Foundation drills 27.28 m of 4.88 g/t Au at Coldstream

2010-03-29 16:47 ET - News Release

Mr. John Hiner reports

FOUNDATION INTERSECTS 27.3 METRES OF 4.88G/TONNE GOLD AT COLDSTREAM

Foundation Resources Inc. has released the results from the first two holes of the recently completed 2010 winter drilling program on the East Coldstream deposit located on its Coldstream property in Ontario. Foundation has an option to earn up to a 70-per-cent interest in the Coldstream property from Alto Ventures Ltd.

Key points summary:

• 13.55 grams per tonne gold over three metres intersected within a 27.28 metre-wide zone averaging 4.88 g/t gold;
• Multiple higher-grade sections: 11.80 g/t gold over 1.20 m, within a 47.25 metre-wide zone averaging 1.30 g/t gold;
• Results still pending from seven remaining completed drill holes.

The first two holes (C-10-14 and C-10-15) are located 50 metres apart from each other and were drilled at the main zone of the deposit. Both drill holes intersected wide zones of gold mineralization, which include multiple higher-grade intersections. Gold in both drill holes is associated with 1 to 8 per cent disseminated to blebby pyrite, and occurs within strongly sheared and hydrothermally altered (silica, albite, sericite, magnetite and hematite) zone of mafic to intermediate metavolcanics and quartz-feldspar porphyry intrusive rocks.

                  TABLE OF SIGNIFICANT GOLD ASSAYS
 
Drill hole       From(m)       To(m)      Width(m)     Gold(g/t)

C-10-14           190.45      237.70         47.25          1.30
Inc.              192.30      198.20          5.90          3.01
                  216.95      218.95          2.00          6.15
                  227.30      229.75          2.45          9.62
                  228.55      229.75          1.20         11.80

C-10-15           169.45      196.73         27.28          4.88
Inc.              193.73      196.73           3.0         13.55

Drill hole C-10-14 was drilled at 157 degrees/minus 50 degrees to a depth of 358.75 metres and C-10-15, located approximately 50 metres south-southwest of C-10-14, was drilled at 160 degrees/minus 54 degrees to a depth of 297.79 metres. All intervals are represented as downhole core lengths, with the true widths estimated to be about 75 per cent of core length. Assay results for the remaining seven holes completed in the 2010 program will be released as they become available.

The nine-hole diamond drilling program, totalling 2,090 metres, was intended to infill gaps between the widely spaced historic drill holes to confirm and expand non-NI 43-101 compliant historical resources 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. An additional zone, the Sanders zone, is situated east of this historical resource, and was drill delineated by Lacana Mining Corp. and Alto Ventures Inc. in 1989 and 2006, respectively. Foundation tested the Sanders zone as part of the current drilling program and will release results as they become available.

Chief executive officer, John Hiner, commented: "We are obviously very pleased with these initial results. The goal of confirmation and expansion of the historic non-NI 43-101 compliant Noranda's resource is high on our list, as it fits with our business model of developing and expanding existing ounces in areas like East Coldstream. We look forward to continued success as we move this resource toward a NI 43-101 compliant status."

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, Ont. 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 1,000-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 1,000-gram split from the submitted sample. Any sample that exceeded upper detection limit of 10 parts per million or grams was reanalyzed 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 and blanks, and carried out duplicate analyses on sample pulps to ensure internal lab quality control. The lab for regular fire assay technique with an ICP-AES finish inserted one blank at the beginning and two standards at random intervals, and three duplicates were analyzed at the end of the batch of every 84 samples. For the fire assay method with gravimetric finish, inserting one blank, two standards and one duplicate followed the same procedure on a batch of every 20 samples.

Ike Osmani, PGeo, is the qualified person who has reviewed and approved this news release.

Foundation Resources

[email protected]

Ph:604-681-0405

For further information contact:

Rain Communications

Nelson Da Silva Tel: 604-648-0523 (direct)

Ralph Biggar Tel: 604-306-2525 (direct)