Foundation drills 10.15 g/t gold at span lake prospect, coldstream property

Tuesday, Apr 17, 2012

Foundation Resources Inc. ("Foundation" or the "Company") is pleased to announce the results from three more exploratory holes drilled within the southeastern claims of the Span Lake area of the Coldstream Property ("Property"), northwestern Ontario (Figure 1). These holes were drilled to test the IP anomaly targets (IP-2) and potential continuity of the QES Zone extending from adjacent Moss Lake Gold Deposit (1.1 million ounces gold indicated and 0.52 million ounces gold inferred - Moss Lake Gold Mines news release dated July 14, 2010) onto the Coldstream Property. The Span Lake target is located approximately 8.0 kilometres southwest of the Osmani Gold Deposit which is host to 763,276 ounces gold Inferred (30.5 million tonnes at 0.78 g/t gold) and 96,400 ounces gold Indicated (3.5 million tonnes at 0.85 g/t gold). Results of the initial three holes from the southwestern Span Lake area (IP-1) have been reported on March 20, 2012.

"We are very pleased to report the results of the three exploratory drill holes, which intersected variably anomalous gold mineralization over relatively broad core lengths and indicating the mineralized horizon from southern Coldstream claims probably extends southwest into the QES Zone of the Moss Lake Gold Deposit," commented Ike Osmani, President and Director of Foundation.

To view Figure 1, click on the following link: http://media3.marketwire.com/docs/fdn416m.pdf

All three drill holes tested a strong to medium, linear chargeability anomaly (IP-2) coincident with a weak to moderate resistivity anomaly. The anomaly appears to be related to the Moss-Span-North Coldstream Deformation Zone, which is also associated with the adjacent bulk tonnage QES Zone of the Moss Lake Gold Deposit (Figure 1). As with the QES Zone, mineralization is hosted within intermediate to felsic metavolcanic rocks intruded by diorites and quartz-feldspar porphyry dikes with a varying degree of silica, sericite, albite and hematite alteration. Drill hole SL-11-15, intended to test a moderate chargeability anomaly, intersected 10.15 g/t gold over 0.50 metre within a 11.15-metre-wide zone averaging 1.00 g/t gold. This mineralized intercept occurs within a broad envelope of anomalous gold mineralization (63.0m averaging 0.50 g/t gold) which is on strike and most likely a northeast extension of the QES Zone.

Drill hole SL-11-16, collared 180 metres northeast of drill hole SL-11-15, testing the northeast continuation of gold mineralization from hole SL-11-15. The hole intersected multiple anomalous intercepts of anomalous gold mineralization of which the broadest intercept is 41.40-metre wide grading 0.24 g/t gold, including 1.09 g/t gold over 2.0 metres. Mineralization remains open upon encountering anomalous gold results at the end of the drill hole (0.54 g/t gold over 2.0m).

Drill hole SL-11-14 was collared approximately 520 and 340 metres northeast of SL-11-15 and SL-11-16, respectively, and was planned to test a weak and a strong chargeability targets coincident with moderate to weak resistivity anomaly. The hole intersected a near-surface anomalous mineralization over relatively broad core length (0.23 g/t gold over 23.00 metres).

Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person for the Coldstream Project supervised the drill program, has reviewed and approved the technical content of this news release.

Source: Marketwire