Freegold Ventures Limited
Freegold (FVL: TSX) is a Toronto Exchange listed company focused on exploring for copper and gold near Fairbanks, Alaska. Holding both the Golden Summit project, an advanced stage gold asset on which Freegold completed a preliminary economic assessment (PEA) in January 2016, and the Shorty Creek project, an exciting new copper-gold porphyry discovery, Freegold is well positioned to take advantage of rising metals prices.
At Golden Summit, the PEA recommended the advancement of the project through pre-feasibility. A small oxide expansion drill program was undertaken during 2017. Significant additional drilling (oxide and sulphide), metallurgical, and environmental baseline work will be needed to advance the project through prefeasibilty. In February 2019 a drill program commenced which is expected to test a revised interpretation based on Freegold’s work that higher-grade mineralization may extend to the west of the old Cleary Hill Mine workings in an area of limited previous drilling.
Drilling by Freegold in 2015 on Shorty Creek discovered copper mineralization grading 0.55% Cu over 91 metres. Follow-up programs continued to demonstrate the exploration potential of Shorty Creek. Intercepts have included 434.5 metres grading 0.36% copper (2016) and 339 metres grading 0.30% copper (2017) with potentially significant by product credits including gold, silver and tungsten. In 2018 a further two holes (1,166 metres) were drilled in the 1835 target area. Both holes returned consistent mineralization over broad widths. Highlights include 0.45% Cu, 0.15 g/t Au, 10.5 g/t Ag, and 0.02% W03 over 121.15 metres in SC 18-01 , and 0.36% Cu, 0.09 g/t Au, 6.4g/t Ag, and 0.026% W03 over 126 metres in Hole SC 18-02. In March 2019, Freegold entered into an Agreement with a wholly owned subsidiary of South32 Limited (South32) whereby South32 has the option to earn a 70% interest in Shorty Creek. To maintain the option in good standing South32 must contribute minimum exploration funding of US$10 million over a 4 year option period with minimum exploration expenditures of US$2million in Years 1 and 2 and US$3 million in Years 3 and 4 for an aggregate of US$10 million. South32 may exercise its option to subscribe for 70% of the shares of a newly formed project company by committing US$30 million to the newly formed company, less the amount of exploration expenditure contributed by South32 during the option period following the completion of each annual program. Freegold is acting as Operator during the option period.