July 15, 2021
- US$2.5 million drill program fully funded by South32 is underway
- Freegold is the Operator
- Drilling will test the Quarry Target as well as additional targets in the 1835 Area
Vancouver, July 15th, 2021 Freegold Ventures Limited (Freegold) (FVL:TSX, OTCQX: FGOVF) is pleased to report that drilling is now underway on its Shorty Creek project. The 2021 program is expected to consist of 2,500 metres of drilling which is fully funded under the Shorty Creek Option Agreement with a wholly owned subsidiary of South32 Limited (South32). Shorty Creek lies approximately 125 road kilometres northwest of Fairbanks, Alaska and 4 kilometres to the south of Livengood and the all-weather paved Elliott Highway.
Under the Shorty Creek Option Agreement, South32 has the option to earn a 70% interest in the Shorty Creek project. To maintain the option in good standing, South32 must contribute minimum exploration funding of US$10.3 million over the 5-year option period. The 2020 program was confined to drill target refinement, which led to several prospective target areas being further delineated which will be drill tested during the 2021 program. On completion of each annual program, 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. Freegold shall act at as the Operator during the option period. The program will operate with stringent COVID-19 protocols in place.
Assays will be reported when received, compiled and interpreted.
The Qualified Person for this release is Alvin Jackson, PGeo – Vice President Exploration and Development for Freegold.