Drilling Indicates Continuity of Gold Mineralization at the Newly Expanded East Coldstream Deposit, Northwestern Ontario
Key Point Summary:
· 23.0 metre-wide zone averaging 1.04 g/t gold within 47.0 metre-wide mineralized envelope grading at 0.72 g/t gold: Hole C-11-62 (North Zone)
· 16.0 metre-wide zone averaging 1.06 g/t gold including 2.62 g/t gold over 4.0 m: Hole C-11-62 (Main Zone)
· 23.0 metre-wide zone averaging 1.0 g/t gold including 2.66 g/t gold over 5.75 m: Hole C-11-64 (Main Zone)
· 12.0 metre-wide zone averaging 1.14 g/t gold within 38.0 metre-wide mineralized envelope grading 0.54 g/t gold: Hole C-11-64 (North Zone)
Vancouver B.C. May 11, 2011: Foundation Resources Inc. (FDN: TSX-V) ("Foundation") and Alto Ventures Ltd. (ATV: TSX-V) ("Alto") or together "the Companies" are pleased to announce the results of three more holes from the Main and North zones of the East Coldstream Deposit ("Deposit") on their Coldstream Property ("Property") in northwestern Ontario. More drill results from the Deposit will be reported as they become available. The Deposit is currently subject to a NI 43-101 compliant resource calculation by Wardrop, a Tetra Tech Company (News Release dated March 01, 2011). Foundation is the operator of this program and owns a 60% interest in the Property and Alto owns the remaining 40%.
| Drill Hole | From (metres) | To (metres) | Width** (metres) | Gold** (grams /tonne) |
| C-11-62 | | | | |
| (Main Zone) | 25.00 | 41.00 | 16.00 | 1.06 |
| including | 35.00 | 39.00 | 4.00 | 2.62 |
| | | | | |
| (North Zone) | 87.00 | 134.00 | 47.00 | 0.72 |
| including | 87.00 | 114.00 | 23.00 | 1.04 |
| | | | | |
| C-11-64 | | | | |
| (Main Zone) | 104.00 | 110.30 | 6.30 | 1.52 |
| | 135.00 | 158.00 | 23.00 | 1.00 |
| Including | 152.25 | 158.00 | 5.75 | 2.66 |
| | | | | |
| (North Zone) | 216.00 | 254.00 | 38.00 | 0.54 |
| including | 216.00 | 228.00 | 12.00 | 1.14 |
| | | | | |
| C-11-69 | | | | |
| (Main Zone) | 100.00 | 106.00 | 6.00 | 0.74 |
**Mineralized zones generally start at 0.1 g/t gold and assay averages may include minimal
intervals of waste material. No top cuts of assays were used.
All intervals are represented as down-hole core lengths with true widths estimated at 70 to 75 percent.
Holes C-11-62 and 64 are infill holes to determine continuity of gold mineralization between the core of the Main Zone and drill holes C-11-58 and 60 (News Release April 20, 2011). Holes C-11-58 and 60 have expanded the Main Zone laterally by intersecting gold mineralization approximately 180 and 120 metres from the western limit of the previously defined Main Zone at their respective vertical depths of 100 and 160 metres. In addition to expanding the Main Zone, drill hole C-11-64 also extended the western limit of the previously defined North Zone's mineralized core by 65 metres at a vertical depth of 200 metres.
Drill holes C-11-62 and 64 each intersected an upper and a lower mineralized intercept, corresponding well with the interpreted Main and North zones, respectively. Hole C-11-62 intersected an upper 16.0 metre-wide intercept within the Main Zone, averaging 1.06 g/t gold, including 2.62 g/t gold over 4.0 meters. The lower intercept, corresponding to the North Zone, returned 1.04 g/t gold over 23.0 metres within a 47.0 metre-wide envelope averaging 0.72 g/t gold. Drill hole C-11-64 also intersected two gold intercepts, an upper and lower, corresponding to the Main and North zones. The upper intercept averages 1.0g/t gold over 23.0 metres including 2.66 g/t gold over 5.75 metres. The lower intercept, corresponding to the North Zone, returned 1.14 g/t gold over 12.0 metres within a 38.0 metre-wide envelope averaging 0.54 g/t gold. Drill hole C-11-69 returned 0.74 g/t gold over 6.0 metres.
About 2011 Winter Drilling
Of the 6,000 meters winter drilling program recently completed on the Property, approximately 3,000 metres were drilled with the objective of expanding the four zones (Main, North, East and Sanders) at the East Coldstream Deposit. The remaining 3,000 metres were utilized in exploring other areas of the Property such as the Iris Lake where the Companies have discovered new high-grade gold mineralization (e.g., 8.39 g/t gold over 11.0 m) in three holes (News Release -- March 22, 2011). The Iris Lake high-grade gold area is located approximately 1500 metres north of the East Coldstream Deposit.