Mackenzie I. Watson, President and CEO of Freewest Resources Canada Inc., is pleased to provide the following exploration update on the Corporation’s McFaulds project located in northern Ontario and on its Windfall project situated in central Quebec.
The McFaulds project comprises 3 separate properties situated 3.6 kilometres northeast of the Eagle One nickel-copper-platinum group element deposit held by Noront Resources Ltd. (CDNX:NOT.V ) in the James Bay Lowlands of northern Ontario. They are known as the 100%-owned property, the Freewest-Spider-KWG JV property and the Freewest-Noront JV property (see Figure 1). Figures 1 and 2 comprise part of this news release and are posted on the Freewest website at www.freewest.com.
Eagle One has yielded some exceptional grades including 5.90% nickel, 3.10% copper, 2.87 g/t platinum, 9.78 g/t palladium over 68.3 metres (NOT-07-05) as well as 6.30% nickel, 2.80% copper, 1.90 g/t platinum and 10.20 g/t palladium over 46.2 metres in drill hole NOT-07-27. Noront also recently released a National Instrument 43-101 compliant mineral resource estimate for the Eagle One deposit (See Noront Press Release dated July 4, 2008).
Noront also discovered a second nickel-copper massive sulphide occurrence known as Eagle Two, two kilometres southwest of Eagle One. Several drill holes have intersected deformed semi to massive sulphides over widths of up to 26 metres in a conduit hosted in altered peridotite. Closely associated with Eagle Two mineralization, are several chromitite layers in peridotite yielding assays of up to 39.1% CR2O4 over a core length of 49.4 metres. Both Eagle One and Eagle Two are intimately associated with discrete magnetic anomalies (magnetic highs) and coincident electromagnetic anomalies or conductors.
Over the last 4 months, Freewest has completed airborne geophysical surveys (AeroTEM flown by Aeroquest Ltd. and VTEM flown by Geotech Ltd.) with ground follow-up surveys including magnetics, HLEM (horizontal-loop electromagnetic) and a deep-penetrating electromagnetic survey known as InfiniTEM (TDEM). Collectively, the geophysical surveys have defined several anomalies comprising coincident magnetic highs and conductors, the same geophysical signature that characterizes the Eagle One and Two occurrences. The AeroTEM airborne geophysical survey revealed strong conductors featuring conductance values of up to 53 siemens while the VTEM survey yielded conductance of up to 157 siemens. The deep-penetrating ground InfiniTEM survey revealed a number of coincident conductors that are qualitatively described, as being of high conductance (see figure 2).
Such anomalies are prime targets for nickel-copper-platinum group element mineralization and will be tested in an upcoming diamond drilling program, anticipated to begin in the latter part of July. An initial 5000-metre diamond drilling program is planned to test some of the geophysical targets, with additional drilling slated for the late summer and early fall. Drill results will be released as they become available.
Freewest-Spider-KWG JV Property
A diamond drilling program recently completed by Spider Resources and KWG Resources on the property resulted in the expansion of a new chromite zone hosted in peridotite. To date, high-grade chromite mineralization has been traced by 4 drill holes over a strike length of 200 metres and to a vertical depth of close to 300 metres. Hole FW-08-07 intersected 30.73% CR2O3 over 14.4 metres while FW-09-05 cut 35.6% CR2O3 over a core length of 7.5 metres. Anomalous levels of nickel, copper and platinum-group-elements were obtained in these drill intercepts as well. The chromite zone remains completely open-ended along strike and to depth.
To augment these very positive results, the joint-venture commissioned a chrome marketing study to help provide guidelines for future exploration work on chrome. Such a study will include an initial market review followed by mineralogical and petrographic studies of the chromite that would help determine if the chrome can be upgraded to meet minimum industry specifications.
Diamond drilling will also resume shortly on the property in efforts to expand the chromitite zone and to test other geophysical targets for nickel-copper-platinum group element mineralization. Additional ground geophysical surveys involving HLEM and deep-penetrating electromagnetic surveys (TDEM) may also be completed, to ready certain targets for diamond drilling.
Spider and KWG may earn a 50% interest in the property by spending $3.0 million on exploration over a 4-year period. They may earn a 60% interest by delivering a bankable feasibility study on any mineralization found and a cumulative 65% interest by arranging project financing on behalf of Freewest to place such mineralization into commercial production.
Freewest-Noront JV Property
Freewest Resources Canada Inc. and Noront Resources Ltd. recently agreed to jointly explore a key airborne geophysical anomaly situated near the common boundary of the 100-owned property and adjacent land owned by Noront. Under the agreement terms, Freewest and Noront contributed 68 and 70 acres of their properties respectively, to form the joint-venture property (see Freewest news release of May 14, 2008).
The joint-venture property covers a prominent bulls-eye-shaped magnetic anomaly resembling the magnetic signature associated with the Eagle One deposit. Deep penetrating electromagnetic surveys (TDEM) will be completed over the magnetic anomaly to help prepare this target for diamond drilling.
WINDFALL PROPERTY, QUEBEC:
At Freewest’s Windfall property in northern Quebec, Noront Resources Ltd. recently announced that the exploration ramp had accessed the F-17 gold zone (see Noront news release of June 26, 2008). Significant visible gold was reported during the course of the underground work with Noront stating: “gold was found to form a film or mesh, permeating the host rock and exposed on broken surfaces covering areas up to 8 centimetres by 10 centimetres.”
In addition, it is expected that a parallel gold zone, the F-11zone will shortly be accessed by the underground ramp. Both of the F-17 and F-11 gold zones are located on a group of 29 claims under option to Noront that are owned equally by Freewest Resources Canada Inc. (50%) and Murgor Resources Inc. (50%). Noront is earning a 50% interest in the 29 mineral claims by incurring exploration expenditures of $4.0 million. Currently, Noront is incurring all of the exploration and development costs on the Windfall project.
Significant historical results obtained from the F-17 gold zone include 10.46 g/t gold over 11.00 metres (hole 05-20) and 9.32 g/t gold over 11.00 metres (hole 05-21) while those from the F-11 gold zone yielded values of 11.91 g/t gold over 17.00 metres (hole 05-30) as well as a channel sample that assayed 40.82 g/t gold over 5.90 metres.
DALHOUSIE MOUNTAIN PROPERTY, QUEBEC:
In other developments, Freewest will shortly embark on a stripping program on its optioned Dalhousie Mountain property. The property comprising 3,730 hectares, is located in the Bell River Complex, 50 kilometres southeast of Mattagami, Quebec. Earlier work completed by Freewest included a time-domain airborne electromagnetic survey (SkyTEM), ground geophysical surveys and prospecting.
Prospecting and blasting of one of the conductors yielded by the geophysical surveys returned copper values of up to 4.5% in limited sampling within layered gabbroic host rocks. The conductor, 200 metres long and 20 to 30 metres wide, will be the initial focus of a mechanical stripping and sampling program to commence next week.
Closely associated with a nearby conductor is an area of vanadium mineralization. Limited work completed by the operator identified a large area of vanadium mineralization, with a potential outcrop area of 1.2 kilometres by 0.2 kilometres, yielding assays of up to 1.27% V2O5 from blasted outcrop samples. This mineralization and associated conductor has never been tested by diamond drilling. Preliminary work on the vanadium zone will include mechanical stripping and detailed sampling.
Freewest may earn a 100% interest in the property from the vendor, EX-IN, by issuing them 500,000 shares of the corporation (Freewest Resources Canada Inc.) and expending $150,000 on exploration over a 2-year period. Additionally, the vendor has the option to purchase an additional 500,000 shares of Freewest at a price of C$0.20 over the same 2-year period.
Donald Hoy, P. Geo. (Ontario), Vice President of Exploration and a Director of Freewest Resources Canada Inc. is the Qualified Person (under National Instrument 43-101) on the McFaulds project and is responsible for the preparation of this news release. Luciano Vendittelli, P. Geo. (Quebec), is the qualified person on-site at the Dalhousie Mountain property in Quebec.
In other news, Freewest announces that on July 7, 2008, its Board of Directors granted stock options in respect of an aggregate of 850,000 common shares to seven of Freewest’s directors and senior officers, at an exercise price of $0.30 per share. The closing price of Freewest’s shares on the TSX Venture Exchange on July 4, 2008 was $0.28. At the same time, the Board of Directors also granted stock options in respect of an aggregate of 50,000 common shares to one of Freewest’s employees, also at an exercise price of $0.30 per share. All of the stock options were granted pursuant to Freewest’s incentive stock option plan.
Freewest is a well-financed mineral exploration corporation exploring for gold and base-metals within eastern Canada. Corporate information can be accessed on the Internet at www.freewest.com. Freewest’s shares are listed on the TSX Venture Exchange under the symbol FWR.
Freewest Resources Canada Inc.
Mackenzie I. Watson
President and CEO
(514) 878-3551 or 1-888-878-3551
(514) 878-4427 (FAX)
Source: Freewest Resources Canada Inc.