2nd Jun 2009 09:40
FRONTIER MINING LTD
("Frontier" or "the Company")
Naimanjal License Update
Frontier Mining Ltd (AIM: FML), the gold and copper exploration and development company based in Kazakhstan, today provides an update and overview on the Naimanjal license 1166DD including the Naimanjal Complex gold project, the Koskuduk gold project, the Beschoku gold & copper project and the Yubileiny copper prospect in northeast Kazakhstan.
Highlights
Extended pilot production license at Naimanjal Complex
Submitted application for commercial production at Naimanjal Complex
Submitted application for pilot production at Koskuduk, Beschoku and Yubileiny
Mining, crushing, and stacking of ore recommenced at Naimanjal complex
Average grade of 1.1 g/t
Gold and Silver sales for 2008 from Naimanjal were 772 ounces Au and 8,522 ounces Ag
2009 forecast pilot production of 6000 ounces Au and 60,000 ounces Ag
2010 forecast commercial production of 15,000 ounces Au and 150,000 ounces Ag
The Company expects to receive an update on the submitted license applications in Q3 2009.
Naimanjal Complex
The 2009 programme for the Naimanjal complex is now underway with 14,000 tonnes of previously stockpiled ore at an average grade of 1.1 g/t stacked on the leach pads. Mining and crushing operations are commencing.
The Company has received confirmation of the extension of its pilot production license at the Naimanjal Complex and has submitted an application for commercial production at the Naimanjal Complex. The Company currently anticipates receiving news on its application in Q3 2009 with commercial production in 2010.
As previously announced, the Naimanjal Complex is a highly mineralized commercial discovery area of about 170 square kilometres and the existing Naimanjal mine represents a small part of that area. The Naimanjal Complex also includes 6 identified satellite prospects and more than 100 exploration targets. At a gold equivalent cut-off grade of 0.3 grams per tonne ("g/t") there are 3,502,393 tonnes of Measured and Indicated resource at an average grade of 0.73 g/t gold and 17.31 g/t silver containing 82,022 ounces of gold and 1,948,699 ounces of silver. In addition, the model indicates that there are 8,300,939 tonnes of Inferred resources at an average grade of 0.64 g/t gold and 18.95 g/t silver containing 170,626 ounces of gold and 5,058,476 ounces of silver. The Measured, Indicated, and Inferred resource at the Naimanjal deposit using a cut-off grade of 0.3 g/t gold equivalent totals 11,803,332 tonnes at an average grade of 0.67 g/t gold and 18.46 g/t silver containing 252,648 ounces of gold and 7,007,175 ounces of silver. The gold equivalent grades discussed above were derived by converting silver grades to gold equivalent by dividing them by a factor of 92.5. This factor is derived from gold and silver metallurgical recoveries of 74% and 40% respectively and gold and silver prices of $600 per ounce and $12 per ounce, respectively.
Naimanjal has over two dozen, large, high-priority target areas. Those with minimal drilling have returned encouraging results. More than half the high-priority targets have not yet been drilled. Very high-grade vein intercepts have reinforced confidence at Naimanjal with exploration identifying extended strike lengths of mineralisation.
Overview on Koskuduk, Beschoku and Yubileiny
Set out below is previously disclosed information and drilling results on the Company's Koskuduk gold project, the Beschoku gold & copper project and the Yubileiny copper prospect in northeast Kazakhstan
Koskuduk
The Koskuduk commercial discovery area is 15 sq km and there are at least three styles of mineralization present at Koskuduk. The first is a gold-dominant oxide mineralization occurring from surface to depths of approximately 50 metres where minor zinc and lead may be present and positive silver grades are closely associated with the presence of lead. The second is gold-silver-lead-zinc and lesser lead mineralization associated with discreet veins and feeder zones. These zones are generally narrow (<2 metres) but have excellent depth potential. Third, relatively thick (>10 metre) lower grade gold-silver-zinc and lesser lead mineralization occur as disseminated stratigraphically controlled bodies associated with some tuff horizons. All styles of mineralization are attractive.
Significant Koskuduk assay results are detailed in Table 1 below:
|
Drill Hole |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Ag (g/t) |
Zn (%) |
Pb (%) |
|
KK-001 |
15.0 |
61.5 |
46.5 |
1.03 |
|||
|
Incl. |
29.6 |
38.5 |
8.9 |
2.30 |
|||
|
KK-003 |
50.2 |
66.7 |
16.5 |
2.34 |
|||
|
Incl. |
51.2 |
58.5 |
7.3 |
4.83 |
|||
|
And |
52.5 |
53.5 |
1.0 |
3.13 |
36.0 |
5.67 |
1.26* |
|
And |
56.5 |
57.5 |
1.0 |
19.20 |
40.9 |
7.58 |
0.13* |
|
KK-004 |
28.8 |
38.0 |
9.2 |
1.73 |
4.87 |
0.62 |
0.11* |
|
KK-006 |
152.5 |
163.5 |
11 |
8.95 |
1.6 |
||
|
Incl. |
152.1 |
153.9 |
1.8 |
55.50 |
4.9 |
||
|
KK-007 |
111.0 |
130.0 |
19.0 |
1.27 |
18.2 |
||
|
Incl. |
115.5 |
121.5 |
6.0 |
3.25 |
48.0 |
||
|
KK-009 |
1.20 |
6.8 |
5.6 |
3.28 |
0.9 |
||
|
KKR-10 |
121.0 |
130.0 |
9.0 |
0.53 |
|
1.90 |
0.09 |
|
KKR-11 |
87.0 |
121.5 |
34.5 |
0.48 |
|
1.33 |
0.02 |
|
KKR-12 |
129.5 |
152.0 |
22.5 |
0.68 |
3.8 |
2.48 |
0.02 |
|
Incl. |
144.5 |
152.0 |
7.5 |
1.02 |
|
6.77 |
0.00 |
|
KKR-13 |
97.5 |
118.4 |
20.9 |
0.41 |
|
0.96 |
0.01 |
|
Incl. |
97.2 |
105.0 |
7.8 |
0.47 |
|
1.80 |
0.00 |
|
KKR-14 |
113.5 |
138.0 |
24.5 |
0.36 |
|
0.86 |
0.05 |
|
KK-022 |
36.0 |
56.0 |
20.0 |
2.02 |
17.7 |
0.23 |
0.08 |
|
KK-023 |
12.5 |
26.0 |
13.5 |
1.73 |
37.6 |
0.11 |
0.16 |
|
Incl. |
12.5 |
20.0 |
7.5 |
2.31 |
62.1 |
0.12 |
0.27 |
Table 1: Significant diamond drill core intercepts for FMLK holes. Holes KK-001 to KK-009 were drilled in 2005. Holes KKR-10 -KKR14 and KK-022 to KK-023 were drilled in 2006. All holes are angled holes and reported intervals are drill hole lengths. A robust QA/QC programme comprising blanks, standards and duplicates formed part of the assay protocol. *Assay results received from metallurgical test work programme, March 2006.
This historic data has contributed significantly to the Company's understanding of Koskuduk but must be viewed in context. The data has been reinterpreted by Frontier geologists, and indicates that almost all reverse circulation ("RC") holes were drilled as reconnaissance holes to test very shallow bedrock geochemistry in areas lacking obvious surface geochemical or geophysical anomalies. Of the RC and diamond holes that were drilled proximal to potential mineralisation, a significant number were drilled in the footwall, or at an orientation and/or to a depth that was ineffectual at testing steeply dipping veins. Only a small number of diamond holes effectively tested mineralisation. Significant diamond core assay results are detailed in Table 2 below:
|
Drill Hole |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Ag (g/t) |
Zn (%) |
Pb (%) |
|
C-501 |
300.0 |
302.7 |
2.7 |
3.65 |
40.2 |
3.24 |
0.44 |
|
C-502 |
438.0 |
439.5 |
1.5 |
6.13 |
212.8 |
4.95 |
1.52 |
|
C-504 |
153.0 |
164.0 |
11.0 |
2.49 |
3.5 |
1.07 |
0.02 |
|
C-506 |
42.0 |
58.5 |
16.5 |
1.92 |
22.1 |
1.14 |
0.20 |
|
Incl. |
42.0 |
46.0 |
4.0 |
3.75 |
48.5 |
0.89 |
0.18 |
|
C-509 |
205.0 |
210.0 |
5.0 |
0.60 |
4.8 |
1.56 |
0.09 |
|
C-562 |
67.5 |
88.5 |
21.0 |
2.17 |
18.6 |
2.20 |
0.16 |
|
C-567 |
5.0 |
13.0 |
8.0 |
1.53 |
21.3 |
0.14 |
|
|
C-575 |
26.5 |
35.5 |
9.0 |
2.22 |
15.2 |
0.02 |
0.05 |
|
C-579 |
58.0 |
103.0 |
45.0 |
3.03 |
33.4 |
1.82 |
0.36 |
|
Incl. |
85.0 |
97.5 |
12.5 |
7.82 |
64.0 |
3.63 |
0.86 |
|
C-618 |
14.0 |
88.0 |
74.0 |
1.17 |
15.8 |
1.31 |
0.37 |
|
Incl. |
24.0 |
34.5 |
10.5 |
1.69 |
13.1 |
2.31 |
0.83 |
|
and |
63.0 |
77.0 |
14.0 |
1.48 |
13.7 |
2.82 |
0.55 |
Table 2: Significant diamond drill core intercepts from holes drilled in 1991-1994 by Semipalatinsk Exploration Party and Semgeo JSC expedition. Reported intervals are drill hole lengths. The data has not been verified by Frontier and should be used as a guide to exploration only. Frontier has not been able to view original core and cannot comment on quality assurance / quality control ("QA/QC").
Copper & Gold projects and prospects
The area from Beschoku (copper-gold) to Yubileiny (copper) is termed the "Copper Trend" which is part of a 231sq km commercial discovery area and has surface copper showings over a strike length of over 20 kilometres. The Baitimir commercial discovery area is 111 sq km and is located 25 kilometres north of Beschoku.
Beschoku is a high grade gold-copper breccia pipe complex with a variably developed oxide zone located in the same structural corridor as Yubileiny. Data indicates that drilling has only tested the periphery of a significant anomaly. Coincident surface showings of secondary copper have been observed and data suggests a 20km mineralised trend between Beschoku and Yubileiny.
Yubileiny is a structurally controlled copper target with the potential for polymetalic silver-lead-copper mineralization at depth. Much of the primary copper mineralization intercepted at Yubileiny occurs as pyrite-chalcopyrite filled fracture networks whose distribution is part controlled by autobreccia units at the top of rhyolitic flows. Wide chargeability anomaly identified and a large area still remains untested.
Table 1: Significant diamond drill core intercepts at Beschoku. All holes are angled holes and reported intervals are drill hole lengths. Holes BCH-22 to BCH-25 were drilled in 2005. Holes BCH-42 to BCH-49 were drilled in 2006.
|
Drill Hole |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Cu (%) |
|
BCH-22 |
24.1 |
43.4 |
19.3 |
4.30 |
1.68 |
|
50.8 |
68.1 |
17.3 |
12.77 |
0.65 |
|
|
(Incl.) |
55.0 |
63.6 |
8.6 |
24.69 |
0.65 |
|
BCH-23 |
33.5 |
39.9 |
6.4 |
2.58 |
0.45 |
|
52.4 |
56.2 |
3.8 |
14.46 |
0.49 |
|
|
BCH-24 |
38.7 |
49.0 |
10.3 |
0.79 |
0.87 |
|
55.6 |
69.5 |
13.9 |
5.32 |
0.64 |
|
|
BCH-25 |
34.5 |
50.0 |
15.5 |
1.95 |
0.87 |
|
BCH-42 |
68.0 |
100.0 |
32.0 |
0.43 |
0.57 |
|
BCH-43 |
12.0 |
36.0 |
24.0 |
2.63 |
0.59 |
|
(Incl.) |
20.0 |
32.0 |
12.0 |
4.57 |
0.90 |
|
BCH-44 |
84.0 |
108.0 |
24.0 |
1.83 |
0.43 |
|
BCH-45 |
2.0 |
28.0 |
26.0 |
4.25 |
0.46 |
|
BCH-46 |
84.0 |
88.0 |
4.0 |
3.01 |
0.71 |
|
96.0 |
106.0 |
10.0 |
0.27 |
0.18 |
|
|
BCH-48 |
8.0 |
14.0 |
6.0 |
8.53 |
1.78 |
|
18.0 |
42.0 |
24.0 |
5.78 |
0.39 |
|
|
BCH-49 |
72.0 |
86.0 |
14.0 |
0.76 |
0.73 |
Table 2: Significant diamond drill core intercepts at the Yubileiny prospect. All holes are angled holes and reported intervals are drill hole lengths. Holes YB-02 to YB-17 were drilled in 2005. Holes YB38 to YB-44 were drilled in 2006.
|
Drill Hole |
From (m) |
To (m) |
Interval (m) |
Cu (%) |
Ag (g/t) |
|
YB-02 |
18.0 |
23.0 |
5.0 |
0.85 |
|
|
YB-03 |
37.3 |
55.3 |
18.0 |
0.49 |
|
|
YB-09 |
145.5 |
151.9 |
6.4 |
1.1 |
11.3 |
|
YB-11 |
45.0 |
72.3 |
27.3 |
0.78 |
16.7 |
|
(incl.) |
45.0 |
54.8 |
9.8 |
1.76 |
20.2 |
|
YB-17 |
20.4 |
20.8 |
7.6 |
0.7 |
|
|
YBC-38 |
0.0 |
20.0 |
20.0 |
0.55 |
3.1 |
|
YBC-41 |
38.0 |
46.0 |
8.0 |
0.77 |
24.5 |
|
YBC-44 |
82.0 |
108.0 |
26.0 |
0.38 |
3.8 |
Erlan Sagadiev, CEO comments:
"We continue to view the wholly owned Naimanjal license as an important cashflow asset in the Company's portfolio and are optimistic at the progress of the Naimanjal Complex gold project, Koskuduk gold project, Beschoku copper & gold prospects and the Yubileiny copper prospect. We plan to give an update on our 50% owned Benkala Joint Venture licence later this month."
Enquiries:
|
Frontier Mining Ltd |
Thomas Sinclair |
+44 (0)20 7898 9019 |
|
Libertas Capital |
Sandy Jamieson |
+44 (0)20 7569 9695 |
|
Walbrook PR |
Louise Goodeve / Leah Kramer |
+44 (0) 7968 704 418 |
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") 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, and at a 10% Discount Rate and a $1.5/lb Cu price, the Benkala Project has an NPV approaching $500M. 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 2010.
Issued Share Capital
Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.
Frontier currently has 405,913,522 fully diluted ordinary shares in issue.
Qualified Person's Declaration
The information in this announcement that relates to drilling results is based on information compiled by and reviewed by Brian Savage, Director. Mr. Savage has a BSc in Mining Engineering and MSc in Mineral Economics from the Colorado School of Mines.. He has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualified Person as defined in the March 2006 Edition of the AIM Guidance Note for Mining, Oil and Gas Companies. He consents to the inclusion in the announcement of the matters based on his information in the form and context in which they appear and confirms that this information is accurate and not false or misleading.
For further information please visit; www.frontiermining.com
Related Shares:
FML.L