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Benkala Project Update

24 Jun 2010 07:00

RNS Number : 1256O
Frontier Mining Ltd
24 June 2010
 



 

 

FRONTIER MINING LTD

("Frontier" or the "Company")

Frontier Breaks Ground at Benkala Copper Project

 

Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, today announced that KazCopper LLP ("KazCopper"), its 50% owned joint-venture company managing its Benkala Copper development project, has commenced construction of its open pit mine.

 

The Company has received technical and regional authority to remove a total of 3 million cubic metres in 2010 and has begun initial stripping. The technical details of the pit are provided in the table below. Extraction will be performed by 3 hydraulic excavators; materials will be transported by 45 tonne Belaz trucks. Waste rock will be stored in a dump located 1.5km from the pit and the ore stockpile will be located adjacent to the processing facilities which are now under construction approximately 1.5 km from the pit.

 

Photographs of the beginning of the construction process can be seen on the Company's website at www.frontiermining.com.

 

 

Pit Parameters

Name

Unit

Value

Width

Meters

272

Length

Meters

952

Depth

Meters

27

Flitch Height

Meters

7

Bench Height

Meters

12

Road Width

Meters

14

Road Gradient

%

10

Road Length

Meters

169

Safety Berm Size

Meters

8

Final Pit Wall Angle

Degrees

44

Waste Extracted

Cubic Meters

4,321,002

Ore Extracted

Tonnes

50,200

 

 

In addition to the commencement of development of the open pit, the Company completed construction of one electrical power line to the site in 2009 and a second line is scheduled for completion in 2010. As previously announced, the Company's 2009, 6,000 meter, 54 hole drilling programme and initial assay results continue to confirm prior resource base estimates Further confirmation testing is scheduled for the second half of 2010 with Alex Stuart Laboratories and the Company remains on track to complete a JORC compliant resource estimate by year-end 2010. The Company plans initially to develop the Benkala oxide copper resource with a 7,000 tonne per year SX-EW facility with cathode capacity. In June, 2010, the Company executed a contract with Calder Projects, an Australian engineering and design firm for detailed engineering design of the Benkala process plant and the Company has identified key vendors for plant equipment and construction work for site infrastructure. The Company is targeting initial production at Benkala in the first half of 2011.

 

Erlan Sagadiev, CEO of Frontier, commented: "Development of our flagship Benkala copper project is now well underway. The commencement of stripping at the pit is a significant step forward for Frontier. After many years of hard work by the team at KazCopper we are delighted that mine pit construction has now begun and that we are in a position where we can see the finish line."

 

Enquiries:

Frontier Mining Ltd

George Cole

+44 (0)20 7898 9019

 

Libertas Capital

Sandy Jamieson

+44 (0)20 7569 9695

 

Walbrook PR

Bob Huxford / Leah Kramer

+44 (0)20 7933 8780

 

 

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") 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 advancedevelopment of the significant Benkala sulphide resource.

 

Issued Share Capital

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

Frontier now has 917,336,219 issued and 21,812,009 reserved options giving 939,148,228 fully diluted ordinary shares. 

 

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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