Planning Underway for Oxide Expansion Program at Golden Summit Project Exploration Update - Shorty Creek
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For Immediate Release www.freegoldventures.com
Planning Underway for Oxide Expansion Program at Golden Summit Project
Exploration Update - Shorty Creek
June 7th, 2018 (Vancouver, BC) – Freegold Ventures Limited (TSX: FVL, Frankfurt: FR4N) (“Freegold ”) is pleased to
report that planning is currently underway for an additional oxide expansion program at Golden Summit.
Golden Summit is located a 30 minute drive from the city of Fairbanks, the second largest city in Alaska (population
of the greater Fairbanks area is approximately 100,000) in an area with excellent infrastructure and is host to a
significant gold resource which is well leveraged to the price of gold. The resource area covers approximately a 500
metre by 1,500 metre area however the entire Golden Summit project area covers approximately 13,000 acres and
hosts numerous other significant exploration targets with potential to host additional resources .
The current Preliminary Economic Assessment (PEA) completed in January 2016 provided a first look at a potential
development scenario . The PEA envisioned a 24 -year two phase oxide and sulphide operation , which combined,
provides for an after tax 19.6% IRR (internal rate of return) and a NPV (net present value) of US$188 Million (5% discount rate)
over a 24 year life of mine using a US $1,300 gold price. The PEA requires both the oxide and the sulphide material
to be developed in order to realize the project economics.
Potential optimization of the project includes the additional expansion of the current oxide material. This may have
the potential to increase the project’s overall IRR and NPV by increasing the throughput during the oxide phase.
During the 2017 season a total of 27 holes were drilled in an area to the north of the current resource area. Using
results of the previously completed RAB (Rotary Air B last) drilling, ground resistivity and soil geochemistry, a series
of vertical holes, spaced roughly 50 metres apart were drilled. Drilled to an average depth of 70 metres, the hole
pattern was designed to determine if the current oxide resource could be e xpanded to the north as well as to
establish boundaries to the current oxide resource. The results of the 2017 program demonstrated the potential for
expansion of the current oxide resource at Golden Summit to the north with majority of the holes returnin g average
grades above the internal cut-off used in the PEA.
The 2018 program being planned is expected to focus on the target areas to the southwest and to the west of the
current oxide resource as well as the planning for an initial drill test of an area located 1.5 km west of the current
the Dolphin Resource, where during 2017, both a ground geophysical survey as well as soil sampling program s
were carried out . Results of these programs outlined an additional potential expansion target well west of the
previously identified expansion area. This new resistivity anomaly with coincident geochemistry covers a 1,500
metre by 300-meter area. Follow up drilling is also being planned on what Freegold believe s may be the extension
of the high grade Cleary Hi ll Vein in an area of no previous drilling. The Cleary Hill mine produced 281,000 ounces
at an average grade of 1.3 opt until its closure in 1942.
In addition to the oxide expansion further infill and definition drilling on both the oxide and sulphide ma terial as
well as additional metallurgical testwork and significant baseline studies will need to be completed in order to
advance the project to a pre-feasibility stage.
Shorty Creek
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From discovery in 2015, drilling ha s indicated the potential for a large copper-gold porphyry. Exploration at Hill
1835, one of several target areas, has delineated a copper gold mineralized system measuring 700 metres x 1,000
metres and extending to a depth of at least 500 metres.
In addition several other high priority targets have been identified throughout the 100sq kilometer project area.
Following the successful 2017 exploration drill program Freegold commenced a n initial metallurgical program
which is aimed at determining potential copper recoveries with associat ed by-product credits, most notably gold,
silver and tungsten. Results of this program , when complete d, will guide the future drilling at Hill 1835 and the
other high priority targets.
Shorty Creek lies approximately 125 road km northwest of Fairbanks, and 4 kms to the south of the abandoned
mining town of Livengood and the all-weather paved Elliott Highway.
The Qualified Person for this release is Alvin Jackson, P.Geo – Vice President Exploration and Development for the
Company who has reviewed and approved the scientific and technical information contained in this press release.
For further information:
Kristina Walcott-President and CEO
Telephone: 1.604.662.7307
Some statements in this news release contain forward -looking information, including without limitation statements as to planned expenditures
and exploration programs. These statements address future events and conditions and, as such, involve known and unk nown risks, uncertainties
and other factors which may cause the actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned
expenditures, the ability to complete exploration programs on schedule and the success of exploration programs. The term "Mineral Resource"
used above is defined per NI 43 -101. Though Indicated Resources have been est imated for the Project, this PEA includes Inferred Mineral
Resources that are too speculative for use in defining Reserves. Standalone economics have not been undertaken for the measu red and
indicated resources and as such no reserves have been estimated for the Project. Please note that the PEA is preliminary in nature, that it
includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them. There is
no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Without
limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are
forward looking statements that involve various risks. Actual results could differ materially from those projected as a result o f the following
factors, among others: changes in the price of mineral market conditions, risks inherent in mineral exploration, ri sks associated with
development, construction and mining operations, the uncertainty of future profitability and uncertainty of access to additio nal capital. See
Freegold's Annual Information Form for th e year ended December 31st, 2017 filed under Freegold 's profile at www.sedar.com for a detailed
discussion of the risk factors associated with Freegold's operations.