Freeman GOLD Provides Corporate Update
FREEMAN GOLD PROVIDES CORPORATE
UPDATE
VANCOUVER
, BC
,
May 27, 2025
/CNW/ - Freeman Gold Corp. (TSXV: FMAN) (OTCQB: FMANF)
(FSE: 3WU) ("
Freeman
" or the "
Company
") is pleased to provide a corporate update on fiscal 2025
activities for the Lemhi Gold Project ("
Lemhi
", or the "
Project
").
On
October 16, 2023
, Freeman released a robust Preliminary Economic Assessment ("
PEA
") of the
Project as completed by Ausenco Engineering Canada ULC ("
Ausenco
").
On
February 10, 2025
,
the Company awarded a lump sum Feasibility Study ("
FS
") of
Lemhi
to Ausenco. The FS is expected
to be completed and announced in late Q1 2026.
To support the FS, the Company embarked on several activities, including:
a phase IV metallurgical program building on the previous three phases completed;
expansion and infill drilling to increase and convert inferred ounces to measured and indicated
for inclusion in the FS;
a geotechnical work program; and
an update of pricing assumptions to reflect current market conditions. The revised pricing
assumptions were integrated into an updated price sensitivity analysis completed by Ausenco
and Moose Mountain Technical Services.
The Lemhi PEA outlined a high-grade, low-cost, open pit operation with an average annual
production of 80,100 ounces of gold in the first eight years. The production strategy envisions
phased development utilizing a carbon-in-leach ("
CIL
") processing facility. As mentioned above,
Freeman
updated the pricing assumptions
of the PEA to increase the base case from
US$1,750
/oz
Au to
US$2,200
/oz Au which resulted in a post-tax NPV
5%
US$329 million
, a post-tax IRR of 28.2%
and payback of 2.9 years.
Lemhi
also has further strong leverage to higher prices and at
US$3,400
/oz Au, the Project has a post-tax NPV
5%
of
US$876 million
, a post-tax IRR of 57.4% and
payback of 1.6 years.
As the Company moves forward towards a construction decision, Freeman has advanced
permitting initiatives
including collecting
three years of baseline water quality
data required for a
state mining permit. To support
Lemhi's
advanced development, Freeman appointed
David Keough
to its Board
. Mr. Keough has over 35 years of experience in the mining industry and
as Executive Director and Chief Operating Officer of Goldrock Inc., he successfully permitted the
Lindero gold project, subsequently acquired by Fortuna Silver Mines Inc., for construction.
In the coming weeks and months, the Company looks forward to providing updates on the
geotechnical, metallurgical, and resource expansion and upgrade drill programs that will be part of
the FS. The Company anticipates increasing both the size of and confidence in resources at
Lemhi
through the
current drill program
. Furthermore,
metallurgical test work
will build on three earlier
phases of work that indicated
>
95% of contained gold is recoverable using a traditional CIL process
and that the significant coarse gold found at
Lemhi
is amenable to gravity separation. These new
work streams will be key components in what Freeman expects to be a robust and economically
compelling FS. The
Lemhi
project will also benefit from President Trump's
Executive Order
to fast-
track and revitalize American mineral production.
Lemhi
is uniquely positioned to provide broad
economic benefits to the
State of Idaho
and create hundreds of local jobs.
About the Company and Project
Freeman Gold Corp. is a mineral exploration company focused on the development of its 100%
owned Lemhi Gold property. The Project comprises 30 square kilometres of highly prospective land,
hosting a near-surface oxide gold resource. The pit constrained National Instrument 43-101 ("
NI 43-
101
") compliant mineral resource estimate is comprised of 988,100 ounces gold ("
oz Au
") at 1.0
gram per tonne ("
g/t
") in 30.02 million tonnes (4.7 million tonnes Measured (168,800 oz) & 25.5
million tonnes Indicated (819,300 oz)) and 256,000 oz Au at 1.04 g/t Au in 7.63 million tonnes
(Inferred). The Company is focused on growing and advancing the Project towards a production
decision. To date, 525 drill holes and
92,696 m
of drilling has historically been completed (Murray
K., Elfen, S.C., Mehrfert, P., Millard, J., Cooper, Schulte, M.,
Dufresne
, M., NI 43-101 Technical
Report and Preliminary Economic Assessment, dated
November 20, 2023
;
www.sedarplus.ca
).
The recently updated price sensitivity analysis (see Freeman's news release dated
April 9, 2025
)
shows a PEA with an after-tax net present value (5%) of
US$329 million
and an internal rate of
return of 28.2% using a base case gold price of
US$2,200
/oz; Average annual gold production of
75,900 oz Au for a total life-of-mine of 11.2 years payable output of 851,900 oz Au; life-of-mine cash
costs of
US$925
/oz Au; and, all-in sustaining costs of
US$1,105
/oz Au using an initial capital
expenditure of
US$215 million
*.
*Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The preliminary economic assessment is preliminary in nature, that it includes inferred mineral
resources that are considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves, and there is no
certainty that the preliminary economic assessment will be realized.
The technical content of this release has been reviewed and approved by
Dean Besserer
, P. Geo.,
the VP Exploration for the Company and a Qualified Person as defined by NI 43-101.
On Behalf of the Company
Bassam Moubarak
Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statements Regarding Forward Looking Information
This news release contains certain "forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of applicable securities legislation.
All statements, other than statements of historical fact, included herein, without limitation,
statements relating to the future operations and activities of Freeman, are forward-looking
statements. Forward-looking statements are frequently, but not always, identified by words such as
"expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar
expressions, or statements that events, conditions, or results "will", "may", "could", or "should"
occur or be achieved. Forward-looking statements in this news release relate to, among other
things, the Feasibility Study, including the timing of expected completion, exploration at
Lemhi
and
related programs, including the results thereof, and
resource expansion and the conversion of
inferred resources to the measured and indicated category. 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. Forward-looking statements reflect beliefs, opinions and
projections on the date the statements are made and are based upon a number of assumptions
and estimates that, while considered reasonable by Freeman, are inherently subject to significant
business, economic, competitive, political and social uncertainties and contingencies. Many
factors, both known and unknown, could cause actual results, performance or achievements to be
materially different from the results, performance or achievements that are or may be expressed or
implied by such forward-looking statements and the parties have made assumptions and estimates
based on or related to many of these factors. Such factors include, without limitation, the ability to
complete proposed exploration work, the results of exploration, continued availability of capital,
and changes in general economic, market and business conditions. Readers should not place
undue reliance on the forward-looking statements and information contained in this news release
concerning these items. Freeman does not assume any obligation to update the forward-looking
statements or beliefs, opinions, projections, or other factors, should they change, except as
required by applicable securities laws.
SOURCE
Freeman Gold Corp.
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For further information:
For further information, please visit the Company's website at
www.freemangoldcorp.com or contact Mr. Bassam Moubarak at by email at
CO: Freeman Gold Corp.
CNW 07:30e 27-MAY-25