Fremont Signs Letter of Intent on Vardenis Cu- Au Property in Armenia; Stakes Prospective Lithium Targets in Nevada
Fremont Signs Letter of Intent on Vardenis Cu-
Au Property in Armenia; Stakes Prospective
Lithium Targets in Nevada
Vancouver, British Columbia--(Newsfile Corp. - May 9, 2023) - Fremont Gold Ltd. (TSXV: FRE)
(OTCQB: FRERF) (FSE: FR20) ("
Fremont
" or the "
Company
") is pleased to announce that it has
signed a letter of intent pursuant to which it has been granted an option to acquire up to 100% interest in
Mendia Resources Corp. ("
Mendia
"), an Armenian corporation, by Mendia's sole shareholder (the
"
Optionor
").
Mendia holds the exploration license over the Vardenis copper-gold project in central
Armenia.
Additionally, the company is pleased to announce the filing of 133 new claims in Nevada for the purpose
of potentially advancing a world class Lithium resource.
Initial geochemical results are expected before
mid-year. Staking of other potential lithium prospects is ongoing.
Vardenis Cu-Au Property
The Vardenis copper-gold property is a high-sulfidation, possible Cu-porphyry mineralized system
formerly held by Dundee Precious Metals Inc. between 2015 and 2018.
It occurs 25 kilometers along
strike and in the same Eocene volcanic sequences which host the 3-million-ounce Amulsar gold deposit
being developed by Orion Mine Finance, Osisko Gold Royalties and Resource Capital Fund.
The terms set out in the letter of intent provide Fremont with the exclusive option to acquire up to 100% of
Mendia via staged option payments over 4.5 years.
The staged payments are as follows:
On completion of the definitive agreement ("
Closing
"), the Company shall pay US$100,000 in
cash and issue 500,000 Fremont common shares to the Optionor, and initiate specified
exploration work on the Vardenis property, including a minimum of 2,500 meters of diamond
drilling within 18 months; completion of which will earn the Company a 51% equity ownership
interest in Mendia;
18 months following Closing, the Company shall pay an additional US$150,000 in cash, issue
700,000 Fremont common shares to the Optionor, and initiate further exploration work on the
Vardenis property, including an additional 5000 meters of drilling within 3 years following Closing;
completion of which will earn the Company an additional 29% equity ownership interest in Mendia
(for a total of an 80% equity ownership interest);
36 months following Closing, the Company shall pay an additional US$100,000 in cash, issue
1,000,000 Fremont common shares to the Optionor, and initiate additional exploration work
including a preliminary economic assessment (PEA) level study within 4.5 years following Closing;
completion of which will earn the Company an additional 10% equity ownership interest in Mendia
(for a total of a 90% equity ownership interest);
Subsequent to the Company's acquisition of a 90% interest in Mendia, the Optionor has the right to
retain a 10% interest in Mendia by contributing 10% of costs moving forward; If the Optionor
declines this right, the Company has the option to purchase the remaining 10% equity in Mendia
for $US3,500,000 in either cash or equivalent in Fremont shares.
If this option to purchase the
remaining 10% is not exercised by the Company, and the Optionor does not meet their
contribution commitments, the Optionor's residual interest in Mendia will be converted to a 1.0%
net smelter return royalty once their interest falls below 5%.
Closing is subject to the satisfactory completion of due diligence and the execution of a definitive option
agreement with the Optionor on or before June 20, 2023.
The definitive agreement will include
customary provisions, representations, covenants and conditions which are typical for a transaction of
this nature as well as provisions relating to dilution, governance and the terms of the net smelter return
royalty. Fremont as the optionee, has the right to withdraw from the agreement at any time, with 30 day's
written notice.
Closing will be subject to the approval of the TSX Venture Exchange.
Figure 1. Project Location
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Previous work on the Vardenis Property
Historic work on the Vardenis copper-gold property comprises early Soviet-era trenching and pits from
the 1960s followed by more recent exploration undertaken by Canadian-based companies during the
past decade.
This recent work includes 1,246 meters of diamond drilling in seven holes, over 4,000
geochemical samples (both soils and streams), alteration mapping and trenching. This work has defined
a NW-SE somewhat ring-shaped, gold-in-soil anomaly approximately seven kilometers in length, as well
as a separate 3.6 x 2.0-kilometer copper anomaly located 1.4 kilometers to the south of the gold
anomaly.
The seven drill holes were confined to a relatively small area on the western end of the gold anomaly.
Four of those holes are just outside, but right along the edge of Mendia's current license area (due to
watershed issues).
The best results of this limited program returned 11.9 m @ 1.92 g/t Au and 18 m @
0.58 g/t Au in holes 2 and 6, respectively; the latter hole occurs within Mendia's current license.
Additionally, 15 trenches were excavated in a gold-anomalous area named the Archuk target on east
side of the license.
All trenches returned values averaging a minimum of 0.5 to >1 g/t Au, with a best
result of 26m @ 3.65 g/t Au.
This area has not been drilled.
Figure 2. Looking east with alteration draped over the topography
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Figure 3. Vardenis Gold-in-Soils Geochemistry on Geology
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Figure 4. Vardenis Copper soil geochemistry
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Fremont's President and CEO, Dennis Moore, commented, "After spending the better part of two years
seeking opportunities in Armenia, Vardenis was chosen as one of the few projects that could create true
shareholder value in a relatively short time frame. This project has decisive attributes which include:
A large-scale mineralized system;
Hosted in Armenia's most prospective Eocene volcanics, along strike from the 3M oz Amulsar
gold deposit which is currently being developed;
At-surface copper-gold mineralization within widespread high-sulfidation-style alteration;
A plethora of previous data which identify significant, sizeable copper and gold anomalies;
Only 1,246 meters of historical drilling.
These attributes make Vardenis a very attractive target indeed."
Figure 5. NW-SE profile showing Au soil geochemistry relative to elevation
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Mr. Moore continues, "The historic exploration work undertaken at Vardenis provides Fremont with a
strong head start to efficiently and effectively advance the project.
Drill targeting will obviously be more
straight forward than if starting from scratch.
The current plan is to undertake detailed short-wave infrared
(SWIR) alteration mapping to determine the hot-spots within the mineralized system, possibly conduct an
IP survey over the circular copper-moly anomaly, then integrate this data with the results of historic soil
geochemistry in order to identify the best targets. We expect to conduct the initial drill program within 18
months.
A current National Instrument 43-101 technical report is in the process of being completed."
Figure 6. Molybdenum soil geochemistry -- Note annular-shaped anomaly suggestive of
porphyry mineralization
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Fremont is continuing to actively pursue additional projects in Armenia.
Lithium project in Nevada
The increased demand for lithium in the EV market has led to a rapid expansion of lithium exploration
and attendant junior explorers in prospective jurisdictions such as Nevada, Argentina and Chile.
This has
led to the discovery of several world-class deposits in Nevada such as Rhyolite Ridge (Ioneer, INR-ASX)
and the Thacker Pass deposit.
The latter is owned by Lithium Americas Corp. (approx. $3.2 billion
market cap), and is located within the McDermitt caldera of northern Nevada.
As the Company has significant gold projects in Nevada, administered by a very experienced Nevada-
based team, management decided to exploit this in-house expertise to search for prospective lithium
deposits.
Fremont's Nevada exploration group is headed by Vice President Dr. Clay Newton, a PhD
structural geologist who has worked over 25 years in Nevada and explored for numerous commodities
during his long career, including rare earths and lithium.
Dr. Newton explains, "In Nevada, there are two main types of lithium deposits - lithium brines and lithium-
bearing clays. Lithium brines are found in closed evaporative basins in which there is ample water inflow
into the basin but no outflow. Lithium, boron, and alkali elements are residually enriched as the playa lake
water evaporates.
Lithium-bearing lake sediments, also common in arid evaporative basins, may also contain clays that
are enriched in lithium and boron. The lithium may either be sourced from weathered and eroded felsic
volcanic rocks surrounding the basin or from intra-basin ash and felsic tuffs".
Dr. Newton continues, "Diamond Valley, in Eureka County, is a large completely enclosed basin, that in
the past held large lakes as evidenced by terraces cut high into the surrounding hills. Surface water and
shallow groundwater flows from south to north in the basin, converging in the northern end, where there is
always a seasonal playa lake. The southern part of the valley has for generations provided ample fresh
groundwater for farming irrigation. However, the northern end of the basin has been known for decades
to host more caustic groundwater than the southern part. Water from the northern end of the basin
exceeds safe drinking water standards for multiple chemical constituents and total dissolved solids (from
Eureka County Water Resources Master Plan, 2016). Additionally, there are very abundant artesian
springs in the northern part, bringing deeper water to the surface, and some of the springs are warm
water, indicating geothermal heating, another important element for hydrothermal leaching of intra-basin
ash.
The northern part of the basin has an enclosed gravity low anomaly (see figures below) suggesting a
deep groundwater reservoir. Such depressions are known to host lithium brines, which because of their
higher density than fresh water, sink into the depressions."
Figure 7. Diamond Valley in central Nevada, the green line defines the enclosed basin
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Figure 8. Location of Li-brine claims over gravity low in Diamond Valley
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Fremont has recorded 133 claims to date for lithium brines, covering the gravity low anomaly in the
northern end of Diamond Valley, as shown in the figure above.
Initial geochemical results are expected
within four weeks.
Qualified person
The content of this news release was reviewed by Dennis Moore, Fremont's President & CEO, a
qualified person as defined by National Instrument 43-101.
About Fremont
Fremont's mine-finding management team has assembled a portfolio of high-quality Nevada gold and
lithium projects with the goal of making a new discovery.
The Company has also been seeking world-
class mineral opportunities within the central Tethyan belt of Armenia and Georgia.
Besides Cobb
Creek, Griffon, and Hurricane in Nevada, Fremont has applied for an exploration license over the Urasar
area in northern Armenia.
On behalf of the Board of Directors,
"Dennis Moore"
Dennis Moore
President and CEO, interim Chairman
Fremont Gold Ltd.
For further information, contact:
Corporate Information
Fremont Gold Ltd.
Dennis Moore, President and CEO, interim Chairman
Telephone:
+351 9250 62196
www.fremontgold.net
https://twitter.com/GoldFremont
https://www.linkedin.com/company/fremont-gold/
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.
Forward looking statements
Certain statements and information contained in this press release constitute "forward-looking
statements" within the meaning of applicable Canadian securities laws. Such forward-looking
statements are based on several material factors and assumptions and involve known and unknown
risks, uncertainties and other factors which may cause the completion of the Private Placement or the
actual use of proceeds to differ materially from those anticipated in such forward-looking information.
You are cautioned not to place undue reliance on forward-looking statements contained in this press
release. Actual results and future events could differ materially from those anticipated in such
statements. Fremont undertakes no obligation to update or revise any forward-looking statements
included in this press release if these beliefs, estimates and opinions or other circumstances should
change, except as otherwise required by applicable law.
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