8th Sep 2008 07:23
AIM: FML
Frontier Mining Ltd
("Frontier" or "the Company")
Benkala Contract and Operations Update
Frontier Mining Ltd is pleased to announce two important developments regarding the Benkala copper porphyry Project in north-western Kazakhstan; a Joint Venture between Frontier and Coville Intercorp Ltd ("Coville").
Firstly, all rights and obligations relating to the project have been transferred from U.S. Megatech, Inc, a New York corporation and wholly owned subsidiary of U.S. Megatech BVI, to the Kazakhstan based legal entity KazCopper LLP. KazCopper LLP is also a wholly owned subsidiary of US Megatech BVI which in turn is a 50/50 Joint Venture between Frontier and Coville.
This licence transfer of the rights and obligations in the Benkala project was recognized by the Ministry of Energy and Mineral Resources in the form of Addendum 1 to contract #2482 dated 15 November 2007 which governs exploration and mining of the Benkala deposit in the Aktuibinsk Oblast.
With the title of the project now held within KazCopper LLP, an advanced drilling program in preparation for the development of the project will commence.
Secondly, in connection with this change, the Company has mobilized a drilling company to site, and installed 3 Russian drill rigs equipped with longyear instruments. A field camp for 30 people has also been deployed. It is intended that by the end of 2009, between 3000 and 5000 metres will have been drilled at the Benkala copper project.
Brian Savage, CEO of Frontier Mining commented, "This licence transfer follows a series of preparatory work at Benkala and, we are pleased that the Ministry of Energy and Mineral Resources has approved this licence transfer to KazCopper LLP, the wholly-owned subsidiary of US Megatech BVI. This transfer serves to streamline the Benkala ownership structure and we are delighted to now be in a position to move forward and commence drilling activity at Benkala which will build on historic drilling data and work towards the production of a JORC-compliant resource."
Enquiries:
|
Frontier Mining Ltd |
Brian Savage |
+44 (0)20 7898 9019 |
|
Parkgreen Communications |
Louise Goodeve / Sue Scott |
+44 (0)20 7933 8780 |
|
Zimmerman Adams |
Ray Zimmerman / Jonathan Evans |
+44 (0)20 7060 1760 |
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
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 Inc. 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") on the Benkala project completed by Wardell Armstrong International ("WAI") in March 2007 estimates 47.75 Mt at an average grade of 0.36% Cu for the oxide mineralization, and 873.75 Mt at an average grade of 0.30% Cu for the sulphide mineralisation, representing some 2.8 million tonnes of contained copper. A conceptual study team and advisory team have both been appointed to fast track the development of this project forward towards a pre- feasibility study, with a view to beginning production at the end of 2011.
Issued and Fully Diluted Ordinary Shares
Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.
Frontier currently has 218,120,095 issued and 21,812,009 reserved and outstanding options giving 239,932,104 fully diluted ordinary shares.
For further information please visit; www.frontiermining.com
Related Shares:
FML.L