VANCOUVER, BRITISH COLUMBIA (TSX: FRG)(AMEX: FRG) is pleased to
announce that a new resource estimate for its 100%-owned
Northumberland gold project has increased the deposit's size and
advanced its production potential on multiple fronts.
The Northumberland project represents one of the largest
undeveloped Carlin-style deposits in Nevada. The updated resource
estimate, incorporating a new 3-D geological model and three years
of drill results, has increased Northumberland's gold-equivalent
resource estimate by 28%. The resource now comprises a Measured and
Indicated ("M&I") resource of 2.44 million ounces and an
inferred resource of 0.82 million ounces.
The new open-pit and underground resource estimate (oxide and
sulphide) also:
- Identifies new near-surface and down-dip areas open for
expansion;
- More than doubles the gold ounces in the measured
category;
- Increases the open-pittable, gold-equivalent resource to 2.41
million ounces (M&I);
- Adds a new indicated resource of 9.06 million ounces of
silver; and
- Reveals exceptional continuity of mineralization and grade
over hundreds of metres, allowing for a reclassification of ounces
to higher confidence levels.
"With gold prices on a strong uptrend, global gold reserves
decreasing and advanced projects in mining-friendly jurisdictions
with good infrastructure in short supply, Northumberland represents
an important asset not only for Fronteer, but the gold industry,"
says Fronteer President and CEO, Dr. Mark O'Dea. "Our focus in the
near-term is to expand the deposit by drill testing higher grade
mineralized bodies identified through this new modeling."
Northumberland's US$3.8-million exploration program is currently
underway with two drills turning. A further updated resource
estimate, incorporating Fronteer drill results from this year and
next, is planned for late 2009.
Newmont Mining Corporation has granted Fronteer a license for
the use of its patented N2TEC flotation process technology (tests
using Newmont's technology achieved recoveries greater than 90%
from Northumberland refractory sulfide mineralization). In return,
Fronteer has granted Newmont preferential ore processing rights for
any non heap leach ore developed from Northumberland on
commercially competitive terms.
Northumberland is one of several Nevada gold projects obtained
by Fronteer from the 2007 acquisition of NewWest Gold Corp. The new
resource estimate comprises exploration data collected prior to the
acquisition.
The Northumberland resource is located entirely on private
lands. The deposit consists of a series of stacked,
shallow-dipping, tabular, sheet-like deposits stretching over 2.6
km long and up to 1.1 km wide, and is open for expansion in
multiple directions.
To view the new resource model, please use the following
link:
www.fronteergroup.com/sites/fronteer_admin/NorthumberlandResourceModel.jpg
To download a print-quality version of this file, please use the
following link:
www.fronteergroup.com/sites/fronteer_admin/NorthumberlandResourceModel.pdf
(2MB)
Northumberland resource estimate
--------------------------------------------------------------------------
MEASURED
--------------------------------------------------------------------------
Gold
Cut- Cut- Equivalent
off off Gold (i)
--------------------------------------------------------------------------
Resource Type (g/t) (opt) Tonnes g/t opt oz oz
--------------------------------------------------------------------------
Open Pit Oxide 0.3 0.01 12,888,000 1.19 0.035 492,000 492,000
Open Pit Sulfide 1.0 0.03 13,781,000 2.31 0.067 1,022,000 1,022,000
Underground 2.5 0.07
--------------------------------------------------------------------------
TOTAL 26,669,000 1.77 0.05 1,514,000 1,514,000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
---------------------------------------------------------------
INDICATED
---------------------------------------------------------------
Cut- Cut-
off off Gold
---------------------------------------------------------------
Resource Type (g/t) (opt) Tonnes g/t opt oz
---------------------------------------------------------------
Open Pit Oxide 0.3 0.01 739,000 1.94 0.057 46,000
Open Pit Sulfide 1.0 0.03 8,794,000 2.35 0.069 665,000
Underground 2.5 0.07 316,000 3.35 0.098 34,000
---------------------------------------------------------------
TOTAL 9,849,000 2.35 0.07 745,000
---------------------------------------------------------------
---------------------------------------------------------------
--------------------------------------------------------------------------
Gold
Cut- Cut- Equivalent
off off Silver (i)
--------------------------------------------------------------------------
Resource Type (g/t) (opt) Tonnes g/t opt oz oz
--------------------------------------------------------------------------
Open Pit Oxide 0.3 0.01 13,627,000 7.31 0.213 3,203,000 110,000
Open Pit Sulfide 1.0 0.03 22,575,000 8.01 0.234 5,815,000 781,000
Underground 2.5 0.07 316,000 4.43 0.129 45,000 35,000
--------------------------------------------------------------------------
TOTAL 36,518,000 7.72 0.23 9,063,000 926,000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
---------------------------------------------------------------
MEASURED & INDICATED
---------------------------------------------------------------
Cut- Cut-
off off Gold
---------------------------------------------------------------
Resource Type (g/t) (opt) Tonnes g/t opt oz
---------------------------------------------------------------
Open Pit Oxide 0.3 0.01 13,627,000 1.23 0.036 538,000
Open Pit Sulfide 1.0 0.03 22,575,000 2.32 0.068 1,687,000
Underground 2.5 0.07 316,000 3.35 0.098 34,000
---------------------------------------------------------------
TOTAL 36,518,000 1.92 0.06 2,259,000
---------------------------------------------------------------
---------------------------------------------------------------
--------------------------------------------------------------------------
Gold
Cut- Cut- Equivalent
off off Silver (i)
--------------------------------------------------------------------------
Resource Type (g/t) (opt) Tonnes g/t opt oz oz
--------------------------------------------------------------------------
Open Pit Oxide 0.3 0.01 13,627,000 7.31 0.213 3,203,000 602,000
Open Pit Sulfide 1.0 0.03 22,575,000 8.01 0.234 5,815,000 1,803,000
Underground 2.5 0.07 316,000 4.43 0.129 45,000 35,000
--------------------------------------------------------------------------
TOTAL 36,518,000 7.72 0.23 9,063,000 2,440,000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
---------------------------------------------------------------
INFERRED
---------------------------------------------------------------
Cut- Cut-
off off Gold
---------------------------------------------------------------
Resource Type (g/t) (opt) Tonnes g/t opt oz
---------------------------------------------------------------
Open Pit Oxide 0.3 0.01 17,000 1.83 0.053 1,000
Open Pit Sulfide 1.0 0.03 1,841,000 2.06 0.060 122,000
Underground 2.5 0.07 5,560,000 3.71 0.108 663,000
---------------------------------------------------------------
TOTAL 7,418,000 3.30 0.10 786,000
---------------------------------------------------------------
---------------------------------------------------------------
--------------------------------------------------------------------------
Gold
Cut- Cut- Equivalent
off off Silver (i)
--------------------------------------------------------------------------
Resource Type (g/t) (opt) Tonnes g/t opt oz oz
--------------------------------------------------------------------------
Open Pit Oxide 0.3 0.01 17,000 10.98 0.320 6,000 1,000
Open Pit Sulfide 1.0 0.03 1,841,000 6.54 0.191 387,000 130,000
Underground 2.5 0.07 5,560,000 5.95 0.174 1,064,000 684,000
--------------------------------------------------------------------------
TOTAL 7,418,000 6.11 0.18 1,457,000 815,000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(i) AuEq calculated at a Au:Ag ratio of 50:1
Christopher Lee, P. Geo, Chief Geoscientist for Fronteer
Development Group, is the designated Qualified Person for the
Northumberland resource estimate with the ability and authority to
verify its authenticity and validity. Mineral resources have been
estimated 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 estimate was conducted using a
combination of Ordinary Kriging (gold) and Inverse-Distance
Weighting (silver) grade interpolations within an 'unwrinkled' 3-D
block model in Gemcom software. A total of 17,149 assays from 1,119
drill holes (core, RC and rotary drilling) were capped and
composited to 10 ft lengths, then separated into high and low grade
domains within three distinct mineralized horizons, constrained by
hand-digitized, 3-D solids. Each horizon was 'unwrinkled' into a
separate flat horizon to facilitate continuous interpolation across
variably dipping segments of the deposit, then back-transformed
into real space. Densities were based on 295 s.g. measurements and
assigned according to lithological proportions in different areas
of the deposit and degree of oxidation. Three different resource
types were defined: open pit oxide and sulfide, based on gold
cyanide extraction ratios (oxide resource equals cyanide leach
assay/fire assay greater than 0.5), and underground, based on depth
below surface (2,286-metre elevation, constrained by preliminary
internal Lerchs-Grossman pit optimizations). Resources were
classified according to: (i) geological confidence, (ii) number of
drill holes, and (iii) average distances to samples used in each
block estimate. 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.
The Independent Qualified Person responsible for
Northumberland's previous resource estimate is Michael Gustin,
Ph.D., of Mine Development Associates ("MDA"), Reno, Nevada. For
further details, please view the 43-101 Compliant Report:
"Technical Report, Northumberland Project, Nye County, Nevada, USA,
November 1, 2007, by Mine Development Assoc. for Fronteer" on SEDAR
at http://www.sedar.com/.
LIQUIDITY
Fronteer is not invested in any short term commercial paper or
asset-backed securities. Fronteer has approximately C$96 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 excellent gold and copper-gold projects in western Turkey, an
extensive portfolio of advanced stage gold projects in Nevada, and
a 42.2% 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
potential expansion of mineralization, timing of resource estimate,
potential recovery rates 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 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 silver, environmental risks and hazards, increased
infrastructure and/or operating costs, labor and employment
matters, 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. 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.
NEWS RELEASE 08-14
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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