6th Jun 2011 07:00
6 June 2011
Frontier Mining Ltd
("Frontier" or the "Company")
Board Appointment
Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, is pleased to announce the appointment of Yerlan Zhenisovitch Aliyev to the Board of Directors as a non- executive director.
Mr Yerlan Aliyev, MBA, aged 42, is one of the principals of Coville Intercorp Ltd, Frontier's largest shareholder, andis a board member of Kazakhstan's JSC Delta Bank. Until very recently he served as Chairman to the Board of Directors at Russian commercial bank JSC StarBank. Prior to this, from July 2008 to November 2009, he was first vice president and then Finance Director of JSC Mangistaumunaigaz, one of Kazakhstan's largest oil and gas companies.
From July 2007 to May 2008, Yerlan served as Vice President of the Development Bank of Kazakhstan; from December 2006 to July 2007 as Chairman of the Board of Kazakhstan oil and gas equipment producer JSC Belkamit, and from April 2005 to August 2006 as Deputy Chairman of the Board of the Russian bank OJSC Sobinbank. His previous managerial roles include: Chairman of Slavinvest Bank; Vice-chairman of JSC Turan-Alem Bank; vice president of OJSC KazakhTeleCom; Vice-President of Air-Kazakhstan and Chief Treasurer of JSC KazCommertsBank.
Mr Aliyev studied for a Masters in Computational Mathematics and Cybernetics at Moscow State University, graduating in 1991. He later returned to Moscow State University's Business School in 2003 to study for his MBA which he received in 2005.
Erlan Sagadiev, CEO of Frontier Mining, commented: "Mr Aliyev, with his extensive experience in finance and corporate affairs will prove an invaluable addition to our board as we seek to bring Benkala into production and further develop our additional prospects. We are therefore delighted to welcome Mr. Aliyev to the board of Frontier and look forward to working with him."
Mr Aliyev has a beneficial interest in 873,215,000 ordinary shares of $0.01 each in the Company. As referred to above, he is also a member of the board of Delta Bank JSC. There is no further information to be disclosed under schedule 2(g) and Rule 17 of the AIM Rules in respect of Mr Aliyev's appointment today as an executive director of the Company.
For further details please contact:
Frontier Mining Ltd |
George Cole |
+44 (0) 20 7898 9019
|
Libertas Capital
Westhouse Securities Ltd (Joint Broker)
XCap Securities plc (Joint Broker)
| Sandy Jamieson
Dermot McKechnie Matthew Johnson
John Bellis John Grant David Newton
| +44 (0) 20 7569 9650
+44 (0) 20 7601 6100
+44 (0) 20 7101 7070
|
Walbrook PR Walbrook IR | Bob Huxford (Media Enquiries) Paul Cornelius (Investor Enquiries) | +44 (0) 20 7933 8783 +44 (0) 20 7933 8794
|
Notes to Editors
About Frontier Mining Ltd:
Frontier Mining Ltd. is a mineral exploration and development Company that is incorporated in the Cayman Islands 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 U.S. Megatech BVI which holds the Benkala licence, via KazCopper LLP. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd.
In Kazakhstan, Frontier has one producing gold mine, Koskuduk; and a 100% interest in the Benkala copper mine, currently under development with initial production planned in 2011. Frontier also owns the Maminskoye gold deposit in the southern Ural region of Russia currently under exploration.
A Competent Persons Report ("CPR") completed by Wardell Armstrong International ("WAI") in June 2010, estimated the oxide section of the Benkala project, which represents development of only ~10% of the total resource at Benkala, to have a NPV of $190 million, based on 0.5% diluted copper grade, 63% recovery and 185,000 tons of contained metal at a 6,000 USD per tonne copper price. 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.
The Maminskoye license area is situated in the southern Ural region of Russia and consists of three deposits: Maminskoye, Gabievskoye and Bezimyanny-Vostochny. Of these, the Maminskoye deposit is the most explored but is the smallest at 300m wide, 650m long and to a known depth of over 250m. The other two deposits are considerably larger and display similar geological characteristics to the Maminskoye deposit but have not had extensive exploration as yet.
The Gabievskoye deposit has a strike length of 5km with an average width of between 500-700m. The Bezimyanny-Vostochny deposit hosts three veins which have previously been mined on a small scale with reported gold grades of between 6-63g/t. The structure of this deposit is analogous to Gabievskoye. However, at this time, the strike extent and width of this target remains unknown.
The Maminskoye ores have been subjected to extensive metallurgical analysis with gold recovery estimated at 93.5% for the oxide ore and 92.5% for the primary ore. The CPR, completed by WAI in June 2010, evaluated a preliminary project model contemplating development of an open pit mine operating at an initial mining rate of 700ktpa for the first three years, increasing to 1Mtpa for a 14 year project life. Based on an estimated capital cost of $75 million and a $950/oz gold price WAI estimated an attractive project, with a NPV of $110.9 million using a 10% discount rate and IRR of 48% with a 3 year payback.
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 maintains an administrative and technical office in Almaty, the former capital city of Kazakhstan and the main business centre in the southeast. The Company also maintains offices in Semipalatinsk and Aktyubinsk, close to the Naimanjal and Benkala operations respectively.
Issued Share Capital
Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.
Frontier has 1,860,913,973 ordinary shares issued.
For further information please visit: www.frontiermining.com.
Related Shares:
FML.L