REG - Frontier Mining Ltd - Completion of JORC Resource Estimate

Wed Dec 1, 2010 2:00am EST

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RNS Number : 1400X
Frontier Mining Ltd
01 December 2010
 



Frontier Mining Ltd

                                                              ("Frontier" or the "Company")          

 

Completion of JORC Resource Estimate for the Benkala Copper Project

 

Frontier Mining Ltd  (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, is pleased to announce the completion by independent consultant Wardell Armstrong International ("WAI") of a resource estimation in accordance with the guidelines of the JORC Code 2004 on the Benkala copper deposit in Kazakhstan (the "Resource Estimate").

 

The full report is available on Frontier's website (www.frontiermining.com).

 

The mineral resource estimates provided in this press release have been classified and reported in accordance with the guidelines of the JORC Code (2004).

 

Benkala Mineral Resource Estimate (Total In-Situ Resources: Cut-off Grade 0.25% Cu)

 



Gross Attributable

Net Attributable

Ore Type


Oxide

Sulphide

TOTAL

TOTAL

Measured

Tonnage (000t)

3,605

1,498

5,103

2,552


Cu (%)

0.60

0.43

0.55

0.55


Metal (000t)

21.74

6.42

28.15

14.08

Indicated

Tonnage (000t)

29,142

159,901

189,044

94,522


Cu (%)

0.49

0.44

0.45

0.45


Metal (000t)

142.92

707.33

850.25

425.13

Measured & Indicated

Tonnage (000t)

32,747

161,400

194,147

97,074


Cu (%)

0.50

0.44

0.45

0.45


Metal (000t)

164.66

713.74

878.40

439.20

Inferred

Tonnage (000t)

2,673

130,848

133,521

66,761


Cu (%)

0.39

0.42

0.42

0.42


Metal (000t)

10.49

554.41

564.90

282.45

 



Competent Persons Statement

 

The preparation of the technical information contained herein was supervised by Dr P S Newall, Director of Minerals at Wardell Armstrong International, BSc (ARSM), PhD (ACSM), CEng, FIMMM who is recognized as a Competent Person for the purposes of the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.  Dr Newall has reviewed and approved the technical information in this press release.

 

About the Benkala Copper Project - Kazakhstan

 

Frontier currently has a 50% indirect interest in the Benkala Copper Project which is managed by a joint-venture company, KazCopper LLP.  The other 50% of Benkala is owned by Coville Intercorp Ltd. ("Coville"), a private Kazakh mining group with whom the Company has previously announced a proposed merger which is conditional on completion of the re-domicile of the Company to the Cayman Islands and on the granting of certain government consents and approvals. The project is located in northern Kazakhstan in the Ural Mountain Chain and has been the subject of considerable exploration and evaluation dating from the Soviet era.  The region is an established mining district and the site has excellent infrastructure.

 

Erlan Sagadiev, CEO of Frontier, commented:

 

"We are pleased that this key deliverable of a resource estimate to JORC standards has been completed. The report is generally in line with Soviet Estimates showing nearly 1.5mln tonnes of copper on currently available data, which is an excellent confirmation.

 

Most importantly it largely supports our oxide estimates and quality for our ongoing SX/EW project.  On the Oxide resource some additional infill drilling data has been submitted to WAI and will increase the size of the resource, categorisation and quality. On Sulphides, we are moving forward with our plans to complete exploration and fully define the deposit.

 

We are now even more confident that our Benkala project will be a great success for the Company."

Enquiries

Frontier Mining Ltd

George Cole

+44 (0) 20 7898 9019

Libertas

Sandy Jamieson

+44 (0) 20 7569 9695

Walbrook PR

Bob Huxford

+44 (0) 20 7933 8780

Notes to Editors

About Frontier Mining Ltd

 

Frontier Mining Ltd. is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 for the purpose of exploring and developing gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties.

 

The Company announced on 18 October its intention to re-domicile the holding company of the Group from Delaware, USA to the Cayman Islands (the "Re-domicile") and the proposed acquisition of interests in the Benkala copper deposit in northern Kazakhstan currently under development (the "Benkala Copper Project") and the Maminksaya gold deposit in the southern Ural region of Russia currently under exploration (the "Maminksaya Gold Project") (the "Asset Acquisition").  The Proposals were duly passed by shareholders in a Special Meeting held on 8 November 2010.

 

On the Re-domicile becoming effective, each outstanding ordinary share of the Company will be converted into and represent the right to receive one share in the new Cayman Company ("FML (Cayman)") save that each outstanding ordinary share of the Company whose holder is not an "accredited investor", as such term is defined in Rule 501 of Regulation D promulgated under the United States Securities Act, will be converted into and represent the right to receive a cash payment in U.S. Dollars.  The shares of the Company will then be admitted to trading on AIM. Upon the Re-domicile becoming effective, ordinary shares in the Company will be cancelled, resulting in the respective holdings of shareholders in the FML (Cayman) (excluding holders who are not "accredited investors") being the same as the respective holdings of shareholders in the Company immediately prior to the Merger becoming effective.

 

Frontier currently owns two licenses in Kazakhstan.  They are the Naimanjal exploration and mining licence, held by FML Kazakhstan, and, 50% of U.S. Megatech BVI which holds the Benkala licence. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd.  Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.

 

Frontier also has a potential copper porphyry deposit with associated gold and molybdenum, Baitimir; and several copper/gold prospects along a 25-km trend including both VMS and porphyry types.  Metallurgical tests on its Beschoku and Yubileiny copper projects confirm the oxide copper ore is amenable to extraction using low cost SX-EW technology.

 

Frontier owns a 50% interest in KazCopper LLP, the joint venture company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan within the Urals gold/copper ore belt.

 

A Competent Persons Report ("CPR") valuation report on the oxide section  of the Benkala project completed by Wardell Armstrong International ("WAI") in June 2010 has resulted in an NPV of $190 million  based on 0.5% diluted copper grade, 63% recovery and 185 000 ton of contained metal and 6,000 USD per tonne copper price. The oxide copper project representsdevelopment of approximately 10% of the total resource at Benkala and Frontier will use the production platform of the SX-EW project to finance further evaluation and technical studies required to advance development of the significant Benkala sulphide resource.

 

Frontier maintains an administrative office in Almaty, the former capital city of Kazakhstan and the main business centre in the southeast. The Company also maintains an office in Semipalatinsk, close to the Naimanjal operations, which is the base for all exploration and development personnel with additional administrative support for exploration. Semipalatinsk is 830 kilometres north of Almaty, connected by regular commercial airline services.

 

Issued Share Capital

 

Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.

 

Frontier has 917,336,206 ordinary shares issued.

 

For further information please visit; www.frontiermining.com


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