Hello Condor
Some ITF Au news out on Friday responsible for its touching 52 week highs:
Freegold Ventures Limited - Meridian Gold Joint Ventures Golden Summit Project Fairbanks, Alaska
Friday January 23, 5:27 pm ET
Toronto Stock Exchange Trade Symbol: ITF OTCBB: FGOVF
VANCOUVER, Jan. 23 /CNW/ - Freegold Ventures Limited (Freegold) is pleased to announce that it has entered into an Option/Joint Venture Agreement with Meridian Gold Inc. (Meridian) on Freegold's 18,000 acre Golden Summit Project, near Fairbanks Alaska. Meridian is a mid-tier gold producer with a first rate track record of discovering, developing, and operating profitable gold mines throughout North and South America. Meridian's gold reserves at December 31st, 2002 were estimated at 4,281,000 ounces, and its production costs are one of the lowest in the world at approximately $60US per gold ounce.
ABOUT GOLDEN SUMMIT
The Golden Summit Project is an advanced stage exploration gold project encompassing a number of historic producing high grade gold mines most of which have not been explored or worked for over 50 years. A conservative estimate indicates the presence of some 63,000 linear feet of mineralized shear zones in and around the Golden Summit property area. Exploration conducted during the 1980's and the 1990's focused on a bulk tonnage model. However it has become readily apparent that the former high-grade gold deposits constitute significant targets themselves. Golden Summit lies 5 miles north of the current producing Fort Knox Mine, Alaska's largest gold producer.
Golden Summit is an excellent fit for Meridian with good profit potential in the United States. Freegold is very pleased to have Meridian as a partner on the Golden Summit Project and is confident Meridian will be an excellent partner with whom to advance the Golden Summit Project.
The current Golden Summit Project which covers more than 18,000 acres has been divided into 3 project areas: "Areas A, B and C." Meridian may earn up to a 70% interest in areas A and B, by funding and placing a project into Commercial Production.
Highlights:
50% earn in US $5 Million in Exploration Expenditures over 4 years
Cash Payments of US $390,000 over 4 years
$300,000 in Private Placements by Meridian in Freegold
common stock by December 31st, 2004
(includes 143,000 shares at $0.70 within 5 days of
regulatory approval)
60% earn in Completing an independent bankable Feasibility Study.
If the Feasibility Study identifies reserves in excess
of 500,000 ounces gold. Meridian will pay US$1.00 to
Freegold for every ounce identified.
70% earn in Meridian arranging all Financing and placing the
project into Commercial Production
Guaranteed Exploration Expenditures US $740,000 - 2004
Exploration 2004 Guaranteed Exploration Expenditures US $740,000
An airborne magnetic survey will be flown over the 3 areas. Meridian will be granted a first right of refusal on Area C on terms to be agreed in exchange for funding the airborne survey. The survey is to facilitate the planning of the 2004 exploration program. In addition to the airborne survey, Meridian has committed to an exploration program of US $650,000 ($~800,000CDN) for 2004. The cost of the airborne survey is expected to approximate $90,000 for a total exploration commitment of US $740,000 (~$910,000 Cdn) on or before December 31st, 2004.
Terms of the Option/Joint Venture Agreement
Meridian may earn a 50% interest in the Golden Summit Project by making exploration expenditures totaling US$5 million, cash payments of US$390,000 over 4 years and investing a minimum of US$300,000 in Freegold through private placements.
Meridian will make a US$65,000 cash payment on signing and will subscribe for a private placement of 143,000 Freegold shares at CDN$0.70 per unit with a full warrant CDN$1.00 per share within 5 days of the agreement receiving regulatory approval. On or before December 31st, 2004, Meridian shall purchase by private placement 200,000 Freegold shares at CDN$1.00 per shares with a CDN$1.30 warrant. The warrants shall be exercisable for a period of one year.
Meridian may increase its interest to 60% by completing an independent bankable Feasibility Study. Meridian must elect to complete the Feasibility Study or elect to continue making exploration expenditures. The Feasibility Study is to be completed within 2 years of Meridian vesting with 50% interest.
In the event that the Feasibility Study identifies a minimum of 500,000 gold ounces, Meridian will pay to Freegold $1.00 per every economic ounce identified and for each additional ounce identified.
Once Meridian has completed the Feasibility Study, Meridian may elect within 180 days to increase its interest to 70%. Meridian shall be responsible for arranging all production financing. Upon placing the project into Commercial Production Meridian will have earned a 70% interest.
About Freegold Ventures Limited
Freegold Ventures is a gold exploration company with a proven track record and a mandate to explore, discover and facilitate the mining of world- class gold deposits. Freegold is focusing its exploration activities on the mineral rich state of Alaska. In addition to Golden Summit Project, Freegold also holds the Rob Project in the highly prospective Tintina Gold Belt in the Fairbanks Mining District. The Tintina gold belt is emerging as one of North America's most important gold districts and hosts a number of gold deposits throughout the Yukon and Central Alaska, most notably the Fort Knox, Pogo and Brewary Creek deposits. Freegold has recently entered into an option/joint venture on the Rainbow Hill Gold Project, Alaska. Management is currently negotiating on the several other gold projects, which it expects to conclude within the next 3 - 6 months.
In addition to its Alaska gold projects, Freegold holds the Union Bay PGE project, a joint venture with Pacific North West Capital Corp, and Lonmin PLC, the world's third largest primary underground producer of platinum group metals.
Freegold also holds 100% of the Almaden Gold Deposit, in Idaho, where a 1997 Feasibility Study by Watts, Griffis and McQuat (WGM) indicated a potentially mineable resource of 44,000,000 tons grading 0.021 oz/t gold. The study indicated that 526,800 ounces of gold was recoverable by open pit mining and heap leach technology. The deposit remains open to the north and south and at depth. The study indicated an IRR of 18.9% at $364 per ounce gold.
Management is actively seeking Joint Venture partners further develop and explore its property portfolio. Negotiations are ongoing on several of its projects.
The foregoing is subject to regulatory approval and the approval of Freegold Board of Directors.
On behalf of the Board of Directors
"Harry Barr"
Harry Barr,
Chairman & CEO
Regards
Vaughn
P.S. Sorry, just saw that Brumell posted this already:
Message 19726866 |
