FreeGold eyes potential of Fairbanks district

In Alaska’s Fairbanks district, field work has begun on ground held by International FreeGold Mineral Development (VSE).

Up to 10,000 ft. of reverse-circulation drilling, along with soil auger sampling, are planned for the Tolovana property, which lies adjacent to the company’s Golden Summit project. The area comprises widespread gold anomalies in a granodiorite intrusive environment.

To acquire Tolovana, FreeGold must make advance royalty payments totalling US$300,000 over 10 years, as well as spend US$300,000 on exploration. It can purchase the property outright for US$2.4 million until June, 1999, escalating to a maximum US$3.9 million by June, 2005.

Exploration work is also planned for Golden Summit, which comprises 23,000 acres east of La Teko Resources’ (VSE) True North property. It is adjacent to Amax Gold’s (NYSE) Fort Knox project.

FreeGold can earn up to a 60% interest in Golden Summit.