Sean, free mill is gold in it's free or elemental ( Native ) form and placer gold was once free mill lode ore before it was released by natural forces from the host rock. Non free mill is gold in chemical combination with other elements that does not look like native gold and requires leaching or smelting to separate the gold. Ore can also contain free gold to small to be seen with the naked eye or a magnifier glass, which may require crushing the ore to a very fine powder and panning to find out.
I do not know why it is called " Free Mill " because it takes time, labor, and equipment costs to free the native gold from the host rock, nothing free about that to me. An assay is your best bet to find out what you are dealing with. Best of Luck, Ron