The Company is focused on discovering copper-gold-molybdenum porphyry, high grade and bulk mineable gold/ silver epithermal and gold + base metal skarn deposits in the highly mineralised Pacific 'Rim of Fire' in Papua New Guinea. The strategy is then to develop, joint venture or sell the deposits/ELs outright, whichever maximises Frontier shareholder value.
Frontier owns 100% of the Bulago (EL 1595) and Muller (EL 2356) Exploration Licences, that have very good exploration results in drill holes and trenches.
Both ELs are in the same geological terrane as existing World Class and/or major mines such as Ok Tedi and Porgera. Harmony Gold's new porphyry copper-gold discovery at Kili Teke is located only 50km to the NE of Bulago.
Drilling will re-commenced at Bulago's Swit Kai Prospect in late February 2017 on excellent high-grade gold and porphyry copper-gold targets.
The Company won the ballot for the Gazelle application licence over the former Sinivit Gold Mine on December 18th and surrounding areas (including parts of our former EL 1592, that was Joint Ventured to Ok Tedi Mining Ltd).The EL application covers an area of 703 sq km and the mine site is connected by an all weather road to Rabaul, located 50km to the NE. A Warden's Court Hearing was succesfully conducted on March 2nd and the ELA will now continue through the normal approval process.
The Sinivit project covers >10km strike length of aurifierous veins and at least 3 porphyry copper -gold occurances or aeromagnetic signatures. The Sinivit Mine area has two 43-101 (JORC equivalent) gold resources containing Indicated Resources (>1.5g/t cut off) totalling 637,000 tonnes grading 3.78 g/t gold for 77,402 ounces. Indicated Resources remaining within Designed Pit Shell are 135,000 tonnes grading 4.44 g/t gold for 19,230 ounces (it is unknown how much remains in the pit shell now). In addition, it has Inferred resources of 1,084,000 tonnes grading 4.02 g/t gold for 140,190 ounces. Total Inferred and Indicated Resources contain 217,592 ounces of gold grading 3.93 g/t gold in 1,721,000 tonnes (It is a Foreign estimate and Refer to ASX release dated 3.1.2017).
Frontier applied for two Exploration Licences in Milne Bay Province in early November 2016, that are highly prosective for high-grade and bulk mineable epithermal gold deposits. These projects when/if granted, will enable a second major area of operations for the Company in a region where exploration is substantially cheaper due to access costs (no helicopter required).
Please see the ASX Announcements page for all exploration results, plus Quarterly and Annual Reports for summaries of information.
Thank you for your interest in Frontier.
· The Sinivit estimates are foreign estimates and are not reported in accordance with the JORC code.
· A competent person has not done sufficient work to classify the foreign estimates as mineral resources in accordance with the JORC code
· It is uncertain that following evaluation and/or further exploration work that the foreign estimates will be able to be reported as mineral resources in accordance with the JORC code.
· No physical exploration is required to be able to report these resources in accordance with the JORC code. Mining Associates could readily modify their 43-101 report to become JORC compliant for a fee. Otherwise the digital data utilised must be obtained and remodelled in Surpac and reported to the ASX.
· The timeframe to accomplish this task requires that first the EL must granted. As no physical exploration is required, there are no major issues with funding such an exercise and it would be done from existing funds or a capital raising would be undertaken to accomplish such.
· Additional information relating to the resource estimations is provided in Section 3 at the end of the Quarterly Report to 30.12.2016.
· Competent Person Statement: The information provided in this market announcement provided under rules 5.12.2 to 5.12.7 is an accurate representation of the available data and studies for the Sinivit Mine Project and is based on information compiled by Peter A. McNeil - Managing Director of Frontier Resources, who consults to the Company via Exploration & Management Consultants Pty Ltd and is a Member of the Aust. Inst. of Geoscientists.