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Posts tagged ‘Northern Freegold Resources Ltd (NFR)’

Athabasca Basin and beyond

November 3rd, 2013

Uranium news from Saskatchewan and elsewhere for October 26 to November 1, 2013

by Greg Klein

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Alpha/Fission hit 5.98% U3O8 over 17.5 metres, including 19.51% over 5.5 metres

With so many scintillometer results announced already, assays for the same holes can be anti-climactic. But that’s the way Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW have orchestrated their Patterson Lake South campaign, now giving observers a near sense of déjà vu. Assays from four holes announced October 29 add little to the news of August 8, although results from the lab are much more reliable than those from the hand-held radiation-detecting gizmo. The assays come from R00E, the farthest southwest of the project’s five zones.

Hole PLS13-074

  • 0.13% uranium oxide (U3O8) over 2.5 metres, starting at 65 metres in downhole depth


  • 0.09% over 2 metres, starting at 178.5 metres

  • 0.08% over 1.5 metres, starting at 183 metres

  • 0.16% over 4.5 metres, starting at 186.5 metres


  • 0.39% over 11.5 metres, starting at 59 metres

  • 0.13% over 15.5 metres, starting at 73 metres


  • 5.98% over 17.5 metres, starting at 83 metres

  • (including 19.51% over 5 metres) (Update: On November 4 the JV partners corrected the intercept width from 5.5 metres to 5 metres.)

True widths were unavailable. Three of the holes were vertical, while 079 dipped at -75 degrees. That hole expands the zone’s high-grade southern area, the companies stated, while all four holes confirm R00E’s east-west strike at 165 metres. The zone remains open in all directions.

With the summer barge-based campaign complete, attention now turns to a land-based program west of R00E. Fission acts as project operator on the 50/50 joint venture until its acquisition of Alpha closes. Fission shareholders will vote on the deal’s spinout aspect on November 28.

(Update: On November 4 the JV announced a sixth PLS zone west of the discovery. Read more.)

Rio Tinto plans winter drilling at Purepoint’s Red Willow

Purepoint Uranium Group TSXV:PTU announced plans on October 29 by Rio Tinto Exploration Canada for 2,500 metres of drilling at Red Willow, a 25,612-hectare property on the Athabasca Basin’s eastern edge. Rio identified targets based on historic drill logs and more recent geophysical and geochemical work. The company built a 28-person camp last summer.

Depth to unconformity in the area varies from zero to 80 metres, Purepoint stated. The company says five major deposits—JEB, Midwest, Cigar Lake, McArthur River and Millennium—“are located along a NE to SW mine trend that extends through the Red Willow project.”

Rio has so far spent about $2.25 million out of a $5-million commitment to earn an initial 51% interest by December 31, 2015. The giant’s Canadian subsidiary may earn 80% by spending $22.5 million by the end of 2021.

In early October Purepoint announced a winter drill campaign for the Hook Lake JV held 21% by Purepoint and 39.5% each by Cameco Corp TSX:CCO and AREVA Resources Canada.

Strong Q3 financials surprise Cameco shareholders

Despite historic low uranium prices, Cameco came out with Q3 earnings far beyond the same period last year. In his October 29 statement, president/CEO Tim Gitzel attributed the success to a contracting strategy “providing us with higher average realized prices that are well above the current uranium spot price.”

Uranium news from Saskatchewan and elsewhere for October 26 to November 1, 2013

Rabbit Lake was one of three Cameco operations that received
10-year licence renewals the same week that the company
surprised investors with an especially strong quarterly report.

Adjusted net earnings for three months ending September 30 came to $208 million, a 324% increase over Q3 2012 or, at 53 cents a share, a 342% increase. Year-to-date figures came to $295 million (up 48%) and 75 cents a share (up 47%).

Gitzel added that Cameco’s “starting to see some of the cost benefits of the restructuring we undertook earlier” and plans to “take advantage of the opportunity we see in the long term.”

However the company’s statement noted “there have been some deferrals of future projects due to uranium prices insufficient to support new production. The deferrals will not directly impact the near-term market, but could have an effect on the longer term outlook for the uranium industry. Complicating the supply outlook further is the possibility of some projects, primarily driven by sovereign interests, moving forward despite market conditions.”

The company forecast strong long-term fundamentals, mostly to China which has “reaffirmed its substantial growth targets out to 2020 and indicated plans to pursue further growth out to 2030. Their growth is palpable as construction on two more reactors began during the third quarter, bringing the total under construction to 30.”

As for Cameco’s long-delayed Cigar Lake mine, the company’s sticking to its current plan of Q1 2014 production and Q2 milling.

But while junior exploration flourishes, especially in the Athabasca Basin, the major plans a 15% to 20% cut in exploration spending this year.

Three Cameco operations get 10-year licence renewals

Licences for Cameco’s Key Lake, McArthur River and Rabbit Lake operations have been renewed for 10 years, the Canadian Nuclear Safety Commission announced October 29. The CNSC granted the extensions after three days of public meetings that heard from the company, 27 interveners and CNSC staff. The commission agreed to Cameco’s request for 10-year renewals, twice the previous term.

MillenMin finds radioactive outcrops on east Basin properties, reports AGM results

MillenMin Ventures TSXV:MVM completed initial field work at two eastside Basin properties, the 2,759-hectare Highrock Lake NE and 1,648-hectare Smalley Lake W. Work included prospecting, outcrop mapping and examination of previously found mineralization, the company announced October 28.

Grab samples from radioactive outcrops on both properties have been sent for assays. MillenMin first announced its foray into uranium last May and has staked 11 claims totalling about 18,983 hectares in and around the Basin.

On October 31 the company reported AGM results with directors re-elected, auditors re-appointed and other business approved.

Declan options northeastern Alberta property

Southwest of the Basin’s Alberta extremity, Declan Resources TSXV:LAN has optioned the 50,000-hectare Firebag River property. Previous geophysical survey data “shows a complex pattern of magnetic lows and highs, truncated or offset in the northern part of the property by the Marguerite River Fault,” Declan stated on October 29. Exploration in 1977 “confirmed the presence of a southwest-oriented fault zone and a geochemical anomaly with 11 ppm cobalt in lake sediments atop this structure,” the company added.

The deal would have Declan paying $85,000, issuing five million shares over two years and spending $3 million over three years. The optioner retains a 2% NSR on metals and a 4% gross overriding royalty on non-metallic commodities.

In September Declan announced an option to acquire the Patterson Lake Northeast property. The company plans to engage Dahrouge Geological Consulting to explore its uranium properties.

Rockgate takeover offer: Denison softens conditions, extends deadline

Denison Mines TSX:DML advanced its attempted takeover of Rockgate Capital TSX:RGT by lowering the minimum tender condition from 90% to two-thirds of outstanding shares. In an October 30 statement Denison also extended the offer’s deadline again, this time to November 18, and dropped conditions related to staff retention and consulting agreements.

The same day Rockgate said insiders agreed not to exercise their options unless another company comes up with a better offer. Denison had requested a cease trade order on 11 million Rockgate options granted on September 30, which Denison termed “improper defensive tactics.” The British Columbia Securities Commission didn’t agree. But rather than risk Denison withdrawing its offer, Rockgate insiders “put the interests of the shareholders of Rockgate before their own personal interests and agreed to amend the terms of the options,” company president/CEO Karl Kottmeier said.

The tone of the companies’ statements has warmed considerably since Kottmeier labelled Denison’s offer an “unsolicited opportunistic hostile takeover bid.” Denison president/CEO Ron Hochstein thanked Kottmeier and the Rockgate board “for their contributions to allowing the offer to proceed towards a successful conclusion.”

Meanwhile Rockgate continues prefeasibility work on its flagship Falea uranium-silver-copper project in Mali.

Read how Denison’s offer defeated Rockgate’s proposed merger with Mega Uranium.

Read more about uranium merger-and-acquisition activity.

Lakeland Resources’ JV partner New Dimension to drill for gold

Lakeland Resources TSXV:LK announced on October 31 an imminent drill campaign of at least 1,800 metres by JV partner New Dimension Resources TSXV:NDR on the Midas gold property in north-central Ontario. Lakeland optioned the project to New Dimension in September in order to focus on Saskatchewan uranium exploration. But Lakeland will retain a 30% interest in Midas carried to an initial 43-101 resource estimate.

I’m excited that the project’s going to continue to be worked while we focus on uranium.—Jonathan Armes, president/CEO
of Lakeland Resources

“New Dimension is a great group to work with and the deal was easy to do,” Lakeland president/CEO Jonathan Armes tells “I’m excited that the project’s going to continue to be worked while we focus on uranium. The onus is on them to explore that project and we share in any benefits that result.”

The previous week Lakeland closed a private placement for a total of $1,057,718 and announced the appointment of Basin veteran John Gingerich to the company’s advisory board. Field work continues on Lakeland’s Riou Lake uranium project.

Read more about Lakeland Resources.

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Up north and Down East

February 20th, 2013

NSGold drills Nova Scotia, Northern Freegold reaches PEA in Yukon

by Greg Klein

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News from Nova Scotia shows open pit potential for the province’s oldest known gold mine, the Mooseland project. On February 20 NSGold Corp TSXV:NSX released a batch of assays from a 15-hole, 948-metre, near-surface West zone campaign. Some highlights include:

NSGold drills Nova Scotia, Northern Freegold reaches PEA in Yukon

Earlier core samples came from deeper drilling, while
Mooseland’s most recent campaign stayed above 75 metres.

  • 36.8 grams per tonne gold over 0.6 metres
  • 15.21 g/t over 1.7 metres
  • 9.93 g/t over 1 metre
  • 7.1 g/t over 1 metre
  • 6.25 g/t over 1 metre
  • 11.49 g/t over 1 metre
  • 8.44 g/t over 1 metre
  • 9.44 g/t over 1 metre
  • 18.76 g/t over 1 metre.

A 0.5 g/t cutoff grade was applied. True widths were estimated between 91% and 93%. The top-most interval started at 5 metres from surface while the deepest stopped at a down-hole depth of 79.4 metres.

Two of the 15 holes were abandoned after hitting historic workings. The other 13 “all encountered the expected, relatively sulphide-rich, quartz-bearing argillite zones,” NSGold stated. The West zone’s relatively shallow overburden and the geometry of the near-surface saddle veins are “of particular significance from a potential open pit mining perspective,” the company added. The West zone extends about a kilometre along strike. Unlike the most recent campaign, the zone was previously drilled at deeper depths.

Mooseland’s June 2012 resource estimate uses a 2.6 g/t gold cutoff showing:

  • a West zone inferred estimate of 1.46 million tonnes averaging 5.52 g/t gold for 259,000 gold ounces
  • an East zone inferred estimate of 1.06 million tonnes averaging 5.72 g/t for 195,000 ounces
  • a total inferred resource of 2.52 million tonnes averaging 5.6 g/t for 454,000 ounces.

Apart from drilling its flagship Mooseland project, NSGold last December announced gold-silver-polymetallic sampling at its Cheticamp property, also in Nova Scotia. In January the company optioned the Silver Hill property, a potential gold or gold-silver project in Nevada. The same month Phase II drilling began at the Dios Padre silver project in Sonora state, Mexico, by NSX Silver TSXV:NSY. A spinout of an NSGold subsidiary, NSX Silver holds Dios Padre under option from NSGold.

NSGold’s chart had flattened out at $0.085 since February 12, but slipped to $0.075 on February 20 before closing on $0.085 again.

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The maturing Yukon

January 9th, 2013

Northern Freegold approaches PEA while Western Copper and Gold achieves feasibility

by Greg Klein

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No longer an early-stage gold play, the Yukon might have lost much of its excitement. But more advanced work continues to command interest, as shown by recent announcements from Northern Freegold Resources TSXV:NFR and Western Copper and Gold TSX:WRN.

Aurora borealis provides an awe-inspiring backdrop to Northern Freegold’s gold-silver-copper project

Aurora borealis provides an awe-inspiring backdrop
to Northern Freegold’s gold-silver-copper project.

Northern Freegold’s January 9 resource update enhances a potential gold-silver-copper open pit at its Freegold Mountain Project. Based on 322 holes totalling over 50,000 metres on the Nucleus deposit, the estimate uses a cutoff of 0.25 grams per tonne gold-equivalent. The indicated category shows:

  • 71.9 million tonnes averaging 0.57 g/t gold, 0.85 g/t silver and 0.06% copper for 1.31 million gold ounces, 1.97 million silver ounces and 89 million copper pounds.

The inferred category shows:

  • 60.4 million tonnes averaging 0.41 g/t gold, 1.48 g/t silver and 0.04% copper for 801,235 gold ounces, 2.9 million silver ounces and 52 million copper pounds.

The resource begins at surface and is open to expansion laterally and at depth, the company stated.

Northern Freegold added that two-thirds of the indicated resource falls within “a significant zone of higher-grade mineralization” in the centre of the Nucleus deposit. Using a cutoff of 0.5 g/t gold-equivalent, this zone shows:

  • 25.9 million tonnes averaging 1.02 g/t gold, 1.11 g/t silver and 0.07% copper for 851,603 gold ounces, 924,040 silver ounces and 38 million copper pounds.

The nearby Revenue deposit has a January 2012 inferred resource. Using a 0.5 g/t gold-equivalent cutoff, the estimate shows:

  • 101 million tonnes averaging 0.34 g/t gold, 3.14 g/t silver, 0.13% copper and 0.04% molybdenum for 1.12 million gold ounces, 10.19 million silver ounces, 286.87 million copper pounds and 89.61 million molybdenum pounds (or 3.66 million gold-equivalent ounces).

A Q1 2013 PEA is expected for both Nucleus and Revenue, which are open in all directions, Northern Freegold president/CEO John Burges stated. “We believe these deposits form part of a much larger continuous district-scale gold-copper system as evidenced by an eight-kilometre-long geophysical anomaly and largely coincidental gold-and-copper soil anomalies.”

The project has road access to Whitehorse, 200 kilometres southeast. Yukon’s electrical grid reaches the town of Carmacks, 70 kilometres away.

Northern Freegold stock opened January 9 at $0.12, half a cent below the previous close, then ended the day at $0.145.

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The Proof’s In The Porphyry

February 13th, 2012

Northern Freegold Drills Yukon Gold, Silver, Copper, Moly

By Greg Klein

Northern Freegold’s TSXV:NFR January 18 inferred resource estimate was, as President/CEO/Director John Burges says, another milestone in its rapidly advancing Freegold Mountain Project in central Yukon. The Revenue Deposit’s initial 43-101 came in addition to the adjacent Nucleus Deposit’s existing resource of 1.39 million gold-equivalent ounces indicated and 898,000 gold-equivalent ounces inferred.

The boost of 3.66 million gold-equivalent ounces prompted analysts Michael Fowler and Leonie Soltay of Loewen Ondaatje McCutcheon to rate Northern Freegold a speculative buy with a target of $1.44—a steep hike from its January 18 high of $0.30.

Northern Freegold Drills Yukon Gold, Silver, Copper, Moly

That helps explain why Burges, a Northern Freegold newcomer as of November 1, “would want to move from a pretty comfortable Wall Street role covering the resource and commodities sector to a junior exploration company in the middle of a financial maelstrom.”

After being approached by Director Greg Johnson, the first thing Burges noticed was the company’s valuation. “It was trading at about a third to a quarter of its peers,” he says. “So the company’s cheap. But companies are sometimes cheap for fundamental reasons. I then went through the basics. The Yukon’s a great place to be mining, and the region has good infrastructure. But did the company have the ability to scale up its resource? This latest announcement shows we can do just that, and do so rapidly.”

With a gold-equivalent cutoff of 0.5 grams per tonne, Revenue’s January 18 inferred resource estimates 101 million tonnes grading

  • 0.34 g/t gold for 1.12 million gold ounces
  • 3.14 g/t silver for 10.19 million silver ounces
  • 0.13% copper for 286.87 million copper pounds
  • 0.04% molybdenum for 89.61 million molybdenum pounds
  • 1.08 g/t gold-equivalent for 3.66 million gold-equivalent ounces

The adjacent Nucleus Deposit has a February 2011 indicated resource estimating 48.5 million tonnes with a gold-equivalent cutoff of 0.4 g/t grading

  • 0.7 g/t gold for 1.1 million gold ounces
  • 0.9 g/t silver for 1.4 million silver ounces
  • 0.06% copper for 67.75 million copper pounds
  • 0.89 g/t gold-equivalent for 1.39 million gold-equivalent ounces

The Nucleus inferred resource estimates 41.45 million tonnes with a gold-equivalent cutoff of 0.4 g/t grading

  • 0.47 g/t gold for 627,000 gold ounces
  • 0.98 g/t silver for 1.31 million silver ounces
  • 0.07% copper for 62.03 million copper pounds
  • 0.67 g/t gold-equivalent for 898,000 gold-equivalent ounces

“Last season we drilled 27 holes, 12,375 metres, all of it in Revenue. We spent $4 million on exploration and converted that to over 3.6 million gold-equivalent ounces, an incredibly low finding cost,” Burges points out. “Part of that comes from having a porphyry asset. When you have a pretty good sense of the overall structure, you can scale up the size with relatively low-risk, low-cost drilling.

“We have an eight-kilometre geophysical anomaly running from Nucleus to the Stoddart Zone,” he adds. “Revenue is in between and that’s probably where the porphyry is centred. When you compare that geophysical anomaly to the soil geochemistry, where we have extremely strong copper and gold showing across a four-kilometre strike zone that crosses about the middle of that geophysical anomaly, it’s easy to become convinced that it’s a single porphyry system. It’s one of the largest geophysical anomalies you’ll see and probably comparable to some of the largest porphyry projects in the world. That’s the potential—obviously we haven’t proved that yet. We have to work at that every drill season.

“Revenue is open laterally in all directions and at depth. This coming season we think we’ll have very similar results as we drill the western side of the deposit.”

We spent $4 million on exploration and converted that to over 3.6 million gold-equivalent ounces, an incredibly low finding cost —John Burges

This year the company also plans to drill Nucleus below its current depth of about 300 metres and to explore some of the project’s prospective targets. The drill season usually runs from April to October.

As for infrastructure, “We have a government-maintained road leading to the main highway, a key advantage over companies that have to helicopter everything in. A high-voltage transmission line is about 30 kilometres away. We are on Crown land, but we maintain strong relationships with the local communities.”

Those relationships are enhanced by Founder/Director Bill Harris, a second-generation Yukon prospector who knows the territory’s people as well as its geology. “He not only found the deposit but was able to amalgamate a very fragmented land package,” Burges notes.

Director Greg Johnson is President/CEO of South American Silver TSX:SAC and a co-founder of NovaGold TSX:NG who helped push three projects through to feasibility as the company’s market cap rose from $50 million to over $2 billion.

Tim Termuende is President/CEO/Co-founder of Eagle Plains Resources TSXV:EPL, which Burges describes as “a serial incubator of assets which they spin out, the most recent example being Copper Canyon Resources, which NovaGold acquired last year.”

VP of Exploration Al Armitage is a 25-year geologist with extensive experience in North American porphyry assets, says Burges. “With his colleagues Al Sexton and Joe Campbell, they’ve really driven the exploration side of the company.”

The company had $3.6 million cash as of December, Burges says. “The cheapest capital would come from exercise warrants. We now have 29.8 million warrants at a 45-cent exercise price.”

He concludes, “We have the kind of asset that intermediate producers like—low-cost, open-pittable bulk-tonnage projects. And having a project like this in a low-risk jurisdiction with good infrastructure makes it even more valuable. I believe Freegold is going to be huge, and we’re rapidly working towards that.”

At press time Northern Freegold had 111.5 million shares trading at $0.29 for a market cap of $32.4 million.

Northern Freegold reports Yukon Results including 0.26 g/t Gold over 138.6m

December 29th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningNorthern Freegold Resources Ltd TSXV:NFR announced drill results from the Revenue zone of its Freegold Mountain project in Yukon. Highlights include

0.26 g/t gold over 138.6 metres (including 2.16 g/t over 7.4 metres)
0.24 g/t over 157.6 metres (including 0.74 g/t over 38.7 metres)
1.82 g/t over 15 metres
0.2 g/t over 79 metres
0.53 g/t over 12 metres

The Freegold Mountain project is located 70 kilometres west of Carmacks, Yukon. An inferred resource estimate for the Revenue zone is expected 1Q 2012.

View Company Profile

Julie Hajduk
Investor Relations Manager

by Ted Niles

Northern Freegold reports Yukon Gold Assays of 0.47 g/t over 304.8m

September 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningNorthern Freegold Resources Ltd TSXV:NFR announced assays from its Freegold Mountain project in the Yukon. Results include

0.66 g/t gold over 45.2 metres
0.47 g/t over 304.8 metres (including 0.93 g/t over 121.7 metres)
0.41 g/t over 65.2 metres
0.31 g/t over 157.5 metres

The Freegold Mountain project is located 70 kilometres west of the village of Carmacks, Yukon, and has an inferred NI 43-101 mineral resource of 1 million ounces gold at a 0.4 g/t cut-off.

View Company Profile

Julie Hajduk
Investor Relations Manager

by Ted Niles