- Published: 08 December 2008
- Written by Editor
Shallow Drilling Demonstrates High-Grade Nature of Mineralization at Sandman Gold Project
Fronteer Development Group Inc. ("Fronteer" or the "Company") (TSX: FRG)(NYSE-A: FRG) is pleased to announce that drilling by Newmont Mining Corp. ("Newmont") continues to delineate near-surface, high-grade, oxide gold mineralization at the Sandman gold project in Nevada.
Newmont has provided Fronteer with assay results for the first 16 holes drilled in Sandman's Southeast Pediment deposit. A total of 37 holes were completed at Sandman during the 2008 program. Assays for the remaining 21 holes are pending. Similar to Fronteer's Long Canyon project, drill results feature consistent, wide intervals of gold mineralization with high-grade zones, including:
- 2.58 grams per tonne gold (0.075 ounces per ton) over 26.19 metres, including 25.78 g/t (0.752 oz/ton) over 1.68 metres, in NSM-04;
- 2.24 g/t gold (0.065 oz/ton) over 11.68 metres, including 12.08 g/t (0.352 oz/ton) over 1.59 metres, in NSM-08; and
- 2.05 g/t (0.060 oz/ton) over 13.57 metres, including 19.96 g/t (0.582 oz/ton) over 0.95 metres, in NSM-19; along with,
- Silver grades as high as 74.44 g/t (2.17 oz/ton).
Sandman currently includes a group of four closely spaced deposits that are near-surface and potentially amenable to open-pit mining, with resource expansion and exploration upside potential. Sandman is located along trend of the Sleeper gold mine and Goldbanks deposit, along the King River Rift that hosts multiple high-grade vein gold systems. Infrastructure surrounding Fronteer's Sandman project is excellent. The property is close to Newmont's Twin Creeks mine, potentially eliminating the need for a stand-alone milling facility and other significant capital expenditures if the project were to proceed to production.
Sandman's exploration and development program is focused on:
1. Confirming the character of near surface gold mineralization at Sandman's Silica Ridge and SE Pediment deposits;
2. Obtaining bulk metallurgical material for mill grade and heap leach metallurgical tests; and,
3. Deepening the understanding of the geology and controls on gold mineralization.
Under the terms of the Sandman option and joint-venture agreement, Newmont can earn an initial 51% interest in the project by making a positive production decision by June 2011, spending a minimum of $14 million on exploration and development, making a commitment to fund and construct a mine, and completing a bankable feasibility study.
DRILL RESULTS
Hole ID From (m) To (m) Interval (m) Ag (g/t) Au (g/t) Au (oz/t)
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NSM-04 17.07 43.26 26.19 17.48 2.58 0.075
Including 37.80 39.48 1.68 74.44 25.78 0.752
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NSM-05 25.24 46.49 21.25 15.50 1.83 0.053
Including 28.29 32.26 3.96 21.76 5.12 0.149
And 33.72 34.42 0.70 14.09 4.85 0.141
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NSM-06 11.49 29.85 18.35 22.43 1.54 0.045
Including 18.45 18.87 0.43 31.71 24.67 0.720
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NSM-07 15.30 37.68 22.38 16.68 1.17 0.034
Including 34.63 36.07 1.43 40.57 10.55 0.308
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NSM-08 18.26 29.94 11.68 23.21 2.24 0.065
Including 21.01 22.59 1.59 27.95 12.08 0.352
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NSM-09 25.49 42.99 17.50 11.67 1.63 0.047
Including 33.54 34.15 0.61 24.41 12.95 0.378
And 37.50 39.09 1.59 5.69 2.28 0.066
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NSM-10 17.04 51.83 34.79 15.96 1.10 0.032
Including 17.04 17.44 0.40 7.41 5.98 0.174
And 24.09 25.21 1.13 10.80 3.24 0.094
And 34.91 35.85 0.95 13.61 3.58 0.104
And 38.90 39.39 0.49 6.41 3.53 0.103
And 42.13 42.99 0.85 16.11 4.21 0.123
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NSM-11 36.83 47.29 10.46 10.84 0.52 0.015
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NSM-13 19.85 34.42 14.57 9.20 1.47 0.043
Including 19.85 21.31 1.46 8.54 2.89 0.084
And 33.05 34.42 1.37 15.95 5.62 0.164
And 44.27 53.29 9.02 3.00 0.63 0.018
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NSM-15 54.85 59.39 4.54 5.45 0.66 0.019
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NSM-16 12.20 14.15 1.95 2.31 0.73 0.021
And 24.76 31.55 6.80 11.97 2.03 0.059
Including 28.57 29.24 0.67 6.21 4.16 0.121
And 30.49 31.55 1.07 29.76 5.51 0.161
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NSM-18 10.06 13.57 3.51 1.34 2.66 0.078
Including 12.80 13.57 0.76 2.09 7.45 0.217
And 30.18 34.45 4.27 19.28 1.35 0.039
Including 32.26 33.84 1.59 20.11 2.25 0.066
And 40.09 47.35 7.26 5.50 0.85 0.025
Including 41.16 42.07 0.91 5.79 2.49 0.073
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NSM-19 20.27 33.84 13.57 9.94 2.05 0.060
Including 21.28 22.56 1.28 17.00 2.38 0.069
And 23.35 24.30 0.95 44.75 19.96 0.582
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NSM-20 67.38 73.48 6.10 9.75 0.93 0.027
Including 67.38 68.29 0.91 47.59 2.48 0.072
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NSM-24 34.51 38.02 3.51 7.09 0.70 0.020
And 47.07 50.30 3.23 2.52 1.32 0.039
Including 48.78 49.57 0.79 2.81 2.53 0.074
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NSM-25 10.03 15.61 5.58 1.32 0.92 0.027
And 20.95 22.10 1.16 4.18 0.99 0.029
And 24.21 25.98 1.77 3.25 0.70 0.020
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Note: The true width of the mineralized zones is estimated to be
approximately 90% of those stated. Primary composite intervals were
calculated using a cut-off of 0.5 g/t Au, and 2.0 g/t Au for the higher
grade internal intervals.
Since signing the option deal in June 2008, Newmont has completed 2,800 metres (9,300 feet) of drilling in 37 core holes. Over the next few months, a 2009 drilling program will be determined to cover additional development drilling at Sandman and initiate a series of exploration drill holes which will cover various property wide target areas based on surface mapping, geophysical and soil sampling results.
Sandman, Northumberland and Long Canyon are currently Fronteer's leading properties among its large portfolio of gold projects in Nevada. For more information on Sandman and Fronteer's other Nevada projects, visit: http://www.fronteergroup.com/?q=content/nevada.
Drill samples and analytical data for the Sandman project are being collected under the supervision of Newmont, Fronteer's joint venture partner and project operator, using industry standard QAQC protocols. Fronteer's James Ashton P.E., who is the QP responsible for compiling the data contained in this release, has not verified the data; however, the grades and widths reported here agree well with the Company's past results on the project and correspondence with the operator has given him no reason to doubt their authenticity. For further details on Sandman, please view the technical report prepared by Mine Development Associates ("MDA"), as of May 31, 2007, on SEDAR at http://www.sedar.com.
LIQUIDITY
Fronteer has no debt and is not invested in any short-term commercial paper or asset-backed securities. Fronteer has approximately C$82 million in cash that is fully liquid and held with a large Canadian commercial bank.
ABOUT FRONTEER
Fronteer is an exploration and development company with a track record of making big discoveries. Fronteer has an extensive portfolio of advanced stage gold projects in Nevada, a 40% interest in three gold and copper-gold projects in western Turkey, and a 42.2% interest in Aurora Energy Resources (TSX -- AXU), a leading Canadian uranium company. For further information on Fronteer visit www.fronteergroup.com.
Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to, those with respect to potential expansion of mineralization, potential size of mineralized zone, and size of exploration program involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Fronteer to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to international operations and joint ventures , the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of ore reserves and mineral resources, changes in project parameters as plans continue to be refined, future prices of gold and silver, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation and permitting requirements as well as those factors discussed in the section entitled "Risk Factors" in Fronteer's Annual Information form and Fronteer's latest Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although Fronteer has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Fronteer disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements. NEWS RELEASE 08-31
Contacts:
Fronteer Development Group Inc.
Mark O'Dea, Ph.D, P.Geo
President and CEO
(604) 632-4677 or Toll Free: 1-877-632-4677
Fronteer Development Group Inc.
Richard Moritz
Director, Investor Relations
(604) 632-4677 or Toll Free: 1-877-632-4677
Fronteer Development Group Inc.
Glen Edwards
Director, Communications
(604) 632-4677 or Toll Free: 1-877-632-4677
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.fronteergroup.com
SOURCE: Fronteer Development Group Inc.
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