Freegold Ventures (FVL.TO) has announced more drill results from its Golden Summit project in Alaska, USA. Hole 1311 which was drilled in the Dolphin Zone of the project intersected almost 575 meters at an average grade of 0.82g/t, indicating the excellent continuity of this zone. Including in this intercept is a 180 meter intersection at an average grade of 1.13g/t. Unfortunately true widths cannot be calculated at this time.
The Golden Summit project currently has a resource estimate of 6.5 million ounces at an average grade of 0.62g/t of gold, using a 0.3g/t cutoff. As it’s a low-grade deposit, the company is facing high capital expenditures, but the market is expecting Freegold to sell the Golden Summit project to Kinross Gold (K.TO, KGC), which is operating the nearby Fort Knox mine.
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Disclosure: The author holds no position in Freegold Ventures. Please see our disclaimer for current positions.
