Wednesday 29 July 2009

Frontier Resources looks to two gold deposits in Tasmania for potential development

Australian and German stock exchange listed, Frontier Resources (ASX: FNT) has inked a maiden inferred JORC Resource for the gold-bismuth Stormont Deposit in central-northern Tasmania, Australia.

The Inferred Resource for the ‘high grade’ zone at Stormont contains 13,430 ounces gold plus 27.7 tonnes bismuth, plus 10,340 ounces silver, within 91,400 tonnes of mineralised rock grading 4.57g/t gold, 0.30% bismuth and 3.52g/t silver (1.5g/t gold cut-off grade).

What is interesting about Frontier, is that Managing Director, Peter McNeil has significant gold development experience - including the Lihir gold deposit (+45 million ounces) in Papua New Guinea on the "Ring of Fire" and the Sunrise Dam Mine in Western Australia (+16 million ounces of gold).

Frontier is also exploring for and developing mineral deposits in the highly mineralised Pacific ‘Rim of Fire’ region in Papua New Guinea, as well as the highly prospective Dolcoath Granite and Mt Read Volcanics of Tasmania.

Stormont is a skarn-style stratiform deposit located on or very near surface and ranges in stratigraphic thickness between 10m and 15m.

The Stormont Deposit is located 6.5km west of Frontier’s Narrawa precious - base metal Deposit.

A conceptual Mining Study is now being updated, utilising long term projected metal prices and it will recommend possible development paths forward.

Frontier Resources Managing Director, Peter McNeil said "the resource is currently modest in size with a respectable grade and Frontier hope to combine it with the Company’s resource at the nearby Narrawa Deposit and create a potentially economic project for near-term development."

The Indicated and Inferred Resource at Narrawa contains 23,550 ounces of gold equivalent grading 3.5 g/t gold equivalent. This consists of 14,125 ounces of gold, plus 131,300 ounces of silver, 2,765 tonnes of lead and 2,335 tonnes of zinc (0.5g/t gold cut-off grade).

Exploration will likely be undertaken soon at Frontier's high-grade gold Bulago EL in the Highlands of PNG. Frontier retains 4 other ELs in PNG that are highly prospective for gold and copper-gold-molybdenum.

www.proactiveinvestors.com.au

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