Re: News Release - Tuesday, May 22, 2012
Title: Frontline Gold Expands Poly Project in the Stewart Gold Camp, NW BC
Toronto, Ontario -- May 22, 2012 -- Frontline Gold Corporation (TSX-V:FGC) ("Frontline" or the "Company") is pleased to announce the expansion of the Poly Project located in the Stewart Gold Camp.
Based on the positive results obtained from the 2010 and 2011 exploration work on the Poly Property, the Poly Project has been enlarged to include the mill tenures ("the MT"). The MT is comprised of about 613 hectares in 2 mineral tenures which are strategically located east of the Poly Property. The MT connects two satellite Poly tenures to the north with the main area of the Property to the south (see tenure Map 1 attached). A 2008 assessment report on the MT indicates some interesting gold targets on the north side of the Entrance Peak Intrusive on the northern area of the tenures. Historic exploration activities on the MT identified two types of mineralization: molybdenite in quartz veins and in fracture fillings in the Strohn Creek pluton; and, phyllic altered boulders in a creek bed assaying between 13.03 to 20.67 g/t Au, 63.2 to 93.3 g/t Ag, 0.45 to 1% Pb and 0.74 to 0.85% Zn. The polymetallic mineralization is thought to have a proximal source associated with the north contact of the Pluton.
The MT also covers a portion of the old access road (see Map 1) to the historic Goat Mine mill site and Goat Mine silver property held by Mountain Boy Minerals, which is located to the north and through the two northeastern Poly claims.
Frontline has optioned (the "MT Option") the MT from Dynasty Capital LLC and John R. Gaetz. To maintain the MT Option Frontline will be required to make cash option payments totaling $50,000 and issue an aggregate of 125,000 shares of the Company over a four year period as per the following schedule:
| Date |
Cash Payments |
Share Issuances |
| On execution |
$2,500 (completed) |
25,000 |
| December 15, 2012 |
$7,500 |
25,000 |
| December 15, 2013 |
$10,000 |
25,000 |
| December 15, 2014 |
$10,000 |
25,000 |
| December 15, 2015 |
$20,000 |
25,000 |
| Totals |
$50,000 |
125,000 |
The MT Option is subject to a 2% net smelter return royalty (the "NSR"). Frontline has the option to buy-back the NSR for $1,000,000 anytime during the four year option period. The MT Option is subject to TSX Venture approval and the issuance of shares will be subject to a four month hold period.
Frontline's Poly Property land package now comprises 22 tenures aggregating approximately 6974 hectares in the Stewart Gold Camp region. The Stewart Gold Camp in northwestern British Columbia is an emerging, world-class mining district that offers discovery opportunities for major gold-copper and precious metal polymetallic deposits.
About Frontline's Poly/Stewart Projects
Frontline holds an option to earn and acquire up to a 100% in both the Poly and Stewart Projects. The Poly and Stewart Projects are based in the Stewart Gold Camp in northwestern British Columbia. This is an evolving gold camp that hosts one of the world's richest Kuroko-type VMS precious metal deposits as well as one of the world's largest undeveloped Cu-Au porphyry deposits, KSM/Snowfield/Brucejack, with over 94Moz of Au, 607Moz of Ag and 14B lbs Cu in resources. The Poly Project is contiguous with Mountain Boy Minerals and Great Bear Resources mineral tenures that host the BA Ag-Pb-Zn VMS deposits as well as with Teuton/Sabina's tenures that host the Del Norte VMS trend.
Frontline's gold-copper porphyry project, the Stewart Property, straddles Highway 37 approximately 10 kilometres south of Bell 2 and its western tenures are contiguous with the KSM (Seabridge Resources) and Snowfield/Brucejack (now Pretivm Resources) properties.
On April 19, 2012, Frontline provided highlights for its 2012 exploration programs on the Poly and Stewart Properties in the Stewart Gold Camp of northwestern British Columbia. The 2012 Poly exploration programs are being supervised by Geofine Exploration Consultants Ltd. under the direction of David Molloy, P.Geo. Both the Stewart and Poly 2012 exploration programs have received all regulatory permits. All programs are subject to financing.
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company with an experienced discovery team and a proven record of accomplishment. The Company's flagship properties include the Niaouleni gold project in the heart of Mali South in West Africa's prolific gold belt and the Menderes gold project in the Izmir province of Western Turkey. Ongoing Canadian exploration includes the Poly (gold and polymetallic VMS) and the Stewart (gold-copper porphyry) projects.
For further information, please visit the Company's website at www.frontlinegold.com to view the most recent corporate presentation.
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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�Walter Henry�
Walter Henry, President & CEO
FRONTLINE GOLD CORP. |
Contact: Walter Henry
Telephone: (416) 362-9100
Fax: (416) 362-9300
Email: info@frontlinegold.com
Website: www.frontlinegold.com
Frontline Gold Corp. (TSX-V: FGC)
67 Yonge Street, Suite 1102
Toronto, Ontario M5E 1J8 |
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
- Associated File: http://www.frontlinegold.com/i/pdf/Poly-Mill-Tenures-may222012.pdf
- 388 KB in size, approx. 1 minute, 13 seconds to download at 56.6Kbps
Copyright � 2012 FRONTLINE GOLD CORP. (FGC) All rights reserved. For more information visit our website at
http://www.frontlinegold.com/ or send email to
info@frontlinegold.com ..
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Frontline Gold Corp.
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EXPLORATION STAGE |
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CODE : FGC.V |
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Frontline Gold is a gold exploration company based in Canada. Frontline Gold holds various exploration projects in Mali and in Turkey. Its main exploration properties are JUBILEE in Canada, NIAOULENI in Mali and MENDERES in Turkey. |