FML.L Regulatory News (FML)

29 May 2007 07:02

Frontier Mining Ltd29 May 2007 Frontier Mining Ltd ("Frontier" or "the Company") Naimanjal Gold and Silver Resources Increased Frontier Mining Ltd. is pleased to announce the results of the gold and silverresource estimate prepared to a JORC standard by the Company and reviewed by itsindependent geological consultants, Behre Dolbear & Company (USA), Inc. ("BehreDolbear"). At a gold equivalent* cut-off grade of 0.3 grammes per tonne ("g/t") there are3,502,393 tonnes of Measured and Indicated resource at an average grade of 0.73g/t gold and 17.31g/t silver containing 82,022 ounces of gold and 1,948,699ounces of silver. In addition, the model indicates that there are 8,300,939tonnes of Inferred resource at an average grade of 0.64g/t gold and 18.95g/tsilver containing 170,626 ounces of gold and 5,058,476 ounces of silver. The Measured, Indicated, and Inferred resource at the Naimanjal deposit using acut-off grade of 0.3g/t gold equivalent* totals 11,803,332 tonnes at an averagegrade of 0.67g/t gold and 18.46g/t silver containing 252,648 ounces of gold and7,007,175 ounces of silver. See Tables 1 and 2 below. Table 1 Measured and Indicated ResourceOre type Cut-off Tonnes Au (g/t) Ag (g/t) Au eq Au (oz) Ag (oz)Oxide 0.3 2,435,633 0.67 12.83 0.81 52,466 1,004,684Transition 0.3 376,455 0.81 20.62 1.03 9,804 249,570Sulfide 0.3 690,305 0.89 31.29 1.22 19,752 694,445Total 0.3 3,502,393 0.73 17.31 0.92 82,022 1,948,699 Table 2 Inferred ResourceOre type Cut-off Tonnes Au (g/t) Ag (g/t) Au eq Au (oz) Ag (oz)Oxide 0.3 4,339,907 0.53 12.88 0.67 73,952 1,797,162Transition 0.3 1,223,431 0.69 19.61 0.89 27,141 771,344Sulfide 0.3 2,737,601 0.79 28.29 1.07 69,533 2,489,970Total 0.3 8,300,939 0.64 18.95 0.84 170,626 5,058,476 The Company also asked Behre Dolbear to assist it in its calculation of gold andsilver resources using a cut-off grade of 0.5g/t gold equivalent*. At a cut-offgrade of 0.5g/t there are 2,008,769 tonnes of Measured and Indicated resource atan average grade of 1.06g/t gold and 23.07g/t silver containing 68,617 ounces ofgold and 1,489,828 ounces of silver. In addition, the model indicates thatthere are 4,645,044 tonnes of Inferred resource at an average grade of 0.90g/tgold and 27.52g/t silver containing 134,372 ounces of gold and 4,109,157 ouncesof silver. * Silver grades are converted to gold equivalent grades by dividing them by afactor of 92.5. This factor is derived from gold and silver metallurgicalrecoveries of 74% and 40% respectively and gold and silver prices of $600/ounceand $12/ounce respectively. The Measured, Indicated, and Inferred resource at the Naimanjal deposit, using acut-off grade of 0.5g/t gold equivalent, totals 6,653,813 tonnes at an averagegrade of 0.95g/t gold and 26.17g/t silver, containing 202,989 ounces of gold and5,598,984 ounces of silver. See Table 3 and Table 4 below. Table 3 Measured and Indicated ResourceOre type Cut-off Tonnes Au (g/t) Ag (g/t) Au eq Au (oz) Ag (oz)Oxide 0.5 1,253,947 1.03 16.78 1.21 41,525 676,491Transition 0.5 239,919 1.13 25.82 1.40 8,716 199,164Sulfide 0.5 514,903 1.11 37.10 1.50 18,376 614,172Total 0.5 2,008,769 1.06 23.07 1.31 68,617 1,489,827 Table 4 Inferred ResourceOre type Cut-off Tonnes Au (g/t) Ag (g/t) Au eq Au (oz) Ag (oz)Oxide 0.5 1,894,303 0.82 20.30 1.03 49,941 1,236,336Transition 0.5 730,114 0.94 27.43 1.23 22,065 643,884Sulfide 0.5 2,020,627 0.96 34.31 1.31 62,366 2,228,937Total 0.5 4,645,044 0.90 27.52 1.20 134,372 4,109,157 Behre Dolbear is also assisting the company in its preparation of a proven andprobable reserve estimate for the Naimanjal gold/silver deposit. The results ofthis report will be made available once completed and received. Brian Savage, CEO of Frontier Mining comments "We are pleased by the latest setof resource figures from the Naimanjal Complex, which further reinforce themine's commercial viability and indicate a positive outlook for futureproduction of the deposit. Exploration is ongoing in this area with its numeroussatellite targets and we look forward to reporting on the proven and probablereserve estimate in due course." Qualified Persons and QA/QC: Frontier Mining Ltd employs a robust QA/QC protocol, which was designed by BehreDolbear & Company (USA), Inc. The quality control programme is independent ofthe assay laboratories internal QA/QC and involves the insertion of certifiedreference standards, quality control blanks and staged duplicates into eachbatch of samples. Behre Dolbear & Company (USA), Inc. have reviewed the assayresults for the certified reference standards, quality control blanks and stagedduplicates inserted during the 2006 exploration programme and confirm thatsample preparation and assaying have been of a very high standard. Dr Chris Wilson who is a Technical Advisor to Frontier Mining has read andapproved the technical disclosure in this regulatory announcement. Dr Wilson isa Chartered Fellow of the Australian Institute of Mining and Metallurgy and aFellow of the Society of Economic Geologists and meets the criteria of aqualified person under the AIM rule guidance for mining, oil and gas companies. For further enquiries, please contact: Frontier Mining Ltd Brian Savage +44 (0) 20 7898 9019Parkgreen Communications Cathy Malins / Annabel Leather +44 (0) 20 7851 7480Evolution Securities Tim Redfern / Neil Elliot +44 (0) 20 7071 4300 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 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. Frontier also has one 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 shares are traded on the AIM market of the London Stock Exchange.Frontier has 132,979,597 ordinary shares issued and 6,057,091 outstandingoptions and warrants, giving 139,026,688 fully diluted ordinary shares. Further company information may be accessed at the Frontier Mining Ltd. websiteat: www.frontiermining.com This information is provided by RNS The company news service from the London Stock Exchange