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Welcome to Frontier Resources Ltd
Frontier Resources Ltd is an Australian Stock Exchange listed (FNT) junior mineral exploration company, whose shares also trade on the Frankfurt, Berlin and Munich Stock Exchanges. The Company’s goal is to discover, delineate and develop gold, copper and basemetal deposits in Papua New Guinea (PNG) and Australia.
Frontier holds a carefully selected and diverse portfolio of high potential projects, comprising 4 Exploration Licences (1,139 sqkm - 100% interest) in PNG plus 2 Retention Licences (7 sqkm - 100% interest) and 2 Exploration Licences (11 sqkm - 90% interest and 109 sqkm - 100% interest) in Tasmania.
On May 26 2010, an excellent Strategic Alliance was initiated with World Class Copper Producer Ok Tedi Mining Limited (OTML) on 3 Exploration Licenses and 2 EL Applications (in 2 Farm-In Joint Ventures), covering 2,763 sqkm, in Papua New Guinea.
* OTML’s total earn-in is US$60 million over 6 years (US$12 million per project), then Frontier is deferred carried to completion of Bankable Feasibility Study on each property.
* Frontier will retain a 42% interest in the Bulago and Leonard Schultz ELs to completion of Bankable Feasibility Study and a 19.9% interest on the Likuruanga EL and the Central and East New Britain Applications.
* OTML have a minimum US$0.5 million exploration commitment per project, for a total commitment of US$2.5 million if both EL Applications are granted.
* OTML subscribed US$1 million (A$1.14 million) for Frontier shares at a premium to the market of 7.5 cents and reimburse exploration costs of approximately US$235,000.
* OTML is the best joint venture partner for these projects and the excellent terms of the Joint Ventures demonstrate the projects have World-Class, sought after copper-gold, gold and base metal potential.
* The Australian Government's recent proposal for a 40% resource industry 'Super Profits Tax' will have no effect on Frontier's PNG exploration projects.
* Frontier will remain an active explorer in PNG, owning 100% of the Andewa gold Exploration License and the Sudest high-grade gold EL Application.
Chairman and Managing Director Peter McNeil, M.Sc. stated:
Frontier Resources is very pleased to announce that a strategic alliance was initiated today with Ok Tedi Mining Limited. Two Joint Venture Agreements were signed covering 3 of Frontier's Exploration Licences and 2 EL Applications in Papua New Guinea. The alliance is an excellent outcome for both companies, their shareholders, landowners in those regions and Papua New Guinea.
The $60 million US dollar total earn-in and the 'Deferred Carried to Completion of Bankable Feasibility Study' commitments from OTML provide fantastic future upside potential for Frontier on all these projects.
Frontier’s shareholders will view these agreements as extremely favourable because if major deposits are discovered by the OTML /Frontier JVs, there will be no significant requirement to dilute shareholder equity in order to fund either our 42% or 19.9% retained equities until Bankable Feasibility Studies are completed.
The Joint Ventures supply OTML with a large and highly prospective portfolio for systematic exploration with the goal of defining and developing ‘World Class’ and major mineral deposits that are located within their ‘corridor of influence’ in western PNG and on the Island of New Britain. OTML have indicated that they intend to vigorously pursue exploration on the properties commencing with detailed, high-resolution helicopter borne aeromagnetic and radiometric surveys on each Exploration Licence.
The A$1.14 million placement from OTML introduces them as a long-term shareholder to Frontier's register and injects capital into the Company at an above market share price of 7.5 cents for future exploration on our remaining projects.
Frontier’s Board of Directors warmly welcome Ok Tedi Mining Limited as a significant shareholder and believe they are the best joint venture partner for our projects. OTML has the in-country PNG geological – exploration - human resources expertise and experience, combined with the financial, corporate and political capability necessary to optimise exploration and future development success in Papua New Guinea.
The excellent terms of the Joint Ventures demonstrate that Frontier’s projects have World-Class, highly sought after copper-gold, gold and base metal potential. Frontier will work with all stakeholders to produce the best outcomes from this alliance.
Frontier now has approximately $1.9 million available for cost effective and targeted exploration on our remaining projects to create additional shareholder value.
OTML is the largest copper/gold mining company in PNG and is a significant and successful copper and gold producer on a world scale. It is presently owned by the PNG Sustainable Development Program Limited (52%) and the Independent State of Papua New Guinea (30%) and Inmet Mining Corporation (18%).
Bulago Project
Frontier recently demonstrated spectacular high-grade gold rock chip/ channel / trench assay results including 27m grading 66.8 g/t gold, 18m of 40.3 g/t gold, 9m of 64.0 g/t gold and 4m of 135.6 g/t gold, at the Suguma Prospect - Bulago Exploration License, in the Highlands of PNG. There are multiple very high-grade gold mineralised horizons.
Very high grade silver was also encountered at the Bulalo Prospect (located about 2km to the ESE of Suguma) with a 1.5 metre wide vein grading 5.59 g/t gold + 2,555 g/t silver + 2.17% copper + 3.16% zinc (composite of 2 samples).
Leonard Schultz Project
Highly encouraging gold assay results were returned from hand trenching and large areas of gold , copper and molybdenum soil anomalism was demonstrated in a large grid based sampling program that was completed in March at the Kru Prospect in EL 1597. The quartz-sulphide-gold veins and soil anomaly at the Kru Prospect cover an area of approximately 2,500m by greater than 100m, peripheral to the Wasi porphyry copper occurrence.
The gold assay results demonstrate excellent overall continuity to the lower grade gold mineralisation and peak assay grades from the Kru trench sampling included 4m of 52 g/t gold and 5.6m of 9.46 g/t gold (within 76 metres of 5.35 g/t gold), plus 10m of 1.33 g/t gold, 4m of 2.03 g/t gold, 16m of 0.97 g/t gold, 8m of 0.72 g/t gold and 4m of 0.97 g/t gold. The first trench results reported to the ASX on 22/3/2010 included 22m of 2.71 g/t gold, 36m of 1.15 g/t gold and 4m of 3.23 g/t gold. The Leonard Schultz EL is located about 85km NNE of Bulago in PNG.
Continuing Exploration and corporate priorities include to:
* Further advance the Andewa gold Project, with a very large grid based soil sampling and 3D-Induced Polarisation geophysical program commencing forthwith.
* Advance the Narrawa (gold – lead – zinc - silver) and Stormont (gold - bismuth) Deposits in Tasmania toward development, farm – out or sale, as appropriate.
* Frontier will initiate obtaining a Mining Lease and continue feasibility studies on the deposits that include limited resource expansion and infill drilling to allow upgrading of the resources and estimation of a reserve.
* There is also highly significant high-grade and bulk minable tungsten mineralisation potential at Narrawa and this will be further assessed to determine if it can contribute to the Narrawa mining operation.
* Alternate metallurgical treatment options that could be more effective and/or capable of also extracting the associated bismuth at Stormont and tungsten at Narrawa will be evaluated.
* Advance all tenements through cost effective, value adding exploration.
*Continue to seek highly advantageous joint ventures as possible with major industry partners for Frontier’s remaining licenses.
Please refer to the ASX Releases section of the website for historic and ‘up to date’ information relating to Frontier’s highly prospective tenement portfolio and the Company. Also please refer to the ‘Projects’ section of the website as appropriate.
Frontier is an innovative precious and base metal explorer operating with a policy of drilling on our quality projects using our own efficient, man-portable diamond core rig.
The Directors and Management are highly motivated for the success of Frontier, with more than 150 years combined experience in PNG and Australia.
• Updated May 26 2010
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