FREEMAN GOLD AWARDED MINING WATER RIGHTS FOR LEMHI

Rhea-AI Summary

Freeman Gold Corp. (TSXV: FMAN, OTCQX: FMANF) has received approval for Water Rights (Permit No. 75-15005) from the Idaho Department of Water Resources. This permit allows the company to utilize up to 0.54 cubic feet per second of groundwater, essential for mining operations and domestic use in their Lemhi Gold Deposit area. The water usage aligns with typical consumption for gold mining, supporting projected extraction of up to 100,000 ounces annually. The Lemhi Gold Project, encompassing 30 square kilometers, holds a total resource estimate of 1,000,100 ounces of gold.

Positive

• Approval of Water Rights enhances operational capability for Freeman Gold.
• The permit secures exclusive groundwater rights in Lemhi Gold Deposit's basin.
• Potential to increase water usage authorization as the project advances.
• Total resource estimate increased to 1,000,100 ounces of gold.

Negative

• None.

• Idaho Department of Water Resources approved Freeman's Permit to Appropriate Water No. 75-15005
• Allows for water rights for both mining and domestic use in four sections within Freeman's patented mining claims
• Up to 0.54 cubic feet per second (~7.5 gallons) from ground water sources and maximum of 6,500 gallons per day for domestic use

Toronto Venture Stock Exchange: FMAN

VANCOUVER, BC, June 7, 2022 /PRNewswire/ - Freeman Gold Corp. (TSXV: FMAN) (OTCQX: FMANF) (FSE: 3WU) ("Freeman" or the "Company") is pleased to report it has received approval of a Permit to Appropriate Water ("Water Rights"). The Permit No. 75-15005 was approved May 23, 2022, by the Idaho Department of Water Resources ("IDWR"). Freeman's Water Rights are the only registered groundwater right in the Lemhi Gold Deposit's basin. The application's water usage of 0.54 cubic feet per second was based on typical maximum consumption rates for gold mining operations of up to 100,000 ounces of gold per year. The usage rates are subject to change and Freeman can submit an application to amend (increase) the authorization, if required, as the Lemhi Gold Project advances through engineering and economic studies.

"The approval is another key component of the development of the Lemhi Gold Deposit," stated Will Randall, CEO of Freeman. "These Water Rights concede Freeman the ability to use up to 0.54 cubic feet per second of water for a gold mining operation from aquifers that do not have any other conceded water permits. This is a crucial step in de-risking the project and demonstrates the value of mining-friendly tier-one jurisdictions such as Idaho."

The Permit allows for ground water use in Township 26N, Range 21E sections 28, 29, 32, 33 of 0.54 cubic feet per second ("CFS"; 242 gallons/min) and a maximum of 6,500 gallons per day for domestic use. The permit is a preliminary order issued pursuant to Rule 730 of the IDWR's Rules of Procedure. It can and will become a final order unless a party petitions for reconsideration, files an exception and brief, or requests a hearing within 14 days as of May 23, 2022. This period ended June 6, 2022.  

Lemhi Gold Deposit:

As of June 6, 2022, a total of 31 new drill holes have been completed at Lemhi for a total of 8,353 metres. These holes have been primarily designed to test on strike extensions of the known resource (23 drill holes) as well as infill in certain parts of the gold deposit (8 drill holes). In particular, the drill program has focused on areas currently modelled as pit waste because of no or sparse drill data. All ounces added in these areas, even if low grade, will add value to the project as it will be converting in pit waste material to resources. An additional 17 holes of approximately 4,400 m have been planned as part of the Phase 2 drilling program.

Fifteen drill holes from Lemhi have been logged, sampled and sent to the laboratory. Analytical results are pending and two drills continue to operate at Lemhi. 

About the Company and Project

Freeman Gold Corp. is a mineral exploration company focused on the development of its 100% owned Lemhi Gold property (the "Project"). The Project comprises 30 square kilometres of highly prospective land, hosting a near-surface oxide gold resource. The pit constrained National Instrument 43-101 ("NI 43- 101") compliant mineral resource estimate is comprised of 749,800 oz gold ("Au") at 1.02 grams per tonne ("g/t") in 22.94 million tonnes (Indicated) and 250,300 oz Au at 1.01 g/t Au in 7.83 million tonnes (Inferred). See the NI 43-101 technical report titled "Maiden Resource Technical Report for the Lemhi Gold Project, Lemhi County, Idaho, USA" with an effective date of June 1, 2021, and signing date of July 30, 2021, as prepared by APEX Geoscience Ltd. and F. Wright Consulting Inc. available under the Company's profile on SEDAR (www.sedar.com). The Company is focused on growing and advancing the Project towards a production decision. The technical content of this news release has been reviewed and approved by Dean Besserer, P.Geo., VP Exploration of the Company and a Qualified Person as defined by NI 43- 101.

On Behalf of the Company
William Randall
President and Chief Executive Officer

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.

Forward-Looking Statements: This press release contains "forward‐looking information or statements" within the meaning of Canadian securities laws, which may include, but are not limited to statements relating to further exploration, including proposed drilling, of the Lemhi Gold Deposit, the issuance of the Final Consideration Shares and regulatory approvals thereto, and the Company's future business plans. All statements in this release, other than statements of historical facts that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ from those in the forward-looking statements. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties, and assumptions. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.

View original content to download multimedia:https://www.prnewswire.com/news-releases/freeman-gold-awarded-mining-water-rights-for-lemhi-301562945.html

SOURCE Freeman Gold Corp.

FAQ

What is the significance of the water rights approved for FMANF?

The water rights enable Freeman Gold Corp. to support its mining operations and domestic needs in the Lemhi Gold Deposit area, which is vital for the project's development.

How much water can Freeman Gold Corp. use according to the permit?

The permit allows for up to 0.54 cubic feet per second of groundwater and a maximum of 6,500 gallons per day for domestic use.

What is the current resource estimate for the Lemhi Gold Deposit?

As of now, the Lemhi Gold Deposit has a total resource estimate of 1,000,100 ounces of gold.

What does the approval of the water rights mean for Freeman Gold's future operations?

The approval of water rights is a crucial step in de-risking the project and allows for potential growth in mining operations as they progress.