Exploration budget increased to US $842,000 - seven hole drill joint venture program underway on Tolavana Golden Summit Project, Alaska.
Vancouver, BC (ToenWave Media/PRWeb) October 27, 2004 -- Freegold Ventures Limited www.freegoldventures.com (TSX: ITF - OTCBB: FGOVF) is pleased to announce that Joint Venture partner Meridian Gold Inc. has increased the 2004 exploration budget for the Golden Summit Project, to US $842,000 from the already committed US $650,000. The results generated from trench sampling and mapping carried out earlier this summer in the Tolovana area are below and have enabled Management to prioritize the current drill targets.
Tolavana lies 750 metres southwest of the Cleary Hill Mine where the joint venture drilled six holes earlier this year (see PR dated: July 6th, 2004). A 7 hole, 3,900 foot core drilling program is currently underway at Tolovana to evaluate several of the trench targets identified during trenching conducted in August. An extensive hydrothermal system is present on the property with mineralization open along strike and to depth. Stockwork vein mineralization is known within the granodiorite intrusive, immediately south of the Tolovana Vein where previous drilling intersected high-grade gold values. However, the extent of this intrusive hosted stockwork mineralization is unknown and its relationship to shear and vein hosted high grade gold mineralization in metamorphic rocks on the Tolovana prospect is uncertain.
The seventh hole is to offset a previous high grade intercept which returned 10 feet grading 50.7 gpt gold from granodiorite at 325 to 335 feet in reverse circulation hole TLR96-26. Channel samples collected on 5-foot centers from 1,790 feet of backhoe trenching conducted on the Tolovana prospect in August returned significant gold values hosted in both schist and intrusive rocks. Values are reported below in Table 2 link.
Gold mineralization in channel samples occurs in shear zones and discrete quartz veins hosted in lower plate rocks of the Fairbanks Schist, upper plate rocks of the Chatanika terrane and intrusive rocks of probable mid-Cretaceous age. Gold mineralization is associated with highly anomalous arsenic (+1%), antimony (+1%) and lead (maximum of 5.78%) and sporadic anomalous tungsten (maximum of 140 ppm), zinc (maximum of 2,370 ppm) and silver (maximum of 189 ppm). Structures hosting gold mineralization strike generally east-west and dip moderately to steeply to the south, an observation in agreement with measurements taken during historic underground mining operations on the former Tolovana mine. See mineral table:
http://www.freegoldventures.com/i/misc/table_oct252004.jpg
Grab samples were collected to identify, more specifically, the mode of gold occurrences. The majority of gold values occurred in primarily in discrete quartz veins, with values ranging from 15 ppb gold to a seven inch quartz vein which graded 95.8 gm/t gold. All 2004 geochemical samples were analyzed by ALS Chemex for gold via fire assay techniques plus a multi-element suite via ICP methods with four-acid digestion. The qualified person responsible for this news release is Curt Freeman, M.Sc. P. Geo.
Meridian is earning into a 50% interest in the Golden Summit Project by making exploration expenditures totaling US $5 million, cash payments of US $390,000 over 4 years and investing a minimum of US $300,000 in Freegold through private placements. Meridian may increase its interest to 60% by completing an independent bankable Feasibility Study.
In the event that the Feasibility Study identifies a minimum of 500,000 gold ounces, Meridian will pay to Freegold $1.00 per every economic ounce identified and for each additional ounce identified. Once Meridian has completed the Feasibility Study, Meridian may elect within 180 days to increase its interest to 70%. Meridian shall be responsible for arranging all production financing. Upon placing the project into Commercial Production Meridian will have earned a 70% interest.
About Freegold Ventures Limited
Freegold Ventures is a gold exploration company. Freegold holds the Golden Summit Project, an advanced stage exploration gold project northeast of Fairbanks, Alaska. To "SEE" the Freegold Ventures story go to: http://www.freegoldventures.com/s/Interviews.asp?ReportID=90012&_Type=Interviews&_Title=Business-Television-Features-Freegold-Ventures-Limited. Golden Summit lies 5 miles north of the current producing Fort Knox Mine, Alaska's largest gold producer. Mid Tier gold producer Meridian Gold has recently entered into a JV on the Golden Summit Project. Freegold is the Project Operator.
Freegold also holds the Rob Project in the highly prospective Tintina Gold Belt in the Fairbanks Mining District. The Tintina gold belt has emerged as one of North America's most important gold districts and hosts a number of gold deposits throughout the Yukon and Central Alaska, most notably the Fort Knox, Pogo and Brewery Creek deposits. Freegold has recently entered into an option/joint venture on the Rainbow Hill Gold Project, Alaska. In addition to its Alaskan gold projects Freegold holds the Union Bay PGE project, a joint venture with Pacific North West Capital Corp, and Lonmin PLC, the world's third largest primary underground producer of platinum group metals.
To learn more about the exploration and mining activities for Harry Barr publicly traded companies go to: www.goldplatinumgroup.com
On behalf of the Board of Directors
Harry Barr, Chairman
The Toronto Stock Exchange has neither approved nor disapproved the contents of this news release. CUSIP: 45953B107
Discaimer
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that 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 the Company's expectations are disclosed in the Company's documents filed from
time to time with the Toronto Stock Exchange, British Columbia Securities Commission and the United States Securities & Exchange Commission
For further information please contact:
Investor Relations:
1.800.667.1870
Facsimile: 604.685.8045
2303 West 41st Avenue
Vancouver, BC,V6M 2A3
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