FML.L Regulatory News (FML)

10 Dec 2008 07:00



10 December 2008 AIM: FML

Frontier Mining Ltd

("Frontier" or "the Company")

Test Results at Benkala

The Company announces that the latest test work being carried out by the VNITSVETMET Institute of Ust Kamenogorsk ("the Institute") on the recently announced technological study dated November 2008, has indicated encouraging results for utilizing both standard heap leach and flotation processing methods on Benkala ore.

Most of Benkala's copper reserves are in the primary ore. During the Soviet era and at the research-evaluation stage, technological samples were taken and numerous tests conducted during the period from 1974 to 1979. During that time it was established that all ore types could be processed using the floatation method and general processing parameters were established.

The study sought to verify the recommended testing parameters of the Soviet period and, possibly improve the technological parameters including a potential increase in the copper recovery rate in the form of sellable concentrate. As before, the tests were conducted on both the primary and the oxidized ore.

The testing delivered improved technological parameters with an increase in the grade and recovery from the primary ore with a grade of 14.07% and recovery rate of 80.2%. The accompanying molybdenum recovery was 82.3% and gold recovery was 47.9%. These results represent an increase in the copper recovery rate of more than 6% above Soviet era results. 

Both heap leach methodology and SX-EW processing are internationally known to be low capital cost operations. Flotation tests were conducted on the oxidized ore and resulted in a copper concentrate grade of 25.7% with a recovery of 77.4%. The accompanying recovery for molybdenum was 55.6% and gold recovery was 34.6%. These tests demonstrate that changes to the technological parameters can yield increased copper flotation recovery of more than 5% above Soviet era results. As such, flotation processing may be considered as an alternative method for processing the oxide ore.

The Institute has recommended further floatation tests on larger ore samples in order to fine tune processing parameters and achieve more precise results. That test program has already been coordinated with the Institute. We expect an increase in the technological parameters as a result of modifications to the process and tests with new floatation reagents. In addition, attention will be paid to improving recovery of accompanying metals particularly gold and molybdenum.

These preliminary test results indicate that oxide ores may be processed using traditional heap leach methodology as a low capital and operational cost alternative, whilst the sulphide ore will be processed using floatation technology. The results  by the Institute were based on three drill holes tested for the purpose of the Benkala CPR. Further testing of larger bulk samples is planned for 2009. 

Benkala is a copper-porphyry, stockwork deposit and is one of five largest deposits of its kind in Kazakhstan. The deposit has significant, forecasted upside potential on its flanks. 

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Enquiries:

About Frontier Mining Ltd:

Frontier Mining Ltd. is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 for the purpose of exploring 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 two licenses in Kazakhstan. They are the Naimanjal exploration and mining licence, held by FML Kazakhstan, and, 50% of U.S. Megatech BVI which holds the Benkala licence. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd. Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.

Frontier also has a potential copper porphyry deposit with associated gold and molybdenum, Baitimir; and several copper/gold prospects along a 25-km trend including both VMS and porphyry types. Metallurgical tests on its Beschoku and Yubileiny copper projects confirm the oxide copper ore is amenable to extraction using low cost SX-EW technology.

Frontier owns a 50% interest in KazCopper LLP, the joint venture Company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan 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 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. A conceptual study team and advisory team have both been appointed to fast track the development of this project forward towards a pre- feasibility study, with a view to beginning production at the end of 2010.

Issued and Fully Diluted Ordinary Shares 

Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.

Frontier currently has 218,120,095 issued and 21,812,009 reserved and outstanding options giving 239,932,104 fully diluted ordinary shares.

For further information please visit; www.frontiermining.com