Vancouver, British Columbia – September 30, 2019 – Fremont Gold Ltd. (TSX.V: FRE; FSE: FR2; OTC: USTDF) (“Fremont”) is pleased to announce that it has entered into an option agreement (the “Option Agreement”) with Clover Nevada II, LLC (“Clover”), a wholly owned subsidiary of Contact Gold Corp. (C: TSX-V), to acquire a 100% interest in the advanced-stage Cobb Creek gold project (“Cobb Creek”) located in Elko county, Nevada.
Cobb Creek highlights
•Historical mineral resource estimate: The McCall deposit, one target area within Cobb Creek, contains a historical mineral resource estimate (not NI 43-101 compliant) which is set out in the table below.
Resource Mineralized Cut-Off Grade Ounces
Classification Zone (opt) Tons (opt)
Indicated Oxide 0.01 1,362,233 0.04 54,864
Indicated Sulphide 0.01 2,378,000 0.05 118,134
The historical mineral resource estimate (“Historical Estimate”) was performed by and reported in a technical report prepared by Michael R. Pawlowski for Stacatto Gold Resources Ltd. and dated October 30, 20041. The Historical Estimate is based on a total of 72 drill holes with continuous zones of gold assays above 0.01 opt gold that could be reasonably interpreted to be continuous in three dimensions based on the construction of nine cross sections, 200 feet apart. The methodology employed in the Historical Estimate is detailed in the 2004 technical report by Pawlowski1. A qualified person has not done sufficient work to classify the Historical Estimate as a current mineral resource or mineral reserve and Fremont is not treating the Historical Estimate as a current mineral resource or mineral reserve. In order to consider the Historical Estimate as current mineral resources or mineral reserves, Fremont needs to retain a qualified person to verify historical drilling and assaying methods and validate historical results, add any drilling and assaying or other pertinent geological information generated since the last estimation, and complete an updated resource estimate and a new technical report.
•Historical exploration: Cobb Creek has not been drilled since 1992 and most of the historical drilling (over 140 drill holes) was very shallow. Some of the better drill results include drill hole COBRC-3, which returned 15.3 metres of 2.86 g/t gold (from 13.7 metres to 29.0 metres), and COBRC-84, which returned 33.5 metres of 1.92 g/t gold (from 18.3 metres to 51.8 metres), including 12.2 metres of 4.09 g/t gold. See Table 1 for more drill results.
•Exploration potential: Cobb Creek is underexplored. It has been almost thirty years since Cobb Creek was last drilled. Fremont believes that there is significant potential to expand the Historical Estimate at McCall and for the discovery of a Carlin-type target. Additionally, several exploration targets (Beaver, Silica Ridge, O, and Van Duzer Ridge) have not been drilled or were not followed up despite returning very anomalous gold values (see Figure 1).
•Location: Cobb Creek is comprised of 167 unpatented mining claims and is located at the northern end of the Independence Trend, close to Highway 225 (see Figure 2). Western Exploration’s new gold discovery, Gravel Creek, is located approximately 6 kilometres to the southeast. It has been reported that Gravel Creek “contains an in-place unclassified mineral inventory of 1.4 million ounces of gold and 21 million ounces of silver…”. (Muntean, Davis, and Ayling, 2017, p. 22)2.
“With the recent sale of Gold Canyon to McEwen Mining, the timing is right to augment our existing property portfolio with advanced-stage gold projects,” said Blaine Monaghan, CEO of Fremont. “With a historic resource, several promising exploration targets, and the possibility of a Carlin-type target, Cobb Creek is an exciting opportunity for Fremont and its shareholders. We continue to evaluate other opportunities and I expect Fremont to make additional acquisitions over the coming months.”
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