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    FVL   CA3564552048


Delayed Toronto Stock Exchange  -  12:10 2022-09-27 pm EDT
0.4300 CAD   +2.38%
08/13Freegold Ventures : Management Discussion and Analysis
08/12Freegold Ventures Limited Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2022
08/12Freegold Ventures Limited - Asante Announces Closing of Acquisition of the Chirano Gold Mine in Ghana
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Freegold Ventures : Management Discussion and Analysis

08/13/2022 | 02:13pm EDT

FORM 51-102F1




DATED: AUGUST 11, 2022

This discussion contains certain forward-looking information and is expressly qualified by the cautionary statement at the end of this Management's Discussion and Analysis("MD&A").


The 2022 and 2021 information set forth in this document should be read in conjunction with the condensed consolidated unaudited interim financial statements and related notes, prepared in accordance with IFRS, for the six-month periods ended June 30, 2022 and 2021.


The condensed consolidated interim financial statements are presented in United States Dollars ("U.S. Dollars"), unless otherwise specified. The functional currency of Freegold is Canadian Dollars. However, the functional currency of the Company's foreign subsidiaries is the U.S. Dollar. Accordingly, the condensed consolidated financial statements are presented in U.S. Dollars. Unless otherwise noted, all currency amounts presented in this MD&A are stated in U.S. Dollars.


Freegold is an exploration stage company engaged in the acquisition, exploration and evaluation of mineral properties of merit with the aim of developing them to a stage where they can be exploited at a profit or to arrange joint ventures whereby other companies provide funding for development and exploitation. The Company was incorporated in 1985 and is listed on the Toronto Stock Exchange under the symbol "FVL" and on the OTCQX Best Market, the top tier of the OTC Markets in the U.S. under the symbol "FGOVF". As of August 11, 2022, the Company had 352,541,869 shares outstanding. The Company has its registered corporate office in Vancouver, Canada.


The Company continues to focus its exploration activities in Alaska on its Golden Summit and Shorty Creek Projects.


The Golden Summit Project (the "Project") is a road accessible gold exploration project near Fairbanks, Alaska. The Project consists of a several long-term leases ("Keystone Claims", "Tolovana Claims", "Newsboy Claims", "Green Claims", "Chatham Claims" and "Alaska Mental Health Trust Property") and claims and lands owned by Freegold. The Project is subject to various fixed and sliding net smelter return royalties ("NSR's") ranging from 1% to 5% dependent on the price of gold. The Project is also subject to various payments and work commitments on an annual basis. In a deed conveying its remaining interest, Fairbanks Exploration Inc. ("FEI") reserved a 7%


working interest, which is held in trust for FEI by the Company on certain mineral claims. The Company will fund 100% of the costs until commercial production is achieved, and thereafter FEI must contribute 7% of any approved budget. These claims are subject to a 2% NSR to FEI unless otherwise noted. The Company has a 30-day right of first refusal in the event that the 7% working interest of FEI or the 2% NSR is to be sold. The Company can also purchase the 2% NSR at any time following commercial production, based on its net present value as determined by commercial ore reserves. Since September 2020, the Company has completed the acquisition of several mining claims within the Project area and finalized a mineral lease with the Alaska Mental Health Authority in early 2022 for an additional 1,818 acres immediately north of the Project, as part of its efforts to further consolidate its property position.

Freegold has been exploring the Project intermittently since 1992. Exploration activities have included ground and airborne geophysics, rock, soil and trench sampling and drilling (reverse circulation, rotary air blast and core). In addition, detailed geochemical and geophysical programs have been undertaken over the entire Project. The Project is host to several high-grade historical gold mines as well as significant historical placer gold production. It is estimated that some 6.75 million ounces of placer gold have been recovered from the streams that drain the Golden Summit Project area.

In 2011, the first resource estimate was completed and three additional resources updates were completed subsequently. The current technical report on the Project, entitled "Technical Report, Golden Summit Project, Preliminary Economic Assessment, Fairbanks North Star Borough, Alaska, USA" dated January 20, 2016 and Amended and Restated as of May 11, 2016 prepared by Tetra Tech, Inc. and Mark J. Abrams, C.P.G. and Gary Giroux, P. Eng., M.A.Sc. of Giroux Consultants Ltd. (the "Golden Summit Technical Report") has been filed under the Company's profile on SEDAR.

The preliminary economic assessment ("PEA") reflected in the Golden Summit Technical Report is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

The PEA evaluates a two-phase,24-year life of mine open pit mine generating two gold streams, each operating at 10,000 tonnes per day (tpd). Processing operations for the oxide and sulfide mineralized materials are heap leach and bio-oxidation, respectively. All values are presented in US$.

Based on a gold price of $1,300/oz, highlights of the PEA include:

  • A post-tax net present value using a 5% discount rate and an internal rate of return of $188 million and 19.6%, respectively;
  • A mine life of 24 years with peak annual gold production of 158 thousand ounces (koz) and average annual gold production of 96 koz;
  • 2,358 koz of doré produced over the life of mine;
  • Total cash cost estimated at $842/oz Au (including royalties, refining and transport);
  • Ability to execute Phase 1 with low initial capital; initial and sustaining capital costs, including contingency, estimated at $88 million and $348 million respectively;
  • A payback of 3.3 years post-tax; and


  • Favourable geopolitical climate; completion risk is ameliorated through strong legislative and financial support at state and federal levels.

Potential optimization of the Project includes the expansion of the oxide material, which may have the potential to increase the Project's overall IRR and NPV, by increasing the throughput during the oxide phase. During the 2017 season, a total of 27 holes were drilled in an area to the north of the current resource area. Using results of the previously completed RAB (Rotary Air Blast) drilling, ground resistivity and soil geochemistry, a series of vertical holes, spaced roughly 50 metres apart were completed. The hole pattern was designed to determine if the current oxide resource could be expanded to the north as well as to establish boundaries to the current oxide resource. The results of the 2017 program demonstrated the potential for expansion of the current oxide resource at Golden Summit to the north with the majority of the holes returning average grades above the oxide grade cut-off used in the 2016 PEA. The oxide resource is contained largely within the upper 200 feet (60 metres) of the surface. Golden Summit hosts numerous other significant exploration targets that may have the potential to host additional resources, and all of which would have the potential for an oxide cap within 200 feet (60 metres) of surface.

In 2020, a small-scale winter program commenced near the end of February to test a revised interpretation that there may be potential for a higher-grade corridor that could extend to the west of the old Cleary Hill Mine workings towards the Dolphin intrusive. Cleary Hill was district's highest grade producer and produced 281,000 ounces at an average grade of 1.3 oz/t before production ceased in 1942.

The program was suspended partway through the second hole in late March of 2020 as the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread has adversely affected workforces, economies, and financial markets globally, leading to an economic downturn.

On May 6, 2020, the Company announced assay results from the drilling completed until shutdown.

Significant results from drilling completed until program suspension in March 2020 are reported below:

Hole Number












































Width refers to drill hole intercepts, true widths cannot be determined due to uncertain geometry of mineralization.

Multiple intercepts of higher-grade mineralization within the projected extension of the Cleary Vein System ("CVS") were returned. The mineralization within the CVS is hosted within the schist and consists of discrete narrow veins, veinlets and stockworking within areas of silicification.

Hole GSDL2001 was drilled to a depth of 548 metres and intersected 188 metres grading 3.69 grams per tonne (g/t). Significantly, the last 20 metres graded 9.87 g/t Au, indicating the


system is open to depth. GSDL2001 was drilled within the footwall of the Dolphin intrusive and was hosted entirely in schist. GSDL2002, drilled 150 metres to the east of GSDL 2001, was drilled to a depth of 165 metres and had just intersected the projected CVS returning 2.4 g/t over 9 metres before drilling activities were suspended due to COVID-19. Drilling on this hole was resumed when the program restarted.

These intercepts successfully corresponded with Freegold's revised interpretation that the strike of the CVS may extend west of the old Cleary Hill Mine working towards the Dolphin intrusive in an area of limited previous drilling.

Following the announcement of the May 6, 2020 drill results at Golden Summit, the Company raised gross proceeds of Cdn$45,250,210 ($33,731,055) pursuant to three private placements (the "Private Placements"). Of the funds raised, Cdn$3,552,265 ($2,647,980) were closed by way of a brokered private placement and Cdn$41,697,945 ($31,083,075) were completed via subscription receipts (the "Subscription Receipts"), which were approved by the Company's shareholders on September 15, 2020 with the net proceeds received by the Company on September 21, 2020.

By mid-June, drilling recommenced with a Phase1 drill program (approximately 15-20 holes) starting with the completion of Hole GSDL2002 which was shut-down at 165 metres in March due to safety concerns resulting from COVID-19. This hole, located 150 metres to the east of GSDL2001, was drilled to a depth of 576 metres and intersected 136 metres grading 1.02 g/t Au from 370.6-507 metres. By December of 2020, 18 holes were drilled.

In February 2021, drilling recommenced at Golden Summit with an emphasis on continuing to delineate zones of higher-grade mineralization consistent with Freegold's re-interpretation, in particular the area to the north of the Dolphin intrusive. In addition, drilling was also directed to the south of the Cleary Hill mine workings where older workings included the Colorado, Wackwitz, and Wyoming vein zones which had not previously been tested to depth or along strike to the east. Past drilling in the Cleary Hill area has been largely shallow in nature and Freegold is interpreting that the Dolphin intrusive likely underlies the Cleary Hill area at depth. The 2021 program successfully intersected intrusive mineralization at depth in the Cleary Hill area, further strengthening Freegold's interpretation.

Over 38,000 metres of drilling were completed in 68 holes with an average hole depth of over 600 metres in 2021. Drilling for the year concluded in December 2021. Slow assay turnaround continued to be problematic. The Company continues to experience slow assay turnaround and in July of 2021 the Company also began shipping samples to Bureau Veritas Commodities Canada Ltd. for geochemical analysis in order to improve assay turnaround.

Overall, the Company's drill program continues to intersect mineralization at the interpreted depth and the program is systematically testing its interpretation. The holes are not only aimed at increasing the grade of the resource, but also aimed at upgrading the resource categories with tighter drill spacing and establishing boundaries to the mineralization. Although obtaining assays results has been slow, it is worth noting that the mineralized intercepts being returned are within the projected target zones.

Highlights of the 2020, 2021 and 2022 Drill Programs.

The current program has multiple objectives beyond expanding the existing resource and potentially increasing its grade, including:

  • Determining the orientation of the higher-grade mineralization;
  • Expanding the currently known resource and upgrading the resource categories as part of the efforts to further advance the Project;


  • Environmental baseline studies, metallurgical test work, and cultural resource studies; and
  • Testing other targets on the Project that may have potential to host additional resources throughout the project area. Ground geophysics and soil sampling have previously been conducted on these areas.

Results from the ongoing drill program continue to demonstrate the potential for more extensive and higher-grade gold mineralization that have potential to increase the overall resource grade as well as to expand the current resource. Holes have encountered broad zones of mineralization of above 1 g/t material over significant widths within the schists in the immediate footwall of the intrusive on the Dolphin side as well as intersecting what is interpreted to be the down dip extension of the CVS. Previous drilling in the Cleary Hill area was largely shallow in nature. Holes are intersecting broad zones of mineralization significantly above resource grade at their projected target depths. The zones are comprised of multiple veins, veinlets and stockwork within a broadly defined zone of mineralization.

Drilling will continue to focus on further expanding and defining the higher-grade CVS, the identification of which has significant implications for both the grade and tonnage potential of the Project.

There are three areas of focus for the ongoing program, the Cleary, Dolphin and Tolovana areas. To date a total of over 60,000 metres have been drilled since initiation of drilling in 2020, with the majority of drill holes being in excess of 500 metres depth. Drilling continues to demonstrate broad zones of mineralization, with numerous intercepts of greater than 1g/t Au over several hundred metres.

Several notable high-grade intercepts were drilled in the past two years. In particular, GS 2017 intersected 588 g/t Au over 1.7 metres. As a result, four holes were drilled 25 metres to the east (GS2118), west (GS2123), south (GS2126) and north (GS2121). Although drilled within 25 metres of GS2017, these holes did not intersect the same high-grade mineralization at the same depth as GS2017. Hole GS2121 did intersect a high-grade intercept of 609 g/t Au over 1.1 metres; within an intensively silicified quartz breccia, and the presence of visible gold was not noted. Perhaps, most significantly, Freegold's drilling is continuing to intersect multi-gram intercepts over significant widths with the Cleary Zone. The Cleary Zone historically consisted of sporadic high-grade intercepts within broader envelopes of lower grade.

On May 18, 2022, the Company reported assays from an additional 12 holes (6,091 metres) that were drilled during the 2021 program. Significant results included 2.49 g/t Au over 167.7 metres and 0.94 g/t Au over 617 metres.

On May 26, 2022, the Company reported assays from an additional 6 holes (3,559 metres) that were drilled during the 2021 program. Significant results included 1.36 g/t Au over 408.5 metres including 3.47 g/t Au over 85.3 metres.

On June 21, 2022, the Company reported assays from an additional 7 holes (4,164 metres) that were drilled during the 2021 and 2022 programs. Significant results included 2.18 g/t Au over 190.2 metres and 1.45 g/t Au over 207.2 metres.

On July 28, 2022, the Company reported assays from an additional 12 holes (7,668 metres) from both the 2022 and the 2021 programs. Significant results included 1.17 g/t Au over 203 metres including 2.19 g/t Au over 47.5 metres and 1.78 g/t Au over 206.8 metres including 2.49 g/t Au over 81.5 metres.

An updated resource calculation is scheduled to be completed in 2022 and will incorporate the results of the oxide expansion drilling conducted in 2017. Over 50,000 metres of drilling are expected to be included in this update.


This is an excerpt of the original content. To continue reading it, access the original document here.


Freegold Ventures Limited published this content on 13 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2022 18:12:04 UTC.

© Publicnow 2022
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Financials (USD)
Sales 2021 - - -
Net income 2021 -2,21 M - -
Net cash 2021 13,7 M - -
P/E ratio 2021 -58,5x
Yield 2021 -
Capitalization 113 M 113 M -
EV / Sales 2020 -
EV / Sales 2021 -
Nbr of Employees 4
Free-Float 69,1%
Duration : Period :
Freegold Ventures Limited Technical Analysis Chart | MarketScreener
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Technical analysis trends FREEGOLD VENTURES LIMITED
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 1
Last Close Price 0,42 CAD
Average target price 1,50 CAD
Spread / Average Target 257%
Managers and Directors
J. Kristina Walcott President, CEO & Non-Independent Director
Gordon Steblin Chief Financial Officer
Ronald Allen Ewing Chairman
Gary Robert Moore Independent Director
Garnet Linn Dawson Independent Director
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