Fronteer Development Group Inc. (TSX: FRG)(NYSE Amex: FRG)
announces today that permitting is underway for a 280-metre decline
to access the deeper extension of its 100% owned Northumberland
gold deposit in Nevada. The company is committed to advancing the
Northumberland project towards feasibility and the development of
an underground decline is a necessary step in gathering data to
achieve this goal.
The decline will provide access for:
- Development of ramps and drifts for an exploration drill
program to better define the grade and continuity of
mineralization, particularly in the areas where surface drilling
has intersected high-grades.
- Metallurgical sampling for continued process development work,
as well as metallurgical bulk samples for pilot testing.
"Northumberland has a large resource with good grade and an even
better address," says Troy Fierro, Fronteer Chief Operating
Officer. "However, the project has never received the dedicated
attention or comprehensive work commitment necessary to assess its
full potential. Unlocking the value of this undeveloped Carlin-type
deposit is a key component of the company's growth strategy in
Nevada."
Among the engineering and design work completed for the state
permit applications, two hydrogeological test holes were drilled.
The holes confirmed the groundwater elevation is below the level of
the decline target area. Samples collected for waste-rock
characterization tests have indicated that the waste rock will be
non-acid generating. The initial hydrogeological model indicates
dewatering and water treatment will not be an issue for the decline
and planned development.
It is anticipated that permitting for the decline will take
approximately nine months during which time the company will
develop a detailed schedule for underground drilling, metallurgical
sampling, data evaluation and economic analysis. A regional
exploration program based on new geological modeling is also being
developed.
The Northumberland gold deposit is located entirely on private
lands owned by Fronteer. Gold mineralization at Northumberland is
characterized by a stacked sequence of three broad mineralized
envelopes hosting a number of high-grade shoots and lenses, many of
which exceed 20 metres in thickness. Detailed drilling from
underground is anticipated to enhance the confidence level in the
distribution and continuity of grade to support ongoing advancement
of this project.
METALLURGICAL CHARACTERIZATION AND TESTING
Geochemical characterization of various refractory
mineralization types, metallurgical sampling and metallurgical
testing are part of Fronteer's multi-phased, metallurgical
development program that is being carried out in parallel with
surface and future underground exploration, as well as resource
development activities.
The metallurgical program is designed and managed by Gary
Simmons, of GL Simmons Consulting LLC. Mr. Simmons' work experience
includes metallurgical analyses of numerous mineralized materials
and ores for Newmont and Santa Fe Pacific Gold in Nevada that are
similar to Northumberland mineralization, including Twin Creeks and
deposits along Newmont's North Carlin Trend.
As part of the Phase 1 metallurgy program, Fronteer drilled six
PQ core holes in 2008. Twenty metallurgical samples were collected
and compiled into 13 composites representing mildly refractory and
primary sulfide mineralization. These 13 composites were then
condensed into three master composites for metallurgical
characterization and alkaline pressure oxidation testing. Testing
is being conducted at Dawson Metallurgical Laboratories in Salt
Lake City, Utah. Results from the Phase 1 testing program are
expected to be available in September 2009.
BACKGROUND
Northumberland is a successful past producing gold mine, having
produced between 200,000 and 300,000 ounces from oxide and mildly
transitional ores via run of mine and crushed ore heap leach
operations. Gold production ceased in 1991 due to low gold
prices.
Northumberland has an indicated resource of 36.5 million tonnes
at 1.92 grams per tonne gold (2,259,000 ounces gold), and an
additional inferred resource of 6.9 million tonnes at 3.49 g/t gold
(776,000 ounces gold).
Northumberland, Long Canyon and Sandman are Fronteer's most
advanced gold projects and comprise the Company's future production
platform 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 who has
overseen the collection and verification of the data for this
release and has reviewed and approved this release's content.
ABOUT FRONTEER
Fronteer is an exploration and development company with three
key gold projects in Nevada forming its platform for future gold
production. Fronteer also has a 40% interest in three gold and
copper-gold projects in western Turkey, and 100% ownership of
Aurora Energy Resources, a private subsidiary advancing a
world-class uranium district in Labrador, Canada. For further
information on Fronteer visit www.fronteergroup.com.
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, 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, which is posted on SEDAR
(www.sedar.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, potential size of
mineralized zone, 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.
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 info@fronteergroup.com
www.fronteergroup.com
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