FML.L Regulatory News (FML)

22 Sep 2008 07:00



AIM: FML

Frontier Mining Ltd

("Frontier" or "the Company")

Benkala Operations Update

Frontier Mining, the AIM-listed Kazakhstan-focused gold mining and copper development company, is pleased to announce results from metallurgical tests conducted on ore samples obtained during verification drilling at the Benkala copper porphyry deposit in north-western Kazakhstan ("Benkala" or "the Project"); a Joint Venture between Frontier and Coville Intercorp Ltd ("Coville").

KazCopper LLP, the Benkala license holder together with the Research Institute VNIICVETMET (Ust Kamenogorsk) ("the Institute") recently conducted preliminary technological studies on samples obtained during verification drilling to determine the viability of heap leaching methods and SX-EW processing on oxidized ores from the Benkala deposit. 

The results included up to 65.3% copper extraction over a period of 70 days. These results indicate the viability of heap leaching methods and SX-EW processing for the oxidized part of the Benkala deposit.

In order to increase technological indicators and to clarify process variables, the Institute has recommended continued studies on larger samples of ore, and this has been preliminarily agreed upon.

Umbet Malimbayev, CEO of KazCopper commented, "We are very pleased with these results which pave the way for the project realization through the use of heap leach methods and an SX-EW process. This is a proven method that requires low capital expenditure and produces low copper cost. Application of this technology will permit a more efficient route to production, with the final cathode copper product being high purity of 99.99%"

In order to verify past drilling results from the Soviet era, three verification drill holes were drilled (with the involvement of SRK), three metres from the collar of historic drill holes 198, 225, and 203 (the "verification holes"). Results indicate high convergence of contents and thickness of remnant ores, for both the historic and verification holes. High grades were identified in the verification holes, which will be further examined to determine their consistency and accuracy.

Drilling verification data is detailed in the table below.

Drill hole data comparisons 

The resource estimation of the deposit was conducted in 1979 by the soviet geologist I.V. Gachkevich. This estimated approximately 2 million tonnes of copper at a depth of 700m in oxidized and primary ores, with an average copper grade 0.43%.

Deposit resources up to 700m deep (I.V. Gachkevich, 1979)

Fizuli Dzhafarov, Geology Director of KazCopper commented, "According to Soviet estimates, resources in the zone of repeated sulphide enrichment are 34.5 million tonnes of ore and 190,000 tonnes of copper with a grade of 0.55%. Additional in-mine exploration of flanks of the deposit may offer scope to increase these oxidized ore resources. Large resources of oxidized ores at the Benkala deposit are attributed to the development of crust formation in the Mugodzhar zone, where the Benkala deposit is located. There are no known similar deposits in Kazakhstan with a similar amount of high grade oxidized ore."

Enquiries:

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. 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 and Fully Diluted Ordinary Shares 

Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.

Frontier currently has 218,120,095 issued and 21,812,009 reserved and outstanding options giving 239,932,104 fully diluted ordinary shares.

For further information please visit; www.frontiermining.com