08-09
Fronteer Development Group Inc. ("Fronteer" or the
"Company") (FRG – TSX/AMEX) is pleased to announce a global
exploration program that aims to double the Company’s gold resource
base over the next two years.
Among its extensive pipeline of gold projects in Nevada and
northwestern Turkey, Fronteer currently has a full or partial interest in
five growing gold deposits with NI 43-101 resource estimates. Fronteer’s
current attributable global estimate comprises:
- A measured
and indicated resource of 3.72 million ounces gold equivalent; and
- An
inferred resource of 1.15 million ounces gold equivalent (see table below).
Fronteer aims to add significant gold ounces to its resource base
and Company value by expanding existing deposits with NI 43-101 compliant
resources ounces, completing project-first resource estimates and finishing
preliminary economic assessments.
"We believe there is an opportunity for Fronteer to become the
next high-quality, mid-tier company in the gold sector," says Fronteer
President and CEO Dr. Mark O’Dea. "Over the next two years, we
aim to add another five-million gold-equivalent ounces to our resource base
and advance key projects toward development. Several of our most exciting
projects are currently unquantified in terms of their size and intrinsic
value and are anticipated to play an important role in Fronteer’s
near-term growth."
Through various agreements and strategic investments, Fronteer will
have exposure of up to $67 million (all financial terms US$) in
exploration/development at a cost to the Company of approximately $16.4
million (see table below).
Fronteer has also strengthened its senior geological team with the
recent additions of Chief Exploration Geologist Dr. Ross Sherlock, formerly
of Miramar Mining Corp, and Senior Geoscientist Dr. Moira Smith, formerly
of Electrum USA and Teck Cominco. Sherlock played a senior role in
exploration programs at the Hope Bay project which led to successive
significant resource expansions and ultimately the acquisition of Miramar
by Newmont Mining Corp. in late 2007. Sherlock will focus on
Fronteer’s advanced projects, including definition drilling, resource
expansion and resource modeling. Smith played a major role in the discovery
and delineation of the Pogo Gold Deposit in Alaska with Teck Cominco. Smith
will be actively involved in developing new promising targets among
Fronteer’s early-stage Nevada gold projects.
FIRST-TIME RESOURCE ESTIMATES
Long Canyon
The Long Canyon project defines a new gold trend in Nevada and has
the potential to become a multi-million ounce gold system. This
emerging deposit features an open-ended zone of near-surface, Carlin-style,
oxide-gold mineralization. Long Canyon has encouraging grade and tonnage
potential and remains open for expansion in all directions. Plans for
2008 include an initial $3.2-million, 11,500-metre drilling program to
extend the deposit along strike to the northeast, southwest, and down dip,
with the goal of producing a project-first NI 43-101 resource.
Halilaga
While still at a relatively early stage with 12 drill holes defining
an area called the Central Zone, Halilaga has many of the hallmarks of a
world-class, copper-gold deposit in terms of size and grade, as well as
excellent infrastructure. Teck Cominco Limited's Turkish subsidiary
("TCAM") earned-back a 60% interest in Halilaga and is solely
funding a US$3 million exploration program at Halilaga in 2008. TCAM can
earn an additional 10% in the project, by electing before December 31,
2008, to complete a feasibility study on the project within four years of
the election date. The planned 2008 exploration program will nearly double
last year's initial drill program from 6,000 metres to a
target of 11,000
metres. Plans include important grid drilling at the
known copper-gold discovery and highly promising untested target areas with
similar geophysical and geochemical signatures as the Central Zone. Fronteer
anticipates completing Halilaga’s first resource estimate by early
2009.
RESOURCE EXPANSIONS AT EXISTING DEPOSITS
Northumberland
Fronteer has a 100% interest in Northumberland, one of the largest
undeveloped Carlin-style deposits in Nevada. The project has a NI 43-101
resource estimate of 2.06 million ounces of gold (measured and indicated),
0.40 million ounces of gold (inferred), and 5.11 million ounces silver
(inferred). Fronteer plans to complete an updated resource estimate
by the end of second quarter, which will incorporate drill results from the
past three years. Plans for Northumberland in 2008 include an initial
$3.8-million budget focused on expansion and infill drilling, resource
estimation and scoping studies.
Sandman
Sandman provides Fronteer with exposure to potential near-term
production funded by its senior Nevada partner, Newmont. Located near
Newmont’s Twin Creeks mill, Sandman features four partially defined
near-surface gold deposits. Sandman currently has a combined NI 43-101
resource estimate of 271,900
ounces (measured and indicated) and 38,000 ounces
(inferred) gold. As part of a Letter of Intent agreement, Newmont is to
spend $3 million in exploration and development at Sandman in 2008,
including active drill programs to expand the size of known deposits and
define new mineralized zones. Fronteer will be exposed to $14 million
in exploration as Newmont advances Sandman to a production decision within
36 months to earn a 51% interest (see Feb. 6, 2008, press release).
Kirazli and Agi Dagi
Agi Dagi and Kirazli are part of an emerging gold and copper-gold
district built by Fronteer in northwestern Turkey that is still in its
exploration infancy. TCAM earned-back a 60% interest in both Agi Dagi and
Kirazli. Fronteer’s combined resource estimate for both projects
stands at 1.5 million ounces of gold with 9.1 million ounces of silver
(measured + indicated), and 1.6 million ounces of gold with 6.7 million
ounces of silver (inferred), for an overall gold equivalent resource of 3.5
million ounces. Fronteer believes there is still significant resource
upside at Kirazli and Agi Dagi. A planned 2008 $1-million,
exploration program, including 2500 m drilling operated by TCAM, will test
additional targets in this district.
PRE-FEASIBILITY PROJECTS
Fronteer has a 42.3% interest in Aurora Energy Resources (TSX
– AXU), a leading Canadian uranium exploration and development
company. Aurora recently announced that a total resource estimate for
its pipeline of six growing uranium deposits in coastal Labrador has
produced:
- A measured
and indicated resource of 83.9 million pounds of U3O8 (uranium); and
- An
inferred resource of 49.8 million pounds of U3O8.
Aurora just completed a 20,000-metre winter program of in-fill,
confirmation, and geotechnical drilling at its Michelin and Jacques Lake
deposits and anticipates completing a pre-feasibility study on these
deposits by end of year or first quarter of 2009. There is no
additional information to report on Nunatsiavut Government consultations
since Fronteer’s March 11, 2008, press release.
FRONTEER’S ATTRIBUTABLE GOLD-EQUIVALENT OUNCES:
Project
(FRG’s % ownership)
|
M+I
ounces
|
Grade
(oz/ton)
|
Inferred
ounces
|
Grade
(oz/ton)
|
Kirazli
(40%)
|
154,400
|
0.033
|
402,800
|
0.041
|
Agi
Dagi-Deli (40%)
|
368,400
|
0.046
|
207,600
|
0.048
|
Agi
Dagi-Baba (40%)
|
163,600
|
0.021
|
94,800
|
0.021
|
Northumberland
(100%)
|
2,058,000
|
0.067
|
399,000
|
0.091
|
Zaca
(100%)
|
700,000
|
0.026
|
11,000
|
0.033
|
Sandman
(100%)
|
271,900
|
0.034
|
38,000
|
0.027
|
TOTALS
|
3,716,300
|
|
1,153,200
|
|
*Teck
Cominco’s Turkish subsidiary, TCAM, has a 60% interest in Kirazli and
Agi Dagi projects. As part of a Letter of Intent, Newmont Mining
Corporation can secure a 51% interest in Sandman if it meets earn-in
requirements over a three-year period. See further details below as to the
qualified persons responsible for the above noted resource estimates and
the relevant assumptions used. Detailed resource tables for Turkey can
be found at: http://www.fronteergroup.com/?q=content/turkey-resource-estimate-tables. Detailed resource tables for Nevada can be found at: http://www.fronteergroup.com/?q=content/nevada-resource-estimate-tables.
FRONTEER'S EXPLORATION/DEVELOPMENT EXPOSURE:
Project
|
Exploration/Development Budget ($M)
|
Cost to Fronteer
|
Sandman
|
3
|
0
|
Northumberland
|
3.8
|
3.8
|
Long Canyon
|
3.2
|
3.2
|
Nevada pipeline
|
7
|
7
|
Agi Dagi/Kirazli
|
1
|
0.4
|
Halilaga
|
3
|
0
|
Regional Turkey
|
2
|
2
|
Aurora
|
44
|
0
|
Total
|
$67M
|
$16.4M
|
*Approximate budget. Teck
Cominco’s Turkish subsidiary, TCAM, has a 60% interest in Kirazli,
Halilaga and Agi Dagi projects. TCAM can earn an additional 10% in
Halilaga. As part of a Letter of Intent, Newmont Mining Corporation
can secure a 51% interest in Sandman if it meets earn-in requirements over
a three-year period, including spending $3M in 2008. Fronteer has a 42.3%
interest in Aurora Energy Resources.
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 42.3% interest in Aurora Energy Resources (TSX – AXU), a
leading Canadian uranium company. For further information on Fronteer
visit www.fronteergroup.com
or contact:
Mark O’Dea, Ph.D, P.Geo President and CEO
Glen Edwards, Director, Communications
PH) 604-632-4677 or Toll Free 1-877-632-4677
info@fronteergroup.com
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.
Nevada: Michael Gustin,
Ph.D., of Mine Development Associates ("MDA"), Reno, Nevada, is
designated as a Qualified Person for the Northumberland and Sandman
resource estimates, with the ability and authority to verify the
authenticity of, and validity of, this data. Mineral resources have been
estimated by MDA 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 Northumberland resource estimate is from the 43-101
Compliant Report: Technical Report, Northumberland Project, Nye County,
Nevada, USA, November 1, 2007, by Mine Development Assoc. for Fronteer. The
gold cut-off grades (expressed in ounces of gold per ton) for the
Northumberland Project measured, indicated and inferred resources are 0.01
for oxide material, 0.04 for shallow sulfide material and 0.10 for deep
sulfide material. The inferred silver resource includes only silver lying
within the modeled gold zones and within blocks that exceed the gold cut-off
grades; no silver cut-off is applied. The Sandman mineral
resource expressed is based on the technical report prepared by MDA
as of November 1, 2007. The cut-off grade (expressed in ounces of gold per
ton) for Sandman Project measured, indicated and inferred resources is 0.01 oz Au/ton for all
of the shallow deposits and 0.02
oz Au/ton for the deeper zones at the Southeast
Pediment deposit. Steven Ristorcelli, P. Geo, of Mine Development
Associates ("MDA"), Reno, Nevada, is designated as a Qualified Person
for the Zaca resource estimate, with the ability and authority to verify
the authenticity of, and validity of, this data. The Zaca resource
estimate is based on the technical report prepared by MDA as of
November 1, 2007. The cut-off grade (expressed in ounces of gold per ton)
for the Zaca Project measured, indicated and inferred resources is 0.01 ounces of gold
equivalent per ton. For further details on how the Northumberland, Sandman
and Zaca resources were calculated, please view the technical reports, at www.sedar.com.
Detailed resource tables for Nevada can also be found at: http://www.fronteergroup.com/?q=content/nevada-resource-estimate-tables.
Turkey: Christopher
Lee, P. Geo, Chief Geoscientist for Fronteer Development Group, is the
designated Qualified Person for the Agi Dagi and Kirazli Projects in NW
Turkey. Fronteer has a pro forma 40% share as part of joint venture with
Teck Cominco. Reported at 0.5 g/T Au cut-off; AuEq @ $13 Ag, $650 Au.
Gold-equivalent calculations reflect gross metal content that has not been
adjusted for metallurgical recoveries. The resource models consist of
a combination of oxide/sulphide zones, and isograde shells generated in
Leapfrog software. Two metre composites were generated from capped gold and
silver grades within these solids, and core samples with less than 50%
recovery were omitted. Grades were interpolated into blocks measuring 20x20
metres in the horizontal direction and 10 metres in the
vertical direction, using inverse distance squared, ordinary kriging, or a
combination of both methods, in Gemcom software. Search radii were
determined from variogram ranges, with restricted ranges for high grade
populations, and hard boundaries were used to limit sample selection
between the oxide and sulphide zones at Deli and Kirazli. Densities were
interpolated from drill core data into the block models using inverse
distance squared. Blocks were classified into Measured, Indicated and
Inferred mineral resource categories using a combination of the number
drill holes and the average distance of samples used in each block
estimate. Mineral resources are not mineral reserves, and there is no
guarantee that any resource will become a reserve. For further details on
how these resources were calculated, please view the technical reports,
dated Aug. 1, 2007, at www.sedar.com.
Detailed resource tables for Turkey can also be found at: http://www.fronteergroup.com/?q=content/turkey-resource-estimate-tables.
Labrador/Aurora: Christopher Lee,
P. Geo, Chief Geoscientist for Aurora Energy Resources Inc., is the
designated Qualified Person for the CMB resource estimates. Aurora’s
CMB Mineral Resources are reported at cut-off grades that contemplate
underground (0.05% U3O8) and open pit (0.03% U3O8)
mining scenarios, based on preliminary economic assumptions, and may be
refined with more in-depth economic analyses. All estimates were conducted
using 3D geological solids defined by a combination of stratigraphy,
alteration and grade, and hand-digitized on 25-50 metre
cross-sections in Gemcom software. Assay composites were generated from
capped U3O8 grades within these solids and used to interpolate grades into
3D block models, using either ordinary kriging (Michelin, Jacques Lake) or
anisotropic inverse distance squared weighting (Rainbow, Gear, Inda, Nash).
Optimum search parameters (ranges, orientations, number of samples) were
chosen to reflect modeled or interpreted grade continuity, low and high
grade populations, and sample density. A single mean specific gravity, as
measured from 22 to 329 samples of mineralized rock, was used for each
deposit. Mineral resources for the satellite deposits (Rainbow, Gear, Inda,
Nash) are reported for only those blocks located less than 300 metres from
surface. Blocks were classified into Measured, Indicated and Inferred
mineral resource categories using a combination of the number of drill
holes, average distance of samples used in each block estimate, and
geological confidence. Mineral resources are not mineral reserves, and
there is no guarantee that any resource will become a reserve. Assay results
have been prepared under the guidance of Mr. Ian Cunningham-Dunlop P. Eng,
Exploration Vice-President for Aurora Energy Resources Inc., who is
designated as a Qualified Person with the ability and authority to verify
the authenticity of and validity of this data. Drill core was prepared and
analyzed in accordance with industry standards by Activation Laboratories
Ltd, Ancaster, Ontario. A detailed resource table can be found at: http://www.fronteergroup.com/?q=content/fronteer%26%23039%3Bs-aurora-exceeds-annual-resource-target%2C-adds-four-projects.
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 for production, potential timing of receipt of
permits, project registration and classification of future mineral
resources and potential size of mineralized zones/deposits, timing of
resource estimate 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 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, silver, uranium and copper, environmental risks and
hazards, increased infrastructure and/or operating costs, labor and
employment matters, relationships with aboriginal peoples and 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.
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