PROJECT HIGHLIGHTS
PROJECT SUMMARY
The
road-accessible, district scale (~ 200 sq km) Freegold Mountain Gold-Copper Project is located in the Yukon, a stable,
mining-friendly jurisdiction in north-west Canada, within a geological belt that hosts multiple large gold and gold/copper deposits and mines. In the short time that the company has explored the project, NFR has identified
more than 20 mineralized zones, delineated a
NI 43-101 million ounce gold-copper at the
Nucleus Deposit, a
NI 43-101 million ounce gold-copper-moly resource at the
Revenue Deposit and a high grade poly metallic
NI 43-101 resource (gold-copper-silver-lead-zinc) at the
Tinta Deposit. The company continues to aggressively explore, building ounces at the existing deposits and evaluating the multitude of other targets located on the property.
Northern Freegold Projects
A District-Scale Project in an Emerging Mining Camp of an Established Gold Belt
Mining Friendly Jurisdiction
The Fraser Institute ranks the Yukon as one of the ten best mining jurisdictions in the world. It is an excellent jurisdiction for mineral exploration, having secure land tenure, established mining laws, settled Aboriginal land claims, and a single environmental process with established timelines. The Freegold Mountain Project is located 200 km northwest of Whitehorse, the capital of the Yukon. The Yukon is a territory in north-west Canada, Geographically it is approximately the size of Germany and England combined or three times the state of New York. It borders Alaska to the west and British Columbia to the south.
Source: Fraser Institute Annual Survey of Mining Companies, 2011/2012
Strategic Location in Prolific Gold-Copper Belt
The project is situated within an active exploration and mining area in the Tintina Gold Belt, home to numerous multi-million ounce gold deposits including the producing Fort Knox mine operated by Kinross Gold Corporation, the Pogo mine operated by Sumitomo Metal Mining in Alaska and the development stage multi-million ounce Livengood Project of International Tower Hill Mines Ltd.
Within the Tintina Belt, a new mining district is emerging. The White Gold Property of Underworld/Kinross is approximately 100 km to the northwest, Kaminak Gold's Coffee Creek Project is approximately 100 km northeast, the Casino Deposit of Western Copper and Gold is 80 km to the northwest, and the producing Minto Mine, Capstone, is located approximately 30 km to the north of Northern Freegold's project. The above map shows the road accessible Freegold Mountain Project and the land claims staked (peach color) within the White Gold - Freegold Belt.
District-scale, Road Accessible Property
Northern Freegold has consolidated 198 square km (75 square miles) to form the Freegold Mountain Project. The Project is located on the Freegold Mountain Road, a government maintained gravel road. The Freegold Mountain Road connects to the Klondike Highway, an all-weather paved highway, which connects to Whitehorse, the major supply centre for the Yukon. Powerlines located along the Klondike Highway are presently 30 km from the Freegold Project boundary. The nearby Carmacks Copper Deposit will require a 12 km power line to connect to the power grid along the Klondike Highway. From this location, the power line would be within 7 km of the Freegold Mountain Project boundary.
Defined Resources; Potential Multi-Million Ounce Targets
Since acquiring the project in late 2006, Northern Freegold has aggressively explored Freegold Mountain, identifying at least 20 mineralized zones including the
Nucleus ,
Revenue and
Tinta zones. The company has completed NI 43-101 compliant resources at both the Nucleus Gold Deposit and the Tinta Zone. In 2010 the company increased the grade and ounces of the Nucleus Deposit by close to 40% while using a higher cut-off grade, resulting in the delineation of a million ounces of gold. In early 2012 the company announced its maiden multi-million ounce gold resource at the adjacent Revenue Zone. This doubled the company's global tonnage and almost tripled its global ounces. To date, however, only 2% of the entire project area has been drill tested.
The Nucleus Deposit remains open to further expansion sitting at the edge of a 24 km
2 gold and copper soil anomaly that extends through to the Revenue Zone. While the Nucleus Deposit is primarily a gold system with some copper enrichment, it is now thought to be part of the much larger gold enriched porphyry system which has been recognized at the Revenue Zone. The Revenue Zone is also open to expansion in all directions and at depth.
Multiple targets for resource expansion have been defined at the Nucleus and Revenue Zones. Additional exploration targets have been defined at what is believed to be a second porphyry at Stoddart which is to the east of Revenue
Current Resources and Exploration Summary
Indicated and Inferred Mineral Resource Estimate for the Nucleus Deposit (January 2013)
| Indicated |
| AuEq* (g/t) |
|
Au |
Ag |
Cu |
AuEq
Recovered * |
| Cut-off |
Tonnes |
Grade (g/t) |
Ozs |
Grade (g/t) |
Ozs |
Grade
(%) |
lbs |
Grade (g/t) |
Ozs |
| 0.2 g/t |
93,733,089 |
0.480 |
1,445,425 |
0.81 |
2,427,268 |
0.05 |
110,726,000 |
0.515 |
1,553,144 |
| 0.25 g/t |
71,904,900 |
0.567 |
1,310,039 |
0.85 |
1,967,789 |
0.06 |
88,544,244 |
0.604 |
1,396,568 |
| 0.4 g/t |
36,137,402 |
0.849 |
986,549 |
1.01 |
1,175,181 |
0.06 |
50,631,288 |
0.892 |
1,036,736 |
| 0.5 g/t |
25,889,606 |
1.023 |
851,603 |
1.11 |
924,040 |
0.07 |
37,782,715 |
1.069 |
889,743 |
| 0.75 g/t |
12,797,289 |
1.492 |
613,956 |
1.49 |
613,661 |
0.07 |
19,023,554 |
1.544 |
635,331 |
| Inferred |
| AuEq* (g/t) |
|
Au |
Ag |
Cu |
AuEq
Recovered* |
| Cut-off |
Tonnes |
Grade (g/t) |
Ozs |
Grade (g/t) |
Ozs |
Grade
(%) |
lbs |
Grade (g/t) |
Ozs |
| 0.2 g/t |
86,660,000 |
0.34 |
956,000 |
1.3 |
3,545,000 |
0.04 |
80,127,000 |
0.39 |
1,078,000 |
| 0.25 g/t |
60,398,000 |
0.41 |
801,000 |
1.5 |
2,876,000 |
0.04 |
52,244,000 |
0.46 |
886,000 |
| 0.4 g/t |
29,182,000 |
0.55 |
518,000 |
2.0 |
1,866,000 |
0.04 |
27,725,000 |
0.60 |
566,000 |
| 0.5 g/t |
13,432,000 |
0.73 |
315,000 |
2.2 |
952,000 |
0.04 |
11,610,000 |
0.78 |
337,000 |
| 0.75 g/t |
3,781,000 |
1.27 |
155,000 |
2.3 |
283,000 |
0.03 |
2,601,000 |
1.32 |
160,000 |
*Nucleus Deposit -- AuEq. calculation used conservative 3 year averages at time of calculation in January 2013: US$1455/oz Au; US$27.55/oz Ag, US$3.65/lb Cu and assumes metallurgical recoveries of 97% for gold, 51% for silver and 43% for copper (Note: total contained AuEq metal values may not add exactly because of rounding.
The indicated and inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by A. Sexton, M.Sc., P. Geo., 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.
**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.
Inferred Mineral Resource Estimate for the Revenue Deposit (Jan. 2012)
| AuEq (g/t) |
Tonnage
(Mt) |
Gold |
Silver |
Copper |
Molybdenum |
AuEq* |
| Cut-off |
g/t |
Ounces |
g/t |
Ounces |
% |
Pounds |
% |
Pounds |
g/t |
Ounces |
| 0.3 |
158 |
0.27 |
1,345,000 |
2.49 |
12,605,000 |
0.11 |
370,517,000 |
0.03 |
103,560,000 |
0.83 |
4,419,000 |
| 0.4 |
129 |
0.30 |
1,232,000 |
2.76 |
11,420,000 |
0.12 |
331,554,000 |
0.03 |
98,409,000 |
0.94 |
4,076,000 |
| 0.5 |
101 |
0.34 |
1,119,000 |
3.14 |
10,194,000 |
0.13 |
286,871,000 |
0.04 |
89,606,000 |
1.08 |
3,659,000 |
| 0.6 |
81 |
0.38 |
994,000 |
3.40 |
8,831,000 |
0.13 |
239,407,000 |
0.05 |
84,527,000 |
1.21 |
3,276,000 |
| 0.7 |
62 |
0.43 |
850,000 |
3.64 |
7,211,000 |
0.15 |
199,568,000 |
0.06 |
76,941,000 |
1.38 |
2,848,000 |
*Revenue Deposit - AuEq. calculation used conservative 3 year averages at time of calculation in January 2012: US$1016/oz Au; US$15.82/oz Ag, US$2.95/lb Cu, US$15.82/lb Mo
The 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.
**The resource estimate is categorized as 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.
Inferred Mineral Resource Estimate for the Tinta Deposit (July 2009)
| Cutoff
| Tonnes>Cutoff
| Grade>Cutoff
| Contained Metal
|
| (Au g/t)
| (tonnes)
| Au
(g/t)
| Au
(g/t)
| Cu
(%)
| Pb
(%)
| Zn
(%)
| Ozs
Au
| Ozs
Ag
| Lbs
Cu
| Lbs
Pb
| Lbs
Zn
|
| 0.50 |
1,150,000 |
1.88 |
49.34 |
0.29 |
0.90 |
1.51 |
70,000 |
1,820,000 |
7,400,000 |
22,800,000 |
38,300,000 |
The inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Mr. Gary Giroux, P. Eng..
The resource estimate is categorized as 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.
2012 Program
- Diamond Drilling of ~2450 m at Nucleus Deposit
- Test the extent of the mineralization below current resource depth of 280m
- Better determine the geological controls of the gold mineralization
- New Resource estimate for the Nucleus Deposit
- Commencement of baseline environmental work
- Preliminary metallurgical testing on Nucleus and Revenue Deposits
2011 Program
- Titan IP Survey on Stoddart Zone
- Diamond Drilling of ~12500 m to covert Target Resource to new NI43-101 resource at the Revenue zone
- Geochemistry Survey on Stoddart Zone
- New Resource estimate for Revenue Zone
2010 Program
- Titan IP Survey
- Phase One Program combined diamond and RC drill programs including:
- 4500 m step out and infill drilling to increase resources at the Nucleus Deposit
- 5500 m to test targets and the potential for new resources at the Revenue Zone
- Geochemistry Survey
- Updated resource estimate at Nucleus Zone
2009 Program
- Resource estimate for Nucleus and Tinta Zones
- 12,000 m diamond drill program
- Two diamond drills at the Nucleus Zone
- One RAB drill at the Nucleus Zone
- 120 km of ground Geophysics over and between Nucleus and Revenue
- Geological mapping over Nucleus and Revenue
- Stream geochemical sampling program of the entire property
- 40 people at Revenue Camp
- $4 million exploration program started in late May
2008 Exploration Program
- Diamond drilling in five zones (22,330 m in 97 holes)
- Rotary drilling in one zone (1,755 m in 28 holes)
- 3.4 line km of ground geophysics
- Up to 70 people in three separate camps
- $9 million exploration program completed between April and October 2008
2007 Exploration Program
- Diamond drilling in six zones (11,454 m in 58 holes)
- Rotary drilling in two zones (3,871 m)
- ine km of ground geophysics
- Up to 70 people in three separate camps
- $5 million exploration program between May and October 2007
