Ms. Kristina Walcott reports
FREEGOLD COMMENCES 2019 DRILLING PROGRAM AT SHORTY CREEK
Freegold Ventures Ltd. has commenced the 2019 drilling program at Shorty Creek. The 2019 program is fully financed under the agreement with a wholly owned subsidiary of South32 Ltd., whereby South32 has the option to earn a 70-per-cent interest in the Shorty Creek property. To maintain the option in good standing, South32 must contribute minimum exploration financing of $10-million (U.S.) over a four-year option period with minimum exploration expenditures of $2-million (U.S.) in years 1 and 2 and $3-million (U.S.) in years 3 and 4 for an aggregate of $10-million (U.S.). South32 may exercise its option to subscribe for 70 per cent of the shares of a newly formed project company by committing $30-million (U.S.) 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 shall act at as the operator during the option period.
The 2019 program consisting of induced polarization surveys and geochemical surveys commenced in May. A severe wildfire fire in the area hampered the start of the drilling program, which was originally anticipated to start mid-July. The 2019 drill program will consist of 2,000 metres and will be aimed at further expanding the mineralization at Hill 1835 and further testing of the Hill 1710 target area. Total expenditures for 2019 are anticipated to be $2.3-million (U.S.).
Located 120 kilometres northwest of Fairbanks, the Shorty Creek project was identified as having significant porphyry potential by Freegold in late 2014. Shorty Creek hosts a cluster of magnetic anomalies commonly seen in porphyry districts. Drilling has been largely concentrated on the Hill 1835 area; however, it is only one of the potentially significant targets within the property area. Twelve widely spaced historic holes drilled to an average depth of 500 metres have expanded the mineralized zone to over a 750-metre-by-400-metre area, with each hole intersecting significant and consistent copper, gold, silver and tungsten mineralization over broad widths from base of oxide material (average depth of approximately 90 metres). The target remains open both laterally and to depth.
Two kilometres to the northwest of Hill 1835 is Hill 1710, which hosts a large copper and molybdenum geochemical anomaly coincident with a six-kilometre-long broad magnetic anomaly. Initial drill testing in 2016 consisted of four holes testing 1.6 kilometres of this magnetic feature. Drilling intersected porphyry-style mineralization, with copper grades increasing to the northeast. The magnetic anomaly extends another 2.5 kilometres to the northeast from the limits of the 2016 drilling.
Other exploration targets within this promising 100-square-kilometre property include the Quarry target, where oxidized porphyritic rock with stockwork veining returned values of 500 part per million copper in rock samples. Quarry lies three kilometres north-northeast of Hill 1835 at the northern end of an 11-kilometre-long magnetic high. Sampling at Quarry has confirmed both the presence of copper mineralization and quartz feldspar porphyry outcrops.
The qualified person for this release is Alvin Jackson, PGeo, vice-president of exploration and development for the company, who has reviewed and approved the scientific and technical information contained in this news release.
About Freegold Ventures Ltd.
Freegold is a Toronto Stock Exchange-listed company focused on exploration in Alaska and holds, through leases, the Golden Summit gold project near Fairbanks as well the Shorty Creek copper-gold project near Livengood.
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