FML.L Regulatory News (FML)

23 Jan 2008 07:01

Frontier Mining Ltd23 January 2008 23 January 2008 AIM: FML Frontier Mining Ltd ("Frontier" or "the Company") Frontier Appoints Benkala Project Development Team Frontier Mining Ltd, the AIM-listed Kazakhstan-focused gold mining and copperdevelopment company, is pleased to announce that it has appointed a jointtechnical and financial advisory team ("the Advisor") to oversee the developmentof the Benkala copper deposit ("Benkala" or "the Project"). Frontier announcedon 29 November 2007 that it had acquired a 50% stake in the Project, located innorth-western Kazakhstan. The Advisor is a joint-venture between Videira Management ("Videira"), aspecialist mineral project development team and DCM Structured Finance ("DCMSF"), an advisory firm with extensive experience in arranging mine financings.Working closely with the Company's joint-venture partner, Coville Intercorp Ltd("Coville"), the Advisor will act as Frontier's "owner's team" to assist andfacilitate the fast-tracking of Benkala's development, supervising the overallprocess from resource definition through to Feasibility Study completion. Thiswill include the initial analysis and verification of historic Soviet drillingdata; additional infill and step-out drilling to produce a JORC-compliantresource; a Pre-Feasibility Study and a full Bankable Feasibility Studythereafter. The Advisor will direct this systematic and disciplined approach,combining Videira's mineral project management expertise and track record indeveloping similar copper porphyry projects with DCMSF's specialist financialcapabilities, to help assure and optimise the "bankability" of the BenkalaProject. Brian Savage, CEO of Frontier, commented "I am very pleased with the appointmentof Videira Management and DCM Structured Finance to the Benkala Project. Thisappointment which follows the recently announced completion of the Benkalaacquisition represents a significant step forward for the project and thecompletion of the assembly of a highly competent and inter-disciplinary team,which will work to advance and deliver the potential of the Project." Information on the Advisor Videira Management is a specialist mineral project management and oversightgroup which acts as an 'owners' team' embedded at the project level to activelyoversee the design, structuring and execution of mineral project business plans.Videira has extensive knowledge and experience of the project management oflarge, open pit, "Cordilleran"-style mineral deposits, and offers a uniquecombination of strong relationships with leading international consultants withan ability to work with local expertise in geographical regions as diverse asLatin America and Central Asia. The Videira team is led by Matthew Dorman, whose20 years' international experience in the mining sector includes support forlisting, fundraising and project management for several AIM-listed companies,and heading up the Bankable Feasibility Study team on Monterrico Metals' RioBlanco project in northern Peru, a 1 billion tonne porphyry copper-molybdenumproject with CapEx in excess of USD 1 billion. DCM Structured Finance is an FSA-authorised firm, which offers corporate andstructured finance advisory services, with a focus on the commodities sector.The DCMSF team previously worked together for several years as the London-basedWestLB Metals & Mining team, during which period, they structured and arranged anumber of multi award-winning, company-making mine financings, including FirstQuantum Minerals' Kansanshi Copper Project in Zambia (African Mining Deal of2003), Oxus Gold's Amantaytau Gold Project in Uzbekistan (European Mining Dealof 2003) and Oriel Resources' Voskhod Chromite Project in Kazakhstan (EuropeanMining Deal of 2006). The DCMSF team is led by Chris Worcester, formerly Head ofWestLB's Metals & Mining team in London and prior to that, Global Head ofFinancial Modelling and Analysis at the Royal Bank of Scotland, and a member ofthe Mining & Metals team at Barclays Capital for 8 years. The Benkala Project The Benkala Project will develop a significant porphyry copper deposit, situatedin north-western Kazakhstan in the Urals gold/copper ore belt, north east ofAktobe Oblast and 100km south east of the Zhetikara Mountains, an area close tothe Russian border with a long regional mining history. Benkala is in a highlyattractive position for mine development given that it already containsdeveloped infrastructure, including a main line railway, an all weather highwayand excellent power supply to the site. The property was discovered in 1968. Between 1976 and 1980, 70 holes totalling21,800 metres of core drilling on a 200 metre by 200 metre and 200 metre by 100metre grid, some to a depth of 700 metres with core recovery between 70% and75%. Metallurgical test work was conducted between 1973 and 1979 and determinedthat that the near surface chalcocite ores were amenable to heap leaching usingsulphuric acid as well as flotation. The sulphide ores were amenable toflotation. A Competent Person Report ('CPR') on the Benkala Project completed by WardellArmstrong International ("WAI") in March 2007 estimates 47.75 Mt at an averagegrade of 0.36% Cu for the oxide mineralisation, and 873.75 Mt at an averagegrade of 0.30% Cu for the sulphide mineralisation. Enquiries: Frontier Mining Ltd Brian Savage +44 (0)20 7898 9019Zimmerman Adams International Ray Zimmerman / Jonathan Evans +44 (0)20 7060 1760LimitedParkgreen Communications Louise Goodeve / Justine Howarth +44 (0)20 7851 7480 About Frontier Mining Ltd: 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 Kazakhstan.Through its subsidiaries and affiliates, Frontier locates, evaluates,acquires, explores and develops mineral properties. Frontier has three licenses in Kazakhstan. They are the Naimanjal explorationand mining licence, held by FML Kazakhstan, the Baltemir exploration licence,held by Baltemir LLP and, 50% of U.S. Megatech Inc. which holds the Benkalalicence. FML Kazakhstan and Baltemir LLP are wholly-owned subsidiaries ofFrontier Mining Ltd. Frontier has one producing gold mine, Naimanjal; onepre-feasibility stage gold project, Koskuduk; and one exploration stage goldprospect, Baltemir. Frontier also has a potential copper porphyry deposit with associated gold andmolybdenum, Baitimir; and several copper/gold prospects along a 25-km trendincluding both VMS and porphyry types. Metallurgical tests on its Beschoku andYubileiny copper projects confirm the oxide copper ore is amenable to extractionusing low cost SX-EW technology. Frontier owns a 50% interest in the joint venture Company that owns the Benkalacopper-molybdenum-gold deposit located in north-western Kazakhstan within theUrals gold/copper ore belt. A Competent Persons Report ("CPR") on the Benkalaproject completed by Wardell Armstrong International ("WAI") in March 2007estimates 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. Issued and Fully Diluted Ordinary Shares Frontier shares are traded on the AIM market of the London Stock Exchange. Frontier currently has 218,120,082 and 6,057,091 reserved and outstandingoptions giving 224,177,173 fully diluted ordinary shares. For further Company information on Frontier Mining Ltd, please visit;www.frontiermining.com This information is provided by RNS The company news service from the London Stock Exchange