December 12th, 2016 (Vancouver, BC) – Freegold Ventures Limited (TSX: FVL, Frankfurt: FR4N) (“Freegold) is pleased to provide an update on the Golden Summit Project. Golden Summit is located 30 minutes drive via paved highway from Fairbanks, Alaska.
Completion of Preliminary Economic Assessment– January 2016
Soil Sampling Program– new areas of potential expansion identified
Freegold began resource delineation at Golden Summit in March 2011 and since has completed three NI 43-101 compliant mineral resource updates, which were used as the basis for a preliminary economic assessment (the PEA) (Press Release January 25th, 2016). A technical report with respect to the PEA entitled “NI 43-101 Technical Report, Golden Summit Project, Preliminary Economic Assessment, Fairbanks North Star Borough, Alaska, USA” dated March 10, 2016 and amended and restated May 11th, 2016 (the PEA Technical Report) was prepared by Tetra Tech, Inc. with Mark J. Abrams, C.P.G. and Gary H. Giroux, P.Eng. of Giroux Consultants Ltd. The initial development scenario proposed involves a stand-alone valley heap leach operation focused on the existing oxide portion of the resource, taking into account the potential for oxide resource growth, with a staged approach to a larger milling scenario. As part of the PEA a conceptual open pit, based on $1300 Au, was produced by Tetra Tech. As a result only blocks falling within this pit are reported as a Mineral Resource using a 0.3 g/t cut-off this results in an indicated mineral resource of 61,460,000 tonnes at 0.69 g/t (1,363,000 contained ounces) in the and an inferred mineral resource of 71,500,000 tonnes at 0.69 g/t (1,584,000 contained ounces).. Using a $1,300 gold price the PEA evaluated a two-phase, 24-year open pit mine generating two gold streams, each operating at 10,000 tonnes per day (tpd) for 2,358,000 ounces of doré produced over life of mine; Processing operations for the oxide and sulphide mineralized materials are heap leach and bioxidation respectively. A significant advantage for Golden Summit remains the superb supporting infrastructure in the immediate vicinity of the property, as well as in the broader region, including rail and power which will allow for the staged development.
In accordance with the recommendations of the PEA Technical Report, additional metallurgical work to further refine the treatment method to the sulphide material is being developed in order to further enhance the overall project economics. In particular, further oxidation treatment on all identifiable sulphide materials as well as ultra fine grind testwork will be undertaken in an effort to explore grind size vs recovery relationships.
In addition to the metallurgical work, limited drilling to delineate additional oxide resources is also being planned for Q1 2017. The location and access at Golden Summit allows for year round drilling. Additional soil sampling and compilation of previous shallow rotary air blast (RAB) drilling results has been undertaken over the past several months. A total of 717 soil samples were taken and have identified a gold in soil geochemical anomaly west of the current Dolphin deposit. Previously completed RAB drilling has been composited and indicates that better grade oxide material may be present to the north. Initial drilling will be focused to the north of the current mineral resource in an effort to incorporate material now classified as waste material in the conceptual pit into mineralized material. Exploration drilling will also focus on areas where the previous IP/Resistivity data suggests the presence of shallow intrusive rocks to the southwest of the deposit. Further infill drilling to upgrade the resource into the indicated category will also need to be undertaken as the project moves toward the pre-feasibility level as well as baseline environmental and cultural resource studies.
The Qualified Person for this release is Alvin Jackson, P.Geo – Vice President Exploration and Development for the Company who has reviewed and approved the scientific and technical information contained in this press release.
For further information:
Kristina Walcott-President and CEO
Some statements in this press release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs, and the estimation of mineral resources. In preparing the forward-looking information in this press release, Freegold has applied certain factors and assumptions that it believes are reasonable, including that there is no material deterioration in general business and economic conditions; that there are no adverse changes in relevant laws or regulations; that the supply and demand for, deliveries of, and the level and volatility of prices of metals and minerals develop as expected; that Freegold receives any regulatory and governmental approvals for its projects on a timely basis; that Freegold is able to obtain financing on reasonable terms; that Freegold is able to procure equipment and supplies in sufficient quantities and on a timely basis; that engineering and exploration timetables and capital costs for Freegold’s exploration plans are not incorrectly estimated or affected by unforeseen circumstances and that any environmental and other proceedings or disputes are satisfactorily resolved. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs. The term “Mineral Resource” used above is defined per NI 43-101. Though Indicated Mineral Resources have been estimated for the Golden Summit Project, the PEA includes Inferred Mineral Resources that are too speculative for use in defining Mineral Reserves. Standalone economics have not been undertaken for the measured and indicated resources and as such no reserves have been estimated for the Golden Summit Project. Please note that the PEA is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Freegold are forward looking statements that involve various risks. Actual results could differ materially from those projected as a result of the following factors, among others: changes in the price of mineral market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and uncertainty of access to additional capital. See Freegold’s Amended and Restated Annual Information Form for the year ended December 31st, 2015 filed under Freegold’s profile at www.sedar.com for a detailed discussion of the risk factors associated with Freegold’s operations