Mining News: Freegold expands Golden Summit oxides; eyes other growth targets

Freegold Ventures Ltd. July 18 reported results from the final six holes of a 27-hole oxide resource expansion drill program at the Golden Summit project about 25 miles north of Fairbanks, Alaska. Hole GSDL 17-28 cut 70.6 meters grading 0.82 grams per metric ton gold from surface. The oxide portion of this hole, which extended to a depth of 60 meters, averaged 0.36 g/t gold. Freegold said the results from this initial phase of 2017 drilling indicate the potential for expansion of the current oxide resource at Golden Summit. In 2016, Freegold published a preliminary economic assessment that evaluates a 20,000-metric-ton-per-day operation at Golden Summit – a 10,000 tpd heap leach facility to process the oxide material and 10,000 tpd bio-oxidation plant for the sulfide material. The area being considered for mining hosts 61.5 million metric tons of indicated resource averaging 0.69 grams per metric ton (1.36 million oz) gold; and 71.5 million metric tons of inferred resource of averaging 0.69 g/t (1.58 million oz) gold. The oxide portion of this deposit, which is found largely within the upper 60 meters of the overall resource, hosts 16.2 million metric tons of indicated resource averaging 0.66 g/t (345,000 oz) gold; and an inferred resource of 9.6 million metric tons averaging 0.59 g/t (183,000 oz) gold. The 27 holes completed during the 2017 spring program at Golden Summit were drilled at 50-meter spacing to determine if the oxide resource considered in the 2016 PEA could be expanded to the north. In addition to this northern oxide expansion drilling, Freegold completed a ground geophysical program to the west of the Dolphin deposit. Combined with soil geochemistry, this induced polarization survey has outlined an expansion target covering a 1,500- by 300-meter area well west of the previously identified expansion area. The Dolphin remains open to the west and the southwest and additional drilling will be necessary to determine if the resource can be expanded in these areas. Freegold said ground geophysics indicate the potential of expanding the high-grade Cleary Hill vein system, an area that could enhance the overall grade of the resource at Golden Summit.

–SHANE LASLEY