Fremont Gold Ltd. (TSXV: FRE) (OTCQB: FRERF) (FSE: FR20) ('Fremont' or the 'Company') is pleased to announce that it has signed a letter of intent pursuant to which it has been granted an option to acquire up to 100% interest in Mendia Resources Corp. ('Mendia'), an Armenian corporation, by Mendia's sole shareholder (the 'Optionor').
Mendia holds the exploration license over the Vardenis copper-gold project in central Armenia.
Additionally, the company is pleased to announce the filing of 133 new claims in Nevada for the purpose of potentially advancing a world class Lithium resource. Initial geochemical results are expected before mid-year. Staking of other potential lithium prospects is ongoing.
Vardenis Cu-Au Property
The Vardenis copper-gold property is a high-sulfidation, possible Cu-porphyry mineralized system formerly held by Dundee Precious Metals Inc. between 2015 and 2018. It occurs 25 kilometers along strike and in the same Eocene volcanic sequences which host the 3-million-ounce Amulsar gold deposit being developed by Orion Mine Finance, Osisko Gold Royalties and Resource Capital Fund.
The terms set out in the letter of intent provide Fremont with the exclusive option to acquire up to 100% of Mendia via staged option payments over 4.5 years. The staged payments are as follows: On completion of the definitive agreement ('Closing'), the Company shall pay US$100,000 in cash and issue 500,000 Fremont common shares to the Optionor, and initiate specified exploration work on the Vardenis property, including a minimum of 2,500 meters of diamond drilling within 18 months; completion of which will earn the Company a 51% equity ownership interest in Mendia; 18 months following Closing, the Company shall pay an additional US$150,000 in cash, issue 700,000 Fremont common shares to the Optionor, and initiate further exploration work on the Vardenis property, including an additional 5000 meters of drilling within 3 years following Closing; completion of which will earn the Company an additional 29% equity ownership interest in Mendia (for a total of an 80% equity ownership interest); 36 months following Closing, the Company shall pay an additional US$100,000 in cash, issue 1,000,000 Fremont common shares to the Optionor, and initiate additional exploration work including a preliminary economic assessment (PEA) level study within 4.5 years following Closing; completion of which will earn the Company an additional 10% equity ownership interest in Mendia (for a total of a 90% equity ownership interest); Subsequent to the Company's acquisition of a 90% interest in Mendia, the Optionor has the right to retain a 10% interest in Mendia by contributing 10% of costs moving forward; If the Optionor declines this right, the Company has the option to purchase the remaining 10% equity in Mendia for $US3,500,000 in either cash or equivalent in Fremont shares. If this option to purchase the remaining 10% is not exercised by the Company, and the Optionor does not meet their contribution commitments, the Optionor's residual interest in Mendia will be converted to a 1.0% net smelter return royalty once their interest falls below 5%.
Closing is subject to the satisfactory completion of due diligence and the execution of a definitive option agreement with the Optionor on or before June 20, 2023. The definitive agreement will include customary provisions, representations, covenants and conditions which are typical for a transaction of this nature as well as provisions relating to dilution, governance and the terms of the net smelter return royalty. Fremont as the optionee, has the right to withdraw from the agreement at any time, with 30 day's written notice.
Previous work on the Vardenis Property
Historic work on the Vardenis copper-gold property comprises early Soviet-era trenching and pits from the 1960s followed by more recent exploration undertaken by Canadian-based companies during the past decade. This recent work includes 1,246 meters of diamond drilling in seven holes, over 4,000 geochemical samples (both soils and streams), alteration mapping and trenching. This work has defined a NW-SE somewhat ring-shaped, gold-in-soil anomaly approximately seven kilometers in length, as well as a separate 3.6 x 2.0-kilometer copper anomaly located 1.4 kilometers to the south of the gold anomaly.
The seven drill holes were confined to a relatively small area on the western end of the gold anomaly. Four of those holes are just outside, but right along the edge of Mendia's current license area (due to watershed issues). The best results of this limited program returned 11.9 m @ 1.92 g/t Au and 18 m @ 0.58 g/t Au in holes 2 and 6, respectively; the latter hole occurs within Mendia's current license. Additionally, 15 trenches were excavated in a gold-anomalous area named the Archuk target on east side of the license. All trenches returned values averaging a minimum of 0.5 to >1 g/t Au, with a best result of 26m @ 3.65 g/t Au. This area has not been drilled.
Lithium project in Nevada
The increased demand for lithium in the EV market has led to a rapid expansion of lithium exploration and attendant junior explorers in prospective jurisdictions such as Nevada, Argentina and Chile. This has led to the discovery of several world-class deposits in Nevada such as Rhyolite Ridge (Ioneer, INR-ASX) and the Thacker Pass deposit. The latter is owned by Lithium Americas Corp. (approx. $3.2 billion market cap), and is located within the McDermitt caldera of northern Nevada.
As the Company has significant gold projects in Nevada, administered by a very experienced Nevada-based team, management decided to exploit this in-house expertise to search for prospective lithium deposits. Fremont's Nevada exploration group is headed by Vice President Dr. Clay Newton, a PhD structural geologist who has worked over 25 years in Nevada and explored for numerous commodities during his long career, including rare earths and lithium.
Dr. Newton explains, 'In Nevada, there are two main types of lithium deposits - lithium brines and lithium-bearing clays. Lithium brines are found in closed evaporative basins in which there is ample water inflow into the basin but no outflow. Lithium, boron, and alkali elements are residually enriched as the playa lake water evaporates.
Lithium-bearing lake sediments, also common in arid evaporative basins, may also contain clays that are enriched in lithium and boron. The lithium may either be sourced from weathered and eroded felsic volcanic rocks surrounding the basin or from intra-basin ash and felsic tuffs'.
Dr. Newton continues, 'Diamond Valley, in Eureka County, is a large completely enclosed basin, that in the past held large lakes as evidenced by terraces cut high into the surrounding hills. Surface water and shallow groundwater flows from south to north in the basin, converging in the northern end, where there is always a seasonal playa lake. The southern part of the valley has for generations provided ample fresh groundwater for farming irrigation. However, the northern end of the basin has been known for decades to host more caustic groundwater than the southern part. Water from the northern end of the basin exceeds safe drinking water standards for multiple chemical constituents and total dissolved solids (from Eureka County Water Resources Master Plan, 2016). Additionally, there are very abundant artesian springs in the northern part, bringing deeper water to the surface, and some of the springs are warm water, indicating geothermal heating, another important element for hydrothermal leaching of intra-basin ash.
About Fremont
Fremont's mine-finding management team has assembled a portfolio of high-quality Nevada gold and lithium projects with the goal of making a new discovery. The Company has also been seeking world-class mineral opportunities within the central Tethyan belt of Armenia and Georgia. Besides Cobb Creek, Griffon, and Hurricane in Nevada, Fremont has applied for an exploration license over the Urasar area in northern Armenia.
Contact:
Tel: +351 9250 62196
Forward looking statements
Certain statements and information contained in this press release constitute 'forward-looking statements' within the meaning of applicable Canadian securities laws. Such forward-looking statements are based on several material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause the completion of the Private Placement or the actual use of proceeds to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Actual results and future events could differ materially from those anticipated in such statements. Fremont undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
FREMONT GOLD LTD. 
