VANCOUVER, BRITISH COLUMBIA (TSX: FRG)(AMEX: FRG) is pleased to
announce a global exploration program that aims to double the
Company's gold resource base over the next two years.
Among its extensive pipeline of gold projects in Nevada and
northwestern Turkey, Fronteer currently has a full or partial
interest in five growing gold deposits with NI 43-101 resource
estimates. Fronteer's current attributable global estimate
comprises:
- A measured and indicated resource of 3.72 million ounces gold
equivalent; and
- An inferred resource of 1.15 million ounces gold equivalent
(see table below).
Fronteer aims to add significant gold ounces to its resource
base and Company value by expanding existing deposits with NI
43-101 compliant resources ounces, completing project-first
resource estimates and finishing preliminary economic
assessments.
"We believe there is an opportunity for Fronteer to become the
next high-quality, mid-tier company in the gold sector," says
Fronteer President and CEO Dr. Mark O'Dea. "Over the next two
years, we aim to add another five-million gold-equivalent ounces to
our resource base and advance key projects toward development.
Several of our most exciting projects are currently unquantified in
terms of their size and intrinsic value and are anticipated to play
an important role in Fronteer's near-term growth."
Through various agreements and strategic investments, Fronteer
will have exposure of up to $67 million (all financial terms US$)
in exploration/development at a cost to the Company of
approximately $16.4 million (see table below).
Fronteer has also strengthened its senior geological team with
the recent additions of Chief Exploration Geologist Dr. Ross
Sherlock, formerly of Miramar Mining Corp, and Senior Geoscientist
Dr. Moira Smith, formerly of Electrum USA and Teck Cominco.
Sherlock played a senior role in exploration programs at the Hope
Bay project which led to successive significant resource expansions
and ultimately the acquisition of Miramar by Newmont Mining Corp.
in late 2007. Sherlock will focus on Fronteer's advanced projects,
including definition drilling, resource expansion and resource
modeling. Smith played a major role in the discovery and
delineation of the Pogo Gold Deposit in Alaska with Teck Cominco.
Smith will be actively involved in developing new promising targets
among Fronteer's early-stage Nevada gold projects.
FIRST-TIME RESOURCE ESTIMATES
Long Canyon
The Long Canyon project defines a new gold trend in Nevada and
has the potential to become a multimillion ounce gold system. This
emerging deposit features an open-ended zone of near-surface,
Carlin-style, oxide-gold mineralization. Long Canyon has
encouraging grade and tonnage potential and remains open for
expansion in all directions. Plans for 2008 include an initial
$3.2-million, 11,500-metre drilling program to extend the deposit
along strike to the northeast, southwest, and down dip, with the
goal of producing a project-first NI 43-101 resource.
Halilaga
While still at a relatively early stage with 12 drill holes
defining an area called the Central Zone, Halilaga has many of the
hallmarks of a world-class, copper-gold deposit in terms of size
and grade, as well as excellent infrastructure. Teck Cominco
Limited's Turkish subsidiary ("TCAM") earned-back a 60% interest in
Halilaga and is solely funding a US$3 million exploration program
at Halilaga in 2008. TCAM can earn an additional 10% in the
project, by electing before December 31, 2008, to complete a
feasibility study on the project within four years of the election
date. The planned 2008 exploration program will nearly double last
year's initial drill program from 6,000 metres to a target of
11,000 metres. Plans include important grid drilling at the known
copper-gold discovery and highly promising untested target areas
with similar geophysical and geochemical signatures as the Central
Zone. Fronteer anticipates completing Halilaga's first resource
estimate by early 2009.
RESOURCE EXPANSIONS AT EXISTING DEPOSITS
Northumberland
Fronteer has a 100% interest in Northumberland, one of the
largest undeveloped Carlin-style deposits in Nevada. The project
has a NI 43-101 resource estimate of 2.06 million ounces of gold
(measured and indicated), 0.40 million ounces of gold (inferred),
and 5.11 million ounces silver (inferred). Fronteer plans to
complete an updated resource estimate by the end of second quarter,
which will incorporate drill results from the past three years.
Plans for Northumberland in 2008 include an initial $3.8-million
budget focused on expansion and infill drilling, resource
estimation and scoping studies.
Sandman
Sandman provides Fronteer with exposure to potential near-term
production funded by its senior Nevada partner, Newmont. Located
near Newmont's Twin Creeks mill, Sandman features four partially
defined near-surface gold deposits. Sandman currently has a
combined NI 43-101 resource estimate of 271,900 ounces (measured
and indicated) and 38,000 ounces (inferred) gold. As part of a
Letter of Intent agreement, Newmont is to spend $3 million in
exploration and development at Sandman in 2008, including active
drill programs to expand the size of known deposits and define new
mineralized zones. Fronteer will be exposed to $14 million in
exploration as Newmont advances Sandman to a production decision
within 36 months to earn a 51% interest (see Feb. 6, 2008 press
release).
Kirazli and Agi Dagi
Agi Dagi and Kirazli are part of an emerging gold and
copper-gold district built by Fronteer in northwestern Turkey that
is still in its exploration infancy. TCAM earned-back a 60%
interest in both Agi Dagi and Kirazli. Fronteer's combined resource
estimate for both projects stands at 1.5 million ounces of gold
with 9.1 million ounces of silver (measured + indicated), and 1.6
million ounces of gold with 6.7 million ounces of silver
(inferred), for an overall gold equivalent resource of 3.5 million
ounces. Fronteer believes there is still significant resource
upside at Kirazli and Agi Dagi. A planned 2008 $1-million,
exploration program, including 2500 m drilling operated by TCAM,
will test additional targets in this district.
PRE-FEASIBILITY PROJECTS
Fronteer has a 42.3% interest in Aurora Energy Resources (TSX:
AXU), a leading Canadian uranium exploration and development
company. Aurora recently announced that a 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 just completed a 20,000-metre winter program of in-fill,
confirmation, and geotechnical drilling at its Michelin and Jacques
Lake deposits and anticipates completing a pre-feasibility study on
these deposits by end of year or first quarter of 2009. There is no
additional information to report on Nunatsiavut Government
consultations since Fronteer's March 11, 2008 press release.
FRONTEER'S ATTRIBUTABLE GOLD-EQUIVALENT OUNCES:
------------------------------------------------------------------------
Project Grade Grade
(FRG's % ownership) M+I ounces (oz/ton) Inferred ounces (oz/ton)
------------------------------------------------------------------------
Kirazli (40%) 154,400 0.033 402,800 0.041
------------------------------------------------------------------------
Agi Dagi-Deli (40%) 368,400 0.046 207,600 0.048
------------------------------------------------------------------------
Agi Dagi-Baba (40%) 163,600 0.021 94,800 0.021
------------------------------------------------------------------------
Northumberland (100%) 2,058,000 0.067 399,000 0.091
------------------------------------------------------------------------
Zaca (100%) 700,000 0.026 11,000 0.033
------------------------------------------------------------------------
Sandman (100%) 271,900 0.034 38,000 0.027
------------------------------------------------------------------------
TOTALS 3,716,300 1,153,200
------------------------------------------------------------------------
- Teck Cominco's Turkish subsidiary, TCAM, has a 60% interest in Kirazli
and Agi Dagi projects. As part of a Letter of Intent, Newmont Mining
Corporation can secure a 51% interest in Sandman if it meets earn-in
requirements over a three-year period. See further details below as to
the qualified persons responsible for the above noted resource estimates
and the relevant assumptions used. Detailed resource tables for Turkey
can be found at:
http://www.fronteergroup.com/?q=content/turkey-resource-estimate-tables.
Detailed resource tables for Nevada can be found at:
http://www.fronteergroup.com/?q=content/nevada-resource-estimate-tables.
FRONTEER'S EXPLORATION/DEVELOPMENT EXPOSURE:
--------------------------------------------------------------------------
Project Exploration/Development Budget ($M) Cost to Fronteer
--------------------------------------------------------------------------
Sandman 3 0
--------------------------------------------------------------------------
Northumberland 3.8 3.8
--------------------------------------------------------------------------
Long Canyon 3.2 3.2
--------------------------------------------------------------------------
Nevada pipeline 7 7
--------------------------------------------------------------------------
Agi Dagi/Kirazli 1 0.4
--------------------------------------------------------------------------
Halilaga 3 0
--------------------------------------------------------------------------
Regional Turkey 2 2
--------------------------------------------------------------------------
Aurora 44 0
--------------------------------------------------------------------------
Total $ 67M $ 16.4M
--------------------------------------------------------------------------
- Approximate budget. Teck Cominco's Turkish subsidiary, TCAM, has a 60%
interest in Kirazli, Halilaga and Agi Dagi projects. TCAM can earn an
additional 10% in Halilaga. As part of a Letter of Intent, Newmont Mining
Corporation can secure a 51% interest in Sandman if it meets earn-in
requirements over a three-year period, including spending $3M in 2008.
Fronteer has a 42.3% interest in Aurora Energy Resources.
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.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability, and there is no guarantee that any
resource will become a reserve.
Nevada: Michael Gustin, Ph.D., of Mine Development Associates
("MDA"), Reno, Nevada, is designated as a Qualified Person for the
Northumberland and Sandman resource estimates, with the ability and
authority to verify the authenticity of, and validity of, this
data. Mineral resources have been estimated by MDA in accordance
with the standards adopted by the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") Council in August 2000, as
amended, and prescribed by the Canadian Securities Administrators'
National Instrument 43-101 Standards of Disclosure for Mineral
Projects. The Northumberland resource estimate is from the 43-101
Compliant Report: Technical Report, Northumberland Project, Nye
County, Nevada, USA, November 1, 2007, by Mine Development Assoc.
for Fronteer. The gold cut-off grades (expressed in ounces of gold
per ton) for the Northumberland Project measured, indicated and
inferred resources are 0.01 for oxide material, 0.04 for shallow
sulfide material and 0.10 for deep sulfide material. The inferred
silver resource includes only silver lying within the modeled gold
zones and within blocks that exceed the gold cut-off grades; no
silver cut-off is applied. The Sandman mineral resource expressed
is based on the technical report prepared by MDA as of November 1,
2007. The cut-off grade (expressed in ounces of gold per ton) for
Sandman Project measured, indicated and inferred resources is 0.01
oz Au/ton for all of the shallow deposits and 0.02 oz Au/ton for
the deeper zones at the Southeast Pediment deposit. Steven
Ristorcelli, P. Geo, of Mine Development Associates ("MDA"), Reno,
Nevada, is designated as a Qualified Person for the Zaca resource
estimate, with the ability and authority to verify the authenticity
of, and validity of, this data. The Zaca resource estimate is based
on the technical report prepared by MDA as of November 1, 2007. The
cut-off grade (expressed in ounces of gold per ton) for the Zaca
Project measured, indicated and inferred resources is 0.01 ounces
of gold equivalent per ton. For further details on how the
Northumberland, Sandman and Zaca resources were calculated, please
view the technical reports, at www.sedar.com. Detailed resource
tables for Nevada can also be found at:
http://www.fronteergroup.com/?q=content/nevada-resource-estimate-tables.
Turkey: Christopher Lee, P. Geo, Chief Geoscientist for Fronteer
Development Group, is the designated Qualified Person for the Agi
Dagi and Kirazli Projects in NW Turkey. Fronteer has a pro forma
40% share as part of joint venture with Teck Cominco. Reported at
0.5 g/T Au cut-off; AuEq @ $13 Ag, $650 Au. Gold-equivalent
calculations reflect gross metal content that has not been adjusted
for metallurgical recoveries. The resource models consist of a
combination of oxide/sulphide zones, and isograde shells generated
in Leapfrog software. Two metre composites were generated from
capped gold and silver grades within these solids, and core samples
with less than 50% recovery were omitted. Grades were interpolated
into blocks measuring 20x20 metres in the horizontal direction and
10 metres in the vertical direction, using inverse distance
squared, ordinary kriging, or a combination of both methods, in
Gemcom software. Search radii were determined from variogram
ranges, with restricted ranges for high grade populations, and hard
boundaries were used to limit sample selection between the oxide
and sulphide zones at Deli and Kirazli. Densities were interpolated
from drill core data into the block models using inverse distance
squared. 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. Mineral resources are not mineral reserves, and
there is no guarantee that any resource will become a reserve. For
further details on how these resources were calculated, please view
the technical reports, dated Aug. 1, 2007, at www.sedar.com.
Detailed resource tables for Turkey can also be found at:
http://www.fronteergroup.com/?q=content/turkey-resource-estimate-tables.
Labrador/Aurora: Christopher Lee, P. Geo, Chief Geoscientist for
Aurora Energy Resources Inc., is the designated Qualified Person
for the CMB resource estimates. 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. 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 of 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 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. A
detailed resource table can be found at:
http://www.fronteergroup.com/?q=content/fronteer%26%23039%3Bs-aurora-exceeds-annual-resource-target%2C-adds-four-projects
(due to the length of this URL, it may be necessary to copy and
paste this hyperlink into your Internet browser's URL address
field).
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, potential for production,
potential timing of receipt of permits, project registration and
classification of future mineral resources and potential size of
mineralized zones/deposits, timing of resource estimate and size
and type of exploration program 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 and joint
ventures, 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,
silver, uranium and copper, environmental risks and hazards,
increased infrastructure and/or operating costs, labor and
employment matters, relationships with aboriginal peoples 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.
NEWS RELEASE 08-09
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 Director,
Communications (604) 632-4677 or Toll Free: 1-877-632-4677 Email:
info@fronteergroup.com Website: www.fronteergroup.com
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