Fronteer Development Group Inc. ("Fronteer" or the "Company") (TSX:
FRG)(NYSE-A: FRG) is pleased to announce that recent drilling has
strengthened the continuity and expansion potential of the
Company's 100%-owned Northumberland deposit.
Mineralization has been extended both at depth and towards the
west.
Depth extensions from hole FNU009 include:
- 7.17 grams per tonne (0.209 ounces per ton) over 3 metres (10
feet);
- 6.16 g/t (0.180 oz/t) over 3 metres (10 feet);
- 13.50 g/t (0.394 oz/t) over 1.5 metres (5 feet);
- all within a broader zone averaging 2.73 g/t (0.080 oz/t) over
64 metres (210 feet).
FNU014, a 152-metre (500 foot) step-out to the southwest, also
returned at depth:
- 4.07 g/t (0.119 oz/t) over 1.5 metres (5 feet);
- within a larger zone averaging 1.47 g/t (0.043 oz/t) over 27.4
metres (90 feet).
Of the relatively few historic drill holes that have targeted
deep mineralization on the property, many have returned similar
encouraging grades, including:
- NW-1103 returned 13.9 g/t (0.405 oz/t) over 7.6 metres (25
feet) at a depth of approximately 518 metres (1,700 feet).
- NN-5 returned 9.15 g/t (0.267 oz/t) over 19.8 metres (65 feet)
at a depth of approximately 305 metres (1,000 feet).
- NW-1165 returned 33.9 g/t (0.99 oz/t) over 3.0 metres (10
feet) of at a depth of approximately 914 metres (3,000 feet).
In addition to extending mineralization at depth, Fronteer's
2008 drill program also sought to test new shallow targets
peripheral to Northumberland's existing pits. Fronteer intersected
mineralization in multiple holes, including:
- 1.70 g/t (0.050 oz/t) over 9.1 metres (30 feet) in FNU003
- 1.52 g/t (0.044 oz/t) over 10.7 metres (35 feet) in FNU002
- 1.49 g/t (0.043 oz/t) over 4.0 metres (13 feet), starting from
surface, in FNU004
Gold at Northumberland occurs in a window of prospective lower
plate Roberts Mountain stratigraphy, which hosts some of the
largest gold deposits in Nevada. The mineralization occurs in a
series of stacked, sediment hosted gold zones that occur over a 2.6
kilometre-long by up to 1.1 kilometre-wide area (1.6 miles x 0.68
miles). Over 1,400 drill holes totaling about 154,000 metres
(505,000 feet) have cumulatively established a high confidence
level in the integrity of Northumberland's resource.
Northumberland's historical production, taken from small oxide
open pits, is estimated at 230,700 ounces gold and 485,000 ounces
silver - less than 10% of the current resource. Northumberland's NI
43-101 gold-equivalent resource estimate includes 2.44 million
ounces indicated and 815,000 ounces inferred (43,440,000 tonnes
averaging 2.17 g/t). The deposit is located entirely on private
lands owned 100% by Fronteer.
DRILL HIGHLIGHTS
--------------------------------------------------------------------------
Inter-
Inter- cept
cept Len-
Len- Au From To gth
From To gth Au (oz/ (met- (met- (met- Au
Hole ID (feet) (feet) (feet) (ppm) ton) res) res) res) (gpt)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
FNU001 40 50 10 1.19 0.035 12.2 15.2 3.0 1.19
--------------------------------------------------------------------------
FNU002 180 190 10 1.08 0.032 54.9 57.9 3.0 1.08
--------------------------------------------------------------------------
335 370 35 1.52 0.044 102.1 112.8 10.7 1.52
--------------------------------------------------------------------------
FNU003 70 100 30 1.70 0.050 21.3 30.5 9.1 1.70
--------------------------------------------------------------------------
FNU004 315 325 10 1.10 0.032 96.0 99.1 3.0 1.10
--------------------------------------------------------------------------
FNU008 0 13 13 1.49 0.043 0.0 4.0 4.0 1.49
--------------------------------------------------------------------------
FNU009 2088 2298 210 2.73 0.080 636.6 700.6 64.0 2.73
--------------------------------------------------------------------------
including 2148 2158 10 7.17 0.209 654.9 657.9 3.0 7.17
--------------------------------------------------------------------------
2253 2258 5 5.24 0.153 686.9 688.4 1.5 5.24
--------------------------------------------------------------------------
2268 2278 10 6.16 0.180 691.5 694.5 3.0 6.16
--------------------------------------------------------------------------
2293 2298 5 13.50 0.394 699.1 700.6 1.5 13.50
--------------------------------------------------------------------------
FNU010 835 855 20 2.85 0.083 254.6 260.7 6.1 2.85
--------------------------------------------------------------------------
1162.5 1191 28.5 1.83 0.053 354.4 363.1 8.7 1.83
--------------------------------------------------------------------------
including 1162.5 1167.5 5 5.37 0.157 354.4 355.9 1.5 5.37
--------------------------------------------------------------------------
FNU012 1748 1758 10 1.77 0.052 532.9 536.0 3.0 1.77
--------------------------------------------------------------------------
FNU014 3313 3338 25 1.67 0.049 1010.1 1017.7 7.6 1.67
--------------------------------------------------------------------------
3343 3433 90 1.47 0.043 1019.2 1046.6 27.4 1.47
--------------------------------------------------------------------------
including 3348 3353 5 4.07 0.119 1020.7 1022.3 1.5 4.07
--------------------------------------------------------------------------
FNU019 560 585 25 1.17 0.034 170.7 178.4 7.6 1.17
--------------------------------------------------------------------------
- Note: The true width of the mineralized zones is estimated to be
approximately 70-95% of those stated. Drill composites were calculated
using a cut-off of 0.30 g/t. Results less than 1 g/t are not reported
here. FNU005-007, 011, 013, 015, 016 and 018 had no reportable assays.
Assay results are pending for FNU017.
Northumberland, Long Canyon and Sandman are currently Fronteer's
leading properties among its large, portfolio of gold projects in
Nevada. For more information on Northumberland and Fronteer's other
Nevada projects, visit:
www.fronteergroup.com/?q=content/nevada.
James Ashton P.E. is designated as a Qualified Person for the
Northumberland drill results, with the ability and authority to
verify the authenticity of, and validity of, this data. Drill
composites were calculated using a cut-off of 0.30 g/t. Drill
intersections are reported as drilled thicknesses. Reverse
circulation cuttings were sampled on 5.0 ft. (1.52m) intervals and
core was sampled at geologically selected intervals. All 2008 drill
samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada,
for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA
finish, or if over 10.0 g/t were re-assayed and completed with a
gravimetric finish. For these samples, the gravimetric data were
utilized in calculating gold intersections. QA/QC included the
insertion of numerous standards and blanks into the sample stream,
and the collection of duplicate samples at random intervals within
each batch. Selected holes are also analyzed for a 72-element
geochemical suite by ICP-MS.
LIQUIDITY
Fronteer is not invested in any short-term commercial paper or
asset-backed securities. Fronteer has approximately C$83 million in
cash that is fully liquid and held with a large Canadian commercial
bank.
ABOUT FRONTEER
Fronteer is an exploration and development company with a track
record of making big discoveries. Fronteer has an extensive
portfolio of advanced stage gold projects in Nevada, a 40% interest
in three gold and copper-gold projects in western Turkey, and a
42.2% interest in Aurora Energy Resources (TSX: AXU), a leading
Canadian uranium company.
Christopher Lee, P. Geo, Chief Geoscientist for Fronteer
Development Group., is the designated Qualified Person who has
prepared the Northumberland resource estimate. Mineral resources
have been estimated in accordance with the standards adopted by the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
Council in November 2003, as amended, and prescribed by the
Canadian Securities Administrators' National Instrument 43-101
Standards of Disclosure for Mineral Projects. The mineral resource
estimate is as of May 1, 2008 and 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 in order to reflect the different anticipated costs of
extraction for open pit versus underground mining, and heap leach
versus sulfide processing. Cut-off grades for each resource type
were estimated using cost ranges of existing operations for various
parameters, such as mining and processing costs, metal recoveries,
general and administrative, sales and refining costs, and an
assumed gold price of $700 per ounce. The three different resource
types are: 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). Mineral 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 are
available in the amended and restated NI 43-101 report, posted on
SEDAR (www.sedar.com). Detailed resource tables for Fronteer's
Nevada projects, including Northumberland, can also be found at:
www.fronteergroup.com/?q=content/nevada-resource-estimate-tables.
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 size of
mineralized zone, timing of resource calculation and size 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
and silver, environmental risks and hazards, increased
infrastructure and/or operating costs, labor and employment
matters, and government regulation and permitting requirements 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 08-30
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. Richard Moritz Director, Investor
Relations (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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