Drilling for Ounces in the Historic Gold Bar District
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Fremont Gold (TSXV:FRE) is a Canadian gold exploration company with four advanced projects in the the largest gold-producing region in the Americas: the state of Nevada. The company management comprises seasoned explorers who have a notable track record of discovery, are always on the lookout for good opportunities and have experience shepherding shareholder capital. In less than 12 months, they have picked up several properties with historical resources, staked the northern part of the Carlin Trend and executed good exploration while spending less than $US1.1M.
Located in Nevada, the company’s properties reside in one of the world’s most stable, world-class gold-endowed regions which is fully supported by all necessary infrastructure. Fremont Gold’s flagship properties, the Gold Bar and Gold Canyon projects, produced nearly 300,000 and 41,000 ounces of gold respectively between 1986 and 1994 and are adjacent to and surrounded by McEwen Mining’s new Gold Bar mine (same name as Fremont’s original Gold Bar mine). The company has an excellent record of discovery, having outlined over four million ounces of gold in three deposits over a span of 15 years.
Fremont Gold’s share structure is tightly held. The company’s management and insiders hold over 25 percent of the company, while associates, family and friends control another 20 percent of company shares.
The company closed an over-subscribed, non-brokered private placement in April 2018, for over $1.5 million. The proceeds of this placement will be used to fund drilling programs and conduct low-cost work on their North Carlin group of properties. The company commenced drilling at its Gold Bar and Gold Canyon projects in May 2018. Additional drilling is planned for August-September at the company’s Hurricane project and possibly further drilling at Gold Canyon as well. Furthermore, Fremont Gold’s market capitalization of $6 million does not accurately reflect the strategic valuation of their property package: on the one hand, Fremont Gold’s Hurricane project has not been extensively tested at depth and, on the second, the company controls the entire northern portion of the world-class Carlin Trend in northeastern Nevada.
- The Gold Bar project is a historic producer of nearly 300,000 ounces of gold between 1986 and 1994 and hosts an historic resource of 147,000 oz at 2.57g/t Au
- A 7-hole drill program in progress at Gold Bar and Gold Canyon projects
- Additional drilling is planned for the latter half of 2018 at the Hurricane project
- All four projects are located in Nevada, a world-renowned gold producing state, which ranks 4th in world production
- Nevada is historically mining-friendly and has extensive mining infrastructure
- Management and insiders owns over 25 percent of shares
Flagship property: Gold Bar & Gold Canyon Projects
The Gold Bar project and the Gold Canyon projects were once part of the greater Gold Bar mining complex. Fremont Gold re-unified the projects under consolidated ownership with their acquisition of the Gold Bar project in 2017 and the Gold Canyon project in 2018.
The Gold Bar project, formerly owned by Atlas Precious Metals, is located in the Roberts Mountains of central Nevada, 48 kilometers northwest of the town of Eureka. The project sits within the Gold Bar district, an active mining jurisdiction which includes a number of emerging projects. Most notably McEwen Mining’s (TSE:MUX) Gold Bar project, which is scheduled to produce approximately 63,000 ounces of gold annually starting in the first quarter of 2019 and is immediately adjacent to both Gold Bar and Gold Canyon.
The Gold Bar district is part of the southern Battle Mountain-Eureka (Cortez Trend) Mineral Belt, a trend which contains multiple Carlin-type disseminated gold deposits. Fremont Gold’s Gold Bar project consists of consists of 481 unpatented mining claims totaling 9,942 acres and 6 patented mining claims plus 6 patented millsite claims totaling 154 acres.
Between 1986 and 1994, the Gold Bar project produced 286,354 ounces of gold out of approximately four million tons of ore. The mill site deposit, discovered after the mine closed, hosts a historical resource of 1.62 million tonnes at 2.57 g/t gold (147,000 oz), within a larger envelope of 2.6 million tonnes at 1.84 g/t gold.
In early January 2018, Fremont added to the project’s land package, when it acquired the Gold Canyon mine from Ely Gold Royalties (CVE:ELY) and its wholly-owned subsidiary Nevada Select Royalty. Originally part of the same mining complex as McEwen Mining’s Gold Bar project, the property is made up of 26 unpatented lode mining claims spanning 460 acres in Eureka County, Nevada.
Gold Canyon is immediately along strike from McEwen Mining’s Gold Ridge pit mine and covers the strike extension of mineralization that occurs on McEwen’s property. A historical drill hole northeast of the historical Gold Canyon pit returned 18.2 meters grading 3.48 g/t gold and the company will conduct follow up drilling in that zone.
The Gold Canyon project produced 41,000 ounces gold between 1986 and 1994. Fremont Gold announced on March 5, 2018 that the US Bureau of Land Management had granted the necessary drill permits for the company’s drilling operation. The company has commenced a minimum 1,000-meter drill program at the Gold Canyon and Gold Bar properties in early May, with initial results due by the third week in June.
Fremont Gold has three more properties in the state of Nevada known as the Alkali-Coyote project, the Hurricane project and the Goldrun-Adelaide district project.
The North Carlin (Alkali-Coyote) project
Fremont Gold’s North Carlin project is a 3,350-hectare land package comprising three separate properties on the northern end of the Carlin trend, which produces over half of the gold mined in Nevada. Fremont’s land position is a prime location on the Rodeo Drive of Nevada.
The Alkali claim block is located four kilometers northeast of the Klondex Mine’s (TSX:KDX) (recently acquired by Goldcorp) Hollister Mine and occurs at the intersection of the Carlin trend and a northeast-southwest lineament which is aligned with Klondex Mines’ Hollister mine and Premier Gold Mines’ (TSX:PG) Goldbanks mine.
Located two kilometers north of the former Rossi mine, the Coyote project occurs at the projected intersection of a north-south structure stretching north from the Rossi mine with northwest trending faults. The Coyote project is prospective for Carlin-style and low-sulfidation epithermal mineralization. The company picked up the small southern-most block of ground, consisting of 12 claims, from Ely in February of 2018 in order to complete the package.
The Hurricane project
Fremont Gold’s Hurricane project sits within the world-class Cortez trend in Nevada. The project sits 3.5 kilometers northwest of the Barrick’s Hilltop deposit, which reportedly hosts two million ounces of gold; and is around 20 kilometers along strike from Barrick Gold’s (TSX:ABX) massive Pipeline-Cortez Hills complex which had an original resource exceeding 20 million ounces of gold.
Trench results from 101 three-meter channel samples were released in January 2018. Trench 2 returned a continuously mineralized 102-meter interval grading 0.56 g/t gold and included a higher-grade zone of 63 meters at 0.77 g/t gold. This is basically ore at surface.
Previous drilling done on-site by Pegasus Gold in 1987 comprised 35 short holes and included 16.8 meters at 2.88 g/t gold, 12.2 meters at 2.32 g/t gold, 15.2 meters at 1.66 g/t gold and 3 meters at 6.3 g/t gold.
Drilling is planned for later in 2018 depending on priorities with Gold Bar and Gold Canyon.
The Goldrun–Adelaide district project
The Goldrun project is on Bureau of Land Management land, has excellent road access and surrounds three historical mines owned by Newmont (NYSE:NEM). The property hosts a coincident geochemical-magnetic anomaly in the Adelaide district’s southeast which may indicate a blind undiscovered deposit.
Found at a regional structural intersection of the well-known Battle Mountain and on the Eureka and Getchell gold trends, the Goldrun project has a historical production of 50,000 ounces gold and 530,000 ounces silver from low sulfidation veins in three pits.
Dennis Moore—President, CEO, Director
Dennis Moore is a geologist’s geologist. He personally discovered the Tocantinzinho (2.2M oz) & Cuiú Cuiú (1.5M oz) gold deposits in northern Brazil and identified several gold deposits in Bolivia that were acquired by DaCapo Resources. Dennis and his partner Alan Carter, vended Tocantinzinho to Brazauro Resources in 2003, which was acquired by Eldorado Gold for $C120M in 2010. He and his partner, Alan Carter, had a 3.5% royalty on the 2-million-ounce deposit which they recently sold. He is a founder with Alan Carter of Magellan Minerals which went public via IPO in Feb 2008; (Cuiú Cuiú and Coringa were the main assets). Magellan was acquired by Anfield Gold in May of 2016. During the past six years Dennis has teamed up with Dr. Clay Newton and acquired prospective gold properties in Nevada.
Alan Carter—Chairman, Director
Alan Carter is the president and CEO of Cabral Gold. He is also director of Anfield Gold, Peregrine Diamonds and Altamira Gold. He is a PhD Geologist with extensive corporate experience in Canada. He has previously worked for Rio Tinto and BHP Billiton. He is co-founder of Peregrine Metals and Peregrine Diamonds and the former president and CEO of Magellan Minerals with over 35 years in the industry.
Michael Williams is president and CEO of Vendetta Mining Corp. He is a founder of Underworld Resources acquired by Kinross Gold in 2010 for $140M.
Clay Newton—VP Exploration
Clay Newton is an ex-Kennecott PhD structural geologist and is responsible for over half of Fremont’s acquisitions. He has spent over 30 years targeting gold and copper in Nevada and was involved in the discovery of the Midway gold mine.
Paul Reynolds is the president and CEO of Triumph Gold. He is a geologist with 29 years’ experience in USA, Canada, Guyana, Bolivia and Argentina. He was previously chairman of Athlone Energy Ltd, director of Cairo Resources Ltd, Azincourt Uranium Inc and TerraX Minerals Ltd.
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