FML.L Regulatory News (FML)

15 Feb 2007 07:02

Frontier Mining Ltd15 February 2007 Frontier Mining Ltd ("Frontier" or "the Company") 15 February 2007 AIM: FML Naimanjal Complex - Drilling Update Following the update report dated 22 December 2006, Frontier announces furtherassay results from the 2006 exploration programme at the Naimanjal Complex,Kazakhstan. As previously stated, the full programme consisted of 374 reverse circulation ("RC") drill holes, totaling 16,131 metres, 39 diamond core drill holes totaling1,826 metres and 93 trenches totaling 14.8 line kilometres. Geophysical surveyswere also completed at Naimanjal, Baritovy and Jal. Drilling efforts werefocused on two key objectives for the producing Naimanjal mine: firstlyextending the strike of known and newly discovered mineralisation at Pit 3 West,Grassy Knoll South and Area 124, and secondly first pass exploration at WestRidge South, Grassy Knoll North and Pit 1 Northeast. Behre Dolbear & Company (USA), Inc. ("Behre Dolbear") have developed and willmanage the exploration programme underway at the Naimanjal Complex. They willcontinue to review the results of drilling and confirm an updated resourceestimate, to be announced in the coming weeks. Behre Dolbear will also beauditing the operations on an ongoing basis to ensure best practice. Pit 3 West Highlights of further RC assay results received since December are shown inTable 1 below. Cross sectional geologic interpretation indicates that at leastnine northwest striking veins are present at the Pit 3 West deposit.Mineralisation is open-ended to the northwest. Table 1 - Highlights of RC Drilling Results at Pit 3 West Hole Number Total Mineralised Width Gold Silver Gold Length Intercept In metres g/t g/t Equivalent g/t* From ToRC-260 50 22 26 4 1.86 71.75 2.58RC-264 50 12 16 4 7.31 428.12 11.59RC-270 46 40 44 4 2.14 42.50 2.56RC-273 50 10 12 2 1.11 14.25 1.25RC-280 42 12 14 2 1.26 11.0 1.37 * Gold equivalent calculated using $600 gold with 74% recovery and using $12silver with 40% recovery gives a gold equivalent factor of 92.5. To beconservative, we have used a gold equivalent factor of 100 to determine the goldequivalent value. Grassy Knoll South Highlights of RC assay results received since December are shown in Table 2.Geologic cross sectional interpretation indicates that a minimum of three nearlyvertical veins are present in the central part of the Grassy Knoll Southdeposit. Additional veins are present to both the north and south. Table 2 - Highlights of RC Drilling Results at Grassy Knoll South Hole Number Total Mineralised Width Gold Silver Gold Length Intercept In metres g/t g/t Equivalent g/t* From ToRC-76 50 32 36 4 1.48 115.16 2.63RC-80 50 34 36 2 1.21 28.00 1.49RC-166 50 38 40 2 1.31 17.00 1.48RC-178 25 10 12 2 0.74 49.75 1.24RC-186 44 24 26 2 2.32 1.00 2.33 *Gold equivalent calculated using $600 gold with 74% recovery and using $12silver with 40% recovery gives a gold equivalent factor of 92.5. To beconservative, we have used a gold equivalent factor of 100 to determine the goldequivalent value. Area 124 Highlights of Area 124 RC drill assay results received since December are shownin Table 3 below. Plan and cross sectional geologic interpretation of the RCdrilling suggests the presence of at least four northwest striking vein zoneseach occupied by a minimum of two separate veins. Locally, mineralisationremains open-ended to both the northwest and southeast. Table 3 -Highlights of RC Drilling Results at Area 124 Hole Number Total Mineralised Width Gold Silver Gold Equivalent g/t* Length Intercept In metres g/t g/t From ToRC-101 50 4 6 2 1.04 6.75 1.11RC-103 44 26 38 12 1.39 3.50 1.43 Incl. 42 44 2 4.00 14.75 4.15RC-117 37 20 22 2 1.08 2.75 1.11RC-126 38 30 32 2 1.02 60.00 1.62RC-129 50 40 42 2 1.14 34.25 1.48RC-134 34 28 34 6 0.70 41.83 1.12RC-135 30 6 8 2 1.82 5.75 1.88RC-144 50 26 32 6 4.51 61.58 5.13RC-145 50 30 34 4 1.26 52.62 1.78RC-148 34 24 34 10 1.71 78.42 2.49RC-153 32 8 10 2 15.93 73.75 16.67 Incl. 14 28 14 1.54 64.47 2.18RC-155 34 8 10 2 2.08 6.50 2.15RC-157 37 26 30 4 1.075 15.37 1.23RC-158 40 38 40 2 2.385 92.37 3.31 * Gold equivalent calculated using $600 gold with 74% recovery and using $12silver with 40% recovery gives a gold equivalent factor of 92.5. To beconservative, we have used a gold equivalent factor of 100 to determine the goldequivalent value. Early Stage Exploration Projects Only the initial stages of RC exploration drilling were completed on the Pit 1Northeast, Pit 1 South, Grassy Knoll North and West Ridge project areas.Highlights of assay results from these project areas are shown in Table 4: Table 4 -Highlights of RC Drilling - Initial Exploration Results Hole Number Total Mineralised Width Gold Silver Gold Length Intercept In metres g/t g/t Equivalent g/t* From ToRC-148 - Pit 3 Northeast 40 8 12 4 2.23 7.75 2.29RC-239 - Pit 3 Northeast 50 46 48 2 0.70 64.50 1.35RC-247 - Pit 3 Northeast 50 26 32 6 2.45 141.22 3.86RC-282 - Grassy Knoll North 50 26 30 4 0.95 28.12 1.23RC-284 - Grassy Knoll North 50 26 30 4 7.63 50.06 8.13RC-285 - Grassy Knoll North 50 48 50 2 1.35 41.00 1.76RC-286 - Grassy Knoll North 50 26 28 2 1.69 28.50 1.98RC-289 - Grassy Knoll North 50 30 42 12 0.97 14.83 1.14RC-300 - Grassy Knoll North 44 42 44 2 1.36 107.50 2.44RC-1 - West Ridge North 50 8 22 14 1.03 36.10 1.39RC-193 - West Ridge North 50 24 26 2 0.67 38.50 1.06 Incl. 42 46 4 0.93 40.88 1.34RC-205 - West Ridge North 50 34 36 2 0.86 52.25 1.38RC-220 - West Ridge South 44 24 26 2 0.86 34.25 1.20 * Gold equivalent calculated using $600 gold with 74% recovery and using $12silver with 40% recovery gives a gold equivalent factor of 92.5. To beconservative, we have used a gold equivalent factor of 100 to determine the goldequivalent value. The results above are only those that show a grade of over 1g/t gold equivalent.Other new results, lying between 0.50g/t (the current cut-off grade) and 0.99g/tgold equivalent, have also been received. These other results will increase thepotential tonnage but reduce the potential average grade of the mineralisedresource. Re-assaying for Silver in Diamond Drill Core Originally silver assays from several core holes were only reported where gradesof over 100 g/t were encountered. These intervals have now been re-assayed fortotal silver and are reported in Table 5 below. The high grade of silver inthese holes and others, confirms the economic importance of silver in theNaimanjal deposits. Table 5 - Updated Core Drilling Results at Pit 3 West and Grassy Knoll South** Hole Number Total Mineralised Width Gold Silver Gold Length Intercept In metres g/t g/t Equivalent g/t* From ToER-36 (core-Pit 3 West) 48.6 20.5 29.3 8.8 1.48 43.40 1.914ER-37 (core-Pit 3 West) 37.7 22.4 25.4 3 3.42 476.20 8.182ER-38 (core Pit 3 West) 50.2 17.3 24.6 7.3 2.53 68.03 3.210ER-50 (core-Grassy Knoll 67 35.2 41.2 6.0 2.83 948.80 12.318South) 62 62.8 0.8 1.95 122.00 3.170 * Gold equivalent calculated using $600 gold with 74% recovery and using $12silver with 40% recovery gives a gold equivalent factor of 92.5. To beconservative, we have used a gold equivalent factor of 100 to determine the goldequivalent value. *\* This table is not a highlight table, but contains all diamond drill resultsabove 0.5 g/t received since 22nd December 2006 Brian Savage, CEO commented, "We are very pleased with the further results fromour exploration programme within the Naimanjal complex as they continue todelineate potential targets from which we can look to increase our reserves andproduction levels. The good silver grades that we have encountered are alsoimportant to the economics of this project area and serve to furthersubstantiate the mineralisation of this region. We are incorporating this datain an updated resource estimate to be confirmed by Behre Dolbear and released inthe coming weeks." 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. RC samples were split using a Jones type splitter and the sample was assayed atthe Naimanjal laboratory along with blanks and mineralized standards for eachdrill hole. Diamond drill core is cut into equal halves using a diamond drillsaw at the Companies core handling facility in Kurchatov. Samples are crushedand pulverized by Geochem Exploration LLP in Almaty and are assayed by AlexStewart Assayers at Kara Balta in Kyrgyzstan. Alex Stewart Assayers at KaraBalta operate an ISO accredited laboratory, participate in the biannual GeostatsPty Ltd round robin surveys of laboratory quality and are an internationalsubsidiary of the Alex Stewart Group. For further enquiries, please contact: Frontier Mining Ltd Brian Savage +44 (0) 20 7898 9019Parkgreen Communications Cathy Malins / Annabel Leather +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 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, 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