FML.L Regulatory News (FML)

29 Nov 2005 07:03

Frontier Mining Ltd29 November 2005 29 November 2005 AIM: FML Results of 2005 Exploration Programme at Beschoku Gold/Copper Prospect Frontier is pleased to announce the results of its 2004-2005 explorationprogramme at the Beschoku gold/copper prospect. Highlights • Internal evaluation of drilling assays, mineralogical data and geology indicate that Beschoku is a high-grade gold and copper deposit which is interpreted as a "bonanza" or "hydrothermal breccia pipe" (the "Pipe"). It currently covers a 300 metre by 150 metre area at the surface and dips to the northwest at 80 degrees. • In 1980, the Kazakhstan Geological Survey drilled a 140 metre vertical hole that contained 14 gpt gold and 1% copper • Frontier and Rio Tinto sampled the adit in 2002 and received assays of 8% copper and 19.5 grams per tonne ("gpt") gold • Frontier collected two 300kg bulk samples from the shaft and adit for metallurgical testing on oxide ore that included copper grades ranging from 2.7% to 10.4% with copper leach recovery reaching 75% at -10mm The 2005 exploration programme covered approximately 0.2 km2, just 0.1% of thetotal 231.2 km2 Beschoku-Yubileiny commercial discovery area. The programmeincluded 0.2 km2 of alteration mapping; three 1.5 km-long soil geochemicalprofiles on a 200 metre by 40 metre grid yielding 25 samples; three magnetometerprofiles; one Induced Polarisation-Chargeability profile 0.5 km in length; and434.2 metres of core drilling consisting of five core holes ranging in depthfrom 74 metres to 119 metres. Brian Savage, CEO of Frontier comments, "The discovery of this high-gradedeposit following the exploration of a small portion of the Beschoku prospect isencouraging. We are excited about the potential of this prospect and lookforward to reporting on future drilling results in due course." Beschoku copper oxide and sulphide resource summary Deposit Present size Cu Cu Contained (km2) Ore Grade Copper (mln t) (%) (tonnes)Beschoku oxide 0.12 3.8 1.10 41.800Beschoku sulphide 0.12 3.6 0.68 24.400Total oxide and sulphide 0.12 7.4 0.89 66.200 Beschoku gold resource summary Deposit Present size Au Au Contained (km2) Ore Grade Gold (mln t) (g/t) (tonnes)Beschoku gold 0.013 0.785 5.6 141.480 oz 2005 Exploration Update at Beschoku Gold/Copper prospect The exploration programme included the following: Hydrothermal alteration mapping This was conducted at a scale of 1:10,000 covering an area of 0.2 km2 usingspecially acquired Ikonos satellite panchromatic imagery with 1metre resolutionas the basis for mapping. The following significant finds were identified: • Gold/copper mineralisation is hosted within "hydrothermal breccia pipe" and to the north within skarnified granites. • Mineralogical investigation indicates a high degree of potassic alteration in the rocks expressed as muscovite. Two forms of gold are evident. The first type is free gold in quartz veinlets in the basaltic host rock and the second type is free gold inclusions in pyrite and chalcopyrite. • Several sites in the immediate proximity have geochemical anomalies similar to the Pipe. These anomalies suggest the presence of additional breccia pipes that will be investigated in future work. Core drilling at Beschoku 434 metres of drilling has been undertaken over five holes ranging from 74 to119 metres deep. There were 317 samples taken. The drilling programme wasdesigned to; • test gold and copper soil geochemical anomalies; and • provide data for copper and gold resource estimation to serve as part of the pre-feasibility study. Results of the drilling programme indicated that: • The gold-copper breccia pipe currently covers a 300 metre by 150 metre area at the surface and dips to the northwest at 80 degrees. • Thickness of copper intervals vary from 1 metre to 19 metres. • Thickness of gold intervals vary from 1 metre to 15 metres • Gold grade within the intervals varies from 0.1 gpt to 15.46 gpt Enquiries Frontier Mining Ltd Brian Savage 020 7849 6530Parkgreen Communications Cathy Malins / Annabel Leather 020 7493 3713 About Frontier Frontier Mining Ltd. is a mineral exploration and development company that wasincorporated in the state of Delaware, USA, on August 5, 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 two licenses owned by its wholly owned subsidiaries in Kazakhstan.They are the Naimanjal exploration and mining licence, held by FML Kazakhstan,and the Baltemir exploration licence, held by Baltemir LLP. Frontier has oneproducing gold mine, Naimanjal; one pre-feasibility stage gold project,Koskuduk; and one exploration stage gold prospect, Baltemir. Naimanjal isforecast by management to produce 25,000 ounces of gold in 2006 at a cash costof $250 per ounce. Frontier currently intends to double its gold production to50,000 ounces in 2007 and double it again to 100,000 ounces in 2008. Managementbelieves its gold projects contain more than two million ounces of oxide goldresource. Frontier also has one pre-feasibility stage copper porphyry deposit withassociated gold and molybdenum, Baitimir; and several copper/gold prospectsalong a 25-km trend including both VMS and porphyry types. Metallurgical testson its Beschoku and Yubileiny copper projects confirm the oxide copper ore isamenable to extraction using low cost SX-EW technology. Management believes thecopper projects contain more than 1,000,000 tonnes (2.2 billion pounds) ofcopper (P1) resource with significant potential for increase. Frontier iscurrently evaluating acquisition opportunities in uranium, gold, and copper inKazakhstan and the CIS countries. Frontier shares are traded on the AIM market of the London Stock Exchange.Frontier has 89,209,931 ordinary shares issued and 10,723,747 outstandingoptions and warrants, giving 99,933,678 fully diluted ordinary shares. Further company information may be accessed at the Frontier Mining Ltd. websiteat: www.frontiermining.com Beschoku 2005 Drill Hole Programme Summary copper and gold assay results above 0.1% Cu and Au 0.1 g/t cut-off Hole No. Site From To Thickness, Cu, % From To Thickness, Au, g/t M M BCH-15 Beschoku 11.0 12.5 1.5 0.10 4.0 9.5 5.5 0.30 BCH-15 Beschoku 14.0 16.0 2.0 0.14 11.0 12.5 1.5 0.58 BCH-15 Beschoku 37.0 39.0 2.0 0.37 14.0 16.0 2.0 0.31 BCH-15 Beschoku 24.5 26.0 1.5 0.43 BCH-15 Beschoku 37.0 39.0 2.0 1.44 BCH-15 Beschoku 43.5 45.0 1.5 0.10 BCH-15 Beschoku 99.5 100.6 1.1 0.12 BCH-15 Beschoku 111.5 113.0 1.5 0.10total or ave 119.5 5.5 0.21 16.4 0.42 Hole No. Site From To Thickness, Cu, % From To Thickness, Au, g/t M M BCH-22 Beschoku 0.2 1.5 1.3 0.10 24.1 27.1 3.0 1.96 BCH-22 Beschoku 24.1 43.4 19.3 1.65 28.1 45.4 15.3 4.94 BCH-22 Beschoku 47.9 48.8 0.9 0.16 47.9 48.8 0.9 1.49 BCH-22 Beschoku 50.8 68.1 17.3 0.66 50.8 65.1 14.3 15.46total or ave 78.3 38.8 1.15 33.5 8.99 Hole No. Site From To Thickness, Cu, % From To Thickness, Au, g/t M M BCH-23 Beschoku 33.5 39.9 6.4 0.44 33.5 34.6 1.1 0.21 BCH-23 Beschoku 52.4 56.2 3.8 0.49 36.0 39.9 3.9 4.31 BCH-23 Beschoku 77.0 77.9 0.9 0.38 52.4 56.2 3.8 14.3 BCH-23 Beschoku 76.0 77.9 1.9 0.25total or ave 80.3 11.1 0.45 10.7 6.71 Hole No. Site From To Thickness, Cu, % From To Thickness, Au, g/t M M BCH-24 Beschoku 34.8 35.7 0.9 1.87 33.6 35.7 2.1 0.47 BCH-24 Beschoku 38.7 43.7 5.0 0.96 38.7 43.7 5.0 0.47 BCH-24 Beschoku 44.9 49.0 4.1 1.01 44.9 49.0 4.1 1.32 BCH-24 Beschoku 55.6 68.0 12.4 0.71 55.6 57.0 1.4 0.30 BCH-24 Beschoku 72.6 74.3 1.7 0.12 58.1 69.5 11.4 6.5 74.3 24.1 0.81 24.0 3.47 Hole No. Site From To Thickness, Cu, % From To Thickness, Au, g/t M M BCH-25 Beschoku 28.5 30.0 1.5 0.13 3.0 4.5 1.5 0.21 BCH-25 Beschoku 34.5 50.0 15.5 0.84 35.7 50.0 14.3 2.03 BCH-25 Beschoku 57.5 59.0 1.5 0.22 57.5 59.0 1.5 0.61 BCH-25 Beschoku 60.5 62.0 1.5 0.27 81.8 18.5 0.73 18.8 1.63 Important note: total for the "To" column refers to the total drill hole depth total for the "Thickness. M" column refers to the sum of the thickness intervalsin each hole ave is the weighted average grade of copper in the mineralized zones. This information is provided by RNS The company news service from the London Stock Exchange