Freegold Ventures’ (TSX: FVL) shares soared to a five-year high on Thursday after a resource update for the company’s Golden Summit project in Alaska lifted the contained indicated metal by 42% to 17.2 million ounces.
The update gives the project in central Alaska 431.94 million indicated tonnes grading 1.24 grams gold per tonne, a 15% increase in grade over the previous estimate from September 2024, Freegold said on Thursday. Inferred resources now total 357.61 million tonnes at 1.04 grams gold, while contained gold increases by 16% to 11.9 million ounces.
Golden Summit is about 30 km northeast of Fairbanks and 6 km north of Kinross Gold’s (TSX: K; NYSE: KGC) Fort Knox mine.
“[The update] highlights the potential of Golden Summit and emphasizes the need for perseverance in some projects,” Freegold President and CEO Kristina Walcott said in an email to The Northern Miner. “The past five years have been transformative for the company, and we expect 2025 to be another exciting year, with 30,000 metres of drilling planned.”
Huge resource growth
The resource for Golden Summit has grown enormously since Freegold’s initial report in 2011, which outlined 7.79 million indicated tonnes grading 0.69 gram gold for 174,000 oz.; and 27 million inferred tonnes at 0.60 gram gold for 526,000 ounces.
Freegold shares shot up to C$1.44 apiece on Thursday at mid-day, for a market capitalization of C$765.42 million.
Thursday’s update incorporates results from more than 25,000 metres of drilling done last year, as well as recoveries from Freegold’s metallurgical program.
Upgrading to indicated
This year’s drill program is focused on upgrading inferred resources to indicated in support of a pre-feasibility study scheduled to start later in the year. The program is to comprise infill and expansion drilling and grade enhancement.
Drilling should also enhance the resource and define a smaller, higher-grade starter pit, with the aim of reducing operating and initial capital costs.
A 2016 preliminary economic assessment for Golden Summit gives it a post-tax net present value (at 5% discount) of $188 million, an internal rate of return of 19.6% and a payback period of 3.3 years. Initial capital costs are pegged at $88 million. The mine could produce 2.36 million oz. over a 24-year life, with average annual production of 96,000 ounces.
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Freegold Ventures’ (TSX: FVL) shares soared to a five-year high on Thursday after a resource update for the company’s Golden Summit project in Alaska lifted the contained indicated metal by 42% to 17.2 million ounces.
The update gives the project in central Alaska 431.94 million indicated tonnes grading 1.24 grams gold per tonne, a 15% increase in grade over the previous estimate from September 2024, Freegold said on Thursday. Inferred resources now total 357.61 million tonnes at 1.04 grams gold, while contained gold increases by 16% to 11.9 million ounces.
Golden Summit is about 30 km northeast of Fairbanks and 6 km north of Kinross Gold’s (TSX: K; NYSE: KGC) Fort Knox mine.
“[The update] highlights the potential of Golden Summit and emphasizes the need for perseverance in some projects,” Freegold President and CEO Kristina Walcott said in an email to The Northern Miner. “The past five years have been transformative for the company, and we expect 2025 to be another exciting year, with 30,000 metres of drilling planned.”
Huge resource growth
The resource for Golden Summit has grown enormously since Freegold’s initial report in 2011, which outlined 7.79 million indicated tonnes grading 0.69 gram gold for 174,000 oz.; and 27 million inferred tonnes at 0.60 gram gold for 526,000 ounces.
Freegold shares shot up to C$1.44 apiece on Thursday at mid-day, for a market capitalization of C$765.42 million.
Thursday’s update incorporates results from more than 25,000 metres of drilling done last year, as well as recoveries from Freegold’s metallurgical program.
Upgrading to indicated
This year’s drill program is focused on upgrading inferred resources to indicated in support of a pre-feasibility study scheduled to start later in the year. The program is to comprise infill and expansion drilling and grade enhancement.
Drilling should also enhance the resource and define a smaller, higher-grade starter pit, with the aim of reducing operating and initial capital costs.
A 2016 preliminary economic assessment for Golden Summit gives it a post-tax net present value (at 5% discount) of $188 million, an internal rate of return of 19.6% and a payback period of 3.3 years. Initial capital costs are pegged at $88 million. The mine could produce 2.36 million oz. over a 24-year life, with average annual production of 96,000 ounces.