Western Standard Metals Ltd. and Freegold Ventures Limited Announce Proposed Amalgamation
Pursuant to the LOI, Western Standard and Freegold will amalgamate to form a new company ("Amalco"). The issued shares, options and warrants of Western Standard and Freegold will be exchanged with shares, options and warrants of Amalco, as the case may be, at a ratio to be negotiated on the effective date of the Definitive Agreement to be entered into with respect to the Amalgamation (the "Agreement").
Amalco will retain the management and exploration teams of both companies resulting in a company with greater financial and technical strength to move their advanced stage projects forward.
Amalco's portfolio of advanced stage gold projects will include:
- Almaden Gold Project located in Washington County, western Idaho. The project hosts a NI43-101 compliant measured resource of 239,000 ounces of gold (9,810,000 tonnes grading 0.754 g/t), an indicated resource of 625,000 ounces of gold (29,250,000 tonnes grading 0.651 g/t), and an inferred resource of 84,000 ounces of gold (4,780,000 tonnes grading 0.549 g/t), at the cut-off grades of 0.274 g/t, 0.411 g/t, and 0.789 g/t grams per tonne for the oxide, mixed, and sulfide mineralization, respectively. The large, near surface resource is open along strike to the north and south, and down dip. Amalco plans to complete additional drilling to expand the resources and will embark on environmental and metallurgical studies to advance the project through feasibility.
- Golden Summit Gold Project located in the Fairbanks Mining District, central eastern Alaska. The project is host to a number of gold deposits and occurrences that are similar in age and style to several nearby multi-million ounce intrusion related gold deposits including Fort Knox, True North, and Ryan Lode. Previous exploration work includes geological mapping, soil sampling (7,729 samples), trenching (5,500 m), lithogeochemistry, geophysics, and reverse circulation and diamond drilling (26,900 m). Amalco plans an exploration program consisting of data compilation, verification and target generation to identify areas for drilling in 2010.
- Vinasale Gold Project located in the McGrath Mining District, central Alaska. The project occurs within a northeast trending belt of intrusion related gold deposits that includes the 39 million ounce Donlin Creek deposit and the past producing Nixon Fork gold mine. Previous exploration work includes geological mapping, soil geochemistry, geophysics and diamond drilling (10,547 m in 65 holes). A resource of 925,000 ounces of gold (14.5 million tonnes grading 1.95 grams/tonne) was estimated for the Central Zone by Derry Michener, Booth and Wahl (1994) as part of a Prefeasibility study. (Note that the resource figures are historical in nature and are provide for information purposes only; they are not NI43-101 compliant and as such should not be relied upon). Amalco plans an initial exploration program consisting of data compilation and verification to identify targets for follow up in 2010. The project has the potential to host large, bulk mineable gold mineralization.
- Rob Gold Project located in the Goodpaster Mining District, southeast of Fairbanks, Alaska. Previous exploration work includes geological mapping, geochemistry, geophysics and diamond drilling (6,972 m in 56 holes). Significant drill intersections include 4.5 metres grading 18 grams/tonne in hole 19, 2.4 metres grading 62 grams/tonne in hole 18 and 4 metres grading 29 grams/tonne in hole 14. Gold mineralization is similar in tenor and style to the multi-million ounce Pogo Mine located approximately 30 kilometres to the west.
The completion of the Amalgamation is subject to the fulfilment of a number of prior conditions, including the negotiation of the exchange ratio and the Agreement, receipt of fairness opinions by both parties and all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and the TSX Venture Exchange, the approval of the Amalgamation by the shareholders of both Western Standard and Freegold by special resolutions of at least 2/3rds of the shares voted in person or by proxy at the general meetings of each issuer held to consider the Amalgamation, and the approval of the Supreme Court of British Columbia. It is anticipated that the special general meetings of the shareholders of the Western Standard and Freegold to approve the Amalgamation will be held sometime in May, 2010. Shareholders will receive an information circular setting out further details of the proposed transaction.
The Amalgamation cannot close until all of the foregoing conditions precedent and others are met. There can be no assurance that the Amalgamation will be completed as proposed or at all. Trading in the securities of both Western Standard and Freegold should be considered highly speculative.
Information in this News Release was extracted from Technical Reports written by an independent Qualified Person and a drill hole database supplied to Western Standard by Freegold. Walter Melnyk, P.Eng., President of Western Standard Metals Ltd., is a Qualified Person as defined by National Instrument 43-101 and has reviewed the technical disclosure contained in this News Release.
Curtis J. Freeman, M.Sc., Geological Consultant to Freegold Ventures Limited is a Qualified Person as defined by National Instrument 43-101 and has reviewed the technical disclosure contained in this News Release.
About Western Standard Metals Ltd.
Western Standard Metals Ltd. is a Canadian based company, listed on the TSX Venture Exchange, with a focus on acquisition, exploration and development of gold properties in North America. Western Standard recently acquired a 100% interest in the Almaden Gold Project in Idaho, United States. Western Standard has optioned from Freegold the right to acquire a 50% interest in each of the Golden Summit and the Vinasale Gold Projects in Alaska.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on the exploration of gold projects in Alaska. In addition to the Golden Summit Gold Project, the company holds a 100% in lease interest in the Rob Gold Project, near the Pogo Gold Mine in the Goodpaster Mining District of Alaska and has an exploration agreement with option to lease the Vinasale Gold project in central Alaska.
| WESTERN STANDARD METALS LTD. | FREEGOLD VENTURES LIMITED |
| "Alvin Jackson, P.Geo" | "Kristina Walcott" |
| Chairman and CEO | President and CEO |
DISCLAIMER - This press release contains "forward-looking information" within the meaning of Canadian securities laws including, without limitation, statements and information regarding the intention of Western Standard and Freegold (the "Companies") to complete the Amalgamation and exploration plans for the Companies' properties. Such forward-looking information reflects the current expectations or beliefs of the Companies. Forward-looking information is subject to a number of risks, assumptions and uncertainties that may cause the actual results of the Companies to differ materially from those discussed herein, including the possibility that future exploration results will not be consistent with the Company's expectations, the uncertainties involved in interpreting exploration results, other inherent risks in the mineral exploration and development industry and the possibility that the Companies will not be able to negotiate a definitive agreement with respect to the Amalgamation, that they will not receive necessary regulatory and shareholder approvals and that other conditions to the completion of the amalgamation may not be satisfied. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other form of forward-looking information will not be achieved by the Companies. A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information. Although the Companies believe that the expectations reflected in such forward-looking statements and information are reasonable, the Companies can give no assurance that such expectations will prove to be correct. The forward-looking statements and information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified herein, the Companies have made assumptions regarding, among other things, their ability to conduct exploration activities in a timely manner and in accordance with the their drilling programs, the availability and costs of financing, the degree of risk that credit approvals may be delayed or withheld, and other risks and uncertainties described elsewhere in this document or in the Companies' other filings with Canadian securities authorities. Such forward-looking information speaks only as of the date on which it is made and, unless required by applicable securities laws, the Companies undertake no obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Western Standard Private Placement
The proceeds will be used for exploration expenditures on the Company's projects and for general working capital. A commission or finder's fee may be paid with respect to all or part of this placement. The terms of the private placement are subject to acceptance by the TSX Venture Exchange.
About Western Standard Metals Ltd.
Western Standard Metals Ltd. is a newly re-organized Canadian based company with a focus on acquisition, exploration and development of gold properties in North America. Western Standard recently acquired a 100% interest in the Almaden Gold Project in Idaho, United States, which hosts a NI43-101 compliant measured resource of 239,000 ounces of gold (9,810,000 tonnes grading 0.754 g/t), an indicated resource of 625,000 ounces of gold (29,250,000 tonnes grading 0.651 g/t), and an inferred resource of 84,000 ounces of gold (4,780,000 tonnes grading 0.549 g/t), at the cut-off grades of 0.274 g/t, 0.411 g/t, and 0.789 g/t grams per tonne for the oxide, mixed, and sulfide mineralization, respectively. The Company recently announced option agreements to earn a 50% interest in the Golden Summit project, located 8 kilometres north of the Fort Knox gold mine in the Fairbanks Mining District, and the Vinasale project, located 26 kilometres south of McGrath, Alaska.
WESTERN STANDARD METALS LTD.
s/"Tanuja de Silva Skerlec, CFO
NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Western Standard Private Placement
The proceeds will be used for exploration expenditures on the Company's projects and for general working capital. A commission or finder's fee may be paid with respect to all or part of this placement. The terms of the private placement are subject to acceptance by the TSX Venture Exchange.
Additionally, the Company has arranged for a loan to raise a total of $150,000 by way of a loan agreement. The Company will repay the loan by June 15, 2010 and the interest rate is set at the rate of the London Interbank Offered Rate (LIBOR) plus 1% interest per annum. The lender will receive the permitted bonus, being 115,385 shares to be issued as a bonus for granting the loan. This transaction is subject to acceptance by the TSX Venture Exchange.
About Western Standard Metals Ltd.
Western Standard Metals Ltd. is a newly re-organized Canadian based company with a focus on acquisition, exploration and development of gold properties in North America. Western Standard recently acquired a 100% interest in the Almaden Gold Project in Idaho, United States, which hosts a NI43-101 compliant measured resource of 239,000 ounces of gold (9,810,000 tonnes grading 0.754 g/t), an indicated resource of 625,000 ounces of gold (29,250,000 tonnes grading 0.651 g/t), and an inferred resource of 84,000 ounces of gold (4,780,000 tonnes grading 0.549 g/t), at the cut-off grades of 0.274 g/t, 0.411 g/t, and 0.789 g/t grams per tonne for the oxide, mixed, and sulfide mineralization, respectively. The Company recently announced option agreements to earn a 50% interest in the Golden Summit project, located 8 kilometres north of the Fort Knox gold mine in the Fairbanks Mining District, and the Vinasale project, located 26 kilometres south of McGrath, Alaska.
WESTERN STANDARD METALS LTD.
s/"Tanuja de Silva Skerlec, CFO
NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Western Standard Options Vinasale Gold Project In Alaska
The Vinasale Project is located in the McGrath Mining District in the Kuskokwim region of central Alaska. The Kuskokwim region is underlain by sedimentary rocks of the Upper Cretaceous Kuskokwim Group that have been intruded by a suite of Late Cretaceous to Tertiary granitic rocks. Placer gold deposits are associated with several of these intrusions and recorded production totals 2.5 million ounces. At Vinasale, a Late Cretaceous quartz monzonite stock forms a prominent hill and is spatially and temporally associated with gold mineralization. The stock has a number of intrusive phases and is variably altered to a mineral assemblage including silica, sericite, dolomite, chlorite, tourmaline and sulphides. Sulphides occur as disseminations and in quartz-dolomite veins and breccias, and are primarily pyrite and arsenopyrite with lesser stibnite, sphalerite and galena, and minor silver and lead antimony sulphides. Higher concentrations of gold are associated with zones of quartz-sulphide veining and fracturing hosted by silica and sericite altered quartz monzonite.
Gold mineralization was first discovered at Vinasale by Central Alaskan Gold Company (CAG) in 1989. Exploration from 1990 to 1993 by CAG and their joint venture partner, Placer Dome, consisted of soil sampling, geophysics, diamond drilling (5,285 metres in 39 holes) and metallurgy. While the gold mineralization was found to be refractory, metallurgical testwork indicates that greater than 95% of the gold reports to the sulphide concentrate, thereby considerably reducing the volume of material required to be oxidized before extraction by cyanide. The Project was subsequently optioned by ASA-Montague and additional soil sampling, diamond drilling (5,262 metres in 26 holes) and metallurgy were completed in 1994. Drilling intersected significant gold values beneath multi-element soil anomalies in the Northeast, Central and South zones (Table 1). A resource of 925,000 ounces of gold (14.5 million tonnes grading 1.95 grams/tonne) was estimated for the Central Zone by Derry Michener, Booth and Wahl (1994) as part of a Prefeasibility study. (Note that the resource figures are historical in nature and are provide for information purposes only; they are not NI43-101 compliant and as such should not be relied upon).
Table 1: Selected drill intersections from the Vinasale deposit, central Alaska.
| Hole Number | From (m) | To (m) | Interval (m) | Gold (g/t) |
| VM90-01 | 66.2 | 157.58 | 91.38 | 1.63 |
| VM90-02 | 3.05 | 43.43 | 40.39 | 1.37 |
| VM90-03 | 18.9 | 71.63 | 52.73 | 2.46 |
| VM91-01 | 0 | 177.39 | 177.39 | 1.91 |
| VM91-03 | 1.01 | 171.91 | 170.9 | 0.89 |
| VM91-09 | 0 | 25.3 | 25.3 | 2.28 |
| VM91-28 | 37.03 | 54.25 | 17.22 | 1.76 |
| VM91-34 | 105.34 | 152.06 | 46.73 | 0.59 |
| VM91-35 | 0 | 36.58 | 36.58 | 0.98 |
| VM91-35 | 91.44 | 195.53 | 104.09 | 1.52 |
| VM94-01 | 12.19 | 183.18 | 170.99 | 1.14 |
| VM94-03 | 9.14 | 79.25 | 70.1 | 1.42 |
| VM94-03 | 153.92 | 187.45 | 33.53 | 1.44 |
| VM94-04 | 67.97 | 115.21 | 47.24 | 0.58 |
| VM94-05 | 197.51 | 218.24 | 20.73 | 1.67 |
| VM94-06 | 121.31 | 179.22 | 57.91 | 0.91 |
| VM94-07 | 25.3 | 179.83 | 154.53 | 1.91 |
| VM94-08 | 16.15 | 90.83 | 74.68 | 1.63 |
| VM94-10 | 0 | 117.81 | 117.81 | 1.38 |
| VM94-10 | 145.69 | 357.53 | 211.84 | 1.25 |
| VM94-11 | 82.3 | 313.94 | 231.65 | 2.06 |
| VM94-12 | 133.5 | 209.55 | 76.05 | 1.86 |
| VM94-13 | 25.91 | 169.16 | 143.25 | 1.81 |
| VM94-13 | 181.36 | 268.22 | 86.86 | 1.12 |
| VM94-18 | 49.68 | 373.08 | 323.4 | 1.36 |
| VM94-24 | 4.57 | 198.12 | 193.55 | 1.29 |
| VM94-26 | 78.64 | 150.27 | 71.63 | 1.04 |
Freegold entered into a Mining Exploration Agreement with an Option to Lease the Vinasale Project from Doyon Limited, an Alaskan Native Regional Corporation in 2007. Since that time, Freegold has completed an airborne survey and a regional geochemical survey and a ground based induced polarization and magnetic survey over the northern part of the deposit. This work has identified chargeability and resistivity targets associated with the northern edge of the Vinasale stock as well as regional targets that require follow-up exploration.
The Vinasale Project is located approximately 310 kilometres northwest of Anchorage and 26 kilometres south of McGrath. Access to the Project area is by helicopter from a base in McGrath and daily commercial flights connect McGrath with Anchorage. The McGrath airstrip is adequate to handle large bulk aircraft and the Kuskokwim River is navigable to McGrath from Bethel, a port city. McGrath can provide basic services such as labour, housing, office space, communication and logistics.
Western Standard has the option to earn a 50% interest in the Project by paying Freegold CAD$350,000 on execution and by incurring exploration expenses of US$6,500,000 over three years according to the schedule shown in Table 2. Western Standard will be the operator of the Project until such time as the option is fulfilled and a joint venture is formed.
| Anniversary Date | Exploration Expenditures |
| 31-Dec-10 | US$1,500,000 |
| 31-Dec-11 | US$2,250,000 |
| 31-Dec-12 | US$2,750,000 |
| TOTAL | US$6,500,000 |
Western Standard plans an initial exploration program consisting of data compilation and verification to identify targets for follow up in 2010. The exploration program will include geophysics, geochemistry and diamond drilling with the objective of expanding the existing resource as well as identifying new areas that may have the potential to host additional resources. In addition to the exploration program, Western Standard will collect samples for metallurgical testwork. Western Standard is targeting large, bulk mineable gold deposits in their exploration program.
Information in this News Release was extracted from Technical Reports written by an independent Qualified Person and a drill hole database supplied to Western Standard by Freegold; Western Standard at this time has not verified the quality of this data. Walter Melnyk, P.Eng., President of Western Standard Metals Ltd., is a Qualified Person as defined by National Instrument 43-101 and has reviewed the technical disclosure contained in this News Release.
Curtis J. Freeman, M.Sc., Geological Consultant to Freegold Ventures Limited is a Qualified Person as defined by National Instrument 43-101 and has reviewed the technical disclosure contained in this News Release.
About Western Standard Metals Ltd.
Western Standard Metals Ltd. is a newly re-organized Canadian based company with a focus on acquisition, exploration and development of gold properties in North America. Western Standard recently acquired a 100% interest in the Almaden Gold Project in Idaho, United States, which hosts a NI43-101 compliant measured resource of 239,000 ounces of gold (9,810,000 tonnes grading 0.754 g/t), an indicated resource of 625,000 ounces of gold (29,250,000 tonnes grading 0.651 g/t), and an inferred resource of 84,000 ounces of gold (4,780,000 tonnes grading 0.549 g/t), at the cut-off grades of 0.274 g/t, 0.411 g/t, and 0.789 g/t grams per tonne for the oxide, mixed, and sulfide mineralization, respectively.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on the exploration of gold projects in Alaska. In addition to the Golden Summit Project, the company holds a 100% in lease interest in the Rob gold project, near the Pogo Gold Mine in the Goodpaster Mining District of Alaska and has an exploration agreement with option to lease the Vinasale Gold project in central Alaska.
WESTERN STANDARD METALS LTD.
"Walter Melnyk"
President
FREEGOLD VENTURES LIMITED
"Kristina Walcott"
President and CEO
DISCLAIMER - This press release contains "forward-looking information" within the meaning of Canadian securities laws including, without limitation, statements and information regarding the Company's exploration operations and financing needs. Such forward-looking information reflects the current expectations or beliefs of the Company. Forward-looking information is subject to a number of risks, assumptions and uncertainties that may cause the actual results of the Company to differ materially from those discussed herein, including the possibility that future exploration results will not be consistent with the Company's expectations, the uncertainties involved in interpreting exploration results, other inherent risks in the mineral exploration and development industry and the possibility that the loan facilities will not be completed or completed on terms not currently contemplated by the Company. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other form of forward-looking information will not be achieved by the Company. A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements and information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. The forward-looking statements and information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified herein, the Company has made assumptions regarding, among other things, the ability to conduct exploration activities in a timely manner and in accordance with the Company's drilling program, the availability and costs of financing, the degree of risk that credit approvals may be delayed or withheld, and other risks and uncertainties described elsewhere in this document or in the Company's other filings with Canadian securities authorities. Such forward-looking information speaks only as of the date on which it is made and, unless required by applicable securities laws, the Company undertakes no obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. CUSIP: 45953B107
NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Western Standard Options Golden Summit Project In Alaska
The Golden Summit Project is located in the Tintina Gold Belt, Fairbanks Mining District where over 9.5 million ounces of placer gold have been recovered since the area was discovered in 1902. Streams draining the Project account for over 6.75 million ounces of this gold and over 0.5 million ounces of lode gold have been recovered from underground mines, mostly before 1942. There are more than 80 occurrences that have been identified on the Project.
The Project is located 32 kilometres north of Fairbanks, Alaska and is comprised of 14 patented Federal lode claims, 76 unpatented Federal load claims and 83 State of Alaska mining claims covering approximately 2,194 hectares.
The Project is underlain by rocks of the Yukon-Tanana Terrane consisting of Paleozoic metavolcanic and metasedimentary rocks of the Cleary Sequence and Fairbanks Schist, which are in thrust contact and interleaved with eclogite and amphibolite facies rocks of the Chatanika Terrane. Bedrock geology is dominated by east-northeast trending lithological and structural features. The above rocks are cut by mid-Cretaceous intrusive rocks that range in composition from diorite to granite. These intrusive rocks are thought to be spatially and genetically related to mineralization on the Project. Gold mineralization occurs in a number of different geological settings including: discrete quartz veins and stockworks within shear zones, replacement zones and skarn within calcareous rocks, and as disseminations within intrusive rocks. Geochemically the gold mineralization is commonly associated with a distinct suite of one or more of the following elements: bismuth, tellurium, tungsten, arsenic, antimony, copper, mercury, silver, lead and zinc.
Freegold acquired an interest in the Golden Summit Project in 1991 and since then has conducted numerous exploration programs consisting of mapping, soil sampling (7,729 samples), trenching (5,500 m), lithogeochemistry, geophysics, and reverse circulation and diamond drilling (26,900 m). This work has identified a number of significant gold occurrences and/or found extensions to mineralization adjacent to historic mines, however a number of targets remain untested or have been tested by limited exploration. Exploration targets with significant potential include from west to east: Tolovana-Dolphin deposit, Newsboy Mine, Cleary Hill Mine, American Eagle Vein Swarm and Hi Yu Mine. Selected drill intersections from some of these deposits are presented in Table 1.
Table 1: Selected drill intersections from the Golden Summit Project, Alaska.
Drill Hole |
Area |
From (m) |
To (m) |
Interval (m) |
Gold (g/t) |
TLD0404 |
Tolovana-Dolphin |
93.27 |
182.88 |
89.61 |
1.07 |
TLD9801 |
Tolovana-Dolphin |
31.39 |
285.90 |
254.51 |
0.73 |
TLR9504 |
Tolovana-Dolphin |
39.62 |
144.78 |
105.16 |
1.64 |
TLR9505 |
Tolovana-Dolphin |
3.05 |
77.72 |
74.67 |
0.72 |
TLR9506 |
Tolovana-Dolphin |
1.52 |
92.62 |
91.10 |
1.90 |
TLR9507 |
Tolovana-Dolphin |
18.29 |
73.15 |
54.86 |
1.22 |
TLR9610 |
Tolovana-Dolphin |
59.44 |
146.00 |
86.56 |
1.02 |
TLR9626 |
Tolovana-Dolphin |
80.77 |
126.49 |
45.72 |
4.33 |
CHD9704 |
Cleary Hill |
111.25 |
166.42 |
55.17 |
1.95 |
CHD9801 |
Cleary Hill |
89.61 |
244.45 |
153.01 |
0.72 |
CHD0301 |
Cleary Hill |
12.50 |
137.01 |
124.51 |
1.02 |
GSDC0801 |
Cleary Hill |
78.94 |
102.11 |
23.17 |
1.19 |
GSDC0804 |
Cleary Hill |
2.13 |
20.73 |
18.60 |
1.62 |
|
|
90.53 |
96.62 |
6.09 |
1.85 |
GSDC0816 |
Cleary Hill |
4.72 |
33.83 |
29.11 |
1.32 |
Access to the Project area is by the paved Steese Highway and privately maintained gravel roads allow easy access to most of the property on a year round basis. Infrastructure includes high voltage electrical power lines, land telephone lines and a cellular phone service. The greater Fairbanks area supports a population of approximately 75,000 people from which the Project can obtain skilled labour and services. Fairbanks has an International Airport with daily service to the lower 48-states and rail connects Fairbanks to Anchorage, a port city. Mining operations such as Kinross Gold's Fort Knox milling and valley leach operation can be conducted on a year-round basis.
Western Standard has the option to earn a 50% interest in the Project by paying Freegold CAD$300,000 on execution and by incurring exploration expenses of US$5,750,000 over four years according to the schedule shown in Table 2. The Company will be the operator of the Project until such time as the option is fulfilled and a joint venture is formed.
Table 2: Exploration Expenses
Anniversary Date |
Exploration Expenditures |
December 31, 2010 |
US$750,000 |
December 31, 2011 |
US$1,000,000 |
December 31, 2012 |
US$1,500,000 |
December 31, 2013 |
US$2,500,000 |
TOTAL |
US$5,750,000 |
Western Standard plans an exploration program consisting of data compilation, verification and target generation to identify areas for drilling in 2010. Initial drilling will be focused on extending the near surface intrusion hosted gold mineralization intersected in historic drill holes at the Tolovana-Dolphin deposit. The Company is targeting large, bulk mineable zones in their exploration program.
Information in this News Release was extracted from Technical Reports written by a Qualified Person and a drill hole database supplied to the Company by Freegold. Walter Melnyk, P.Eng., President of Western Standard Metals Ltd., is a Qualified Person as defined by National Instrument 43-101 and has reviewed the technical disclosure contained in this News Release.
Curtis J. Freeman, M.Sc., Geological Consultant to Freegold Ventures Limited is a Qualified Person as defined by National Instrument 43-101 and has reviewed the technical disclosure contained in this News Release.
About Western Standard Metals Ltd.
Western Standard Metals Ltd. is a newly re-organized Canadian based company with a focus on acquisition, exploration and development of gold properties in North America. The Company recently acquired a 100% interest in the Almaden Gold Project in Idaho, United States, which hosts a NI43-101 compliant measured resource of 239,000 ounces of gold (9,810,000 tonnes grading 0.754 g/t), an indicated resource of 625,000 ounces of gold (29,250,000 tonnes grading 0.651 g/t), and an inferred resource of 84,000 ounces of gold (4,780,000 tonnes grading 0.549 g/t), at the cut-off grades of 0.274 g/t, 0.411 g/t, and 0.789 g/t grams per tonne for the oxide, mixed, and sulfide mineralization, respectively.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on the exploration of gold projects in Alaska. In addition to the Golden Summit Project, the company holds a 100% in lease interest in the Rob gold project, near the Pogo Gold Mine in the Goodpaster Mining District of Alaska and has an exploration agreement with option to lease the Vinasale Gold project in central Alaska.
WESTERN STANDARD METALS LTD.
"Walter Melnyk"
President
FREEGOLD VENTURES LIMITED
"Kristina Walcott"
President and CEO
DISCLAIMER - This press release contains "forward-looking information" within the meaning of Canadian securities laws including, without limitation, statements and information regarding the Company's exploration operations and financing needs. Such forward-looking information reflects the current expectations or beliefs of the Company. Forward-looking information is subject to a number of risks, assumptions and uncertainties that may cause the actual results of the Company to differ materially from those discussed herein, including the possibility that future exploration results will not be consistent with the Company's expectations, the uncertainties involved in interpreting exploration results, other inherent risks in the mineral exploration and development industry and the possibility that the loan facilities will not be completed or completed on terms not currently contemplated by the Company. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other form of forward-looking information will not be achieved by the Company. A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements and information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. The forward-looking statements and information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified herein, the Company has made assumptions regarding, among other things, the ability to conduct exploration activities in a timely manner and in accordance with the Company's drilling program, the availability and costs of financing, the degree of risk that credit approvals may be delayed or withheld, and other risks and uncertainties described elsewhere in this document or in the Company's other filings with Canadian securities authorities. Such forward-looking information speaks only as of the date on which it is made and, unless required by applicable securities laws, the Company undertakes no obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. CUSIP: 45953B107
NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.