FML.L Regulatory News (FML)

3 Jun 2005 10:02

Frontier Mining Ltd3 June 2005 "Commercial Discoveries" Approved For All Current Gold And Copper/Gold Projects WestLB AG to assist securing financing Frontier Mining Ltd ("Frontier" or "the Company") today announces thatCenterKazNedra, the regional government agency in Kazakhstan responsible forexploration and mining, has approved "commercial discoveries" for all of theCompany's gold and copper/gold projects. These "commercial discoveries" havealso been acknowledged by the Ministry of Energy and Natural Resource inKazakhstan. The directors expect the Ministry's formal confirmation to beforthcoming. The commercial discoveries for Frontier's Beschoku, Yubileiny, and Baitemirdeposits cover a total area of 344 km2. The Naimanjal deposit with its satelliteprospects covers 170 km2 and the Koskuduk deposit covers 16 km2. The Companyhas also been granted an extension of its exploration contract for thecommercial discoveries from 15 June 2005 to 31 December 2007. This extensionwill allow the Company to conduct a pre-feasibility study on each of theseprojects. Frontier's US$5 million proposed work programme, including three pre-feasibility studies, was also approved. Naimanjal The CenterKazNadra Agency has given regulatory approval for pilot production ofgold and silver at the Company's Naimanjal gold/silver mine to commence on 15June 2005 to 31 December 2007 as part of the exploration period. Koskuduk The CenterKazNadra Agency has also approved a 268,550 ounce C2 and Pi oxide goldresource estimate and 125,000oz PI resource estimate in sulphide mineralisationat Koskuduk prepared by an independant local consultant. This estimate is anincrease from the previously known C2 oxide resource estimate of 180,000oz andwas achieved following a nine hole drilling programme undertaken in the firsthalf of 2005. Beschoku The first phase of the 18 core hole drill programme targeted to confirm the 2.48million tonnes of contained copper resources reported previously is on schedulefor completion the end of June. Nine core holes are targeted in geophysicalanomalies and nine core holes are targeted in geochemlcal anomalies in both VMS-type and porphyry-type deposits. The results of this programme will be releasedonce all of the assay information is obtained and analyzed. A new, highly intensive induced Polarization ("IP") anomaly 400 metres wide hasbeen identified by the geophysical contractor in the southeastern part ofBeschoku. Drilling will commence shortly to define this further. The "fill-in" geochemical survey in the 13 km2 area at Beschoku has beencompleted and 1,700 samples are currently being assayed for gold and coppervalues. Frontier will report on these as the data becomes available. Baltemir Excellent results were obtained from the very first hole KZ-1 drilled in thewestern part of the property 500 metres from a 19th century shaft with historicproduction records. In the drill hole, veins of malachite and limonite occur ingranodlorite from surface to a depth of 25 metres. These veins comprise morethan 5% by volume of the drill core. Deeper down, the disseminated andstockwork mineralisation consisting of chalcopyrite, molybdenite and pyrite,continues to a depth of 120 metres. The ratio of mineralistion to host rock inthe core is 4:1. Several quartz veins with visible gold are present and furtherassay results are pending. Corporate Frontier continues to review production and development stage uranium projectsin CIS countries. Technical, legal, and financial due diligence is on-going withBehre Dolbear as independent consultant to complete technical due diligence andvaluation. The Company is also pleased to announce that WestLB AG, one of the largestGerman banks and actively involved in mining finance, has confirmed that it willassist Frontier in its efforts to secure the necessary funding to develop itsgold / copper operations as well as future fund raisings. Brian Salvage, CEO of Frontier, commented, "We and delighted with the approvalof the commercial discoveries at each of our gold and copper/gold projects andthe extension of our exploration licence which will enable us to push ourprojects forward to the pre-feasibility study stage in order to more accuratelyasses their value. We are also very pleased that WestLB have agreed to assistus in our efforts to secure financing. Enquiries Frontier Mining Ltd Brian Savage 020 7849 6530Parkgreen Communications Cathy Malins / Annabel Leather 020 7493 3713 Notes To Editors: About FML FML is a mineral exploration and development company that was incorporated inthe state of Delaware, USA, on 5 August 1998 for the purpose of exploring anddeveloping gold and copper deposits in the Republic of Kazakhstan and othercountries of the Commonwealth of Independent States. Through its subsidiariesand affiliates, FML locates, evaluates, acquires, explores and develops mineralproperties. FML has two licences, over a total area of 4,326 km2, owned by its wholly ownedsubsidiaries in Kazakhstan. They are the Naimanjal exploration and mininglicense, held by FML Kazakhstan, and the Baltemir exploration license held byBaltemir LLP. FML is currently focused on three gold projects with more than twomillion ounces of oxide gold resource and two copper/gold project with morethan 5 billion pounds of contained copper (P1) resource. FML was admitted to the AIM Market of the London Stock Exchange on 2 September2004. FML has 88,196,461 ordinary shares issued and 11,777,217 outstandingoptions and warrants, giving 99,973,678 fully diluted ordinary shares. This information is provided by RNS The company news service from the London Stock Exchange