Freyja to start Las Cristinas drilling in April

Mar 25, 2014

FREYJA’S TO START DRILLING PROGRAM AT LAS CRISTINAS

Freyja Resources Inc. has received a drilling permit from the Secretary of the Ministry of Environmental and Natural Resources of Mexico (Semarnat). The permit covers areas of the Las Cristinas property, where drilling operations will not impact vegetation. The first phase of the drilling program, which is expected to start in April, 2014, will consist of approximately 1,000 metres, with more drilling targets to be identified in the coming weeks.

The drilling program’s main objective will be to delineate the initial open-pit production area within the 550-metre mineralized sections comprising the North Mount and South Mount, and to test the Southern extension. The work will focus on the oxide-copper-mineralized surface section and the sulphide copper/silver ore at depth. Assay results from the sampling program were announced by the company on Feb. 13, 2014, and delivered up to 17.95 per cent copper and 429 grams per tonne silver, including 64 samples from the South Mount that averaged 1.697 per cent copper and 10 g/t silver. From those 64 samples, the 41 samples that were taken within the estimated 30 metres of true width of the mineralized section averaged 2.454 per cent copper and 11 g/t silver. Results from the recently announced sampling program also included a number of higher-grade assays from the mineralized surface and underground workings, including a six-metre section on surface of the South Mount with 5.089 per cent copper and 20 g/t silver, and a contiguous underground channel sample of nine metres in the North Mount.

The company’s news release dated Feb. 13, 2014, can be found on the Cyprium Mining website.

The initial phase of the drilling program will focus on the southern end of the property, where small-scale copper production took place in the early 1970s. This area of the property has the benefit of hosting old underground workings, and includes several drifts and adits. All current access roads are located at the south end of the property. The Las Cristinas area is approximately 1.45 kilometres long by a width of up to 120 metres.

Commenting on the drilling program, Freyja’s president and chief executive officer, Andre St-Michel, stated: “The results from our extensive sampling program of the Las Cristinas area released in February gave us a clear indication of how we needed to plan the next phase of our exploration program, which consists of about 3,000 metres of drilling. With the drilling permit we have now obtained, we can proceed right away with the first phase of our drilling program.” Mr. St-Michel concluded: “We will continue to focus on the southern section of the property with a view of better delineating our production targets. We hope to complete this drilling program by the end of June.”

The current approved drilling sites and infrastructure cover areas subject to removal of vegetation, and include the construction of an access road with a length of up to 2,404 metres by approximately five metres wide and a total of 84 drilling pads with dimensions of six metres by five metres. Further environmental studies are currently being completed and are expected to be filed with Semarnat before the end of April, 2014, in order to extend the area of the property in which drilling is allowed.

In addition, the company supplements metallurgic tests to determine the recovery rates of copper and silver, and lixiviation tests are concurrently being conducted. This will provide an indication of costs. Following the drilling campaign and subject to results, the company intends to build on site a heap-leach pad. Investors should note that Freyja does not have a defined National Instrument 43-101 resource and that a feasibility study has not been completed. There is no certainty that the proposed operation will be economically viable.

About the Las Cristinas project

The Las Cristinas project includes four adjacent exploration concessions, which cover an area of 683 hectares in northeastern Mexico in the east-central part of the Chihuahua state. The permits for the concessions are granted under the authority and administrated by the Secretaria de Economia, Direccion General de Minas, Subdireccion de Mineria.

The Las Cristinas project is located in the basin and range belt of north Mexico, at 150 kilometres northeast of the town of Chihuahua. The project is in the centre of the Chorreras mineralized region, an area that contains numerous concentrations of iron, gold, silver, copper and zinc in epithermal/mesothermal vein deposits and in skarn deposits. The area is known by the presence of the copper hydrothermal veins in the Las Cristinas and El Caballo area. Within the Las Cristinas project permit area, the copper system is seen spasmodically over a seven-kilometre-by-300-metre area. The mineralization is characterized by copper carbonate (azurite, malachite, crisocole) with patches of iron sulphide (pyrite) and copper sulphide (chalcopyrite, bornite) in centimetric veins within a calcite/barite/hematite-vein environment, oriented 130 degrees and dipping 80 degrees southwest, intruding the Jurassic calcareous siltstone.

The geological information of this release has been verified by Jacques Marchand, PEng, PGeo, an independent qualified person.