26th Jul 2010 07:00
26 July 2010
FRONTIER MINING LTD
("Frontier" or the "Company")
Gold Production Update
Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, announces that the Company has completed the second gold pour at its Koskuduk deposit.
This pour was solely from Koskuduk ore and consisted of 329 ounces Gold (Au) and 1,000 ounces of Silver (Ag).
The Company plans to leach 500,000 tons of ore this year and has currently extracted 135,000 tons, of which 75,000 tons is already on the leach pads. The current ore crushing rate is 2,500 tons per day and will increase to 6,000 tons per day as the Company brings all recently commissioned equipment up to normal operating capacity.
The Company intends to provide a monthly update to the market detailing volumes of ore and gold produced.
Erlan Sagadiev, CEO of Frontier, commented: "We have now begun continuous leaching operations at Koskuduk and plan to reach our daily production targets within a few weeks, as scheduled. Grades and recovery rates are within our expected range and we are firmly on track to achieve our production target of 10,000 ounces of gold for 2010."
Enquiries:
Frontier Mining Ltd |
George Cole |
+44 (0)20 7898 9019
|
Libertas Capital |
Sandy Jamieson |
+44 (0)20 7569 9695
|
Walbrook PR |
Bob Huxford / Leah Kramer |
+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.
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 tons of contained metal and 6,000 USD per tonne copper price. The oxide copper project represents development 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 advancedevelopment 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 now has 917,336,219 issued and 21,812,009 reserved options giving 939,148,228 fully diluted ordinary shares.
For further information please visit; www.frontiermining.com
Related Shares:
FML.L