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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 19, 2012) – Northern Freegold Resources Ltd. (TSX VENTURE:NFR)(OTCQX:NFRGF)(FRANKFURT:8N6) (“Northern Freegold” or the “Company”) is pleased to announce preliminary results from ongoing metallurgical studies at the Nucleus Au-Ag deposit at the Freegold Mountain project, Yukon. The Nucleus zone forms a part of the large, 100% owned, Freegold Mountain project. The property is accessible by a government maintained road and is located approximately 70 kilometres from the Klondike Highway which runs between Whitehorse and Dawson.
Highlights
John Burges, President and CEO of Northern Freegold stated, “We are very pleased with the excellent overall recoveries of gold and silver through whole ore CN leach. These recoveries compare very favourably with other higher grade gold deposits. This coupled with our recent announcement of similar excellent recoveries at the adjacent Revenue copper, gold, molybdenum and silver deposit is a key milestone for Northern Freegold.”
Metallurgical Test Work
Metallurgical test work was completed at SGS Laboratories under the supervision of Jalal Tajadod, PhD, PEng. Sample composites consisting of mixed metamorphic and intrusive rocks representative of the mineralized zones were prepared by SGS from 188 kilograms of drill sample rejects. SGS prepared two variability samples from these composites with each sample being blended, crushed, split and combined into one sub-composite.
Given that the Nucleus deposit is Au dominant, it was decided to complete CN leach tests on whole ore. Additionally, basic flotation test work was completed. Three whole ore CN leach tests were conducted. The feed was pulped to 40% solids and brought to pH 10.5-11 with lime, 0.5 g/l of CN was added and the pulp was rolled for 48 hours. Grind size was varied in the three tests and was achieved in a ball mill.
Results, from coarsest to finest grind, are as follows.
| Sample Sub-Comp |
Lithology | Test Number | Grind Size Microns |
Recovery | |
| Au % | Ag % | ||||
| 4 | Mixed metamorphics and intrusives | CN-1 | 150 | 93.2% | 38.5% |
| 4 | Mixed metamorphics and intrusives | CN-2 | 95 | 94.8% | 35.6% |
| 4 | Mixed metamorphics and intrusives | CN-3 | 75 | 96.9% | 51.1% |
These results conclude the first phase of the Nucleus deposit metallurgical test work commenced in early 2012 and show that excellent recoveries of Au and Ag can be achieved through CN leach. The four flotation rougher tests produced less than acceptable copper concentrations. Future metallurgical work will look at alternate processes including gravity and further flotation tests. A single gravity separation recovered 36% of the Au, therefore, a process of gravity separation followed by CN leach on gravity tails should be investigated.
Freegold Mountain Project
The Freegold Mountain project is located within the Dawson Range, approximately 70 kilometres northwest of the community of Carmacks, Yukon. Commercial electrical power is available at Carmacks, which is situated on the Klondike Highway, a paved all-weather highway running from Whitehorse to Dawson City. The property covers an area in excess of 198 square kilometres (75 square miles) and is accessible by a government maintained road. The Nucleus Au Deposit and the Revenue Cu-Au-Mo-Ag Deposit cover approximately 30 square kilometres.
The Nucleus Deposit is a near-surface, gold dominant deposit. Mineralization begins at surface and is open to expansion laterally and at depth. The resource (at a 0.4 AuEq cut-off) contains 48.5M tonnes grading 0.70 g/t gold, 0.90 g/t silver and 0.06% copper (1.1 M oz Au, 1.4 M oz Ag, 67.8 M lbs Cu or 1.4 M oz AuEq) in the Indicated Category and 41.5M tonnes grading 0.47 g/t gold, 0.98 g/t silver and 0.07% copper (0.6 M oz Au, 1.3 M oz Ag and 62.0 M lbs Cu or 0.9 M oz Au Eq) in the Inferred Category (see news release dated February 22, 2011).
Mineral Resource Estimate for Nucleus Deposit
| Gold | Silver | Copper | Gold Equivalent | |||||||
| AuEq* Cutoff (g/t) |
Tonnes | Grade (g/t) |
Contained Au ounces |
Grade (g/t) |
Contained Ag ounces |
Grade % |
Contained Cu lbs |
Grade (g/t) |
Contained ounces |
|
| Indicated | ||||||||||
| 0.30 | 70,192,000 | 0.55 | 1,250,000 | 0.78 | 1,756,000 | 0.06 | 87,599,000 | 0.72 | 1,635,000 | |
| 0.40 | 48,499,000 | 0.70 | 1,096,000 | 0.90 | 1,398,000 | 0.06 | 67,753,000 | 0.89 | 1,393,000 | |
| 0.50 | 34,616,000 | 0.86 | 961,000 | 1.02 | 1,189,000 | 0.07 | 52,964,000 | 1.07 | 1,194,000 | |
| Inferred | ||||||||||
| 0.30 | 64,210,000 | 0.38 | 783,000 | 0.85 | 1,751,000 | 0.06 | 84,390,000 | 0.56 | 1,153,000 | |
| 0.40 | 41,449,000 | 0.47 | 627,000 | 0.98 | 1,307,000 | 0.07 | 62,026,000 | 0.67 | 898,000 | |
| 0.50 | 26,939,000 | 0.59 | 509,000 | 1.05 | 912,000 | 0.07 | 41,593,000 | 0.80 | 691,000 | |
* Gold equivalent (AuEq) is calculated based upon prices of US$846/oz for gold, US$14.40/oz for silver, and US$3.31/lb for copper with no discount for metallurgical recovery in contained metal figures (Note: total contained AuEq values may not add exactly because of rounding).
** The resource estimate is categorized as indicated and inferred as defined by the CIM guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into mineable reserves once economic considerations are applied. The indicated and inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Dr. A. Armitage, P. Geol., and J. Campbell, B.Sc., P. Geo., of GeoVector Management Inc. GeoVector is an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment and project management.
2012 Exploration
A 2,453 metre, five hole diamond drill program at Nucleus was completed in early July. The focus of this drilling program is to expand the existing gold resource at depth and to better understand the structural controls to mineralization. The analytical results are currently being reviewed by the Company’s consultants and management. In addition to drilling there are ongoing baseline environmental studies underway. The project is being managed by GeoVector Management Inc. of Ottawa, Ontario, (www.geovector.ca) under the supervision of A. Sexton, M.Sc., P. Geo.
Paul Reynolds, B.Sc., P. Geo., Vice President Exploration for Northern Freegold Resources Ltd., is the qualified person, as defined by NI 43-101, and has reviewed the technical information in this news release.
About Northern Freegold
Northern Freegold Resources Ltd. (TSX VENTURE:NFR)(OTCQX:NFRGF) trades in Canada on the TSX Venture Exchange under the symbol “NFR” and in the United States on the OTCQX under the symbol “NFRGF”. Northern Freegold is a growth oriented Canadian-based precious metals exploration and development company. Northern Freegold is focused on creating value through the advancement of the district scale Freegold Mountain project, which hosts one of the largest undeveloped gold and copper resources in the Yukon and through the Burro Creek gold and silver property in Arizona.
On behalf of the Board of Directors
John Burges, President and CEO
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company’s properties, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NFR’s expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological testing and the estimation of reserves and resources; the need for cooperation of government agencies and First Nations groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NFR’s forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NFR assumes no obligation to update the forward looking statements if management’s beliefs, opinions, projections, or other factors should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
