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Clarence-Stream
CLARENCE STREAM - NEW BRUNSWICK (100%)
PROPERTY HIGHLIGHTS
Advanced exploration project with an Indicated Mineral Resource of 815,000 tonnes grading 8.99 g/t gold or, 235,000 ounces of gold (NI 43-101 compliant)
Inferred Mineral Resource of 660,000 tonnes grading 7.35 g/t gold or 156,000 ounces of gold is also present (NI 43-101 compliant)
Indicated Mineral Resource of 7.3 million pounds of antimony (NI 43-101 compliant)
The limits of gold mineralization have yet to be defined as all of the gold zones remain open along strike and to depth: accordingly the potential to significantly increase the mineral resource is felt to be excellent
PROPERTY DESCRIPTION AND LOCATION
The 100%-owned Clarence Stream property consists of 706 mineral claims comprising 11,296 hectares. It is well-located, 70 km south-southwest of Fredericton and 25 km north-northwest of the town of St. George in Charlotte County, south-western New Brunswick. Saint John a major city and seaport, is located 110 km to the east-southeast of the property. Clarence Stream is also situated 10 kilometres to the west of the former-producing Mount Pleasant tin-tungsten-molybdenum mine, a facility that contains outbuildings, electricity and a fully-permitted tailings pond. Proximity to such infrastructure would impact favourably on capital costs, once a mineable resource is established at Clarence Stream.
EXPLORATION OVERVIEW
Freewest has systematically explored the Clarence Stream property for the last 8 years in exploration programs involving geological mapping, soil sampling, airborne and ground geophysical surveys, trenching and diamond drilling. Diamond drilling has outlined mineralization with three dimensional continuity and size and grades that can potentially be extracted economically.
Such efforts have resulted in the discovery of 10 new gold deposits occurring in 2 distinct clusters. Of the 10 gold occurrences, 6 are located proximal to the Saint George Batholith and the remaining 4 are located distal to it. The southern cluster or Proximal deposits are comprised of the Central, A, N, West, Cox and the East zones. The northern cluster known as the Distal deposits, consist of the AD, MW, 93 and Murphy zones.
The Proximal deposits are hosted within a steeply-dipping east-northeast trending high strain zone occurring over a minimum 2 kilometre strike length. Gold mineralization occurs in quartz veins, quartz stock-work and disseminations within gabbroic and granitic intrusive rocks and metasedimentary rocks of the Waweig Formation. In contrast, the Distal deposits are hosted within a flat-lying bowl-shaped structure with an average thickness of about 3 metres. Gold mineralization occurs in quartz veins and cataclasite within greywacke and argillite of the Kendall Mountain Formation.
RECENT DEVELOPMENTS
In October 2007, Freewest signed an agreement with Rockport Mining Corp on its Clarence Stream property. Under the agreement terms, Rockport may earn a 30% interest in the property by spending $3,000,000 on exploration on or before October 2008. They can earn an additional 30% interest (50% cumulative) by spending $4,500,000 on exploration on or before October 2011. Upon Rockport earning a 50% interest, it may elect to earn an additional 15% (65% cumulative) by funding the property through to a feasibility study. Rockport also undertakes on a best-efforts basis, to assist Freewest in financing its share of capital costs required for production, as outlined in the feasibility study.
MINERAL RESOURCES
Roscoe Postle Associates prepared a Mineral Resource estimate (NI 43-101 compliant) of the Clarence Stream deposits in June 17, 2008 using digital drill hole data supplied by Freewest. Gold resources were estimated for 29 mineralized zones comprising the Proximal and Anomaly-A (Distal deposits).
Gold Mineral Resources as of February 2008
Freewest Resources Canada Inc. and Rockport Mining Corp.
Clarence Stream Project
Area
Category
Tonnes
Au
Au
Uncut Au
Uncut Au
(t)
(g/t)
(oz)
(g/t)
(oz)
Proximal
Indicated
629,000
6.64
134,000
9.13
185,000
Inferred
425,000
5.69
78,000
6.32
86,000
Anomaly-A
Indicated
185,700
7.56
45,100
8.51
51,000
Inferred
235,000
6.38
48,000
9.22
70,000
Total
Indicated
815,000
6.85
179,000
8.99
235,000
Inferred
660,000
5.94
126,000
7.35
156,000
Notes:
CIM Definitions were followed for Mineral Resources.
The cut-off grade of 3 g/t Au was estimated using a Au price of US$650/oz and assumed operating costs.
Wireframes at 3 g/t Au and a minimum thickness of two metres were used to constrain the grade interpolation.
High gold grades were cut to 30 g/t prior to compositing. Uncut average grades are listed for comparative purposes only.
Several blocks less than 3 g/t Au were included for continuity or to expand the lenses to the two metre minimum thickness.
Roscoe Postle Associated also estimated antimony mineral resources for parts of two gold zones including the MW and AD zones, both of which comprise the Distal deposits.
Antimony Mineral Resources
Freewest Resources Canada Inc. – Clarence Stream
Area
Category
Tonnes
Cut Sb
Cut Sb
Cut Au
Cut Au
(t)
(%)
(lbs)
(g/t)
(oz)
Anomaly-A
Indicated
126,000
2.3%
6,395,000
7.23
29,272
Inferred
5,000
2.8%
311,000
6.35
992
Notes:
CIM definitions are followed for Mineral Resources.
High antimony assays are cut to 24% prior to compositing.
A minimum thickness of two metres is used.
Gold resources are included in Table 1-1.
METALLURGY
Bench-scale testing of diamond drill core from the Central Zone, the largest of the Proximal deposits, was completed by CANMET Mineral Technology Branch of Natural Resources Canada. The testing indicates a head grade of 8.00 g/t gold and that an overall recovery of greater than 90.6% is achievable through gravity separation and cyanidation of Central Zone ore.
Gold recovery tests were also completed for the AD Zone, the most prominent of the Distal deposits. The tests reveal that the head grade of the AD Zone is 6.48 g/t gold and that an encouraging 90.4% of the gold can be recovered by gravity separation and cyanidation of the ore.
Due to the significant antimony of the AD Zone, additional testing was performed by floatation methods to allow for the recovery of antimony minerals without hindering the recovery of gold. A very high recovery of 92.0% was obtained for antimony and gold by floatation, yielding a rough scavenger grade of 17% antimony and 54.0 g/t gold at this recovery. With further floatation testing, it is anticipated that the recovery and grade of the concentrate will substantially increase for both antimony and gold.
FUTURE WORK
Rockport will be funding an aggressive first-year, $3,000,000 exploration program at Clarence Stream in 2008, under the operatorship of Freewest. The objective is to increase the project’s resource base to the million ounce-plus range, at an accelerated rate. Freewest’s recent drill program successfully demonstrated the potential at depth in the Central Zone locale, featuring intercepts of 47.28 g/t gold over 2.00 metres (CS07-266), 6.59 g/t gold over 7.00 metres (CS07-264), 3.57 g/t Au over 7.00 metres (CS07-265), 6.90 g/t gold over 2.00 metres (CS07-267) and 4.22 g/t gold over 5.00 metres (CS08-271). Previous drilling efforts at the Central Zone and on all other parts of the Clarence Stream property have been shallow, generally above the 100-metre level (Figure 9). Drilling will continue for the duration of the year employing 2 drill rigs, in a concerted effort to substantially increase the gold mineral resource.
