Nevada, northwestern Turkey, and Labrador
Gold exploration & development - advancing big deposits with production potential.
Message: US$5M Work-Program Commences at Fronteer's Sandman Gold Project
| March 31, 2009 |
| US$5M Work-Program Commences at Fronteer's Sandman Gold Project |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2009) - Fronteer Development Group Inc. (TSX:FRG)(NYSE Alternext US:FRG)(NYSE Amex:FRG.A) is pleased to announce that Newmont USA Limited ("Newmont"), a subsidiary of Newmont Mining Corporation, has commenced a US$5M work-program at the Sandman gold project in Nevada. Two core drills and one reverse-circulation drill are currently active on the property, with approximately 30 holes completed to date in 2009. Newmont will fund and operate the work program pursuant to the Sandman Joint Venture Agreement. The initial phase of this year's program is focused on Sandman's Southeast Pediment and Silica Ridge deposits and includes: - Resource delineation and step-out drilling - Strengthening understanding of the geology and controls on mineralization; - Obtaining metallurgical samples for potential heap-leach testing; - Assessing preliminary project economics; and - Environmental baseline work. "Among Fronteer's gold portfolio, the Sandman work program is second only to Long Canyon in terms of project budget size. We are extremely pleased by the level of interest shown by Newmont at Sandman," says Dr. Mark O'Dea, Fronteer President and CEO. Sandman is located along the King River Rift structure, a regional feature that hosts multiple high-grade vein-related gold systems, including the Sleeper gold mine and the Goldbanks deposit. At Sandman, high-grade, gold mineralization occurs in multiple locations along a 16-kilometre trend, suggesting the potential for an underlying structural linkage that could expand the size and continuity of the mineralization at this project. Sandman's deposits are near-surface and potentially amenable to open-pit mining. Infrastructure surrounding Fronteer's Sandman project is considered excellent. The property is within trucking distance to Newmont's Twin Creeks mine, potentially eliminating the need for a stand-alone milling facility and other significant capital expenditures if the project were to proceed to production. Under the terms of the Sandman option and joint-venture agreement, Newmont can earn an initial 51% interest in the project by making a positive production decision by June 2011, spending a minimum of $14 million on exploration and development, making a commitment to fund and construct a mine, and completing a feasibility study. Total expenditures by Newmont since signing the option deal in June 2008 are $3.9 million. Sandman is to be assessed through Newmont's formal Stage Gate process, a disciplined, step-by-step, project evaluation system to move projects through the development pipeline. Sandman, Long Canyon and Northumberland are currently Fronteer's leading properties among its large portfolio of gold projects in Nevada. For more information on Sandman and Fronteer's other Nevada projects, visit: http://www.fronteergroup.com/?q=cont... . A total of 37 holes were completed at Sandman during Newmont's initial 2008 program. For a table of drill results, please click: http://www.fronteergroup.com/sites/f... . Drill samples and analytical data for the Sandman project are being collected under the supervision of Newmont, Fronteer's joint venture partner and project operator, using industry standard QAQC protocols. Fronteer's James Ashton P.E., who is the QP responsible for compiling the data contained in this release, has not verified the data; however, the grades and widths reported here agree well with the Company's past results on the project and correspondence with the operator has given him no reason to doubt their authenticity. For further details on Sandman, please view the technical report prepared by Mine Development Associates ("MDA"), as of May 31, 2007, on SEDAR at http://www.sedar.com. ABOUT FRONTEER Fronteer is an exploration and development company with a track record of making big discoveries. Fronteer has an extensive portfolio of advanced stage gold projects in Nevada, a 40% interest in three gold and copper-gold projects in western Turkey, and a 92.1% interest in Aurora Energy Resources (TSX:AXU), a leading Canadian uranium company. For further information on Fronteer visit www.fronteergroup.com. |
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