Fronteer Development Group Inc. (TSX: FRG)(NYSE Amex: FRG)
announces today that Newmont USA Limited ("Newmont"), a subsidiary
of Newmont Mining Corporation, has provided the results from a
further 10 holes recently drilled as part of their 2009 US$5M
development program at the Sandman gold project in Nevada.
Work at Sandman is focused on both advancing the project towards
production and concurrently building the resource base in this
underexplored region of Nevada. Given Sandman's proximity to
established infrastructure, including milling facilities, Fronteer
believes Sandman to be the nearest term production-stage project
among the company's large Nevada gold platform.
Work to date at Sandman has focused on two near-surface gold
deposits, Silica Ridge and Southeast Pediment, which are separated
by six kilometres along the Sleeper Trend. Both deposits are
extensively oxidized and potentially amenable to open-pit
mining.
SOUTHEAST PEDIMENT
Southeast Pediment is an outcropping, moderately-dipping,
high-grade vein system hosting a predominantly oxide gold resource
at the intersection of two prominent structures. At a down-hole
depth of 114 metres, a new hole has intersected a wide zone of
high-grade sulphide mineralization below the oxide gold vein. This
hole, NSM-51, not only reinforces the high-grade nature and strong
continuity of mineralization at Southeast Pediment, but further
demonstrates the presence of multiple mineralized vein structures
in the deposit.
Highlights from this hole include:
- Near-surface: 8.05 grams per tonne oxide gold (0.23 ounces per
ton) over 0.58 metres, within a broader interval containing 1.28
g/t (0.04 oz/ton) over 9.45 metres
- In the footwall: 28.90 g/t sulphide gold (0.84 oz/ton), over
2.07 metres, within a broader interval containing 3.16 g/t (0.09
oz/ton) over 32.03 metres
Southeast Pediment has only been tested to a vertical depth of
200 metres and remains open in all directions and two strong
geophysical/geochemical anomalies have yet to be drill tested.
SILICA RIDGE
Silica Ridge is a high-grade vein system localized along the
folded contacts of a Tertiary andesite dyke in proximity to a
significant fault intersection. The deposit is entirely oxidized
and and has been drill tested to a depth of approximately 60
metres. Three new holes at Silica Ridge have intersected high grade
oxide gold mineralization, all within 45 metres of surface. Wider
intervals of lower grade mineralization were also intersected in
numerous holes. Highlights include:
- 32.14 g/t (0.94 oz/ton) over 2.62 metres, as well as 1.07 g/t
(0.03 oz/ton) over 18.71 metres in NSM-110
- 17.70 g/t (0.52 oz/ton) over 3.11 metres in NSM-44
- 8.40 g/t (0.25 oz/ton) over 3.2 metres in NSM-42
Mineralization at Silica Ridge occurs over a 700x250m area and
remains open in all directions.
For a table providing results from all 10 holes provided, please
click:
www.fronteergroup.com/sites/files/fronteer_admin/SandmanDrillResults0924.pdf
For a graphic highlighting Sandman's location along the King
River Rift structure and its proximity to Newmont's Sage Mill at
Twin Creeks mine, please click:
www.fronteergroup.com/sites/files/fronteer_admin/SandmanLocation0924.pdf
Under the terms of the Sandman option and joint-venture
agreement, Newmont can earn an initial 51% interest in the project
by making a positive production decision by June 2011, spending a
minimum of US$14 million on exploration and development, making a
commitment to fund and construct a mine, and completing a
feasibility study. Thereafter, Newmont may earn an additional 9%
interest in Sandman by spending a further US$9 million on
development. Fronteer can elect to have Newmont arrange financing
for its 40% of ongoing development costs in the joint venture
through commencement of commercial production.
Results are pending from the last nine holes from the 2009 Phase
1 program completed on April 17, 2009. The Phase 2 program is
planned to commence in August and include up to 25 additional
holes. Newmont's ongoing 2009 work-program will provide the
foundation for development activities. The overall objectives of
the 2009 development program are to focus on the known deposits at
Southeast Pediment and Silica Ridge and drill a combination of HQ
and PQ core holes to:
- confirm the character of gold mineralization (size range of
the gold);
- obtain bulk metallurgical material for mill grade and
potential heap leach metallurgical tests;
- and improve the understanding of the geology and ore controls
of the mineralization
Following the completion of Newmont's 2009 program, Fronteer
will be updating the resource estimate at Sandman.
Drill samples and analytical data for the Sandman project are
being collected under the supervision of Newmont, Fronteer's joint
venture partner and project operator, using industry standard QA-QC
protocols. Fronteer's James Ashton P.E., who is the QP responsible
for compiling the data contained in this release, has not verified
the data; however, the grades and widths reported here agree well
with the Company's past results on the project and correspondence
with the operator has given him no reason to doubt their
authenticity. For further details on Sandman, please view the
technical report prepared by Mine Development Associates ("MDA"),
as of May 31, 2007, on SEDAR at http://www.sedar.com.
Sandman, Long Canyon and Northumberland are currently Fronteer's
leading properties among its large portfolio of gold projects in
Nevada.
For more information on Sandman and Fronteer's other Nevada
projects, visit: http://www.fronteergroup.com/?q=content/nevada
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.
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.
NEWS RELEASE 09-24
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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