Freeman Gold Reports on the Beauty Zone – A High Grade Gold Target Adjacent to Lemhi Gold Resource
VANCOUVER, BC, Oct. 25, 2021
350 metre by 250 metre coincidental gold in rock and soil anomaly open in 3 directions
Located 600 metres west of Lemhi gold resource
52 of 105 rock samples greater than 1 g/t Au with 28 samples greater than 10 g/t Au
(up to 450 g/t Au)
Zone is heavily oxidized and silicified at surface
Trenching and drill pad construction are underway.
CANADIAN SECURITIES EXCHANGE: FMAN
VANCOUVER, BC, Oct. 25, 2021 /CNW/ – Freeman Gold Corp. (CSE: FMAN) (OTCQB: FMANF) (FSE: 3WU) (“Freeman” or the “Company“) is pleased to report geochemical results from the newly discovered Beauty Zone (“Beauty Zone“). This zone lies approximately 600 metres west of the Lemhi Gold Deposit where Freeman recently reported a maiden Mineral Resource Estimate on July 8, 2021.
The untested Beauty Zone lies wholly within Freeman’s patented mining claims and is defined by a 350 metre by 250 metre coincidental gold in rock and soil anomaly. Sections of this zone were hydraulically mined between 1890 and the early 1900s. The Beauty Zone was first identified from prospecting during the 2020 field work program, described as Target 1 in the press release dated May 6, 2021. The Beauty Zone’s location in relation to the Lemhi Gold Deposit and other exploration targets is shown in Figure 1.
“With the discovery of the Beauty Zone we have added a high quality target to our resource potential,” commented Paul Matysek, Executive Chairman. “We are very excited about the prospects of adding near surface, high grade oxide ounces near Lemhi. The similarities between their geological settings and the very prospective geochemical results are striking. It’s a beauty! Drill pads are being constructed for drill testing.”
In total, 105 rock grab and 347 soil samples have been collected in and around the Beauty Zone. A total of 52 rock samples returned values greater than 1 gram per tonne (“g/t“) gold (“Au“), 39 with values greater than 5 g/t Au and 28 samples with greater than 10 g/t Au (up to 450 g/t Au). Rock samples are heavily oxidized and silicified at surface. (See Table 1: Figure 2)
One contrast to mineralization at the Lemhi Gold Deposit is the presence of associated silver in many of the anomalous rock samples. Of the 105 rock grab sample results received to date, 48 samples at the Beauty zone contain greater than 10 g/t silver (“Ag“) (up to 219 g/t Ag). Furthermore, the anomalous rock grabs coincide with a gold in soil anomaly (identified by Freeman during the 2020/2021 exploration campaigns) which is approximately 350 by 250 metres.
The Beauty Zone Target is hosted in Proterozoic silttites and quartzites similar to the Lemhi Gold Deposit. The target area is structurally complex. Within the center of Beauty Zone is an interpreted Northeast-Southwest (“NE-SW“) striking fault. The host metasediments dip in opposite directions on either side of this fault (NW in the east block, SE in the west block). Although there is a limited amount of outcrop exposed, it appears that gold-silver mineralization is hosted in Northwest-Southeast oriented quartz veins which following jointing patterns running sub-perpendicular bedding and the NE trending fault. A fold observed in the outcropping quartz veins has rock grab samples containing 46 g/t Au and 56 g/t Ag. These high-grade quartz veins exposed at surface represent a compelling target with respect to gold-silver mineralization on the property (See Figure 2).
Recently, Freeman re-established road cuts over the Beauty Zone Target and exposed additional outcrops containing quartz veins, altered and oxidized silttites, silicified silttites and/or quartzites, fault gouges and folded stratigraphy. The outcrops are all currently being mapped and rock channel sampled. Drill pads are being constructed for initial drill testing.
All drill rock samples are sent to ALS Minerals Division, Vancouver, BC, an independent and fully accredited laboratory in Canada for analysis for gold by Fire Assay and multi-element Induction Coupled Plasma Spectroscopy. Freeman has a regimented Quality Assurance, Quality Control program where at least 10% duplicates, blanks and standards are inserted into each sample shipment. Additionally, soil samples were sent to SGS Canada Inc. and analyzed using Ionic Leach (“IL”) method. Rock grab samples are by their nature selective and are not necessarily indicative of the general geology or the grade within the Property.
About the Company
Freeman Gold Corp. is a mineral exploration company focused on the development of its 100% owned Lemhi Gold property (the “Lemhi Project“). The Lemhi Project comprises 30 square kilometres of highly prospective land. The project hosts a near surface, shallow, high grade oxide gold resource. The pit constrained National Instrument 43-101 compliant mineral resource estimate is comprised of 749,800 oz gold (“Au”) at 1.02 grams per tonne (“g/t”) in 22.94 million tonnes (Indicated) and 250,300 oz Au at 1.01 g/t Au in 7.83 million tonnes (Inferred). The Company is focused on growing and advancing the Lemhi Project towards a production decision. The technical content of this news release has been reviewed and approved by Dean Besserer, P.Geol., VP Exploration of the Company and a Qualified Person as defined by National Instrument 43-101.
On Behalf of the Company William Randall President & CEO
Forward Looking Statements: This press release contains “forward–looking information or statements” within the meaning of Canadian securities laws, which may include, but are not limited to statements relating to its future business plans. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ from those in the forward-looking statements. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties, and assumptions. The Company does not undertake to update forward–looking statements or forward–looking information, except as required by law.
Neither Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this release.
…For the first time since 2007 the Fed’s Exuberance Index is warning that U.S. real estate prices are in a bubble. Did the Fed even notice?
This post by Lorimer Wilson, Managing Editor of munKNEE.com, is an edited ([ ]) and abridged (…) excerpt from an article from Stephen Punwasi of betterdwelling.com for the sake of clarity and brevity to provide you with a fast and easy read. Please note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
…If asset buyers are said to be exuberant, they’re excitedly paying emotional premiums, premiums that are above fundamentals, paid because people think prices will always rise. If buyers are exuberant for an extended period, the whole market can become exuberant…[and the Fed’s] exuberance indicator was designed to help identify [such] bubbles.
…American real estate buyers are displaying obvious signs of exuberance. The exuberance index read 2.8 in Q2 2021, more than double the 1.37 threshold needed to seem bubbly. The most recent quarter was the fifth above the threshold, making it officially a bubble…
Declaring a bubble after just five quarters might seem early, but that’s the point. The indicators help central banks and policymakers identify them early. By alerting policy makers early, they can act and contain the issue before it gets out of control.
The current bubble will be the first time in history that the U.S. has a system in place for an early warning but the question is, will they ignore the warning sign? Central banks have become increasingly political, dismissing even their own research. It wouldn’t be surprising to see them gloss over existing warning systems as they did with inflation…
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DEV’s chairman is Tim Goyder, the same man who has stewarded Chalice and lithium explorer Liontown into positions as two of the ASX’s best performing stocks over the past year.
The visual indications from the first two stratigraphic holes at ‘Sovereign’ — a 50-50 JV with fellow November winner Australian Silica (ASX:ASQ) — immediately to the north of Chalice’s Gonneville discovery are very promising.
“We are methodically ticking the boxes towards what we all hope will be a game-changing discovery at Sovereign,” DEV managing director Brendan Bradley says.
“The outcomes of these two widely-spaced stratigraphic holes have exceeded our expectations and given us confidence that we are very much on the right track with our exploration approach.
CPN was demerged from Cassini Resources, which was acquired by copper major OZ Minerals (ASX:OZL) in October last year for its ‘West Musgrave’ copper-nickel project.
What’s interesting about CPN is that it was one of the only explorers looking for nickel-copper-PGEs near Perth, WA, before Chalice moved next door and hit the motherlode in its very first hole.
That’s right — CPN is arguably the Julimar region OG.
Its main game is ‘Yarawinda Brook’, where drilling at the ‘XC-22’ anomaly last month intersected significant nickel and copper sulphides. Assays are pending.
TRT has one of the finest exploration teams in the business.
A further 97sqkm in exploration licence applications are currently subject to a ‘ballot’ (aka picking a name out of hat), including three tenements surrounding and adjoining Global Lithium’s (ASX:GLI) 10.1 million tonnes at the 1.1% Li ‘Archer’ project near Marble Bar.
It was only months after listing on the ASX that Galena Mining (ASX:G1A) hit the proverbial motherlode at its Abra lead deposit near Meekatharra, striking 31.4m at 14.5% lead and 2.7% zinc in its first assays in November 2017.
It became clear the company would be able to post a high grade resource very soon, as the underlying commodity recovered from a long bear market that had, along with environmental concerns, claimed the life of WA’s only other lead mine Paroo Station.
Galena confirmed the deposit’s world class resource in early 2018, with the lead sulphide mine delivering impressive high grades of 36.6Mt at 7.3% lead and 18g/t silver.
Although lead – strongly associated with its primary end use in lead-acid batteries for cars – has not enjoyed the fanfare other base metals have received from the new energy revolution, it has still seen a decent run since the start of the pandemic.
Lead is changing hands on a cash basis for US$2324.50/t, having dropped to around US$1600/t in mid-2020, and is up some 17% year to date.
It is good timing for Galena, which pushed the button on the Abra mine back in June, commencing the underground development in a 60-40 joint venture with Japanese smelter owner Toho Zinc.
Funded with a US$110 million debt package arranged by Taurus Mining Finance and US$90 million in equity from offtaker and JV partner Toho, Galena has commenced underground development and expects to begin commercial production in 2023.
Now containing a total indicated and inferred resource of 34.5mt at 7.2% lead and 16g/t silver, Galena says the mine will run for an initial 16 years, producing 95,000tpa of lead and 805,000oz of silver annually.
At 75%, Galena says Abra will produce the highest quality lead concentrate in the world, valued for its lack of impurities.
Despite being a quarter of the way through the construction of a major new WA mine, Galena is still worth under $100 million. Stockhead caught up with Galena managing director Tony James at the RIU Resurgence Conference in Perth to talk about Abra and the path ahead.
Tell me a little bit about the lead market. It hasn’t really received the attention of some of the other base metals of the battery metals thematic that we’ve seen this year. Why is it exciting to be building a lead mine at the moment?
“I think there’s a couple of things about this lead deposit that make it quite unique.
“One is it’s one of the cleanest lead concentrates in the world. If you compare it to other concentrates that will be made, it’s got 1/10th of the deleterious elements that other concentrates normally have.
“So the market has been very interested in our product because they really like to use it as a blending product into their smelters.
“It helps them with some of their environmental issues and also enables them to on-sell some of the lead as well through further marketing and sales.
“This mine will actually be in the top 10 lead mines in the world in terms of size and production. So that’s made it really interesting.
“I think what’s interesting about lead (as a product) is it’s quite an established market. So 400 million lead acid batteries get made a year in the world and even EVs, the commercial EVs that have been built, actually still have a lead-acid battery.
“So lead-acid batteries are here to stay. Even though 50% of lead going into batteries is recycled lead, 65% is how much lead (supply) goes into those batteries on an annual basis.
“So it’s a very stable market. Wood Mackenzie forecasts it’ll be a 24% increase in demand over the next 10 years. So the market looks pretty steady and pretty stable.”
We haven’t seen a lead project in WA for a while, probably not since Paroo Station shut down. Has it been difficult at all to get people in Australia over the preconceptions they might have about lead projects being dirty or being difficult?
“It is difficult and I think there is a mindset in the world that lead’s a dirty mineral and it doesn’t have a big future.
“And it’s a little bit of a misconception, I think, because it does have a major part in our society. But it certainly doesn’t have the lustre of gold or lithium or anything like that.
“So that is something we have to deal with. What I think is interesting is the people that have actually understood commercially this project and what this project can do economically understand the value of the project.
“One of the important things to remember is this is a lead sulphide deposit, not a lead carbonate deposit, and lead carbonate deposits are the ones that actually cause more issues environmentally and from a hazard point of view.
“Lead sulphide deposits actually are a much safer and more environmentally stable product to mine.”
So you’ve got about 7.2%. lead content in the resource. How does that compare to other projects?
“In terms of the head grades it can be high.
“Typically lead is mined with other elements, like it’ll be lead-zinc or lead will be one of the products that come out of the mine.
“But normally, what happens with a lot of mines is the lead component might be a lot lower percentage, it might be 2%, or 1%.
“The fact this is predominately a lead mine with a silver by-product, it’s at a higher grade. So it’s actually quite a good healthy grade.
“Now, what that means is that we can produce a concentrate that’s 75% lead. Most lead concentrates in the world sit between 55% and 65% lead. So that’s what makes this product so good, is we can get such a high concentrate back. And we’ll be producing effectively 130,000t of concentrate a year, which is 100,000t of lead.”
How much are you looking at in terms of a margin? And how is that going to be impacted by future lead prices?
“Depending on the supply and demand of lead, our forecast lead price that we’re using in our long term forecasts is sitting around between $0.90 and $1 a pound US.
“Our cost base is sitting at less than 50 cents a pound, so we’re sort of sitting in the 46 cents a pound type (margin) range. We think that the long term forecast is quite stable.
“And that holds us in good stead going forward. I think the other interesting thing about this project with our joint venture partner, Toho Zinc, they have a lead smelter that needs concentrate.
“So they need our lead. It’s a bit like a security for us to a degree.
“They are desperately keen to get their 40% of the concentrate that we produce in the long term.
“So I think the economics look very strong and very stable.”
Is there a lot of exploration potential outside of the main Abra deposit, and in terms of the lead market itself do we need to have a lot of new discoveries to cater for the demand?
“There are not too many new mines starting around the world in terms of new lead sources.
“So this project is certainly one that’s right up there in terms of being a dominant lead mine for quite a few years to come. In terms of exploration, we have a huge area.
“The joint venture has 100km2 sitting around the Abra deposit that has many targets that look very similar to Abra that we’ve done very little exploration on.
“They show the same rock types, they show the same stratigraphic horizons, they just need more drill holes or more exploration.
“Certainly from the joint venture’s point of view, there’s a lot of upside just around Abra.
“Immediately to the west of Abra there’s a package of 500km2 tenements that Galena is 100% owner of. There are multiple lead and other base metal targets there as well that need exploration.
“We even have copper targets, manganese targets there, gold targets there and also lead-silver targets. That’s called the Jillawara project, the level of exploration that’s gone into there is very minimal.
So certainly, our strategy at the moment is to focus on Abra, get the Abra mine up and running, learn from getting access to that ore body, take some of those learnings into the exploration program.
“We believe that the level of exploration work that’s been done in that area is very low. It’s very green. There’s a lot more work to do and a lot more knowledge to be had, but the potential is enormous.”