Freegold Ventures Limited
Freegold (FVL: TSX) is a Toronto Exchange listed company focused on exploring for copper and gold near Fairbanks, Alaska. Holding both the Golden Summit project, an advanced stage gold asset on which Freegold completed a preliminary economic assessment (PEA) in January 2016, and the Shorty Creek project, an exciting new copper-gold porphyry discovery.
At Golden Summit, a drill program commenced in February 2020 which is designed to test a revised interpretation based on Freegold’s work that higher-grade mineralization may extend to the west of the old Cleary Hill Mine workings in an area of limited previous drilling. The first hole in the program GSDL 2001 was completed to a depth of 548 metres and intersected 188 metres grading 3.69 g/t Au, and notably the last 20 metres averaged 9.87 g/t Au. An initial Phase 1 - 10,000 metre drill program commenced in mid June. Aimed at further testing Freegold’s new interpretation drilling is systematically testing the areas to the north, west and east of hole GSDL2001.
Drilling by Freegold in 2015 on Shorty Creek discovered copper mineralization grading 0.55% Cu over 91 metres (Hill 1835). Follow-up programs continued to demonstrate the exploration potential of Shorty Creek. In March 2019, Freegold entered into an Agreement with a wholly owned subsidiary of South32 Limited (South32) whereby South32 has the option to earn a 70% interest in Shorty Creek. To maintain the option in good standing South32 must contribute minimum exploration funding of US$10 million over a 4 year option period with minimum exploration expenditures of US$2million in Years 1 and 2 and US$3 million in Years 3 and 4 for an aggregate of US$10 million. South32 may exercise its option to subscribe for 70% of the shares of a newly formed project company by committing US$30 million to the newly formed company, less the amount of exploration expenditure contributed by South32 during the option period following the completion of each annual program. Freegold is acting as Operator during the option period.