VANCOUVER, BRITISH COLUMBIA (TSX: FRG)(AMEX: FRG) is pleased to
report that Aurora Energy Resources Inc. ("Aurora" or "the
Company") (TSX: AXU), in which Fronteer holds a 42.3% interest,
announced a new resource estimate for its Michelin Uranium Deposit
("Michelin") has led to an overall 20% increase in deposit size.
While still open for further expansion, Michelin now has:
- A Measured and Indicated resource of 67.4 million pounds of
U3O8 (uranium); and
- An Inferred resource of 35.5 million pounds of U3O8
(uranium).
Of equal significance, the grade of uranium mineralization of
Michelin has increased by more than 11% (now 0.12% U3O8) in the
proposed underground section of the deposit and by 5% (now 0.07%
U3O8) in the proposed open pit section of the deposit area.
Michelin, which forms the backbone of Aurora's new uranium
district, is the first in the Company's pipeline of uranium
development projects with production visibility. Updated resource
estimates for the Jacques Lake Deposit and four additional uranium
deposits (Rainbow, Gear, Inda Lake and Nash) located on Aurora's
land holdings will be announced by Aurora in the very
near-term.
"Michelin is now clearly one of Canada's uranium mega-projects,
with a resource size and associated grade that compares favourably
with its peers on the world stage," said Dr. Mark O'Dea, Aurora's
President and CEO. "Michelin now ranks among the world's highest
grade deposits outside the Athabasca Basin that are either
currently in production or have production visibility."
MICHELIN DEPOSIT RESOURCE ESTIMATE
The following table summarizes the Classified Mineral Resources
of the Michelin Deposit:
Underground(i) Open Pit(ii)
---------------------------------------------------------------------------
% lbs % lbs Total
Class Tonnes U3O8 U3O8 Tonnes U3O8 U3O8 lbs
---------------------------------------------------------------------------
Measured 1,289,000 0.12 3,310,000 5,795,000 0.08 9,768,000 13,078,000
Indicated 16,170,000 0.13 44,582,000 7,146,000 0.06 9,774,000 54,356,000
Inferred 12,577,000 0.12 33,647,000 1,564,000 0.05 1,818,000 35,465,000
---------------------------------------------------------------------------
(i) Underground resources stated at a cut-off grade of 0.05% U3O8
(ii) Open pit resources stated at a cut-off grade of 0.03% U3O8
DEVELOPMENT CONSIDERATIONS
Michelin is a large, high quality asset with deposit
characteristics potentially capable of supporting a conventional,
relatively low cost, long-life mining operation.
Based on extensive metallurgical and pilot plant tests at SGS
Lakefield Laboratories, the characteristics of the Michelin ore are
well understood, uncomplicated, and conventional. Michelin lends
itself to standard crushing and grinding technology and traditional
leach processing.
In addition, metallurgical tests to date indicate:
- The Michelin ore is not highly abrasive and will require only
modest grinding energy.
- The ore and surrounding rocks contain very low levels of
deleterious or problematic metals, such as vanadium, molybdenum and
selenium.
- The ore and surrounding rocks contain very low levels of
sulphides and high levels of carbonate, indicating that acid rock
drainage is not a concern for waste rock or tailings.
From a geotechnical perspective, the host rocks at Michelin are
amenable to both open pit and conventional underground mining
techniques. The Deposit is hosted in hard, competent, relatively
impermeable Canadian Shield volcanic rock, with no groundwater
issues or rock mechanic issues identified to date.
Importantly, Michelin also has appealing infrastructure options,
which are currently being evaluated, including:
- Potential to access grid power from Newfoundland and Labrador
Hydro to provide 40-45 megawatts of power for the project.
- Road access alternatives to the Michelin mine site.
- Marine access alternatives. Michelin is located 30 kilometres
from tidewater which allows 6-7 months of seasonal waterway access
and transportation of heavy equipment and bulk supplies to and from
site.
2008 WORK PROGRAM
Aurora is continuing to advance the Project through its
comprehensive development program. A detailed work program for the
balance of 2008 is planned to be announced by Aurora within the
next few weeks.
Meanwhile, Aurora has commenced a 20,000 metre, seven rig,
two-month winter program of in-fill, confirmation, and geotechnical
drilling on both the Michelin and Jacques Lake deposits and is
continuing with ongoing engineering studies designed to move the
project towards development.
The Company is scheduled to submit its Project Description
(Registration) to federal and provincial authorities in the second
quarter of 2008 to initiate the Environmental Assessment process
for the Michelin Project (which includes the Michelin and Jacques
Lake deposits). The Registration is the beginning of an extensive
process overseen by federal, provincial and Nunatsiavut
governments.
Christopher Lee, P. Geo, Chief Geoscientist for Aurora Energy
Resources Inc., is the designated Qualified Person for the Michelin
resource estimate and has approved this news release. The resource
model consists of four discrete mineralized domains, defined by a
combination of stratigraphy, alteration and grade, that were hand
digitized using 348 drill holes, on 50 metre-spaced cross-sections.
Two metre composites were generated from capped U3O8 grades within
these solids and used to interpolate grades into two block models,
one for underground (5x5x5 metres) and one for the open pit
(10x5x10 metres), using ordinary kriging in Gemcom software. Search
radii were determined from correlogram ranges and oriented parallel
to the overall plunge of the deposit. A single average density of
2.7 g/cc, as determined from 129 measurements from mineralized rock
throughout the deposit, was used to calculate tonnage. Blocks were
classified into Measured, Indicated and Inferred Mineral Resource
categories using a combination of the number drill holes and the
average distance of samples used in each block estimate. The
Michelin resource estimate is reported using cut-off grades of:
0.03% U3O8 for the open pit portion, and 0.05% U3O8 for
underground. Further details of the estimation procedure will be
available in an updated NI 43-101 report, which will be posted on
SEDAR (www.sedar.com), no later than 45 days from the date of this
release. Mineral resources are not mineral reserves, and there is
no guarantee that any resource will become a reserve.
Assay results have been prepared under the guidance of Mr. Ian
Cunningham-Dunlop P. Eng, Exploration Vice-President for Aurora
Energy Resources Inc., who is designated as a Qualified Person with
the ability and authority to verify the authenticity of and
validity of this data. Drill core was prepared and analyzed in
accordance with industry standards by Activation Laboratories Ltd,
Ancaster, Ontario.
The Independent Qualified Person responsible for the 2007
resource estimates for the Michelin and Jacques Lake Uranium
Deposits is Gary Giroux, P. Eng. of Giroux Consultants Ltd. Further
details as to how these resources are calculated can be obtained by
reading The Exploration Activities of Aurora Energy Resources Inc.
on the CMB Uranium Property, Labrador, Canada, During the Period
January 2006 to January 2007 prepared to NI 43-101 requirements is
available for viewing on SEDAR at www.sedar.com.
ABOUT FRONTEER
Fronteer is an exploration and development company with a track
record of making big discoveries. Fronteer has a 40% interest in
three excellent gold and copper-gold projects in western 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. For further information on Fronteer visit
www.fronteergroup.com.
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 the
timing and amount of estimated future resources and resource
conversion rates, future project costs and production, potential
for expansion of resources and potential size of future exploration
programs and potential timing of receipt of permits, project
registration and classification of future mineral resources, and
potential for future benefits, 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 the actual results of current
exploration activities, conclusions of economic evaluations,
uncertainty in the estimation of mineral resources, changes in
project parameters as plans continue to be refined, future prices
of uranium, 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 available on SEDAR at www.sedar.com.
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.
News Release 08-06
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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