Northern Freegold Resources Ltd (TSX-V: NFR) is nearing completion of a compliant NI 43-101 resource estimate on the gold-copper-silver-molybdenum Revenue Zone at its 100% owned gold-rich porphyry Freegold Mountain Project in the Yukon. This is important, as it should establish the direction of the project’s development following the success of Western Copper and Gold Corporation’s (AMEX, TSX: WRN) copper-gold Casino project, situated along trend, and located only 80 kilometers to the northwest. Like Casino, Northern Freegold’s resource starts at surface, so the project is likely to be low cost, large bulk tonnage open pit operation with a long mine life. Northern Freegold previously established a million plus ounce gold deposit at its Nucleus Zone at Freegold Mountain. The completion of a significant gold-copper- silver-molybdenum resource may present the potential for a growing large gold-copper porphyry resource, competitive in size and cost to the Casino deposit.
The Freegold Mountain Project covers 198 square kilometers (75 square miles), roughly three times the footprint of Manhattan, with the advantage of being located on crown land. The project is road accessible, connecting to the Klondike Highway 200 kilometers from Whitehorse, the capital of the Yukon. Powerlines located along the Klondike Highway are only 30 kilometers from the Freegold Project boundary. We believe that this may present the Freegold Mountain project, relative to Casino, as having a competitive development cost structure.
Freegold Mountain has a long history of placer gold mining in the creeks covering the project area. Recent exploration success at the Nucleus Zone identified high-gold grades within a broader modest grade envelope, sufficient to put together a deposit with over a million ounces of gold. Management has since realized a more substantial opportunity may exist by exploring the adjacent gold-copper- silver-molybdenum Revenue Zone which they believe is all part of the same district scale porphyry deposit. The target resource for the potential deposit at the Revenue Zone includes only a minor portion of a gold-copper anomaly which extends six to eight kilometers east of the Nucleus Zone.
We believe that there is potential, with the completion of a new resource at Freegold Mountain, for Northern Freegold to provide investors a pathway to recognize that the project has competitive development characteristics plus size, grade and mix of metal types, to the Casino project. We also believe that a new resource, with ongoing exploration drilling and study of geophysical surveys, should lead to a positive and increasingly competitive investment profile through 2012.