Freeman Gold Secures $4.8 Million for Lemhi Feasibility Study
Freeman Gold Corp. is excited to announce that it has successfully received CAD $4.8 million from the exercise of 60 million warrants. This significant funding is geared towards completing the much-anticipated feasibility study of the Lemhi Gold Project. Looking ahead, this financial boost enhances the potential for the project's success and longevity.
Importance of the Financing
Bassam Moubarak, the CEO, expressed gratitude for the shareholders' continued support and highlighted the strategic importance of this funding. He noted that the capital allows Freeman Gold to confidently proceed with the feasibility study being facilitated by Ausenco Engineering Canada ULC. This study is a vital step as it aims to solidify the economic viability of the Lemhi Gold Project.
Feasibility Study Details
The feasibility study will build upon the insights gained from the 2023 Preliminary Economic Assessment (PEA), which detailed a high-grade, low-cost open pit operation. The original assessment indicated an average annual production of approximately 80,100 ounces of gold during the initial eight years of operation, showcasing the project's promising capabilities.
Phased Development Strategy
The PEA outlined a phased development approach that strategically increases throughput in the fifth year of production. The use of a carbon-in-leach (CIL) processing facility aims to maximize efficiency and minimize environmental impact, positioning Freeman Gold as a responsible player in the mining sector.
Recent Drilling Programs and Exploration
Recently, Freeman Gold completed a supplementary 2,480-meter drill program focused on enhancing its resource estimates. This drill program had clear objectives: converting inferred resource ounces into measured and indicated categories and further exploring the northern and southern extensions of the property, including at the Beauty Zone.
Anticipated Results
The company expects to receive assay results from their recent reverse circulation drill program in early Q3. These results will be crucial in verifying the project's potential and in making informed decisions moving forward.
About Freeman Gold Corp.
Freeman Gold Corp. is a mineral exploration entity dedicated to developing the Lemhi Gold property, which spans 30 square kilometers. This site hosts a highly prospective near-surface oxide gold resource, displaying promising mineral estimates under NI 43-101 guidelines, totaling 988,100 ounces of gold at varying grades.
Goals and Future Plans
The company's goal is to grow and advance the Lemhi Gold Project toward a production decision. The project has seen extensive exploration, with over 525 drill holes and approximately 92,696 meters of drilling executed to date.
Price Sensitivity and Market Outlook
The recent price sensitivity analysis revealed a positive economic forecast for the project, showing an after-tax net present value (5%) of USD $329 million. With an internal rate of return of 28.2% based on a gold price of USD $2,200/oz, this positions Freeman Gold favorably against its peers in the mining industry.
Conclusion
Having secured robust funding and with a clear development strategy, Freeman Gold Corp. stands on the threshold of unlocking significant value from the Lemhi Gold Project. As they press forward with the feasibility study and the upcoming drill results, the company is primed for future advancements in the mining sector.
Frequently Asked Questions
How much funding did Freeman Gold Corp. receive?
Freeman Gold Corp. received CAD $4.8 million from the exercise of 60 million warrants.
What is the purpose of the funding?
The funding is primarily aimed to fully finance the feasibility study of the Lemhi Gold Project.
Who is conducting the feasibility study?
The feasibility study is being conducted by Ausenco Engineering Canada ULC.
What does the Preliminary Economic Assessment indicate?
The 2023 PEA outlines a high-grade, low-cost open pit operation with projected annual production of around 80,100 ounces of gold in the first eight years.
What are the exploration goals for Freeman Gold?
Freeman Gold aims to convert inferred resource ounces to measured or indicated categories and continue exploration in promising areas of the project.
