Vancouver B.C. February 16, 2010: Foundation Resources Inc. (FDN: TSX-V) is pleased to announce the commencement of a 2,000m diamond drilling program on the East Coldstream Deposit (the "Deposit") of the Coldstream Property in Ontario.
This is an infill-drilling program, with drill holes planned to pierce between the historic drill holes of significant gold mineralization at the North, Main, East and Sanders zones of the Deposit. An historical, non-NI 43-101 compliant resource from the three zones (North, Main and East) has been estimated by Noranda in 1990 to contain 5.1 million tonnes grading 1.43 g/t gold (234,000 contained ounces of gold).
This historical resource does not include potential resource at the Sanders Zone, located east of Noranda's Main Zone, which was drilled by Lacana Mining Corp. (1989) and Alto Ventures Ltd. (2006). Significant historical intercepts from the Deposit include: 2.61 g/t over 16.26m, 2.15 g/t over 22.16m and 1.12 g/t over 33.5m (Main Zone); 1.20 g/t over 23.67m (North Zone); 1.36 g/t over 24.05m (East Zone); and 1.25 g/t over 20.55m (Sanders Zone).
The objective of current drilling program is to in-fill gaps between the widely spaced historic drill holes and increase confidence in the continuity of the gold grades. This current drill program and, based upon favourable results, the next phase of drilling is expected to upgrade move the historic resource to a NI 43-101 compliant gold resource estimate.
"Foundation is pleased to commence drilling on the Coldstream project as it marks our entrance into a prolific area of Ontario where past exploration has led to the discovery of several significant deposits that produced significant quantities of gold," stated John Hiner, CEO of Foundation Resources Inc. "Our summer surface exploration program has generated promising drill targets, the best of which we will test with the current program which is intended to build ounces and in doing so increase shareholder value", Hiner adds.
About the East Coldstream Deposit:
The East Coldstream Deposit is located on the 5,394 hectare Coldstream Property, which is easily accessed by logging and drill roads from the nearby Trans Canada highway.
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.
An historical non 43-101 compliant resource of 5.1 million tonnes grading 1.43 g/t Au, with 234,000 contained ounces gold was calculated by Noranda in 1990. This resource estimate was based on shallow drilling at 3 zones (the Main, North, and East zones).
2009 fieldwork has succeeded in identifying areas with strong potential to add tonnage to the East Coldstream Deposit. Channel sampling and mapping has identified the Sanders Zone as a potential extension along strike to the east. It has also been noted that historic drilling at all zones has been shallow and significant potential to expand the deposit to depth remains.
From a total of 78 grab samples taken in the area of the East Coldstream Deposit, 35 returned gold results greater than 0.5 g/t Au, and 9 of the samples returned greater than 5 g/t Au. These results confirm the historic mineralization and demonstrate a mineralized strike length of at least 1.5 km.
About the Coldstream Project
The Coldstream Property includes 5,394 hectares of staked and patented mining claims 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.
For more details regarding the Coldstream Property, please visit our website at www.foundationres.com
Ike Osmani, P. Geo. is the Qualified Person who 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 zones on the Coldstream Property. The Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada.
On behalf of the board,
John E. Hiner
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." News release contains certain "ForwardLooking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forwardlooking 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 forwardlooking statements.
