Foundation intersects 3.07 g/t gold over 13.9 m within 34.5 m zone averaging 1.93 g/t gold
Vancouver B.C. July 20, 2010: Foundation Resources Inc. (FDN: TSX-V) ["Foundation" or the "Company"] is pleased to announce the results from the first three recently completed drill holes of its 8,000 metre drill program on the East Coldstream Deposit (the "Deposit") located within its Coldstream Property in Ontario.
Key points Summary:
-3.07 g/t gold over 13.9 m within a 34.5 metre-wide zone averaging 1.93 g/t gold
-4.26 g/t gold over 4.8 m within a 26.15 metre-wide zone averaging 1.09 g/t gold
-5.47 g/t gold over 6.9 m within a 13.0 metre-wide zone averaging 3.06 g/t gold
Table of Significant Gold Assays
Drill Hole From(metres) To(metres) Width(metres) Gold(grams /tonne)
C-10-23 (North Zone) 80.40 114.90 34.50 1.93
Including: 95.30 109.20 13.90 3.07
106.20 109.20 3.00 5.25
112.65 114.90 2.25 3.0
(Main Zone) 205.90 227.10 21.20 0.72
Including: 205.90 207.15 1.25 3.56
214.25 214.85 0.60 4.52
225.85 227.10 1.25 2.90
C-10-24(Main Zone) 41.75 54.25 12.50 1.06
Including: 48.25 49.35 1.10 4.07
(North Zone) 152.85 179.00 26.15 1.09
Including: 157.45 162.25 4.80 4.26
C-10-25 (Main Zone) 105.75 157.30 51.55 0.82
Including: 105.75 113.95 8.20 1.80
149.70 157.30 7.60 2.65
(North Zone) 207.35 220.35 13.00 3.06
Including: 211.90 218.80 6.90 5.47
All three holes (C-10-23, C-10-24 and C-10-25) successfully intersected both the Main and North zones, located approximately 100 metres apart. Both zones were also drilled during Foundation's 2010 winter drill program and results from these zones were previously reported on March 29, April 6, and 21 2010. All of the drill holes from Foundation's current and previous drilling have intersected wide zones of gold mineralization, which include multiple zones of high-grade intersections in variable core lengths. Gold is associated with disseminated pyrite and occurs within strongly sheared and hydrothermally altered (silica, albite, sericite, magnetite and hematite) mafic to intermediate metavolcanics and quartz-feldspar porphyry intrusive rocks.
Drill hole C-10-23 was drilled at 160°/-53º to a depth of 267.31 metres, C-10-24 drilled at 337º/-48º to a depth of 252.07 metres, and C-10-25 was drilled at 334°/-50° to a depth of 288.65 metres. All intervals are represented as down hole core lengths. True widths are estimated at 70-75 percent of core length.
Paul Chung, CEO commented, "We are very pleased with our results so far. These long mineralized intersections confirm our belief in this property and continue to demonstrate that the gold mineralization extends to depth and expands upon mineralization delineated in previous drill programs."
2010 Summer Diamond Drilling:
The current 8,000-metre drill program is a continuation of the 2010 winter program. The program has been designed to increase confidence in the continuity of gold mineralization reported from historic drill holes and to expand the existing non-NI 43-101 compliant historical resource of 5.1 million tonnes grading 1.43 g/t gold (234,000 contained ounces of gold) calculated in 1991 by Noranda in three zones: the North, Main and East zones. Foundation is not treating the historical estimate as current mineral resources, as defined in NI 43-101, and thus the historical estimate should not be relied upon. Gold mineralization starts on surface and this historical resource estimate was based on relatively shallow drilling. The Sanders Zone, an additional mineralized zone, is situated 500 m northeast of the Main Zone and 125 m south of East Zone. The zone was drill-delineated by Lacana Mining Corp. ("Lacana") and Alto Ventures Ltd. ("Alto") in 1989 and 2006, respectively. Foundation tested the Sanders Zone with one drill hole (C-10-22) in the 2010 winter drill program, intersecting a 27.46-metre-wide mineralized zone averaging 1.16 g/t gold, including 10.05 g/t gold over 2.10 metres. The historical resource does not include the gold mineralization in the Sanders Zone, which may increase the gold resources of the deposit.
Quality Assurance/Quality Control:
Drill core processing included descriptive logging and selection of samples for geochemical analyses. The NQ2-size core was cut in two-halves using a stationary rock saw at the field camp in Kashabowie, Ontario. One-half of the core was delivered to the sample preparation lab of ALS Chemex Laboratory in Thunder Bay where they were crushed and a 1000-gram pulp was prepared. The pulp was then shipped to ALS Chemex Laboratory in North Vancouver, B.C. for analyses. The gold assaying method uses a standard Fire Assay with ICP-AES technique on a 30-gram pulp material taken from a 1000g split from the submitted sample. Any sample that exceeded upper detection limit of 10 ppm or grams was re-analyzed by the same Fire Assay method but with gravimetric finish. Commercially prepared standards and blanks were inserted by Foundation every 20 samples to insure precision of the results. ALS Chemex inserted its own standards, blanks and carried out duplicate analyses on sample pulps to ensure internal lab quality control. For regular Fire Assay technique with an ICP-AES finish, the lab inserted 1 blank at the beginning, 2 standards at random intervals, and 3 duplicates were analyzed at the end of the batch of every 84 samples. For the Fire Assay method with gravimetric finish, inserting 1 blank, 2 standards, and 1 duplicate followed the same procedure on a batch of every 20 samples.
About the East Coldstream Deposit:
The East Coldstream Deposit, which occurs within the 5,394 hectare Coldstream Property, is located along the Trans Canada Highway 115 km west of the City of Thunder Bay, Ontario. The area is road accessible and has excellent infrastructure with a major power line and CN rail line passing just north of the property. Skilled labour is readily available locally. Mineralization at the East Coldstream Deposit is hosted in intensely sheared, silicified and iron-carbonate altered mafic to felsic metavolcanics and porphyries in a zone extending northeast over a 1.5 km strike length.
Foundation has an option to earn up to a 70% interest in the Coldstream property from Alto. For more details regarding the Coldstream Property, please visit our website at www.foundationres.com.
Ike Osmani, P. Geo., who is President and the Qualified Person for Foundation, supervised the drill program, has reviewed and approved this news release.
About Foundation Resources Inc.:
Foundation is a mineral exploration company focused on exploration and development of high potential gold properties in Canada and Mexico. Its Coldstream Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada. The San Rafael property is located approximately 150km northwest of Durango in the Durango State, Mexico
On behalf of the board,
Paul Chung
CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
For further information contact:
Rain Communications
Nelson Da Silva Tel: 604-648-0523 (direct)
Ralph Biggar Tel: 604-306-2525 (direct)