Fronteer Development Group Inc.: Halilaga Copper-Gold Project to Nearly Double Exploration Program for 2008
December 19 2007 - 10:59AM
Marketwired
VANCOUVER, BRITISH COLUMBIA (TSX: FRG)(AMEX: FRG) announced
today that Teck Cominco Limited's Turkish subsidiary ("TCAM") has
agreed to solely fund US$3 million in exploration at the Halilaga
porphyry copper-gold deposit in northwestern Turkey. In turn, TCAM
has been granted an extension to December 31, 2008 on its election
whether to earn an additional 10% interest in the property.
The 2008 exploration program will nearly double last year's
initial drill program at Halilaga from 6,000 metres to a target of
11,000 metres. The program will focus on grid drilling the known
porphyry deposit and testing adjacent target areas.
"Our new agreement with TCAM continues exploration momentum on
this exciting new copper-gold discovery, allowing additional data
to be collected to fully test the limits of this project," says
Fronteer President and CEO Mark O'Dea. "Halilaga has excellent
infrastructure. It is situated at 400 metres elevation, accessible
by road, on the power grid and has access to water."
At Halilaga's Central Zone (also known as the Kestane Zone), a
combination of geochemistry, geophysics and diamond drilling has
outlined robust near-surface copper-gold porphyry mineralization
that spans an area 1,000 metres by 400 metres and shows a variable
but apparent vertical dimension thus far of more than 250
metres.
TCAM and Fronteer are encouraged by multiple targets on the
Halilaga property which have similar geochemical and geophysical
signatures as the Central Zone. These additional targets have yet
to be drill-tested. One target shows anomalous copper-gold
geochemistry at surface, over an area approximately four times as
large as the Central Zone.
As of Sept. 19, TCAM has earned-back a 60% interest in
Fronteer's Halilaga copper-gold project, and the Agi Dagi and
Kirazli gold deposits. The three projects are located along the
same 30-km long mineral belt in northwestern Turkey.
To earn the additional 10% interest in Halilaga, TCAM must
notify Fronteer before Dec. 31, 2008, that it intends to complete a
feasibility study within four years of the notification date. If a
production decision is made, TCAM will use its best efforts to
arrange project debt financing for at least 60% of the capital
costs and offer to loan Fronteer the remaining equity component of
project financing at commercial lending rates. If TCAM fails to
complete a feasibility study within four years from the
notification date, its ownership percentage in Halilaga will remain
at 60%.
TCAM and Fronteer will invest approximately C$600,000 in
exploration at Kirazli and C$500,000 at Agi Dagi during 2008. TCAM
has notified Fronteer that it will remain at a 60% interest in
Kirazli and Agi Dagi.
For a map showing the distribution of drill holes at Halilaga's
Central Zone, please use the following link:
www.fronteergroup.com/i/IR/HalilagaHD16.jpg
LIQUIDITY
Fronteer is not invested in any short term commercial paper or
asset-backed securities. The Company has approximately C$98.5
million in cash that is fully liquid and held with a large
commercial bank.
ABOUT FRONTEER
Fronteer is an exploration and development company with a track
record of making big discoveries. Fronteer has a 40% interest in
three world-class gold and copper-gold projects in Turkey, an
extensive portfolio of advanced stage gold projects in Nevada, and
a 42.3% interest in Aurora Energy Resources (TSX: AXU), a leading
Canadian uranium company.
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to, those with respect to
potential expansion of mineralization, future plans for resource
estimation and exploration and TCAM's future plans to earn an
additional 10% in Halilaga, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Fronteer to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include,
among others, risks related to international operations, the actual
results of current exploration activities, conclusions of economic
evaluations, uncertainty in the estimation of ore reserves and
mineral resources, changes in project parameters as plans continue
to be refined, future prices of gold and copper, economic and
political stability in Turkey, environmental risks and hazards,
increased infrastructure and/or operating costs, labor and
employment matters, and government regulation as well as those
factors discussed in the section entitled "Risk Factors" in
Fronteer's Annual Information form and Fronteer's latest Form 40-F
on file with the United States Securities and Exchange Commission
in Washington, D.C. Although Fronteer has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Fronteer disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Contacts: Fronteer Development Group Inc. Mark O'Dea, Ph.D,
P.Geo President and CEO (604) 632-4677 or Toll Free 1-877-632-4677
Fronteer Development Group Inc. Glen Edwards Media Relations (604)
632-4677 or Toll Free 1-877-632-4677 Email: info@fronteergroup.com
Website: www.fronteergroup.com
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