VANCOUVER, BRITISH COLUMBIA (TSX: FRG)(AMEX: FRG) is pleased to
report that Aurora Energy Resources Inc. ("Aurora") (TSX: AXU), in
which Fronteer holds a 42.3% interest, announced that a new total
resource estimate for its pipeline of six growing uranium deposits
in coastal Labrador has produced:
- A Measured and Indicated resource of 83.9 million pounds of
U3O8 (uranium); and
- An Inferred resource of 49.8 million pounds of U3O8.
Aurora's new uranium resource base has surpassed Aurora's annual
target, increasing by 39% in just over 12 months. This new estimate
is comprised of the Michelin Deposit (see recent press release of
February 20, 2008), the Jacques Lake Deposit, and four newly
estimated nearby satellite deposits called Rainbow, Nash, Inda, and
Gear. Jacques Lake and the satellite deposits all have the
potential for significant, Michelin-style growth and are located
within 30 kilometres of Michelin.
"Our goal for 2007 was to deliver a resource of 130 million
pounds," said Dr. Mark O'Dea, Aurora's President and CEO. "We have
exceeded our resource target for the third consecutive year. More
importantly, we have succeeded in demonstrating that Aurora's new
uranium district hosts a true pipeline of projects that have major
growth potential, which will help sustain a long life, world-class
mining camp. We are moving to develop these important resources as
efficiently as possible, using industry best practices in geology,
engineering, metallurgy, environment and health and safety."
JACQUES LAKE DEPOSIT INCREASES BY 67%
The new resource estimate for the Jacques Lake Deposit ("Jacques
Lake"), has led to an overall 67% increase in deposit size. While
still open for significant expansion, Jacques Lake now has:
- A Measured and Indicated resource of 10.4 million pounds of
U3O8; and
- An Inferred resource of 6.9 million pounds of U3O8.
Like Michelin, the characteristics of the Jacques Lake
mineralization are well understood and similar to the Michelin
mineralization. Jacques Lake mineralization lends itself to
standard crushing and grinding technology and traditional leach
processing. Similarly, the host rocks at Jacques Lake are
competent, making them amenable to both open pit and conventional
underground mining techniques. Like Michelin, there are no
groundwater, metallurgical or rock mechanic issues identified to
date.
FOUR SATELLITE DEPOSITS TAKE SHAPE
While the Michelin and Jacques Lake deposits are clearly the
backbone of the district, Aurora's drilling programs have further
defined four satellite deposits, each with the potential to become
significant resources in their own right. The Rainbow, Nash, Inda
and Gear deposits have been significantly expanded and now
cumulatively have:
- An Indicated resource of 6.1 million pounds of U3O8; and
- An Inferred resource of 7.4 million pounds of U3O8.
Of particular note, the Inda Deposit today is nearly as large as
the Jacques Lake Deposit was 12 months ago. It is important to
stress that all four of these satellite deposits are still at a
very early stage of deposit delineation and have significant growth
potential.
For a map showing the distribution of Aurora's uranium deposits
and priority drill targets, please use the following link:
http://www.aurora-energy.ca/files/HotSpots_2008.02.22.JPG.
The following table summarizes the Classified Mineral Resources
of the Michelin, Jacques Lake, Rainbow, Nash, Inda and Gear
deposits:
Underground(i) Open Pit(i) Total
---------------------------------------------------------------------------
Deposit
% %
Class Tonnes U3O8 lbs U3O8 Tonnes U3O8 lbs U3O8 lbs U3O8
---------------------------------------------------------------------------
MICHELIN
Measured 1,289,000 0.12 3,310,000 5,795,000 0.08 9,768,000
Indicated 16,170,000 0.13 44,582,000 7,146,000 0.06 9,774,000
---------------------------------------------------------------------------
MEASURED
& INDI-
CATED 17,459,000 0.12 47,892,000 12,941,000 0.07 19,542,000 67,434,000
---------------------------------------------------------------------------
JACQUES LAKE
Measured 415,000 0.09 802,000 401,000 0.09 798,000
Indicated 3,357,000 0.08 5,861,000 1,909,000 0.07 2,950,000
---------------------------------------------------------------------------
MEASURED
& INDI-
CATED 3,772,000 0.08 6,663,000 2,310,000 0.07 3,748,000 10,411,000
---------------------------------------------------------------------------
RAINBOW
Indicated 1,088,000 0.09 2,063,000 2,063,000
---------------------------------------------------------------------------
NASH
Indicated 757,000 0.08 1,300,000 1,300,000
---------------------------------------------------------------------------
INDA
Indicated 1,460,000 0.06 2,037,000 2,037,000
---------------------------------------------------------------------------
GEAR
Indicated 520,000 0.06 665,000 665,000
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TOTAL
MEASURED
& INDI-
CATED 21,231,000 0.12 54,555,000 19,076,000 0.07 29,355,000 83,910,000
---------------------------------------------------------------------------
MICHELIN
Inferred 12,577,000 0.12 33,647,000 1,564,000 0.05 1,818,000 35,465,000
JACQUES LAKE
Inferred 2,778,000 0.08 4,596,000 2,210,000 0.05 2,314,000 6,910,000
RAINBOW
Inferred 931,000 0.08 1,700,000 1,700,000
NASH
Inferred 613,000 0.07 904,000 904,000
INDA
Inferred 3,042,000 0.07 4,538,000 4,538,000
GEAR
Inferred 210,000 0.06 262,000 262,000
---------------------------------------------------------------------------
TOTAL
INFERRED 15,355,000 0.11 38,243,000 8,570,000 0.06 11,536,000 49,779,000
---------------------------------------------------------------------------
(i) Aurora's CMB Mineral Resources are reported at cut-off grades that
contemplate underground (0.05% U3O8) and open pit (0.03% U3O8) mining
scenarios, based on preliminary economic assumptions, and may be
refined with more in-depth economic analyses.
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 scheduled to be announced by Aurora within the
next few weeks.
Meanwhile, Aurora is carrying out 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.
Aurora is scheduled to submit its Project Registration to
government 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
Project Registration is the beginning of an extensive environmental
assessment process under the federal, provincial and Nunatsiavut
governments.
Christopher Lee, P. Geo, Chief Geoscientist for Aurora, is the
designated Qualified Person for the CMB resource estimates. All
estimates were conducted using 3D geological solids defined by a
combination of stratigraphy, alteration and grade, and
hand-digitized on 25-50 metre cross-sections in Gemcom software.
Assay composites were generated from capped U3O8 grades within
these solids and used to interpolate grades into 3D block models,
using either ordinary kriging (Michelin, Jacques Lake) or
anisotropic inverse distance squared weighting (Rainbow, Gear,
Inda, Nash). Optimum search parameters (ranges, orientations,
number of samples) were chosen to reflect modeled or interpreted
grade continuity, low and high grade populations, and sample
density. A single mean specific gravity, as measured from 22 to 329
samples of mineralized rock, was used for each deposit. Mineral
resources for the satellite deposits (Rainbow, Gear, Inda, Nash)
are reported for only those blocks located less than 300 metres
from surface. Blocks were classified into Measured, Indicated and
Inferred mineral resource categories using a combination of the
number drill holes, average distance of samples used in each block
estimate, and geological confidence. 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,
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.
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.
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, 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 08-07
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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