Gold mining in the United States continues to generate traction with an estimated 170 metric tons produced from mines across the country in 2022, according to data from Statista.
Alaska produced roughly 22,200 kilograms of gold from mines in 2022, and companies such as Freegold Ventures (TSX:FVL) are ramping up efforts in the Northwest region of the continent.
The exploration-stage company recently revealed additional results from the 2024 drilling program at its Golden Summit project just outside Fairbanks, Alaska.
Freegold reports promising results from Golden Summit
Freegold Ventures’ revealed significant progress from its 2024 drilling program at the Golden Summit project in mid-November. The latest phase includes the strategic drilling of four key holes aimed at facilitating additional metallurgical testing and improving the understanding of the deposit’s potential.
These holes, totaling approximately 2,400 meters of ½ PQ core (20 tons), have been shipped to BaseMet Labs in Kamloops, BC, where extensive metallurgical testing is currently underway. The testing will focus on the comminution characteristics of the deposit’s primary lithologies and alteration zones.
Earlier metallurgical test work has already shown promising results, with an average recovery rate of 77 per cent using gravity separation and CIL (carbon-in-leach) methods. Notably, the company expects flotation and oxidation processes to further increase recoveries to over 90 per cent.
In response to the positive preliminary results from Hole GS2421, a third drill rig was added in late October. Hole GS2434 is being drilled 75 meters southwest of Hole GS2421, and one additional hole is planned in the Cleary area before the seasonal shutdown
This expanded testing program, which includes additional leach, gravity, CIL, BIOX®, POX, and Albion® test work, will provide critical data for future trade-off studies aimed at optimizing processing and enhancing project economics.
For investors, these advancements are a strong signal of Freegold’s commitment to unlocking the full value of its Golden Summit project. With metallurgical recoveries expected to exceed 90%, the Company’s prospects for developing a high-return, low-cost gold operation continue to strengthen. The results from this ongoing testing program will be key in guiding future development decisions and may significantly impact the project’s economics, positioning Freegold for continued growth in the gold sector.
The testing is expected to take several months to complete, with results to be shared as they become available.
Key Highlights
GS2421 – Higher grade continuity intersecting one of highest and broadest intercepts in the eastern section of the resource.
- 115.5 metres at 1.17 g/t Au starting at 197.5 metres
- 42 metres at 3.62 g/t Au from 361 metres
GS2418 – A significant broad zone of mineralization, including multiple higher-than-resource grade intercepts, underscores the potential of the Main Dolphin Zone.
- 23.7 metres at 3.06 g/t Au starting at 95 metres
- 59.7 metres at 1.61 g/t Au starting at 317 metres
- 51.8 metres at 1.56 g/t Au starting at 407.8 metres
Freegold upgrades resource estimate at Golden Summit
The company’s recent drill results follow the expansion and upgrading of the resource estimate at Golden Summit.
In September, Freegold stated it revised the estimate by incorporating data from the 2023 drilling program and the initial two holes of the 2024 program, representing a significant milestone in its exploration and development activities.
Some of the upgrades include:
- Indicated Primary Mineral Resource of 12.1 million ounces at 1.08 g/t gold, up 8 per cent and 9 per cent respectively
- Inferred Primary Mineral Resource: 10.3 million ounces at 1.04 g/t gold, up 45 per cent and 13 per cent, respectively
- Primary Resource reported above a 0.50 g/t gold cut-off grade
- A significant oxide resource also exists at 0.9 million ounces at 0.49 g/t gold (indicated), up 43 per cent and 23 per cent, respectively
The latest resource estimate shows an increase in the resource size and a notable improvement in grade. In other words, the estimate shows that Golden Summit has a substantial resource and represents a development opportunity thanks to its proximity to infrastructure, road accessibility, proximity to a supply centre, and an available labour force.
Moving forward, as Freegold continues drilling at the project, further drilling will focus on improving the ore quality.
Notably, since 2020 the company completed more than 123,000 metres of drilling, making Golden Summit one of North America’s largest undeveloped gold resources.
The investment opportunity
Freegold Ventures is focused on exploring copper and gold and holds two projects in the state – Golden Summit and Shorty Creek.
The company is strategically positioned in Alaska, which is home to some of North America’s largest undeveloped gold deposits – including the Golden Summit Project – making it an attractive opportunity for investors.
Case in point, the property has more than 80 documented gold occurrences, including the four highest-grade underground producers in the district, but remains largely unexplored outside.
As Freegold Ventures continues advancing the project, investors will also want to jump in on the opportunity before it’s too late.
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(Top image: Freegold Ventures)