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Fronteer Gold (FRG - TSX/NYSE Amex) reports its
2011 objectives, activities and budgets for Long Canyon, Northumberland and
Sandman, the key Nevada gold deposits that form the company's near-term
production platform. The company also summarizes plans for Halilaga, its joint-venture, copper-gold porphyry
project in northwestern Turkey.
There are significant milestones planned in 2011 as part of Fronteer Gold's $48-million global exploration/development
program.
"Our goal at Fronteer Gold is to be a low
cost, >300,000-ounce-per-year North American producer. We aim to achieve
this goal through developing the projects we currently own and using the
significant treasury we have on hand," says Mark O'Dea, Fronteer Gold President and CEO. "The quality and
growth potential of our assets, combined with the strength of our team and
finances, provide a solid foundation for Fronteer
Gold to prosper in the year ahead."
KEY OBJECTIVES
The company aims to build on the success of the
past year. In 2010, Fronteer Gold solidified its
gold focus through two key transactions. First, it consolidated ownership
of its flagship Long Canyon project and expanded its hold on this emerging
gold district. Second, the company sold its Labrador uranium assets,
crystallizing significant value and establishing a well-funded pathway to
production. In addition, Fronteer Gold refined
its early-stage portfolio creating value through joint-venture agreements
and property sales.
In 2011, Fronteer Gold
is focused on the following objectives at its key projects:
- Long
Canyon: advancing project to feasibility and
permitting stage by year-end; 100,000 metres
of resource expansion and infill drilling; and ongoing resource
updates.
- Northumberland:
completion of decline to access and further define areas of high-grade
mineralization, with initial 4,000-metre underground drill program.
- Sandman:
Newmont to make a production decision by June 2011.
- Halilaga:
an initial 10,000 metres of drilling
followed by a project-first resource estimate at year-end.
Fronteer Gold is well funded to advance its key gold
projects to production sequentially over the near-term. As of Jan. 21,
2011, the company has cash and short-term deposits of approximately $100
million and available for sale securities with a fair value of
approximately $287.76 million (includes 52.1 million common shares
forthcoming from the expected closing of the sale of Aurora Energy
Resource's uranium assets to Paladin Energy Ltd.).
Details of our key project activities and
objectives are summarized below.
NEVADA GOLD
PLATFORM
Long Canyon
- Initiating permitting and
commencing feasibility stage
We believe Long Canyon is one of the highest
quality development-stage gold deposits in North America today in terms of
its grade, metallurgy, strong growth profile, low-cost production
attributes, and jurisdiction. Since acquiring 100% of Long Canyon in late
2010 and expanding our exploration and development program to year-round,
it is our intention to update the project resource base on an ongoing basis
to keep pace with engineering work and mine-planning activities. Long
Canyon's comprehensive 2011 work program is focused on aggressive resource
expansion, as well as on the metallurgical, engineering and environmental
work necessary to move the project to feasibility stage. The $30-million
work program for 2011 includes: a year-round drill program of more than
100,000 metres of exploration and development
drilling, currently underway; additional updated resource in H1 2011,
inclusive of step out results; completing an updated Preliminary Economic
Assessment in H1 2011; completing an additional resource update near
year-end 2011; and, initiating permitting and feasibility stage by
year-end.
Northumberland
- Complete underground
decline and access high-grade mineralization
Northumberland is a large Carlin-style deposit
100% owned by Fronteer Gold with the potential
for significant annual production. A 280-metre decline is to be completed
in early 2011 to access high-grade domains of underground-mineable sulphide gold mineralization defined by previous
drilling. The construction of the portal entrance, as
well as 95 metres of decline, have already
been completed. An initial underground drill program of 4,000 metres is planned for 2011 and we anticipate more
high-grade domains to be delineated. Bulk samples will also be obtained for
metallurgical testing. We currently contemplate open-pit mining the oxide
and transitional material, and selectively underground mining the higher
grade sulphide material. Initial metallurgical
results indicate that Northumberland mineralization can be processed with
good recoveries using proven treatment methods. A US$10-million
work program is planned for 2011 with the goal of completing a Preliminary
Economic Assessment upon completion of development activities.
Sandman
- Newmont may make production
decision by June 2011
Sandman is a high-grade epithermal gold system
under option to, and operated by, Newmont USA Limited. Newmont is six
months into its final year of a three-year earn-in agreement and has the
option of earning an initial 51% interest in the project by making a
positive production decision by June 2011. Newmont continues to meet
earn-in obligations. The budget through to June 2011 is US$3 million and is
focused on three of the four known gold deposits, as well as conducting
property-wide exploration. Planned work activities include: an
exploration/development drill program to commence in Q2, column-leach
testing, waste-rock characterization, geotechnical evaluation and
hydrological work.
OTHER PROJECTS
Halilaga
- Drilling of Central Zone
and initial resource estimate
Halilaga, operated by our 60% joint venture partner Teck Madencilik Sanayi Ticaret A.S. (Teck), is a significant copper-gold porphyry system
with excellent upside potential. Halilaga is
accessible by road; situated in favourable
terrain; and surrounded by excellent infrastructure. Drilling has currently
identified copper-gold mineralization over a strike length of 1,200 metres and a width of 750 metres,
with thicknesses of up to 600 metres. The
Central Zone remains open for expansion in all directions. A
CDN$5.5-million exploration/development program (Fronteer
Gold share: CDN$2.2 million) includes an initial 10,000 metres
of drilling at the main Central Zone, with the remainder testing for
porphyry targets outside this zone. Fronteer Gold
anticipates completing the first resource estimate for the project by
year-end.
NEVADA & U.S.
Fronteer Gold is advancing a regional pipeline of more
than 50 gold projects through joint-venture or 100% ownership. Fronteer Gold has several joint ventures with companies
in Nevada and Utah, including West Pequop with
Agnico-Eagle Mines; Pequop South with Golden
Dory; 11 U.S. projects with West Kirkland Mining; Easter with La Quinta;
and Gold Springs 2 with High Desert Gold. Fronteer
Gold also has ongoing exposure to exploration upside through retained
interests and shareholdings in more than a dozen global projects.
For
a full overview of Fronteer Gold, please view our
corporate presentation at: http://www.fronteergold.com/sites/fronteer_admin/FronteerGold_CorpPresentation_01-2011.pdf
Ian Cunningham-Dunlop, P. Eng, Vice President
Exploration for Fronteer Gold, is the company's
designated Qualified Person for this news release and has reviewed and
validated that all other information contained in the release is accurate.
For further information on Fronteer
Gold, visit www.fronteergold.com or contact:
Mark
O'Dea, President & CEO
Patrick Reid, Senior Director, Institutional Marketing
Phone 604-632-4677 or Toll Free 1-877-632-4677
info@fronteergold.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, potential type of mining operation and timing and size of
exploration and development programs involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Fronteer Gold 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 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
Gold's Annual Information form and Fronteer
Gold's latest Form 40-F on file with the United States Securities and
Exchange Commission in Washington, D.C. Although Fronteer
Gold 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 Gold 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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