Freeport Resources Announces Star Mountains AI Evaluation and K-means Analysis Results Produced by Minerva Intelligence
Web: www.freeportresources.com
NEWS RELEASE May 3, 2021
Freeport Resources Announces Star Mountains AI Evaluation and K-means
Analysis Results Produced by Minerva Intelligence
Vancouver, British Columbia – (May 3, 2021) – Freeport Resources Inc. (TSX-V: FRI; FSE: 4XH;
OTCQB: FEERF) (“Freeport”, or the “Company”) is pleased to share results from an evaluation of
the Star Mountains data conducted by Minerva Intelligence Inc. (TSX-V: MVAI) (“Minerva”), an
artificial intelligence company focused on knowledge engineering. Previously announced on
November 23, 2020, Minerva utilized DRIVER, its cutting-edge AI software, to perform an evaluation
of multi-element drilling data. In addition, Minerva reinterpreted existing geophysical information on
the project and completed traditional K-Means Cluster analysis on the multi-element data.
Freeport engaged Minerva to apply its cognitive AI-powered DRIVER technology to sub-surface
geochemical data available for the Star Mountains project to enhance its next phases of surface
and sub-surface evaluation of the extensive property, located 25 kilometres from the Ok Tedi
mine in Papua New Guinea.
DRIVER and K-Means Cluster analyses were focused in the Olgal deposit area, utilizing
geochemical analyses from 23 drillholes, for which a current inferred resource was previously
determined. Evaluation identified multiple mineralized subgroups of dioritic rocks and skarn as
potentially significant for copper, as well as a significant overlap of copper and gold-bearing
volumes. These sub-groups are located at the core of the deposit area and well distributed from
near surface to the basal thrust fault at depth. Two mineralized dioritic sub-groups for gold were
identified.
DRIVER Evaluation
DRIVER delivers valuable insights from multi-element geochemical data through comprehensive
evaluation of all elements present within a given database, not simply elements of direct economic
interest. Comparable evaluation of such data has typically been prohibitively time-consuming and
too complex for geologists to attempt.
Many of the DRIVER volumes examined at the Olgal deposit exhibit a prominent central pipe-like
feature having a strong spatial association with Quartz Diorite and “Early Diorite”. This pipe-like
feature is interpreted to represent a composite volume resulting from gold – copper intercepts
hosted within quartz diorite and/or “Diorite 4’’ in drillholes 001OLG10, 002OLG10 and 014OLG12.
As such, study results confirm previous interpretation of at least two dioritic intrusive phases
(Quartz Diorite and "Early Diorite”). A separate and distinct molybdenum volume southeast of the
core of the deposit area is interpreted to indicate a third diorite intrusion. The Olgal Deposit is
interpreted to result from multi-phase intrusion of diorite at the contact between Derai Limestone
and Leru Sediments. Study results also support interpretation of a mineralized copper and gold
trend extending north-northwest from the Olgal Deposit. These results and interpretations
independently validate similar interpretations by Freeport personnel.
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K-Means Cluster Analysis
K-Means Cluster analysis was focused in the Olgal deposit area, utilizing geochemical analyses
from 23 drillholes, for which a current inferred resource was previously determined (see below).
Evaluation identified multiple mineralized subgroups of dioritic rocks and skarn as potentially
significant for copper. These sub-groups are located at the core of the deposit area and well
distributed from near surface to the basal thrust fault at depth. Two mineralized dioritic sub-groups
for gold were identified.
Widespread presence of Derai Limestone in the project area, within which numerous occurrences
of diorite intrusions have been documented, supports interpreted potential for Cu ± Au skarn-style
mineralization.
Subsequent application of K-Means Cluster analysis to geochemical results from limited drill holes
around the broader area of the Olgal Deposit are interpreted to indicate that Futik, Ratatat and
Kum Kom have multiple intercepts corresponding to the mineralized sub-groups described above.
Therefore, they are interpreted to represent targets for future evaluation.
Geophysics Reinterpretation
Available geophysics, dominated by various generations of magnetic data, with subordinate
electromagnetic data, were also evaluated. Spatial association of strong magnetic anomalies with
surface geochemical results are interpreted to indicate the Star Mountains project area has
multiple targets having a signature similar to the Olgal Deposit and are, therefore, worthy of further
evaluation.
Magnetic Inversion modeling identified a large volume underlying the Olgal Deposit, with the
majority of the volume extending northwest, toward Futik and beyond. As such, geophysical
results are interpreted to support potential for identification of additional sub-surface
mineralization, extending northwest from Olgal, through Futik and beyond.
In addition, magnetic inversion results also document subsurface volumes spatially associated
with Ratatat and Tuk. There are comparatively small sub-surface inversion volumes (relative to
the Olgal – Futik anomaly) evident at Ratatat and Tuk, however, there are only limited drill hole
results with which to evaluate sub-surface potential. Note: the detailed survey did not extend far
enough north to cover Kum Kom and, therefore, there are no magnetic data available to assess
potential at that locality. Results of magnetic inversion support results of K-Means Cluster
analysis, interpreted to support further evaluation of these areas.
Finally, results of magnetic inversion are interpreted to indicate the Olgal Deposit is a decapitated
porphyry, again, consistent with previous interpretation. However, the Olgal Deposit is interpreted
to have been tilted to the north-northeast in the hanging wall of the thrust fault and transported to
the northeast. Therefore, the root of the Olgal porphyry system is interpreted to be located to the
west-southwest of the current surface exposure.
Significant Conclusions
1. Based on K-Means Cluster, DRIVER and 3D inversion results, potential to expand both
grade and volume of copper ± gold porphyry-style mineralization is interpreted to exist at
the core of the Olgal Deposit area, extending to the northwest. Infill drilling is
recommended.
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2. Extending drill holes 003OLG10 and 004OLG10 below the basal thrust fault is expected
to return mineralized intercepts associated with an anomaly identified through 3D
inversion of magnetic data, based on magnetic susceptibility results.
3. Mapped exposures of epidote alteration, marble, skarn and diorite, supported by trends
interpreted from the results of both K-Means Cluster and DRIVER analysis and a large
sub-surface volume delineated by magnetic inversion, are interpreted to indicate strong
potential for identification of additional porphyry-style mineralization extending from the
Olgal Deposit northwest to Futik and beyond.
4. Limited drilling at Futik, Ratatat, Pad 48 and Tuk is interpreted to have tested the margins
of their respective target anomalies, particularly those defined by 3D inversion of magnetic
data, with holes either collared too far laterally and/or not drilled deep enough. Further
evaluation is strongly recommended.
“We found Minerva’s analysis and the DRIVER system to be very useful to our understanding of
the project,” said Gord Friesen, CEO of Freeport. “DRIVER validated our geologists’ interpretation
of the deposit zonation and gave indication of mineral potential beyond known resources on our
properties and confirmed it in a fraction of the time. The synthesis of independent methodologies
was a valuable contribution to the project and gave us confidence about the results.”
A summary report prepared by Minerva can be found on the Freeport website at
www.freeportresources.com.
Dr. Nathan Chutas, PhD, CPG, Senior Vice-President of Operations for Freeport, is a qualified
person for the purposes of National Instrument 43-101. Dr. Chutas has reviewed and approved
the technical content in this news release.
About Freeport Resources Inc.
Freeport is a Canadian junior exploration company. Freeport recently acquired Quidum
Resources and, through its wholly owned subsidiary Highlands Pacific Resources Ltd., controls
the Star Mountains project in Papua New Guinea. Please visit www.freeportresources.com or
contact the email address below for more information.
About the Star Mountains Property
Star Mountains is a large copper and gold porphyry project in mining-friendly Papua New Guinea,
comprising 4 tenements located 25 kilometres northeast of the giant Ok Tedi mine. H&S
Consultants Pty. Ltd. completed a maiden mineral resource estimate, in accordance with National
Instrument 43-101, for the Olgal deposit situated on the EL 1312 tenement. The current inferred
resource, using a 0.3% copper cut-off grade, is 210 million tonnes grading 0.4% copper and 0.4
g/t gold, for 2.9 million ounces of contained gold and 1.9 billion pounds (840,000 tonnes) of
contained copper. Using current prices for gold and copper, this is equivalent to
approximately 7.4 million ounces of gold or 3.1 billion pounds (1,380,000 tonnes) of
copper.
About Papua New Guinea
Papua New Guinea (PNG) is a country that occupies the eastern half of the island of New
Guinea in the southwestern Pacific Ocean. PNG is richly endowed with mineral resources, and
the geological arc spanning the island is home to some of the world's largest gold and copper
mines/projects including Grasberg, Porgera, Frieda River, Ok Tedi, Ramu and Lihir. PNG is
Web: www.freeportresources.com
considered a stable and mining-friendly jurisdiction and presents tremendous exploration
potential.
About Minerva Intelligence Inc.
Minerva Intelligence Inc. is a knowledge engineering company based in Vancouver, Canada, with
a subsidiary office in Darmstadt, Germany. Their proprietary evidence-based, decision-making
software applies the benefits of artificial intelligence technology to industries dependent on
reasoning with complex technical and scientific data.
Currently, Minerva’s AI applications focus on earth science-related domains, including, but not
limited to, natural hazards and mineral exploration; their technology has applications in diverse
industries and domains.
Minerva’s common shares are currently listed on the TSX Venture Exchange (symbol MVAI). For
further details, please refer to their website www.minervaintelligence.com or follow Minerva on
Twitter or LinkedIn.
For further information:
Freeport Resources Inc.
Gord Friesen, Chief Executive Officer
(236) 334-1660 or [email protected]
Minerva Intelligence Inc.
Dan Vroon, Business Development Manager
(604) 620-1051 or [email protected]
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.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words “anticipate”, “believe”,
“estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule”, “intends” and similar words or expressions identify forward-looking
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based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to
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unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that
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