Toronto, Ontario -- (December 16, 2014) -- Frontline Gold Corporation (TSX-V:FGC) ("Frontline" or the "Corporation") is pleased to announce that it has, subject to regulatory approval, negotiated an option to purchase up to a 100% interest in the South Baird property ("Baird") with Rubicon Minerals Corporation ("Rubicon"), subject to a 2% net smelter returns royalty. The property is comprised of eight continuous claims, totaling 2,320 acres on 58 claim units, along the south and southeast boundaries of Pure Gold Mining Inc's ("Pure Gold") 100% owned Madsen Gold Project in the Red Lake Gold District, Ontario (see attached Map 1).
Frontline's Purchase Option
To exercise its option and acquire up to a 100% interest in the claims, Frontline must issue a total of 1,000,000 shares of the Corporation over four years and pay Rubicon a total of $90,000 (of which $8,000 due on signing, $12,000 due on first anniversary date of signing, $16,000 due on second anniversary, $24,000 due on third anniversary and $30,000 due on fourth anniversary). If Frontline acquires the claims and begins commercial production on any part of the claims, it will pay Rubicon a 2% net smelter returns royalty. Frontline may repurchase one-half of the royalty for $1,000,000.
Pure Gold's Madsen Gold Project
The land package, of a 50 square kilometre land package of contiguous, patented ground, which is one of largest land packages in the Red Lake region, is host to two past-producing mines; existing mine infrastructure including an operational headframe, a 1,275 metre-deep shaft, and a 500 tonne per day mill. The mineralization includes an Indicated mineral resource of 928,000 ounces gold (3.24 million tonnes grading 8.93 g/t gold) and an Inferred mineral resource of 297,000 ounces gold (0.79 million tonnes grading 11.74 g/t gold)4; and, multiple highly prospective exploration targets in a geological setting analogous to other modern high-grade discoveries in the Red Lake district (source Pure Gold Mining Inc.'s -- Investor Presentation - 2014).
On August 7, 2014 Pure Gold announced a $4.0 million exploration program which includes a 9,000 metre drill program directed at key exploration targets at the Madsen Gold Project which is designed to test and expand the current mineral resource, and to expand and delineate targets along the 12 km-long Madsen unconformity and the 10 km-long ultramafic contact within the Madsen property.
The program will be focused on near-surface step out drilling around the high-grade mineralization in the Madsen Mine Trend, as well as exploration drilling at number of high priority targets which includes the Fork Zone target (see attached Map 1).
Fork Zone Target
Is located approximately 1.3 kms south of the Madsen shaft and it was initially discovered in 2003, by Placer Dome, when drilling targeted and intersected a highly altered and deformed basalt and ultramafic contact which suggested the presence of a folded ultramafic nose. Mineralization in the Fork Zone has been interpreted by past operators to form a shallow, open, southeast plunge, and occurs as both replacement style and vein-hosted mineralization associated with the hanging wall contact of the mafic-ultramafic rock units.
Recent re-logging of Fork Zone drill holes and interpretation by Pure Gold suggests that at least two mineralization trends are defined within the Fork Zone, with a shallow flat-lying mineralized horizon intersected by a potentially higher-angle, structurally controlled high-grade vein system. Previous shallow drilling in the Fork Zone has returned 17.3 g/t gold over 10.3 metres from RUM-08-49 and 6.7 metres grading 13.4 g/t gold from hole RUM-08-52, with recent re-sampling of RUM-08-52 returning 5.8 metres grading 21.5 g/t gold. Potential exists at the Fork Zone to define a high-grade mineralized system along the mafic -- ultramafic contact.
(Source: Pure Gold's August 7, 2014 press release "Pure Gold announces 2014 drill program at the Madsen Gold Project")
On October 29, 2014, Pure Gold press released "Pure Gold intersects 17.2 g/t gold over 3.5 metres at Madsen -- Fork Zone structure traced for 275 metres and open along strike", the following respect to its Fork Zone Target (Source: Pure Gold's October 29, 2014 "Pure Gold announces 2014 drill program at the Madsen Gold Project":
The results are highlighted by an intercept of 17.18 g/t gold over 3.5 metres occurring approximately 115 vertical metres below surface at the Fork Zone. This hole is the southernmost hole targeting the previously identified Fork Zone structure (see news release October 23, 2014), which remains open along strike and to depth.
Pure Gold has completed 7 drill holes at its Fork Zone. Pure Gold has identified a high-grade silicified structure which ranges from 1 to 3 metres in true width which has been traced for approximately 275 metres in strike length to a vertical depth of 200 metres. Three of the 7 drill holes returned visible gold (holes PG14-006, PG14-009, and PG14-011).
Table 1 -- Pure Gold's Fork Zone Significant Assay Results
|
Hole ID
|
From (m)
|
To (m)
|
Intercept (m)
|
Au (g/t)
|
|
PG 14-006
|
85.0
|
86.8
|
1.8
|
14.6
|
|
Incl.
|
85.0
|
86.0
|
1.0
|
22.5
|
|
|
|
|
|
|
|
PG14-009
|
118.0
|
120.0
|
2.0
|
6.8
|
|
Incl.
|
119.0
|
120.0
|
1.0
|
11.1
|
|
|
|
|
|
|
|
PG14-011
|
135.9
|
137.4
|
1.5
|
1.9
|
|
|
152.5
|
156.0
|
3.5
|
17.2
|
|
Incl.
|
154.4
|
156.0
|
1.6
|
33.8
|
|
|
328.4
|
334.5
|
6.1
|
1.6
|
|
Incl.
|
332.0
|
333.0
|
1.0
|
4.9
|
|
|
352.0
|
354.0
|
2.0
|
1.7
|
Note: Assay composites were calculated using uncut assays and are reported as drilled widths and interpreted to vary between 85% and 95% of true widths.
Source of table drill results Pure Gold: http://www.puregoldmining.ca/sites/default/files/news/NR1415drilltable.pdf
Commentary
Frontline's President and CEO, Mr. Walter Henry, said, "The claims are an excellent addition given the proximity to a known historical gold mining area located in the Red Lake Gold District and to Pure Gold's Madsen Gold Project with an Indicated mineral resource of 928,000 ounces gold (3.24 million tonnes grading 8.93 g/t gold) and an Inferred mineral resource of 297,000 ounces gold (0.79 million tonnes grading 11.74 g/t gold). The low acquisition cost of the land package combined with no property expenditure requirements allows us to grow strategic land packages in these challenging markets. The South Baird property is interesting given 1) the proximity to Pure Gold's Fork Zone target, approximately 2 kms from the property boundary, 2) the proximity to the Starratt Olsen mine, located approximately 1 kilometre north of the property boundary which operated from 1948 through 1956 and produced approximately 163,990 ounces of gold at 6.17 gpt gold, 3) the proximity to the known Faulkenham shaft on the Madsen Gold Property less than 500 m for the property boundary and given that the known gold occurrences have not been revisited in any detail located within the Baird property boundary, (see attached Map 1)."
Historical Exploration on the South Baird Property
The South Baird property, Northwestern Ontario, is located in Baird and Heyson Townships. It is
hosted within Confederation Assemblage rocks, immediately south of the Balmer -- Confederation unconformity, in the western portion of the Red Lake Greenstone Belt. There are three main exploration targets of interest on the property: the westward extension of the prolific Madsen Mine Trend, the New Faulkenham Mine Structure Trend, and the base-metal massive sulphide VMS Zone.
Public work assessment records indicate that a number of companies have explored portions of the South Baird Property dating back to the 1940's. Prior work assessments have confirmed the presence of potentially significant gold, silver and copper mineralization associated within favourable geological settings.
1945: Rogard Mines explored the eastern extension of the New Faulkenham Mine vein structure. Values up to 13.4 ppt gold were reported from samples in a series of east to south-east trending quartz veins on claim 1244620 (see Attachment 2).
1951: Childs Red Lake Gold Mines drilled 9 holes totalling 280 metres on claim 1244608 to test the projected west extension of the New Faulkenham Mine vein structure. Pyrrhotite and minor pyrite were noted but no assays were reported (see Attachment 2).
1963: Dickenson Mines Ltd. drilled 1 hole on what is now claim 1244608 to test the projected west extension of the New Faulkenham Mine vein structure. No assays were reported (see Attachment 2).
1976: Selco Mining conducted ground magnetic and electromagnetic surveys on claim 1244620. A strongly conductive and magnetic horizon was identified and tested by two drill holes totaling 184 metres. At the contact between mafic volcanics to the north, and felsic tuffs to the south, Hole 220-1-1 assayed 2.1% copper, 2.6 gpt gold, 2.9 gpt silver, and 0.01% zinc over 3.5 metres (see Attachment 2).
1989: Grid Data North conducted an airborne magnetic and VLF-EM survey and identified several geophysical anomalies.
1997: Canadian Mining International Ltd conducted linecutting and magnetometer plus VLF electromagnetic surveys over the central part of the South Baird Property and identified a number of geophysical anomalies.
2003-2006: Solitaire Minerals - United Bolero Development Corp. completed 10 drill holes totaling 1,093 metres tested the Faulkenham Mine trend (8 holes) and the VMS copper target (2 holes) previously intersected by the 1976 Selco drilling. SB-06-03, the northern-most hole into the Faulkenham Mine trend, intersected 6 metres of 0.3 grams gold at 43 metres depth and 2.5 metres of 0.5 grams gold at 80.5 metres depth. SB-06-09 and -10 targeted the Selco VMS target. SB-06-09 intersected 10.32 metres of 0.3% copper and 0.3 grams gold (including 1.4% copper and 1.4 grams gold over 1.52 metres) at a depth of 36 metres. SB-06-10 intersected 1.5 metres of 0.4% copper and 0.3 grams gold at a depth of 78.7 metres.
The western portion of the property is well positioned along the postulated westward strike extension of the Madsen Mine Trend which hosts a number of economic gold mines. Previous workers have confirmed that the New Faulkenham Mine Structure Trend also strikes onto the property and is known to host gold mineralization.
The presence of copper-gold sulphide mineralization in a possible stratigraphic volcanogenic massive sulphide (VMS) setting has been confirmed in shallow drilling by Selco and United Bolero. There is a VMS style target for both precious and base metals hosted within the Confederation Assemblage in the central portion of the property.
Priority exploration targets have be identified (see Attachment 2):
-
Confederation Assemblage VMS copper-gold mineralization identified by Selco (1976) and United Bolero (2006) on claim 1244620 is postulated to represent a stratigraphic volcanogenic massive sulphide mineralization horizon. An intrusive unit, called a diorite, a gabbro or a hornblendite, along the eastern property boundary is believed by some workers to represent a synvolcanic intrusive related to the VMS mineralization. This VMS horizon has only been tested by a few shallow drill holes over a short strike length.
-
The westward strike extension of the Madsen Mine Trend (Flat Lake -- Howey Bay Deformation Zone) is projected to cross the north-west portion of the property on claim 1244608. Only one fence of shallow drill holes has tested this target.
-
Gold-bearing quartz veins were reported by Rogard Red Lake Mines (1946) on claim 1244620. These gold veins may be related to the eastern extension of the New Faulkenham Mine Structure and this target has not been previously drill tested.
The technical information herein was reviewed by Mr. Greg Isenor, P. Geo., who acts as Frontline's Qualified Person as defined by National Instrument 43-101.
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 principal properties include the Menderes gold project in the Izmir province of Western Turkey, the Poly and Stewart (gold-copper polymetallic) projects in the Stewart region of British Columbia and the Niaouleni gold project in southern Mali in the heart of West Africa's prolific gold belt. Other Canadian exploration properties include it's Red Lake (gold) claims.
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.
"Walter Henry"
Walter Henry, President & CEO
FRONTLINE GOLD CORP.
Contact: Walter Henry
Telephone: (416) 362-9100
Fax: (416) 362-9300
Email:
[email protected]
Website:
www.frontlinegold.com
Frontline Gold Corp. (TSX-V: FGC)
1 Toronto Street, Suite 201
Toronto, Ontario M5C 2V6
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