Foundation drills 13.9 m of 3.07 g/t Au at Coldstream

2010-07-20 16:38 ET - News Release

Mr. Paul Chung reports

FOUNDATION INTERSECTS 3.07 G/T GOLD OVER 13.9 M WITHIN 34.5 M ZONE AVERAGING 1.93 G/T GOLD

Foundation Resources Inc. has provided the results from the first three recently completed drill holes of its 8,000-metre drill program on the East Coldstream deposit located within its Coldstream property in Ontario.

Key points summary:

• 3.07 grams per tonne gold over 13.9 metres within a 34.5-metre-wide zone averaging 1.93 g/t gold;
• 4.26 g/t gold over 4.8 m within a 26.15-metre-wide zone averaging 1.09 g/t gold;
• 5.47 g/t gold over 6.9 m within a 13-metre-wide zone averaging 3.06 g/t gold.

                       TABLE OF SIGNIFICANT GOLD ASSAYS
 
Drill hole          From (metres)   To (metres)   Width (metres)  Gold (g/t)   

C-10-23 (North zone)    80.40          114.90       34.50           1.93                 
Including               95.30          109.20       13.90           3.07                 
                       106.20          109.20        3.00           5.25                 
                       112.65          114.90        2.25            3.0                  
                                                                                        
(Main zone)            205.90          227.10       21.20           0.72                 
Including             205.90          207.15        1.25           3.56                 
                       214.25          214.85        0.60           4.52                 
                       225.85          227.10        1.25           2.90                 
                                                                                        
C-10-24 (Main zone)     41.75           54.25       12.50           1.06                 
Including               48.25           49.35        1.10           4.07                 
                                                                                        
(North zone)           152.85          179.00       26.15           1.09                 
Including              157.45          162.25        4.80           4.26                 
                                                                                        
C-10-25 (Main zone)    105.75          157.30       51.55           0.82                 
Including              105.75          113.95        8.20           1.80                 
                       149.70          157.30        7.60           2.65                 
                                                                                        
(North zone)           207.35          220.35       13.00           3.06                 
Including              211.90          218.80        6.90           5.47                  

All three holes (C-10-23, C-10-24 and C-10-25) successfully intersected both the Main and North zones, located approximately 100 metres apart. Both zones were also drilled during Foundation's 2010 winter drill program and results from these zones were previously reported in Stockwatch on March 29, and April 6 and April 21, 2010. All of the drill holes from Foundation's current and previous drilling have intersected wide zones of gold mineralization, which include multiple zones of high-grade intersections in variable core lengths. Gold is associated with disseminated pyrite and occurs within strongly sheared and hydrothermally altered (silica, albite, sericite, magnetite and hematite) mafic to intermediate metavolcanics and quartz-feldspar porphyry intrusive rocks.

Drill hole C-10-23 was drilled at 160 degrees or minus 53 degrees to a depth of 267.31 metres, C-10-24 drilled at 337 degrees or minus 48 degrees to a depth of 252.07 metres, and C-10-25 was drilled at 334 degrees or minus 50 degrees to a depth of 288.65 metres. All intervals are represented as downhole core lengths. True widths are estimated at 70 per cent to 75 per cent of core length.

Paul Chung, chief executive officer, commented: "We are very pleased with our results so far. These long mineralized intersections confirm our belief in this property and continue to demonstrate that the gold mineralization extends to depth and expands upon mineralization delineated in previous drill programs."

2010 summer diamond drilling

The current 8,000-metre drill program is a continuation of the 2010 winter program. The program has been designed to increase confidence in the continuity of gold mineralization reported from historic drill holes and to expand the existing non-National Instrument 43-101-compliant historical resource of 5.1 million tonnes grading 1.43 g/t gold (234,000 contained ounces of gold) calculated in 1991 by Noranda in three zones: the North, Main and East zones. Foundation is not treating the historical estimate as current mineral resources, as defined in NI 43-101, and thus the historical estimate should not be relied upon. Gold mineralization starts on surface and this historical resource estimate was based on relatively shallow drilling. The Sanders zone, an additional mineralized zone, is situated 500 m northeast of the Main zone and 125 m south of East zone. The zone was drill delineated by Lacana Mining Corp. and Alto Ventures Ltd. in 1989 and 2006, respectively. Foundation tested the Sanders zone with one drill hole (C-10-22) in the 2010 winter drill program, intersecting a 27.46-metre-wide mineralized zone averaging 1.16 g/t gold, including 10.05 g/t gold over 2.1 metres. The historical resource does not include the gold mineralization in the Sanders zone, which may increase the gold resources of the deposit.

Quality assurance/quality control

Drill core processing included descriptive logging and selection of samples for geochemical analyses. The NQ2-size core was cut in two halves using a stationary rock saw at the field camp in Kashabowie, Ont. One-half of the core was delivered to the sample preparation lab of ALS Chemex Laboratory in Thunder Bay where it was crushed and a 1,000-gram pulp was prepared. The pulp was then shipped to ALS Chemex Laboratory in North Vancouver, B.C., for analyses. The gold assaying method uses a standard fire assay with ICP-AES technique on a 30-gram pulp material taken from a 1,000-gram split from the submitted sample. Any sample that exceeded upper detection limit of 10 parts per million or grams was reanalyzed by the same fire assay method but with gravimetric finish. Commercially prepared standards and blanks were inserted by Foundation every 20 samples to insure precision of the results. ALS Chemex inserted its own standards, blanks and carried out duplicate analyses on sample pulps to ensure internal lab quality control. For regular fire assay technique with an ICP-AES finish, the lab inserted one blank at the beginning and two standards at random intervals, and three duplicates were analyzed at the end of the batch of every 84 samples. For the fire assay method with gravimetric finish, inserting one blank, two standards, and one duplicate followed the same procedure on a batch of every 20 samples.

About the East Coldstream deposit

The East Coldstream deposit, which occurs within the 5,394-hectare Coldstream property, is located along the Trans-Canada Highway, 115 kilometres west of Thunder Bay, Ont. The area is road accessible and has excellent infrastructure with a major power line and CN rail line passing just north of the property. Skilled labour is readily available locally. Mineralization at the East Coldstream deposit is hosted in intensely sheared, silicified and iron-carbonate altered mafic to felsic metavolcanics and porphyries in a zone extending northeast over a 1.5 km strike length.

Foundation has an option to earn up to a 70-per-cent interest in the Coldstream property from Alto.

Ike Osmani, PGeo, who is president and the qualified person for Foundation, supervised the drill program, has reviewed and approved this news release.