Freegold Recommences Processing of Bulk Samples with Enhanced Gravity Plant at Golden Summit



    VANCOUVER, June 13 /CNW/ - Freegold Ventures Limited (TSX: ITF, OTCBB:
FGOVF, Frankfurt: FR4) is pleased to announce the resumption of its seasonal
bulk sampling program at the Golden Summit project located outside Fairbanks,
Alaska. Commencement of this first full processing season follows the recent
purchase and installation of additional processing equipment to enhance the
crushing and grinding capabilities of the Company's gravity-based gold
recovery plant. The decision to expand the plant was made upon the completion
of comprehensive metallurgical testing over the winter which showed that
significantly higher gold recoveries can be expected with smaller-sized
material processed through the plant. Recoveries ranging from 80 to 95% have
been achieved on 17 bulk sample composite samples that have been reduced to a
particle size in the laboratory that is reflective of the new crushing and
grinding capabilities of the plant. With composite head grades ranging from
1.9 g/t (0.055 oz/ton) to 44.6 g/t (1.3 oz/ton), the high gravity recoveries
seen across all sample grades reconfirms the coarse nature of the gold seen in
the previous test work and in the initial gravity concentration work.
    The primary purposes of the bulk-sampling program at Golden Summit are to
determine the continuity of gold mineralization found within numerous
gold-bearing shear zones that were discovered and delineated through trenching
and shallow RAB drilling over the past two years, and to generate cash flow
from the on-site gravity concentration of the gold found in this material.
Following the receipt of permits in May 2007, Freegold commenced construction
of a portable gravity-based gold concentration plant capable of processing up
to 1,200 tons of mineralized material per day. The plant was transported to
Alaska last summer and following assembly, became operational in September
2007. Following approximately 4 weeks of increasing through-put up to its
design capacity, the processing operations were halted in October with the
on-set of freezing temperatures.
    As the Company was unable to source a secondary crushing plant last year,
the primary crushing circuit was modified to operate in a closed loop to try
and achieve the required minimum crush size. Unfortunately, this configuration
did not consistently generate the required feed size which in turn negatively
impacted the gold recovery and processing rates. Gold recovered in
concentrates during the initial processing period were utilized for subsequent
test work to optimize re-grind and final concentration methods. Although
initial recovery was below expectations given the insufficient crushing
capability, the majority of the gold remains contained within the coarse
tailings that were separated and stockpiled adjacent to the plant, and which
will be the first material to be processed this season with the newly modified
plant. Further details on the bulk sampling program, including an overview of
the location, volume and grades of materials sampled to date, and an overview
on the sampling locations and volumes estimated for 2008 will be provided in
the Company's next release.

    2008 Metallurgical Testing

    During the winter season, Freegold conducted an expanded and systematic
program to supplement the preliminary gravity recovery test-work undertaken by
McClelland Laboratories and the Knelson Research and Technology Centre in
2007. Freegold's program involved testing composite samples from each of the
different mineralized rock types collected in prior bulk sampling to determine
how gravity-based gold recoveries vary by particle feed size. Composites
ranging from 20 to 50 kilograms were generated from both bulk sample
stockpiles as well as from bulk sample working faces in the various bulk
sample test areas. The samples were crushed to minus 1/4", and then split for
head analyses sieve analyses and metallurgical testing. A total of 17
composite samples were generated, with head grades ranging from 0.055 oz/ton
(1.9 g/t) to 1.3 oz/ton (44.6 g/t) and averaging 0.27 oz/ton (9.1 g/t). The
crushed material was subsequently ground to various size fractions using a
laboratory scale ball mill, and the ground products were then run through a
4 inch Knelson concentrator. The calculated head grades and gold recoveries
from these samples were determined in order to plot the gold recovery versus
particle size for each of the samples. This test work has re-confirmed the
coarse particle size of the gold being sampled at Golden Summit, with
recoveries ranging from 80 to 95 percent using relatively coarse grinding
(65 to 80 mesh). Additional cleaner gravity concentration tests were also
completed, indicating that a number of the rock types will be capable of
producing a direct smelt concentrate by sending the rougher concentrates
through the regrind circuit and the 12-inch Knelson concentrator.

    Equipment Purchases and Plant Modifications

    Given the higher recoveries indicated by the smaller sized feed material,
Freegold has purchased and installed additional crushing and grinding
equipment over the past few months. Freegold's first purchase was a used
500 ton/day mill from a site located 15 miles from the Golden Summit project.
Several pieces of equipment from this mill, including 4' X 4' and 4' X 8' ball
mills, a 2' X 3' regrind mill, plus miscellaneous hydrocyclones, slurry pumps,
motors, conveyors and tanks, have already been dismantled and moved from the
plant site and reinstalled into Freegold's current gravity circuit. In
addition, the purchase included a complete flotation plant (including
conventional rougher, scavenger and cleaner flotation cells, a 15' thickener,
a disk filter, several agitation tanks, and a complete motor control center).
Although this additional equipment is not needed for the Golden Summit
circuit, Freegold will continue to store these valuable assets.
    In order to enhance its crushing capabilities, Freegold also purchased a
2007 Nordberg portable closed circuit cone crushing plant with an integral
6' X 20' triple deck screen and conveying system for incorporation into the
crushing circuit as the secondary crusher. The crushed and screened product
from the crushing circuit (primary impact crusher and secondary cone crusher)
will be discharged to a radial stacker and subsequently be fed to the
processing plant where it will pass through the primary 4' X 4' mill where it
will be slurried and given a rough grind. The material passing 65 mesh
(210 microns) will be sent to the Knelson concentrators with the oversize
being sent to the secondary 4' x 8' mill for additional closed circuit
grinding that is expected to reduce the material to a size of 80% passing 65
mesh. The ground feed will then be pumped through a series of rougher and
scavenger Knelson concentrators for final gravity concentration.
    Data from the ongoing test-work and the initial processing are being used
to develop MetSim models for each mineralized rock type which will be used to
determine optimal plant configurations. Because the ball mills and Knelson
concentrators are skid mounted and modular, it is possible to change the plant
arrangement in only a few hours to optimize plant configuration for various
rock types. Freegold has also purchased and installed three portable
diesel-fuelled generators that are capable of generating up to 1.4 MW to
provide electrical power to the processing plant.

    Loan Closing

    Freegold is also pleased to report that it has successfully closed its US
$1,791,000 convertible loan facility that was reported on May 20, 2008. This
loan is collateralized against the bulk sampling process equipment and the
privately held land adjacent to the Golden Summit property upon which the
equipment sits, carries an interest rate of 4%, and is convertible at the
option of the lenders into Freegold common shares at a conversion price of US
$1.23/share.
    The Qualified Person, Michael P. Gross, M.S., P. Geo., VP Exploration,
Freegold Ventures Limited has reviewed and approved the contents of this
release.

    About Freegold Ventures Limited

    Freegold Ventures Limited is a North American exploration and development
company with a management team experienced in mine development and production,
and that has a proven track-record in transitioning exploration companies into
gold producers. The Company is currently exploring advanced-stage gold
projects in Idaho and Alaska. Freegold holds a 100% lease interest in the
Almaden gold project in Idaho. This large tonnage epithermal gold deposit was
the subject of a feasibility study in 1997 calling for the development of a
95,000 oz/year open pit, heap leach mine. Freegold has recently finalized a
54,700-foot drilling program which has successful identified numerous
extensions to the gold mineralization, along with newly identified open-ended
areas of molybdenum mineralization. The Company is in the process of
generating a new 43-101 resource which will be followed with the commencement
of new economic evaluations. Freegold's 40,100-foot drill program in 2007
continued to discovery new high-grade veins and bulk tonnage shear zones on
its 93% controlled Golden Summit project outside Fairbanks, Alaska. Over
7 million ounces of gold has historically been recovered from Golden Summit
which is situated less than 5 miles to the north of the +7 million ounce Fort
Knox Mine. Further evaluation and expansion of the mineralization is currently
being undertaken with a combination of closely spaced shallow drilling,
deeper, systematic core drilling and on-going bulk sampling program using an
on-site gravity-based concentration plant. Drilling in 2008 will also be
conducted on the company's 100% controlled Rob property, where the Company has
intersected high-grade gold in near surface quartz veins similar in appearance
and grade to those being mined at the nearby 5.6 million ounce Pogo, and on
the Vinasale property, where the Company has entered into an exploration
agreement with option to lease on a 140,000 acre property in Alaska which
contains the previously identified Vinasale gold deposit.

    On behalf of the Board of Directors

    "Steve Manz"
    Steve Manz, President and C.E.O.

    DISCLAIMER - This news release contains certain "Forward-Looking
Statements" within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended. All statements, other than statements of
historical fact, included herein are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the
Company's expectations are disclosed in the Company's documents filed from
time to time with the Toronto Stock Exchange, British Columbia Securities
Commission and the United States Securities & Exchange Commission. The TSX has
neither approved nor disapproved the contents of this news release.
CUSIP: 45953B107





For further information:

For further information: Mark Feeney, Investor Relations, (604)
786-2587, mfeeney@freegoldventures.com


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