2nd Sep 2005 07:00
Frontier Mining Ltd02 September 2005 2 September 2005 AIM: FML Frontier Mining Ltd ("Frontier" or "the Company") First Year Anniversary as a Public Company Major Naimanjal mine regulatory approvals received Initial test pour of gold and silver Highlights • Issue price on AIM one year ago was 15p - the stock closed 1 Sep 2005 at 30p, an increase of 100%. The 52 week high was 44p • Frontier raised £9.46m through two private placements and the exercise of pre IPO warrants • First test pour of gold and silver produced from the Naimanjal mine • Four "Commercial Discoveries" and exploration extensions granted from the Ministry of Energy & Mineral Resources ("MEMR") of the Republic of Kazakhstan ("RoK") on two Gold projects, Naimanjal complex and Koskuduk, and two Copper/Gold projects, the 25 km Copper Trend (Beschoku to Yubileiny) and Baitemir • Exploration extension granted for a further 2 years at the Baltemir gold license • Produced 4 kilograms of copper cathode from laboratory metallurgical test work performed by R&D Institute in Ust-Kamenogorsk, Kazakhstan on four 300kg bulk samples from Beschoku and Yubileiny copper deposits. • Oxide copper along the 25km copper trend confirmed as being amenable to solvent extraction using SX-EW technology. • Pre feasibility & advanced exploration continues across all licenses and contracts • In discussions with Western and local Kazakhstan banks to assist in securing project finance • Identified advanced uranium exploration and production targets for acquisition - currently concluding technical, legal due diligence, valuation and negotiations The Company today announces that its evaluation of commercial discoveries, pilotproduction and exploration extension for the Naimanjal license and contract fora further 21/2 years has been approved by the MEMR. This has enabled the Companyto produce an initial test pour of gold and silver from Naimanjal ore whichconfirms the viability of the start up phase of the operation. We are currentlystacking ore on the heap leach pads and applying solutions and will continue todevelop the infrastructure in order to reach our target initial production rateof 25,000 ounces per year in the coming months. Brian Savage, CEO of Frontier, comments, "We have made significant progressacross all our projects in what has been a very busy mining environment inKazakhstan. The construction, test mining, leaching and initial test pour ofgold and silver achieved at the Naimanjal mine is a major achievement for theCompany and we are delighted to have the approval from MEMR to move this forwardto full production in the coming months. We continue to evaluate our four othercommercial discovery areas which are all currently at the pre feasibility stageand we are also excited to be assessing a number of quality uranium projects. "On behalf of the Board, I would like to thank our employees and the independentconsultants used by Frontier, including Kappes Cassidy and Associates(Australia), SRK, Western Services Engineering, Mining and Economic Consulting,and MTB Project Management Professionals for their assistance in our rapiddevelopment since our listing on AIM one year ago. I would also like to thankthe US and Kazakhstani organisations working with us for their continuedsupport, especially the United States Trade and Development Agency." Regulatory approvals and milestones since listing: • Recommendation for the sub-committee to modify the license and contract terms in order for the Ministry of Energy & Natural Resources to approve the Naimanjal license and contract for the 21/2 year evaluation of commercial discoveries, pilot production and exploration extensions which were received on 1 June 2005 • Regulatory approval for 21 year land utilization of the Naimanjal license and contract received from Karaganda Regional Authority on 26 July 2005 • Regulatory approval for the 2005 mining plan approved by CenterKazNedra on 15 August 2005 • Regulatory approval for the cyanide license received from the committee of Industry and Scientific & Technical Development (a department of the Ministry of Industry of Trade) was received on 18 August 2005 • Regulatory approval for 21/2 year evaluation of commercial discoveries, pilot production and exploration extension at the Naimanjal license and contract from the Ministry of Energy & Mineral Resources was received on 27 August 2005 Enquiries: Frontier Mining Ltd Brian Savage 020 7849 6530Parkgreen Communications Cathy Malins / Annabel Leather 020 7493 3713 About Frontier Frontier Mining Ltd. is a mineral exploration and development company that wasincorporated in the state of Delaware, USA, on 5 August 1998 for the purpose ofexploring and developing gold and copper deposits in the Republic of Kazakhstanand other countries of the Commonwealth of Independent States. Through itssubsidiaries and affiliates, Frontier locates, evaluates, acquires, explores anddevelops mineral properties. Frontier currently has two licenses, over a total area of 4,326 km2, owned byits wholly owned subsidiaries in Kazakhstan. They are the Naimanjal explorationand mining license, held by FML Kazakhstan, and the Baltemir explorationlicense, held by Baltemir LLP. Frontier is currently focused on three goldprojects with more than two million ounces of oxide and sulphide gold resource(JORC, C1, C2, P1 and management estimates) and two copper/gold projects withmore than 5 billion pounds of contained copper resource (P1 managementestimates). Frontier was admitted to AIM on 2 September 2004. Frontier has 88,196,461ordinary shares issued and 11,777,217 outstanding options and warrants, giving99,973,678 fully diluted ordinary shares. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
FML.L