Preliminary Metallurgical Results from Revenue Cu‐Au‐Mo Zone, Freegold Mountain Project, Yukon Recoveries of 92% Copper, 74% Gold, 81% Molybdenum and 59% Silver
September 12, 2012 TSX.V: NFR PR # 12‐14 OTCQX: NFRGF Frankfurt: 8N6
Preliminary Metallurgical Results from Revenue Cu‐Au‐Mo Zone, Freegold Mountain Project, Yukon Recoveries of 92% Copper, 74% Gold, 81% Molybdenum and 59% Silver
Vancouver, BC: September 12, 2012. Northern Freegold Resources Ltd. (NFR: TSX‐V) (“Northern Freegold” or the "Company") is pleased to announce preliminary results from ongoing metallurgical studies at the Revenue Cu‐Au‐Mo zone of the Freegold Mountain project, Yukon. The Revenue zone forms a significant part of the large, 100% owned, Freegold Mountain project. The property is accessible by a government maintained road and is located approximately 70 kilometres from the Klondike Highway which runs between Whitehorse and Dawson.
Highlights
Weighted average recoveries based upon the Revenue deposit resource model as it is currently understood are as follows:
| Element | Weighted Average Recovery |
|---|---|
| Cu | 92% |
| Au | 74% |
| Mo | 81% |
| Ag | 59% |
John Burges, President and CEO of Northern Freegold stated, “We are very pleased with the excellent overall recoveries of copper, gold, molybdenum and silver through the production of copper and moly concentrates and with additional gravity recovery of gold and silver. This is an important milestone for the Revenue Cu‐Au‐Mo deposit. These results compare favourably with many more developed copper‐ gold porphyry deposits in North America. Further grade and recovery optimizations are planned for the future phases of metallurgical test work. Results of similar metallurgical test work from the large adjacent Nucleus deposit where gold is the primary resource are being finalized and will be out shortly.”
Metallurgical Test Work
Metallurgical test work was completed at SGS Laboratories under the supervision of Jalal Tajadod, PhD, PEng. Sample composites of material thought to be representative of the mineralized zones were prepared from drill sample rejects from the 2011 drill program. From these, SGS prepared six variability samples. Each variability sample was blended, crushed, split and combined into three sub‐composites.
Details of the sub‐composites are as follows:
| Composite | Lithology | Estimated Percentage of Deposit Tonnage | No. of Samples in Composite | Sample Weight (kg) |
|---|---|---|---|---|
| Sub‐Comp 3 | Granodiorite sulphide | 59% | 206 | 293.1 |
| Sub‐Comp 2 | Breccia sulphide | 35% | 106 | 144.7 |
| Sub‐Comp 1 | Breccia oxide | 4% | 44 | 62.9 |
The metallurgical test work was done on the assumption that metals will be recovered from a recovery process consisting of grinding, gravity separation for Au and Ag, flotation to produce a Cu concentrate and a Mo concentrate followed by cyanidation of the cleaner scavenger tails for final Au and Ag recovery. Two locked cycle gravity/flotation tests (LCT ‐1 & LCT‐2) were undertaken, using typical and simple reagents, with material derived from granodiorite (LCT‐1) and from breccia‐sulphide (LCT‐2) to best simulate the assumed recovery process. This was followed by cyanide leaching of the cleaner scavenger tails (CN‐7 & CN‐8). It is assumed that the oxide material, which only accounts for 4% of the deposit tonnage, will be stockpiled and leached. Three whole ore cyanide leach tests on the oxide samples resulted in 95.4% to 96.9% of the Au and 72.4% to 81.9% of the Ag being recovered. The remaining 96% of the deposit had recoveries as tabulated below.
| Sample Sub‐Comp | Lithology | Recovery | |||
|---|---|---|---|---|---|
| Cu % | Au % | Mo | Ag % | ||
| 3 | Granodiorite Sulphide | 92.3% | 72.1% | 83.3 | 63.9% |
| 2 | Breccia Sulphide | 90.4% | 78.0% | 74.4 | 48.4% |
| Weighted average for the sulphide resource | 91.6% | 74.0% | 81.2 | 58.8% |
The above results are based on preliminary test work and have not been optimized for recovery or concentrate grade. Locked cycle tests to produce metallurgical projections were done at a primary grind size of 120 microns. A flow sheet representing the locked cycle tests will be posted on the Company’s website shortly.
A breakdown of Au and Ag recoveries by process follows:
| Process | Recovery | |||
|---|---|---|---|---|
| Granodiorite Sulphide | Breccia Sulphide | |||
| Au | Ag | Au | Ag | |
| Gravity | 32.2% | 4.4% | 21.0% | 4.2% |
| Flotation | 36.8% | 59.2% | 42.5% | 43.3% |
| CN Leach | 3.06% | 0.32% | 14.5% | 0.90% |
| Total | 72.1% | 63.9% | 78.0% | 48.4% |
In order to determine whether a separate Cu and Mo concentrate could be produced, a Cu/Mo separation was completed on one sub composite of granodiorite sulphide (Cu/Mo Sep‐F1). This test produced a Cu concentrate grading 20% Cu with 83% recovery and a Mo concentrate grading 47% Mo with 85% recovery. This Cu/Mo separation is the result of only one test and has not been optimized for recovery or concentrate grade. Further optimization test work could show additional improvement from the encouraging initial results.
These results conclude the first phase of the Revenue deposit metallurgical test work commenced in early 2012 and show that good recoveries of Cu, Au, Mo and Ag can be achieved in concentrates. Future metallurgical work will look at further optimizing the recoveries and concentrate grades. Importantly, notable areas of enriched tungsten have been discovered in the Revenue zone which is not included in the resource calculation. Further metallurgical review is planned to be undertaken to determine whether this too can be recovered in commercial concentrate grades.
Freegold Mountain Project
The Freegold Mountain project is located within the Dawson Range, approximately 70 kilometres northwest of Carmacks, Yukon. Carmacks is situated on the Klondike highway, a paved all‐weather highway running from Whitehorse to Dawson City. The property covers an area in excess of 198 square kilometres (75 square miles) and is accessible by a government maintained road. The Nucleus Deposit and the Revenue Deposit cover approximately 30 square kilometres.
The Nucleus deposit is a near‐surface, gold dominant deposit. Mineralization begins at surface and is open to expansion laterally and at depth. The resource (at a 0.4 AuEq cut‐off) contains 48.5M tonnes grading 0.70 g/t gold, 0.90 g/t silver and 0.06% copper (1.1 M oz Au, 1.4 M oz Ag, 67.8 M lbs Cu or 1.4 M oz AuEq) in the Indicated Category and 41.5M tonnes grading 0.47 g/t gold, 0.98 g/t silver and 0.07% copper (0.6 M oz Au, 1.3 M oz Ag and 62.0 M lbs Cu or 0.9 M oz Au Eq) in the Inferred Category (see news release dated February 22, 2011).
An Inferred resource estimate for the Revenue Zone was calculated in January 2012. This mineral resource estimate is based on 54 drill holes (10,582 meters) with 5,997 assay values collected. A range of mineral resources were estimated at various AuEq cut‐off grades for the Revenue zone and are presented in the table below. The Inferred Resource for the Revenue Zone is reported at a cut‐off grade of 0.5 g/t AuEq (see news release dated January 18, 2012). The total resource estimate at a AuEq cut‐off grade of 0.5 g/t is 101 M tonnes of mineralized material containing 1.1 M oz gold, 10.2 M oz silver, 287 M lbs of copper, and 90 M lbs of molybdenum grading 0.34 g/t gold, 3.14 g/t silver, 0.13 % copper and 0.04 % molybdenum. This equates to a total of 3.7 million gold equivalent ounces at a grade of 1.1 g/t AuEq based on approximate 3‐year average metal prices of $1,016/oz for gold, US$15.82/oz for silver, US$2.95/lb for copper and US$15.82/lb for molybdenum. It assumes 100% metal recovery with no discount for metallurgical recovery in contained metal figures.
The Revenue deposit mineralization begins at surface and is open to expansion laterally and at depth. It is believed that the Revenue Deposit, the Nucleus Deposit to the west and the Stoddart Zone to the east are all part of a large scale gold‐rich porphyry system, which extends in an east‐west direction for more than eight kilometres. The system shows similar geological characteristics to other porphyry deposits in the region, including the Casino Porphyry Project located ~90 km to the northwest, which hosts multi‐ million ounce gold resources and reserves with multi‐billion pound copper resources and reserves.
Inferred Mineral Resources for the Revenue Deposit
AuEq Tonnage Gold Silver Copper Molybdenum AuEq* (g/t)
(Mt)
Cut‐off g/t Ounces g/t Ounces % Pounds % Pounds g/t Ounces 0.3 158 0.27 1,345,000 2.49 12,605,000 0.11 370,517,000 0.03 103,560,000 0.83 4,419,000 0.4 129 0.30 1,232,000 2.76 11,420,000 0.12 331,554,000 0.03 98,409,000 0.94 4,076,000
0.5 101 0.34 1,119,000 3.14 10,194,000 0.13 286,871,000 0.04 89,606,000 1.08 3,659,000 0.6 81 0.38 994,000 3.40 8,831,000 0.13 239,407,000 0.05 84,527,000 1.21 3,276,000
0.7 62 0.43 850,000 3.64 7,211,000 0.15 199,568,000 0.06 76,941,000 1.38 2,848,000
*Gold equivalent (AuEq) for the Revenue Resource is calculated based upon prices of US$1,016/oz for gold, US$15.82/oz for silver, US$2.95/lb for copper and US$15.82/lb for molybdenum, and assumes 100% metal recovery with no discount for metallurgical recovery in contained metal figures (Note: total contained AuEq metal values may not add exactly because of rounding).
** The resource estimate is categorized as inferred as defined by the CIM guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into mineable reserves once economic considerations are applied. The inferred mineral resource estimate has been prepared in compliance with the standards of NI 43‐101 by Dr. A. Armitage, P. Geol., and J. Campbell, B.Sc., P. Geo., of GeoVector Management Inc.
2012 Exploration
A 2,453 metre, five hole diamond drill program at Nucleus was completed in early July. The focus of this drilling program is to expand the existing gold resource at depth and to better understand the structural controls to mineralization. The analytical results are currently being reviewed by the Company’s consultants and management. In addition to drilling there are ongoing baseline environmental studies underway. The project is being managed by GeoVector Management Inc. of Ottawa, Ontario, (www.geovector.ca) under the supervision of A. Sexton, M.Sc., P. Geo.
Paul Reynolds, B.Sc., P. Geo., Vice President Exploration for Northern Freegold Resources Ltd., is the qualified person, as defined by NI 43‐101, and has reviewed the technical information in this news release.
About Northern Freegold
Northern Freegold Resources Ltd. (TSX.V: NFR; OTCQX: NFRGF) trades in Canada on the TSX Venture Exchange under the symbol "NFR" and in the United States on the OTCQX under the symbol "NFRGF". Northern Freegold is a rapidly advancing Canadian‐based precious metals exploration and development company. Northern Freegold brings wide‐ranging expertise and strong management to focus on the development of its district‐scale Freegold Mountain gold and copper project in the Yukon and the Burro Creek gold and silver property in Arizona.
PR Contact for Northern Freegold Resources Ltd.:
Andy Hay, Investor Relations, +1 (604) 893‐8757, [email protected]
On behalf of the Board of Directors Signed "John Burges"
John Burges, President and CEO
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.
Cautionary Note Regarding Forward‐Looking Statements
The information in this press release includes certain "forward‐looking statements". All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company's properties, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward‐looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward‐looking statements 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 NFR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological testing and the estimation of reserves and resources; the need for cooperation of government agencies and First Nations groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NFR's forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NFR assumes no obligation to update the forward looking statements if management's beliefs, opinions, projections, or other factors should change.