Home » News » PRELIMINARY ECONOMIC ASSESSMENT OF NORTHERN FREEGOLD’S NUCLEUS AND REVENUE DEPOSITS GENERATES $615 MILLION NPV AND 23% IRR

PRELIMINARY ECONOMIC ASSESSMENT OF NORTHERN FREEGOLD’S NUCLEUS AND REVENUE DEPOSITS GENERATES $615 MILLION NPV AND 23% IRR

Feb 20, 2013

Northern Freegold Resources Ltd. has released the results of a National Instrument 43-101-compliant preliminary economic assessment for the Nucleus and Revenue deposits at the road-accessible Freegold Mountain project in Yukon, Canada. The project is 100% owned by Northern Freegold (the “Company”).

The PEA was prepared by GeoVector Management Inc. The PEA was prepared as an open pit mining project. The project expects to yield a pre-tax net present value of $614.8 million and an internal rate of return (“IRR”) of 23.4% at a 5% discount rate using three year trailing average prices of US $1455 per ounce gold, $3.65 per pound copper, $14 per pound molybdenum(1), and $27.55 per ounce silver respectively. At recent prevailing spot commodity prices the pre-tax NPV (5%) and IRR increase to $779.6 million and 29.7% respectively. The results of the PEA demonstrate the potential technical and economic viability of a new gold with copper and molybdenum mine on the property. All $ are Canadian except where indicated.

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