Foundations Summer Drilling Program Update: Coldstream Project, Ontario
Vancouver B.C. August 17, 2010:Foundation Resources Inc. (FDN: TSX-V) [“Foundation” or the “Company”] is pleased to update the progress of the summer drilling on its Coldstream project in Ontario. Approximately 50% of the 8,000 m diamond drilling program that commenced in early June 2010 on the Company’s East Coldstream Deposit (“Deposit”) has now been completed with the remaining expected to be completed by mid to late September. Results from the first three holes of the current program, including 3.07 g/t gold over 13.9 m within a 34.5 m wide zone averaging 1.93 g/t gold, were reported by Foundation on July 21, 2010. Additional drill results will be announced as they become available.
2010 Summer Diamond Drilling:
The current 8,000-metre drill program objectives are three-fold: (1) follow up on the positive results obtained from the winter 2010 drilling reported by Foundation on March 29, April 6 and April 21, 2010; (2) increase confidence in the continuity of gold mineralization reported from historic drill holes and; (3) 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.
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 supervising 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. Its 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)
