CLARENCE STREAM NEW BRUNSWICK, 100% WOLFDEN
Clarence Stream
CLARENCE STREAM
PROPERTY HIGHLIGHTS:

imgAdvanced exploration project with an Indicated Mineral Resource of 822,000 tonnes grading 6.90 g/t gold (cut) or 182,000 ounces of gold(NI 43-101 compliant)

imgInferred Mineral Resource of 1,226,000 tonnes grading 6.34 g/t gold (cut) or 250,000 ounces of gold is also present (NI 43-101 compliant)

imgIndicated Mineral Resource of 7.3 million pounds of antimony (NI 43-101 compliant)

imgThe limits of gold mineralization have yet to be defined as most of the gold zones remain open along strike and to depth: accordingly the potential to significantly increase the mineral resource is felt to be very good


PROPERTY DESCRIPTION AND LOCATION:

The 100%-owned Clarence Stream property consists of 793 mineral claims comprising 17,446 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 Resources Canada Inc. systematically explored the Clarence Stream property from 2001 through 2008 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. In all, Freewest completed 428 drill holes totalling 54,000 metres, for an average hole depth of 127 metres.

Such efforts 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 (see Clarence Stream Project, New Brunswick, Canada, Property Geology).

The Proximal deposits are hosted within a steeply-dipping east-northeast trending high strain zone occurring over a minimum 2 kilometre strike length. Such a structure has been traced intermittently by prospecting over a 12-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. The limits of the flat-lying structure and associated gold mineralization have yet to be defined by drilling.

Soil geochemistry completed at Clarence Stream has proven to be a very effective exploration tool in the discovery of gold deposits. All of the known gold zones are closely associated with gold-in-soil anomalies. Several gold-in-soil anomalies located well away and apart from the known mineral resources have yet to be drill tested.


MINERAL RESOURCES:

Roscoe Postle Associates prepared a Mineral Resource estimate (NI 43-101 compliant) of the Clarence Stream deposits on September 20, 2012 using digital drill hole data supplied by Wolfden. Gold resources were estimated for 29 mineralized zones comprising the Proximal and Anomaly-A (Distal deposits).

Area Category Tonnes (t) Gold Grade (g/t) Cut Contained Gold(oz AU) Cut Gold Grade (g/t) Uncut Contained Gold (oz AU) Uncut
Proximal Indicated 636,000 6.71 137,000 9.28 190,000
Inferred 991,000 6.33 202,000 7.64 243,000
Anomoly-A Indicated 186,000 7.56 45,000 8.51 51,000
Inferred 235,000 6.38 48,000 9.22 70,000
Total Indicated 822,000 6.90 182,000 9.11 241,000
Inferred 1,226,000 6.34 250,000 7.95 313,000

Notes:
1. CIM Definitions were followed for Mineral Resources.
2. Mineral Resources were estimated using an average gold price of US$1,000/oz and assumed operating costs.
3. Mineral Resources are based on a cut-off grade of 3.0 g/t Au.
4. Wireframes at 3.0 g/t Au and a minimum thickness of two metres were used to constrain the grade interpolation.
5. High gold grades were cut to 30 g/t Au prior to compositing. Uncut grades are listed for comparative purposes only.
6. Several blocks less than 3.0 g/t Au were included to expand the lenses to the two metre minimum thickness.

Roscoe Postle Associates 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 Inc. - Clarence Stream
Area Category Tonnes (t) Cut Sb (%) Cut Sb (lbs) Cut Au (g/t) Cut Au (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:
1. CIM definitions are followed for Mineral Resources.
2. High antimony assays are cut to 24% prior to compositing.
3. A minimum thickness of two metres is used.
4. 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.


EXPLORATION POTENTIAL AND FUTURE WORK:


The property hosts excellent expansion potential as evidenced by:

  • Only two (2) kilometres of the known 12 kilometre-long structure hosting the Proximal deposits has been tested by drilling. Eastern-most drill holes returned multiple intercepts including 12.45 g/t Au over 4.50 metres, 13.69 g/t Au over 2.00 metres as well as 9.50 g/t Au over 3.00 metres
  • The limits and extent of the flat-lying structure hosting the Anomaly A deposits has not yet been defined
  • Numerous untested gold-in-soil anomalies and surface showings containing visible gold located away from the known mineral resource, offer potential for new discoveries and the eventual adding to the gold resource (see Gold-in-Soil Geochemistry Map)


Management will evaluate the antimony market and its participants with a view to determining the potential value of the antimony resource to a third party.