FML.L Regulatory News (FML)

25 Mar 2008 07:01

Frontier Mining Ltd25 March 2008 25 March 2008 AIM: FML Frontier Mining Ltd Exploration License Update Frontier Mining Ltd ("Frontier" or "the Company"), the AIM-listedKazakhstan-focused gold mining and copper development company, is pleased toprovide an update regarding its exploration licenses at various projects. Extension of exploration period at Koskuduk and Baritovy, Beschoku, andYubileiny The Ministry of Energy and Mineral Resources ("MEMR") of the Republic ofKazakhstan has extended the exploration period for commercial discoveriesappraisal at Frontier's gold project Koskuduk, and at its copper-gold prospectsBaritovy, Beschoku, and Yubileiny, for an additional 2 years under the conditionthat FML Kazakhstan, a wholly owned subsidiary of Frontier, will assumeadditional financial obligations under a work program during the extensionperiod. A condition of this extension is that FML Kazakhstan must agree the workprogram with MEMR before 8 May 2008. Baltemir License The Company is in the process of relinquishing its wholly-owned Baltemirlicense. The Company does not believe that Baltemir has sufficient potential towarrant continued management time and expenditure, particularly in light of thepotential indicated at its other projects. Brian C. Savage, Chairman and Chief Executive Officer of Frontier comments: "The2 year extension of the exploration period at Koskuduk, Baitimir, Beschoku andYubileiny, will allow the company to continue to evaluate the potential of theseprospects and I am confident that we can agree the work program with the MEMR tofinalise this extension. Our decision to relinquish the Baltemir licensereflects our commitment to prioritise the company's resources on projects withthe most favourable risk and reward profile." Enquiries: Frontier Mining Ltd Brian Savage +44 (0) 20 7898 9019Parkgreen Communications Louise Goodeve/Justine Howarth +44 (0) 20 7851 7480Zimmerman Adams Intl. Ray Zimmerman/Jonathan Evans +44 (0) 20 7060 1760 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 currently owns three licenses in Kazakhstan. They are the Naimanjalexploration and mining licence, held by FML Kazakhstan, the Baltemir explorationlicence, held by Baltemir LLP and, 50% of U.S. Megatech Inc. which holds theBenkala licence. FML Kazakhstan and Baltemir LLP are wholly-owned subsidiariesof Frontier 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 U.S. Megatech Inc., the joint venture Companythat owns the Benkala copper-molybdenum-gold deposit located in north-westernKazakhstan 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 theoxide mineralization, and 873.75 Mt at an average grade of 0.30% Cu for thesulphide mineralisation, representing some 2.8 million tonnes of containedcopper. Issued and Fully Diluted Ordinary Shares Frontier Mining's shares are traded on the AIM market of the London StockExchange. Frontier currently has 218,120,082 issued and outstanding shares and 6,057,091reserved and outstanding options giving 224,177,173 fully diluted ordinaryshares. For further information please visit; www.frontiermining.com This information is provided by RNS The company news service from the London Stock Exchange