VANCOUVER – Freegold Ventures Ltd. [FVL-TSX] said Thursday it is poised to resume drilling at its Golden Summit project in Alaska.
With an initial 20,000 metres planned, it said the program will be a continuation of a 2020/2021 campaign that has demonstrated the potential for more extensive and higher-grade gold mineralization, as shown by numerous assay intervals that exceeded 30 g/t gold.
The Golden Summit project consists of 50 patented claims and 94 unpatented federal claims (5,921 hectares) and is located on the north portion of the Fairbanks Mining District, a northeast-trending belt of lode and placer gold deposits that compose one of the largest gold-producing areas in the state of Alaska.
Golden Summit is currently estimated to contain an indicated resource of 1.36 million ounces (6.14 million tonnes at grade 0.69 g/t gold) and an inferred resource of 1.6 million ounces (71.5 million tonnes of 0.69 g/t gold).
Mineralization is hosted within the Dolphin intrusive and surrounding metasediments, which host four former underground gold mines known as Clearly Hill (281,000 ounces), American Eagle (60,000 ounces), Hi-Yu (110,000 ounces), and Newsboy Mine).
A January, 2016 preliminary economic assessment (PEA) evaluated a 2-phase open pit mine generating two gold streams (oxide and sulfide), each operating at 10,000 tonnes per day.
However, back in February, 2020, the company launched a drill program designed to test a revised interpretation which indicated that higher-grade mineralization may extend west of the old Clearly Hill Mine workings in an area of limited previous drilling.
Since then, Freegold has completed over 38,000 of metres of drilling in 68 holes, with an average hole depth of 60 metres. Assays are currently pending for 48 holes. The company said the 2020 to 2021 drilling results will be incorporated into an updated mineral resource estimate later in 2022.
Meanwhile, the company said drilling will continue to focus on further expanding and defining the higher-grade Clearly vein system. It is believed the identification of that system has significant implications for both the grade and tonnage potential of the project.
The company said numerous high-grade intercepts have been reported within the broad zones of mineralization. And although the complex nature of the mineralization at Golden Summit makes it challenging to connect individual high-grade intersections into cohesive units, these broader zones are expected to substantially boost the average grade for a bulk mineable project, will above the historic 0.69 g/t resource grade average as well as contribute to an overall increased resource.
Aside from Golden Summit, Freegold’s asset portfolio includes the Shorty Creek copper-gold porphyry discovery. Both projects are located in central Alaska not far from Fairbanks, a city with a population of roughly 100,000.
On February 9, 2022, Freegold shares closed at 56 cents and currently trade in a 52-week range of 89 cents and 31.5 cents.