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09-24
Fronteer Development Group Inc. (FRG -
TSX/NYSE Amex) 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 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: http://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:
http://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. For further
information on Fronteer visit www.fronteergroup.com
or contact:
Mark O'Dea, Ph.D, P.Geo President
and CEO
Richard Moritz, Director, Investor Relations
Glen Edwards, Director, Communications
Phone 604-632-4677 or Toll Free 1-877-632-4677
info@fronteergroup.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.
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