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Freeman Gold raises $13m for Lemhi project in Idaho

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Freeman Gold (CSE: FMAN) has upsized its private placement to $13 million from $10 million. The junior intends to spend the funds to advance its 100%-owned Lemhi gold project in Idaho. The property hosts a near-surface, high-grade oxide gold resource.

The company will issue approximately 37.1 million units at a price of 35¢ per unit. Each unit will consist of one common share and one-half of a share purchase warrant. Warrant holders may purchase shares for a period of five years at a price of 65¢ per share. The offering is expected to close by the end of this month.

Freeman published the initial pit-constrained resource estimate for the Lemhi project in June. The estimate includes an indicated resource of 22.9 million tonnes at 1.02 g/t gold for 749,800 oz. of gold. The inferred resource is 7.68 million tonnes at 1.01 g/t gold for 250,300 oz. of gold.

The estimate includes a surface area of 400 by 500 metres, extending to a depth of 180 metres below surface. The mineralization remains open on strike to the north, south and west as well as at depth. In calculating the numbers, the company used a $1,500 per oz. gold price and a cutoff grade of 1 g/t gold.

Freeman says there are two types of mineralization at Lemhi. The primary source is a halo around an intrusion, and the secondary source occurs along shallow dipping folds and faults.

Perhaps the best hole at Lemhi was reported when hole FG20-008C returned 174.2 metres trading 0.9 g/t gold, including 18.5 metres at 3.9 g/t.

(This article first appeared in the Canadian Mining Journal)

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