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Updated JORC Resource Estimate

14th Feb 2011 07:00

RNS Number : 1181B
Frontier Mining Ltd
14 February 2011
 



 

 

14 February 2011

FRONTIER MINING LTD

("Frontier" or the "Company")

 

Updated JORC Resource Estimate for the Benkala Copper Project in Kazakhstan

Significant Increase in Measured and Indicated Resource

 

Highlights:

 

- Oxide resource increased by a total of 9.72 Kt (+5.9%) of Copper

- Sulphide resource increased by a total of 65.54kt (+9.2%) of Copper

- Significantly more resource in the measured category for both ore types

- Increase in average Oxide grade percentage

- Inferred resource increased by 42.8kt of Copper (+7.6%)

 

Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, is pleased to announce the completion by independent consultant Wardell Armstrong International ("WAI") of its updated resource estimation, in accordance with the guidelines of the JORC Code 2004, on the Benkala copper deposit in Kazakhstan (the "Resource Estimate"). Frontier had previously released an interim JORC statement on December 1, 2010. This latest statement incorporates all verified drilling data to date. The full updated report will soon be made available on Frontier's website (www.frontiermining.com).

 

This updated report shows significant increases in the previously released measured and indicated resource for both the Oxide and Sulphide ores. The Oxide resource has increased by a total of 9.72kt (+5.9%) and the Sulphide resource by 65.54kt (+9.2%) of Copper (based on measured and indicated resources). As well as the overall increase, both ore types now have significantly more resource in the measured category and there has been an increase in the average Oxide grade percentage. In addition, the overall inferred resource has also increased by 42.8kt of Copper (+7.6%).

 

 

Resource Estimate Authorship and Methodology

 

The mineral resource estimates provided in this press release have been classified and reported in accordance with the guidelines of the JORC Code (2004).

 

 

Benkala Mineral Resource Estimate: Total in-situ resources at cut off grade of 0.25% Cu (in accordance with the guidelines of the JORC Code 2004)

 

Gross Attributable

Net Attributable

Ore Type

Oxide

Sulphide

TOTAL

TOTAL

Cut Off Grade (% Cu)

0.25

0.25

0.25

0.25

Measured

Tonnage (000t)

5,065

1,680

6,746

3,373

Cu (%)

0.62

0.41

0.57

0.57

Metal (000t)

31.53

6.88

38.41

19.20

Indicated

Tonnage (000t)

27,498

180,255

207,753

103,876

Cu (%)

0.52

0.43

0.44

0.44

Metal (000t)

142.85

772.39

915.25

457.63

Measured & Indicated

Tonnage (000t)

32,563

181,936

214,499

107,249

Cu (%)

0.54

0.43

0.44

0.44

Metal (000t)

174.38

779.28

953.66

476.83

Inferred

Tonnage (000t)

2,088

145,329

147,417

73,708

Cu (%)

0.43

0.41

0.41

0.41

Metal (000t)

8.89

598.82

607.70

303.85

 

 

Competent Persons Statement

 

The preparation of the technical information contained herein was supervised by Dr. P S Newall, Director of Minerals at Wardell Armstrong International, BSc (ARSM), PhD (ACSM), CEng, FIMMM, who is recognised as a Competent Person for the purposes of the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Newall has reviewed and approved the technical information in this press release.

 

 

About the Benkala Copper Project - Kazakhstan

 

Frontier currently has a 50% indirect interest in the Benkala Copper Project which is managed by a joint-venture company, KazCopper LLP. The other 50% of Benkala is owned by Coville Intercorp Ltd. ("Coville"), a private Kazakh mining group with whom the Company has previously announced a proposed merger which is conditional on the granting of certain government consents and approvals. The project is located in northern Kazakhstan in the Ural Mountain Chain and has been the subject of considerable exploration and evaluation dating from the Soviet era. The region is an established mining district and the site has excellent infrastructure.

 

 

Mr. W Durand Eppler, Director of Frontier commented: "As a board we are very pleased that WAI has now completed this comprehensive review of prior work on the deposit to certify the Benkala resource in accordance with JORC standards. In particular, we note that both tonnage and grade have improved for the oxide resource from earlier work. The updated JORC resource statement now consolidates all drilling information and will set the basis for further infill and exploration drilling in both the oxide and sulphide zones and will provide the basis for reserve reporting and pit optimisation to support operations. This marks an important stage in Frontier's development at Benkala, confirming the project's significant resource endowment and our commitment to the highest technical standards."

 

For further details please contact:

 

Frontier Mining Ltd

 

George Cole

 

+44 (0) 20 7898 9019

 

Libertas Capital

Sandy Jamieson

+44 (0) 20 7569 9650

 

Walbrook PR

Walbrook IR

Bob Huxford

Paul Cornelius

+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, 50% of U.S. Megatech BVI which holds the Benkala licence, via KazCopper LLP. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd.

 

Frontier has one producing gold mine, Koskuduk; and a 50% interest in the Benkala copper mine, currently under development with initial production planned in 2011. The remaining 50% of Benkala is owned by Coville Intercorp Ltd. ("Coville"), a private Kazakh mining group with whom the Company has previously announced a proposed merger which is conditional on the granting of certain government consents and approvals.

 

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 ton 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 advance development of the significant Benkala sulphide resource.

 

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.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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