08-31
Fronteer Development Group Inc. ("Fronteer" or the"Company") (FRG - TSX/AMEX) is pleased to announce that drilling byNewmont Mining Corp. ("Newmont") continues to delineate near-surface, high-grade,oxide gold mineralization at the Sandman gold project in Nevada.
Newmont has provided Fronteer with assay results forthe first 16 holes drilled in Sandman's Southeast Pediment deposit. A total of 37 holes were completed atSandman during the 2008 program. Assays for the remaining 21 holes are pending. Similar to Fronteer's Long Canyonproject, drill results feature consistent, wide intervals of goldmineralization with high-grade zones, including:
- 2.58 grams per tonne gold (0.075 ounces per ton) over 26.19 metres, including 25.78 g/t (0.752 oz/ton) over 1.68 metres, in NSM-04;
- 2.24 g/t gold (0.065 oz/ton) over 11.68 metres, including 12.08 g/t (0.352 oz/ton) over 1.59 metres, in NSM-08; and
- 2.05 g/t (0.060 oz/ton) over 13.57 metres, including 19.96 g/t (0.582 oz/ton) over 0.95 metres, in NSM-19; along with,
- Silver grades as high as 74.44 g/t (2.17 oz/ton).
Sandman currently includes a group of four closelyspaced deposits that are near-surface and potentially amenable to open-pit mining,with resource expansion and exploration upside potential. Sandman islocated along trend of the Sleeper gold mine and Goldbanks deposit, along theKing River Rift that hosts multiple high-grade vein gold systems. Infrastructuresurrounding Fronteer's Sandman project is excellent. The property is close toNewmont's Twin Creeks mine, potentially eliminating the need for a stand-alonemilling facility and other significant capital expenditures if the project wereto proceed to production.
Sandman's exploration and development program isfocused on:
- Confirming the character of near surface gold mineralization at Sandman's Silica Ridge and SE Pediment deposits;
- Obtaining bulk metallurgical material for mill grade and heap leach metallurgical tests; and,
- Deepening the understanding of the geology and controls on gold mineralization.
Under the terms of the Sandman option and joint-ventureagreement, Newmont can earn an initial 51% interest in the project by making apositive production decision by June 2011, spending a minimum of $14 million onexploration and development, making a commitment to fund and construct a mine,and completing a bankable feasibility study.
DRILL RESULTS
Hole ID |
From (m) |
To (m) |
Interval (m) |
Ag (g/t) |
Au (g/t) |
Au (oz/t) |
NSM-04 |
17.07 |
43.26 |
26.19 |
17.48 |
2.58 |
0.075 |
Including |
37.80 |
39.48 |
1.68 |
74.44 |
25.78 |
0.752 |
NSM-05 |
25.24 |
46.49 |
21.25 |
15.50 |
1.83 |
0.053 |
Including |
28.29 |
32.26 |
3.96 |
21.76 |
5.12 |
0.149 |
And |
33.72 |
34.42 |
0.70 |
14.09 |
4.85 |
0.141 |
NSM-06 |
11.49 |
29.85 |
18.35 |
22.43 |
1.54 |
0.045 |
Including |
18.45 |
18.87 |
0.43 |
31.71 |
24.67 |
0.720 |
NSM-07 |
15.30 |
37.68 |
22.38 |
16.68 |
1.17 |
0.034 |
Including |
34.63 |
36.07 |
1.43 |
40.57 |
10.55 |
0.308 |
NSM-08 |
18.26 |
29.94 |
11.68 |
23.21 |
2.24 |
0.065 |
Including |
21.01 |
22.59 |
1.59 |
27.95 |
12.08 |
0.352 |
NSM-09 |
25.49 |
42.99 |
17.50 |
11.67 |
1.63 |
0.047 |
Including |
33.54 |
34.15 |
0.61 |
24.41 |
12.95 |
0.378 |
And |
37.50 |
39.09 |
1.59 |
5.69 |
2.28 |
0.066 |
NSM-10 |
17.04 |
51.83 |
34.79 |
15.96 |
1.10 |
0.032 |
Including |
17.04 |
17.44 |
0.40 |
7.41 |
5.98 |
0.174 |
And |
24.09 |
25.21 |
1.13 |
10.80 |
3.24 |
0.094 |
And |
34.91 |
35.85 |
0.95 |
13.61 |
3.58 |
0.104 |
And |
38.90 |
39.39 |
0.49 |
6.41 |
3.53 |
0.103 |
And |
42.13 |
42.99 |
0.85 |
16.11 |
4.21 |
0.123 |
NSM-11 |
36.83 |
47.29 |
10.46 |
10.84 |
0.52 |
0.015 |
NSM-13 |
19.85 |
34.42 |
14.57 |
9.20 |
1.47 |
0.043 |
Including |
19.85 |
21.31 |
1.46 |
8.54 |
2.89 |
0.084 |
And |
33.05 |
34.42 |
1.37 |
15.95 |
5.62 |
0.164 |
And |
44.27 |
53.29 |
9.02 |
3.00 |
0.63 |
0.018 |
NSM-15 |
54.85 |
59.39 |
4.54 |
5.45 |
0.66 |
0.019 |
NSM-16 |
12.20 |
14.15 |
1.95 |
2.31 |
0.73 |
0.021 |
And |
24.76 |
31.55 |
6.80 |
11.97 |
2.03 |
0.059 |
Including |
28.57 |
29.24 |
0.67 |
6.21 |
4.16 |
0.121 |
And |
30.49 |
31.55 |
1.07 |
29.76 |
5.51 |
0.161 |
NSM-18 |
10.06 |
13.57 |
3.51 |
1.34 |
2.66 |
0.078 |
Including |
12.80 |
13.57 |
0.76 |
2.09 |
7.45 |
0.217 |
And |
30.18 |
34.45 |
4.27 |
19.28 |
1.35 |
0.039 |
Including |
32.26 |
33.84 |
1.59 |
20.11 |
2.25 |
0.066 |
And |
40.09 |
47.35 |
7.26 |
5.50 |
0.85 |
0.025 |
Including |
41.16 |
42.07 |
0.91 |
5.79 |
2.49 |
0.073 |
NSM-19 |
20.27 |
33.84 |
13.57 |
9.94 |
2.05 |
0.060 |
Including |
21.28 |
22.56 |
1.28 |
17.00 |
2.38 |
0.069 |
And |
23.35 |
24.30 |
0.95 |
44.75 |
19.96 |
0.582 |
NSM-20 |
67.38 |
73.48 |
6.10 |
9.75 |
0.93 |
0.027 |
Including |
67.38 |
68.29 |
0.91 |
47.59 |
2.48 |
0.072 |
NSM-24 |
34.51 |
38.02 |
3.51 |
7.09 |
0.70 |
0.020 |
And |
47.07 |
50.30 |
3.23 |
2.52 |
1.32 |
0.039 |
Including |
48.78 |
49.57 |
0.79 |
2.81 |
2.53 |
0.074 |
NSM-25 |
10.03 |
15.61 |
5.58 |
1.32 |
0.92 |
0.027 |
And |
20.95 |
22.10 |
1.16 |
4.18 |
0.99 |
0.029 |
And |
24.21 |
25.98 |
1.77 |
3.25 |
0.70 |
0.020 |
Note: Thetrue width of the mineralized zones is estimated to be approximately 90% ofthose stated. Primarycomposite intervals were calculated using a cut-off of 0.5 g/t Au, and 2.0 g/tAu for the higher grade internal intervals.
Since signing the option deal in June 2008, Newmont has completed 2,800metres (9,300 feet) of drilling in 37 core holes. Over the next few months, a2009 drilling program will be determined to cover additional developmentdrilling at Sandman and initiate a series of exploration drill holes which willcover various property wide target areas based on surface mapping, geophysicaland soil sampling results.
Sandman, Northumberland and Long Canyon are currentlyFronteer's leading properties among its large portfolio of gold projects inNevada. For more information onSandman and Fronteer's other Nevada projects, visit: http://www.fronteergroup.com/?q=content/nevada
Drillsamples and analytical data for the Sandman project are being collected underthe supervision of Newmont, Fronteer's joint venture partner and projectoperator, using industry standard QAQC protocols. Fronteer's James AshtonP.E., who is the QP responsible forcompiling the data contained in this release, has not verified the data;however, the grades and widths reported here agree well with the Company's pastresults on the project and correspondence with the operator has given him noreason to doubt their authenticity. For further details on Sandman, please viewthe technical report prepared by Mine Development Associates ("MDA"), as of May31, 2007, on SEDAR at http://www.sedar.com.
LIQUIDITY Fronteer has no debt and is notinvested in any short-term commercial paper or asset-backed securities.Fronteer has approximately C$82 million in cash that is fully liquid and heldwith a large Canadian commercial bank.
ABOUT FRONTEER Fronteer is an exploration and development companywith a track record of making big discoveries. Fronteer has an extensiveportfolio of advanced stage gold projects in Nevada, a 40% interest in threegold and copper-gold projects in western Turkey, and a 42.2% interest in AuroraEnergy Resources (TSX - AXU), a leading Canadian uranium company. For further information on Fronteervisit www.fronteergroup.com orcontact:
MarkO'Dea, Ph.D, P.Geo President and CEO Richard Moritz, Director, Investor Relations GlenEdwards, Director, Communications Phone 604-632-4677 or Toll Free 1-877-632-4677 info@fronteergroup.com
Exceptfor the statements of historical fact contained herein, certain informationpresented constitutes "forward-looking statements" within the meaningof the United States Private Securities Litigation Reform Act of 1995. Suchforward-looking statements, including but not limited to, those with respect topotential expansion of mineralization, potential size of mineralized zone, andsize of exploration program involve known and unknown risks, uncertainties andother factors which may cause the actual results, performance or achievement ofFronteer to be materially different from any future results, performance orachievements expressed or implied by such forward-looking statements. Suchfactors include, among others, risks related to international operations andjoint ventures , the actual results of current exploration activities,conclusions of economic evaluations, uncertainty in the estimation of orereserves and mineral resources, changes in project parameters as plans continueto be refined, future prices of gold and silver, environmental risks andhazards, increased infrastructure and/or operating costs, labor and employmentmatters, and government regulation and permitting requirements as well as thosefactors discussed in the section entitled "Risk Factors" inFronteer's Annual Information form and Fronteer's latest Form 40-F on file withthe United States Securities and Exchange Commission in Washington, D.C.Although Fronteer has attempted to identify important factors that could causeactual results to differ materially, there may be other factors that causeresults not to be as anticipated, estimated or intended. There can be noassurance that such statements will prove to be accurate as actual results andfuture events could differ materially from those anticipated in suchstatements. Fronteer disclaims any intention or obligation to update or reviseany forward-looking statements, whether as a result of new information, futureevents or otherwise. Accordingly, readers should not place undue reliance onforward-looking statements. |