Freegold Ventures Ltd (FVL)

[NYBob]

Freegold Commences 34,000' of Resource Expansion -
Drilling at Almaden -
Wednesday August 2, 9:20 am ET

TSX: ITF, OTC BB: FGOVF, Frankfurt: FR4
VANCOUVER, Aug. 2 /CNW/ -

Freegold Ventures Limited
("Freegold") is pleased to announce the commencement
of a 34,000-foot drilling program designed to define
new gold resources at its 100% controlled -
Almaden gold project in western Idaho.

This new drilling follows the recent re-evaluation
of the company's 1997 Watts, Griffis and McOuat Limited
("WGM") feasibility study by Hatch Limited, and the
generation of a new, independent 43-101 compliant
resource by J. D. Graham and Associates Ltd.

The 1997 study is referenced in the 43-101 report that
was filed on SEDAR on March 15, 2006.

The historic WGM 1997 study contemplated -
a 22,500-ton per day open-pit -
heap leach operation producing an average -
of 95,000 ounces of gold per year -
at an overall 0.6 to 1 strip ratio.

The WGM study recommended that additional drilling
be conducted to test areas of the deposit that remained
open laterally and at depth.
These possible expansion areas were confirmed during
Freegold's re-modeling of the deposit, and include
the following:

- the periphery of the Main and North zones where a number of holes
drilled by previous operators intercepted thick intervals of resource
grade mineralization (+.011 oz/ton cut-off) that were not brought
into the model due to the wide spacing of the drilling;
- the southern portion of the Main zone which remains open;
- depth extensions within the Main and North zones where prior drill
holes ended in resource grade material; and
- an area 1,500 feet to the west of the North Zone where seven previous
holes intersected significant shallow mineralization (eg. hole
SW13: 180 feet grading 0.038 oz/ton, hole SW40: 160 feet grading
0.053 oz/ton). Six of these holes containing resource-grade
mineralization are located in a 200-foot by 50-foot wide area that is
currently open for more than 500 feet in two directions and between
200 and 300 feet in the other two directions.


Core drilling commenced on July 8, 2006 and a reverse
circulation rig is expected to be on site at the beginning
of September.
The 34,000 foot resource expansion program is comprised
of approximately 2,500 feet of large diameter PQ core
drilling that will be used for supplemental metallurgical
testing, 16,500 feet of HQ core drilling, and 15,000 feet
of RC drilling.
Drilling is forecast to be complete by mid-November at
which time a new independent 43-101 resource calculation
will be generated.
Mine Development Associates ("MDA") of Reno, NV has been
engaged to assist Freegold in the ongoing modeling of
the deposit, and to prepare an updated 43-101 compliant
resource calculation.

A new metallurgical test program has also commenced that
will seek to enhance the project through improved gold
recoveries.
One of Hatch's conclusions from its review was that
inadequate testing had been done in the past to determine
the optimal crush size for the project.
While the 1997 WGM study was based on minus 6-inch
run-of-mine material being placed on the heap leach pads,
new metallurgical testing by McClelland Laboratories, Inc.
of Reno, NV is testing the leaching characteristics of
representative material at five different crush sizes to
help determine whether smaller crush sizes and improved
recoveries can enhance project economics.
In addition to the 2,500 feet of PQ core being taken from
6 locations within the deposit, the metallurgical testing
will also be conducted on bulk tonnage material that will
be blasted from three small surface pits in August.

Upon the completion of the updated resource calculation by
MDA and the metallurgical testing by McClelland, Freegold
will initiate a new preliminary assessment to determine
whether the original mine design in the 1997 WGM
feasibility study remains the optimal manner in which
to develop the deposit.

Qualified Person

The Qualified Person for this release is Michael P. Gross,
M.S., P. Geol. Vice President of Exploration for
Freegold Ventures Limited.

About Freegold Ventures Limited

Freegold Ventures Limited is a North American exploration
company that is actively exploring advanced stage gold
projects in Idaho (Almaden), Alaska (Golden Summit)
and the Yukon Territory (Grew Creek).
Freegold has recently enhanced its management team with
a new President and VP Exploration that have an excellent
track record in generating shareholder value through
the creation and operation of numerous
North American gold producers.
In addition to focusing on its Almaden project, the company
is in the process of delineating a series of newly discovered
high-grade surface veins at Golden Summit.

On behalf of the Board of Directors

"Steve Manz"

Steve Manz
President and C.E.O.

The Toronto Stock Exchange has neither approved nor disapproved the
contents of this news release. CUSIP: 45953B107

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.

For further information

Investor Relations, 1-800-667-1870,

http://www.freegoldventures.com


Source: Freegold Ventures Limited

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