08-17
As a result of
a review by the British Columbia Securities Commission (BCSC), Fronteer
Development Group Inc. ("Fronteer" or the "Company")
(FRG - TSX/AMEX) is issuing the following news release to clarify its
disclosure.
The previously
published mineral resource estimate for Northumberland (see June 5, 2008,
press release and NI 43-101 Technical Report, dated July 28, 2008)
included a measured gold resource estimate and an indicated silver
resource estimate within the same volume of rock. The assignment of the two
metals to different mineral resource categories was intended to reflect the
Company's differing confidence levels based on available data and
understanding of each mineralized system.
However,
assigning different mineral resource classifications to different metals
within the same volume of rock is no longer considered acceptable practice
under the guidelines set forth by the Canadian Institute of Mining,
Metallurgy and Petroleum Best Practice Guidelines (as adopted November
2003) and the Canadian Securities Administrators' National Instrument
43-101.
Fronteer
maintains its high-level of confidence in the certainty of its gold mineral
resource, which is defined by more than1,100 drill holes. However, not all
of these historic holes were assayed for silver.
Fronteer is
re-assigning Northumberland's measured gold resource to the indicated
category so that it matches the classification of the corresponding silver
resource.
The total
number of ounces in the resource remains unchanged.
As part of Northumberland's
current work program, Fronteer is collecting additional silver data to
increase the Company's understanding of the silver distribution within the
deposit. The Company is aiming to convert silver ounces from the indicated
to the measured category, allowing the project's gold ounces to be
reclassified as well.
This press release amends and restates the Company's previous press
release.
Reclassified Northumberland Resource
Estimate
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INDICATED
|
Resource
Type
|
Cut-off
Grade
|
Tonnes
|
Gold
|
Silver
|
Gold Equivalent*
|
(Au
g/t)
|
(Au
opt)
|
g/t
|
opt
|
oz
|
g/t
|
opt
|
oz
|
oz
|
Open
Pit Oxide
|
0.3
|
0.01
|
13,627,000
|
1.23
|
0.036
|
538,000
|
7.31
|
0.213
|
3,202,000
|
602,000
|
Open
Pit Sulfide
|
1.0
|
0.03
|
22,575,000
|
2.32
|
0.068
|
1,687,000
|
8.01
|
0.234
|
5,815,000
|
1,803,000
|
Underground
|
2.5
|
0.07
|
316,000
|
3.35
|
0.098
|
34,000
|
4.43
|
0.129
|
45,000
|
35,000
|
TOTAL
|
|
|
36,518,000
|
1.92
|
0.06
|
2,259,000
|
7.72
|
0.23
|
9,062,000
|
2,440,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFERRED
|
Resource
Type
|
Cut-off
Grade
|
Tonnes
|
Gold
|
Silver
|
Gold Equivalent*
|
(Au
g/t)
|
(Au
opt)
|
g/t
|
opt
|
oz
|
g/t
|
opt
|
oz
|
oz
|
Open
Pit Oxide
|
0.3
|
0.01
|
17,000
|
2.38
|
0.069
|
1,300
|
10.98
|
0.320
|
6,000
|
1,400
|
Open
Pit Sulfide
|
1.0
|
0.03
|
1,335,000
|
2.59
|
0.075
|
111,000
|
7.69
|
0.224
|
330,000
|
118,000
|
Underground
|
2.5
|
0.07
|
5,574,000
|
3.70
|
0.108
|
664,000
|
5.95
|
0.174
|
1,067,000
|
685,000
|
TOTAL
|
|
|
6,926,000
|
3.49
|
0.10
|
776,300
|
6.30
|
0.18
|
1,403,000
|
804,400
|
|
|
|
|
|
*AuEq calculated at a Au:Ag ratio of 50:1, and
assumes 100% recovery of both metals
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,
metal recoveries, 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 = 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 will be
posted on SEDAR (www.sedar.com).
LIQUIDITY
Fronteer is not invested in any short-term commercial paper or
asset-backed securities. Fronteer has approximately C$92 million in cash
that is fully liquid and held with a large Canadian commercial bank.
ABOUT FRONTEER
Fronteer
is an exploration and development company with a track record of making big
discoveries. Fronteer has a 40% interest in three gold and copper-gold
projects in western Turkey, an extensive portfolio of advanced stage gold
projects in Nevada, and a 42.2% 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
Richard Moritz, Director, Investor Relations
PH) 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, timing of resource calculation 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. Cautionary Note to U.S. Investors
Concerning Estimates of Measured, Indicated or Inferred Resources: The
information presented uses the terms "measured", "indicated"
and "inferred" mineral resources. United States investors are
advised that while such terms are recognized and required by Canadian
regulations, the United States Securities and Exchange Commission does not
recognize these terms. United States investors are cautioned not to assume
that all or any part of measured or indicated mineral resources will ever
be converted into mineral reserves. United States investors are also
cautioned not to assume that all or any part of an inferred mineral
resource exists, or is economically or legally mineable. 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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