource amounts to 312,000 tonnes at 6.9 grams per tonne, or 5.4 grams cut. The estimates used a cutoff grade of 3 grams per tonne.

A second deposit, Anomaly A, has 180,000 tonnes in indicated resources, at 7.6 grams per tonne (or 7.1 grams cut), plus 232,000 tonnes grading 6.2 grams per tonne (4.8 grams cut) in inferred resources.