FML.L Regulatory News (FML)

19 Feb 2008 07:01

Frontier Mining Ltd19 February 2008 19 February 2008 AIM: FML Frontier Mining Ltd ("Frontier" or "the Company") Frontier Appoints Aker Kvaerner to Lead Benkala Conceptual Study Team Frontier Mining Ltd, the AIM-listed Kazakhstan-focused gold mining and copperdevelopment company, has appointed an integrated technical consultancy team ledby Aker Kvaerner Chile S.A., headquarters of their Metals business ("AkerKvaerner"), to complete the Conceptual Study for its Benkala copper porphyrydeposit in north-western Kazakhstan ("Benkala" or "the Project"). Frontieracquired a 50% stake in the Project in November 2007, and announced on 23January 2008 the appointment of a joint technical and financial advisory team ("the Advisor") to oversee and coordinate the fast-tracked development of Benkalawith the Company's joint-venture partner. The Conceptual Study is designed to provide a preliminary evaluation of thevarious "trade-off" options for economic development of the Project, and to formthe basis for the Pre-Feasibility Study, which will commence in Q2 2008. TheAdvisor has selected and mobilised well-respected, "bankable" industryconsultants with extensive copper porphyry experience to conduct the ConceptualStudy: • Aker Kvaerner, a leading global provider of engineering and constructionservices, will act as Conceptual Study author to synthesise underlying studycomponents, and evaluate the economics of various mining, processing, andinfrastructure options for the Project; • NCL Ingeneria y Construccion S.A., an international mineral consultancyfirm based in Chile, with substantial experience of large copper porphyryprojects, will be responsible for mine planning and optimisation studies, and; • Brook Hunt, an industry-leading metals economics and price forecastingfirm, will provide insight on copper marketing options, including analysis andoutlook for the local copper concentrates market. Brian Savage, CEO of Frontier, commented: "Over the past five months, the teamhas worked hard to ensure we create a strong foundation from which to developthe Benkala project. With the appointment of such a high calibre group ofadvisers, we are now well poised to accelerate development of the project andincrease our production profile." Information on the Conceptual Study Consultants Aker Kvaerner ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), isa leading global provider of engineering and construction services, technologyproducts and integrated solutions. The business within Aker Kvaerner comprisesseveral industries, including Oil & Gas, Refining & Chemicals, Mining & Metalsand Power Generation. The Aker Kvaerner group is organised in a number ofseparate legal entities. Aker Kvaerner is used as the common brand/trademark formost of these entities. The parent company in the group is Aker Kvaerner ASA. Aker Kvaerner hasaggregated annual revenues of approximately USD 10 billion and employsapproximately 24,000 people in about 30 countries. Aker Kvaerner Metals provides design, engineering, procurement, construction andproject management services for mining and metals processing facilities on everycontinent. With its Metals Headquarters based in Santiago, Chile, and othermetals offices located in Toronto, Canada, Tucson, Arizona, U.S.A., combinedwith regional metals capabilities in Perth, Brisbane and Melbourne, Australia,Mumbai, India and Stockton-on-Tees, U.K, Aker Kvaerner provides globalcapability to serve its clients across the full project cycle from studiesthrough to design engineering, procurement, construction, commissioning andstartup. Specialised expertise spans Precious Metals, Nickel, Copper,Molybdenum, Iron Ore, Zinc, Uranium, Evaporites and Industrial Minerals. NCL Ingenieria y Construccion S.A. ("NCL") is a consulting company based inChile which provides specialised advice and solutions for mining companies inthe areas of mineral resource estimation, mine design and planning, mineequipment selection, optimisation of mine operations and mining capital andproduction costs estimation. Since forming some 30 years ago, NCL has developedprojects in more than 20 countries on five continents. Of particular benefit toFrontier and its joint-venture partner is NCL's specific track record in thedevelopment of large copper porphyry projects, such as: • Collahuasi, Chile (Anglo/XStrata/Mitsui); • Escondida, Chile (Codelco); El Teniente, Chile (Codelco); • El Pachon, Argentina (XStrata); • Andina, Chile (Codelco); • Los Pelambres, Chile (Antofagasta); • El Morro, Chile (XStrata); • Afton, Canada (New Gold); • Rio Blanco, Peru (Monterrico Metals). Brook Hunt & Associates ("BH") is a leading consulting firm serving the miningand metals sector. Established in 1975, the company has earned a globalreputation for detailed, high quality research and consultancy in the base andprecious metals mining and smelting industries. The firm's senior analysts andconsultants are each recognised as a leading authority within their area ofexpertise, serving a client base which includes investment banks, mining andsmelting companies, industry consumers and governments. BH will provide detailedmetal markets insight for inclusion in the Conceptual Study, including coppersupply and demand analysis, long-term metals price forecasts, treatment chargesand refining charges, and analysis of the local concentrate smelting markets. 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; http://www.frontiermining.com/ This information is provided by RNS The company news service from the London Stock Exchange