Freegold Ventures Ltd. [FVL-TSX; FGOVF-OTC; FR4N-FSE] traded heavily Friday September 11 after it released assays results from a 10,000-metre drill program on its 100%-owned Golden Summit Project near Fairbanks, Alaska.
Highlights included hole GSDL2002 which intersected 136 metres grading 1.02 g/t gold.
Investors reacted to the news by sending Freegold shares down 12% or 17 cents to $1.23 on volume of 4.53 million, making Freegold the most actively traded stock on the TSX. Freegold shares are currently trading in a 52-week range of $1.95 and $0.04.
Freegold is exploring for copper and gold near Fairbanks, Alaska. Its asset portfolio includes the Golden Summit Project where Freegold completed a PEA in January 2016, and the Shorty Creek copper-gold porphyry discovery.
Billionaire investor Eric Sprott recently increased his stake in the company to 4.1% by acquiring 18.2 million subscription receipts of Freegold via private placement for $1.10 each, making the investment worth $20 million.
In February, 2020, Freegold said it was launching a drill program designed to test a revised interpretation based on the company’s work that higher-grade mineralization may extend west of the old Clearly Hill Mine workings in an area of limited previous drilling.
Clearly Hill was a small, high-grade underground producer (281,000 ounces averaging 1.3 oz/ton). Production ceased in 1942. The historic Clearly Hill mine workings are thought to lie approximately 400 metres northeast of current drilling.
The first hole in the program [GSDL 2001] was completed to a depth of 548 metres and intersected 188 metres of 3.69 g/t gold. Notably, the last 20 metres averaged 9.87 g/t gold.
An initial Phase 1 drill program (10,000 metres) began in mid-June to test areas to the north, west and east of hole GSDL2001.
Freegold said GSDL2002 was collared 150 metres east of GSDL2001. A previous hole, [GSDL1201] drilled within the projected vein zone on the same section, averaged 1.3 g/t gold over the last 113 metres [209-322 metres]. GSDL2002 aimed to determine if the interpreted Clearly Hill vein system extends to depth within this area. It was successful and intersected the projected down-dip extension of the zone intercepted in GSDL1201. The zone remains open to depth and along strike
Drilling is testing for the extension of the Clearly Hill vein system to depth and to further refine and define the orientation of the higher-grade mineralization.