Northern Freegold Resources Ltd. (TSXV:NFR,OTCQX:NFRGF,FWB:8N6) announced its updated NI 43-101 mineral resource estimate for the Nucleus deposit at Freegold Mountain Project in the Yukon. The new resource contains indicated 1.31 million oz gold, 1.97 million oz silver and 89 million pounds copper; and an inferred 801,235 oz gold, 2.9 million oz silver and 52 million pounds copper.
As quoted in the press release:
The new resource (at a pit optimized 0.25 g/t AuEq cut-off) contains 71.9 million tonnes grading 0.57 g/t gold, 0.85 g/t silver and 0.06% copper (1.31 million oz gold, 1.97 million oz silver and 89 million pounds copper) in the Indicated category and 60.4 million tonnes grading 0.41 g/t gold, 1.48 g/t silver and 0.04% copper (801,235 oz gold, 2.9 million oz silver and 52 million pounds copper) in the Inferred category as shown in Table 1.
Importantly, within the indicated resource there is a significant zone of higher grade mineralization which contains (at a 0.50 g/t AuEq cut-off) 25.9 million tonnes grading 1.02 g/t gold, 1.11 g/t silver and 0.07% copper (851,603 oz gold, 924,040 oz silver and 38 million pounds copper). This higher grade zone subcrops in the centre of the Nucleus deposit and has the potential to be exploited in the initial years of a mining operation.
Northern Freegold President and CEO John Burges said:
With the addition of 2012′s drill results, we are pleased that we have made substantial progress in identifying a potential starter gold pit at Nucleus. This higher grade portion of the deposit contains two thirds of Nucleus’ indicated resource and averages over 1 g/t Au. Combined with the excellent metallurgical recoveries of gold at Nucleus of up to 97%, this represents a significant positive development for the project. The first economic study is currently underway on the Nucleus gold (with minor silver and copper) deposit and on the adjacent Revenue copper-gold-molybdenum deposit. We expect this initial Preliminary Economic Assessment to be completed in the first quarter of 2013. Both deposits are open in all directions. Nucleus and Revenue already contain 1.3 million Indicated oz and 1.9 million Inferred oz of gold. We believe these deposits form part of a much larger continuous district-scale gold-copper system as evidenced by an 8 kilometre long geophysical anomaly and largely coincidental gold and copper soil anomalies.