Freewest Updates Exploration Activities on the George River Uranium Property and the Clarence Stream Gold Propertyadmin
Wednesday, August 9th 2006
Mackenzie I. Watson, President and CEO of Freewest Resources Canada Inc. is pleased to provide the following update on the Company’s exploration activities undertaken on the George River Uranium property located in Quebec and Newfoundland and Labrador well as the Clarence Stream gold property in New Brunswick.
GEORGE RIVER URANIUM PROPERTY:
Additional research, compilation and claim staking have recently been completed on this large prospective land package known as the George River property. The 100%-owned property currently comprises 3,247 mineral claims (7 discrete claim groups) totalling approximately 370,000 acres and is located in the George River area of north-eastern Quebec and north-western Labrador, approximately 175 kilometres north-east of Schefferville, Quebec and 125 kilometres west of the Voiseys Bay nickel-copper-cobalt deposit, currently being mined by Inco Limited in Labrador.
Based on extensive research and compilation of data bases involving Provincial and Federal Government lake and stream sediment geochemistry, geological maps, mineral occurrences, airborne geophysical surveys as well as satellite imagery, the Company is of the view that the George River property offers exceptional exploration potential for the discovery of early to mid Proterozoic-age uranium deposits of various styles (see Figure 1). Such styles of mineralization include unconformity-related uranium deposits, iron oxide-copper-gold-uranium deposits (IOCG) and disseminated intragranitic uranium deposits (see news release of May 11, 2006). Notably, the George River area of Quebec and Newfoundland and Labrador is virtually unexplored, particularly for uranium.
Unconformity-Related Uranium Deposits:
Unconformity-related uranium deposits typically consist of uranium concentrations occurring at the base of Proterozoic sandstone sequences where they unconformably overlie Archean to early Proterozoic metamorphic basement rocks. The underlying weathered basement rocks were the likely source of uranium that was taken into solution and subsequently precipitated at reduction fronts in the basement and overlying porous sandstone units at the confluence of structures and graphitic rock types. Greater than 30% of the world’s uranium production is from this deposit type and all of Canada’s current uranium production is from unconformity-related deposits in the Athabasca Basin of Saskatchewan. Deposits such as at Cigar Lake are very high grade, where the average grade is close to 20% U3O8.
The George River area is dominated by a large early Proterozoic sedimentary basin (180 kilometres by 50 kilometres) and several subordinate, early to mid Proterozoic sedimentary basins (50 kilometres by 15 kilometres). Such basins overlie Archean to early Proterozoic basement rocks comprising granite, granitic gneiss and mafic metavolcanic rocks. At several locales, the margins and interior of these sedimentary basins are coincident with well-defined uranium-arsenic in-lake sediment geochemical anomalies. A large uranium in-lake sediment anomaly situated to the west of the sedimentary basins is underlain by granite, a possible source area for the uranium (see Figure 2).
Iron Oxide-Copper-Gold Uranium Deposits:
IOCG deposits occur in intracratonic anorogenic provinces of Proterozoic age. These deposits are commonly linked to A and I-type peralkaline granites characterized by high heat flow. Mineralization occurs as magnetite, hematite, copper, gold, uranium, silver and rare-earth elements hosted in splays off major crustal-scale faults. The Olympic Dam IOCG deposit in Australia is the largest uranium deposit in the world, containing 2.0 billion tons of 1.6% copper, 0.60 g/t gold, 3.5 g/t silver and 0.06% uranium.
A peralkaline granite hosts the Strange Lake rare-earth element deposit situated in the immediate locale of one of the Company’s George River properties in Labrador. Such a property contains three eU/eTh airborne radiometric anomalies (indicative of high surface heat flow), an extensive uranium in-lake sediment anomaly and a historic uranium mineral occurrence, ensuring that this property will be a high priority area for the Company to explore for IOCG deposits in subsequent follow-up work. The Michelin deposit in the Central Mineral Belt of Labrador is an early Proterozoic-age uranium-rich end member of the IOCG family of deposits and contains 6.4 million tonnes at a grade of 0.13% U3O8.
Intragranitic Uranium Deposits:
Excellent potential exists on the George River property for disseminated intragranitic uranium deposits. Favourable areas for discovery include epicontinental sedimentary provinces with reduced and oxidized formations of early to late Proterozoic age intruded by alaskite, syenite and pegmatite. The largest deposit in the world of this type is the Rossing deposit in Namibia that contains 150,000 tonnes of U308.
Planned Exploration Work:
To create a geophysical data base to correlate with information compiled on the George River property and to help prioritize first-order exploration targets, a detailed 4000 line-kilometre airborne geophysical survey will be completed on the property. Such a survey will involve the monitoring and collection of gamma-ray spectrometer data (eU, eK, eTh), high sensitivity magnetometer data and frequency domain electromagnetic data. The integrated airborne geophysical survey is designed to assist in exploring for the various styles of uranium mineralization outlined above and is anticipated to commence in mid August. Upon completion of the airborne geophysical survey, a first-phase ground follow-up exploration program involving prospecting and reconnaissance geological mapping will be completed. It is expected that this program will commence during the latter part of August and run into early October.
Figures 1 & 2 comprise part of this news release and are posted on the Company’s website at www.freewest.com
CLARENCE STREAM PROPERTY:
Additional diamond drilling will be completed on the Clarence Stream property commencing in mid August. Such drilling will test several gold zones in the locale of the Central zone. The Central zone comprises an Indicated Mineral Resource of 347,904 tonnes at an uncut grate of 7.42 g/t gold, containing 82,952 ounces of gold. A number of additional deposits in the same locale comprise an Inferred Mineral Resource of 312,000 tonnes at an uncut grade of 6.88 g/t gold, yielding 69,000 ounces of gold.
It is also planned to drill test a number of gold-in-soil geochemical anomalies situated elsewhere on the large property in an effort to discover new zones to add to the gold resource base.
Donald Hoy, P. Geo., (Ontario), Vice President of Exploration and a Director of Freewest Resources Canada Inc., is responsible for the preparation of this news release.
Freewest is a mineral exploration company exploring for gold, base-metals and uranium in Eastern Canada. Corporate information can be accessed on the Internet at www.freewest.com. Freewest’s shares are listed on the TSX Venture Exchange.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
Mackenzie I. Watson Freewest Resources Canada Inc. President and CEO (514) 878-3551 or 1-888-878-3551 (514) 878-4427 (FAX) email@example.com
Source: Freewest Resources Canada Inc.