Approval Of Plan Of Operations At Lemhi Gold Project
VANCOUVER - Freeman Gold Corp. has received approval of a Plan of Operations (Plan) application to the USDA-Forest Service (USFS), Salmon and Challis National Forests, North Fork Ranger District, submitted in September 2021.
"The approval allows us to drill test key extensions of the Lemhi Gold Deposit to maximize the near surface oxide ounce count. We are very much looking forward to drill testing exiting new targets in our underexplored land package. After our success at Beauty, we are very optimistic that additional gold mineralization can be discovered in the property package," said, Paul Matysek, Executive Chairman. "We are extremely pleased with the support and collaboration received from the USFS and its staff and hope we can build upon this positive relationship as we develop the Lemhi Deposit."
The Plan includes the construction of 28 drill pads of which 22 are selected for resource infill and expansion at the Lemhi Gold Deposit. These drill pads are situated within Freeman's Bureau of Land Management ("BLM") claims in the northwest, southwest and southern margins of the Lemhi Gold Deposit. The remaining six drill pads are designed to test high priority targets 2, 3 and 7, which contain rock grab samples up to 38.23 grams per tonne gold ("g/t Au"). An additional drill pad has been permitted in the northwest portion of the claim block to partially test a coincidental Induced Polarization ("IP") Target, also defined by Freeman as Target 11. All these targets have never been drill-tested, like the Beauty Zone discovery drilled in late 2021.
The Company continues to drill at both the newly discovered Beauty Zone and the Lemhi Gold Deposit. To date, 37 drill holes have been completed, totaling 8,977 meters.
At Beauty Zone Discovery five new diamond drill holes totaling 721.5 meters have been completed at the Beauty Zone, following up on the discovery hole which intersected 68.23 g/t Au over 6 meters (March 22, 2022). Drilling has stepped out up to 90 meters along strike and about 75 meters down dip, testing the extent of the high-grade mineralized structures encountered in the discovery holes. All new drill holes have intercepted the structure with widths varying between 2 and 6 meters with the exception of hole FG22-023 which encountered a 6-meter void where the structure was projected. The void is interpreted as the remains of historical mining. Three holes have been logged, sampled, and delivered to the assay laboratory. A rush has been placed on these samples to ensure timely return of results in order to plan the subsequent round of drilling.
The Lemhi Gold Deposit as of last month has a total of 29 new drill holes have been completed at Lemhi for a total of 7,926 meters. These holes have been primarily designed to test on strike extensions of the known resource (21 drill holes) as well as infill in certain parts of the gold deposit (8 drill holes). In particular, the drill program has focused on areas currently modeled as pit waste because of no or sparse drill data. All ounces added in these areas, even if low grade, will add value to the project as it will be converting in pit waste material to resources (Figure attached). An additional 19 holes approximately 4,800 m have been planned as part of the Phase 2 drilling program. Fourteen drill holes from Lemhi have been logged, sampled and sent to the laboratory. Analytical results are pending. Two drills continue to operate at Lemhi.
The Company has agreed to issue, subject to acceptance by the TSX Venture Exchange, a further cash payment in the amount of US$100,000 and issue an additional 375,000 common shares in its capital in connection with the acquisition of the Moon #100 and Moon #101 unpatented mining claims ("Moon Claims"), located within the historical resource area of Lemhi gold project.
In 2020, the Company entered into a purchase and sale agreement to acquire 100% ownership of the Moon Claims for cash consideration of US$150,000 and share consideration of 375,000 Freeman common shares. Subsequent to the transaction and in order to overcome certain mineral title matters, the Company entered into a follow up purchase and sale agreement on June 23, 2021 (the "Execution Date"), pursuant to which the Company agreed to make payment of an additional US$100,000 and issue a further 375,000 common shares in its capital (the "Final Consideration Shares") within one year of the Execution Date in order to complete the Moon Claims acquisition.
Closing of the acquisition and the issuance of the Final Considerations Shares remains subject to certain conditions, including receipt of all necessary approvals, including the approval of the Exchange. The deemed value per Final Consideration Share is $0.33 being the current Discounted Market Price (as defined in the policies of the Exchange) per common share of the Company. The Final Consideration Shares will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.