RNS Number : 2057H
Frontier Mining Ltd
16 February 2010
FRONTIER MINING LTD
("Frontier" or "the Company")
Merger discussions
Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and development company focused on Kazakhstan, announces that it has begun discussions with Coville Intercorp Ltd ("Coville") with the intention of merging Coville's assets into Frontier. Discussions are at an early stage but a memorandum of understanding has been signed by the parties with the intention of concluding a merger by 31 October 2010.
Coville's assets include a 50% interest in KazCopper LLP, the joint venture company that owns the Benkala copper-molybdenum-gold deposit and 100% of the Closed Joint Stock Company Maminiskoe Mining Enterprise ("Maminiskoe").
In 2008 Wardell Armstrong International compiled a Technical Report on Maminiskoe indicating mineable gold resources in the Russian classification C1-C2 category of 1.2 million ounces at an average gold grade of 2.4 grams per tonne ("g/t") and 216 thousand ounces in the P1 category at an average gold grade of 2.3 g/t. Substantial geological work was carried out at Maminiskoe during 2008-2009, the results of which will be announced during 2010.
The Board of Frontier will keep the market informed on the progress of discussions on an ongoing basis.
Chief Executive Erlan Sagadiev commented, "We are very pleased that Coville and Frontier have agreed to merge their assets under Frontier. We believe we are now well on our way to becoming a world class company founded upon world class assets and a strong team of professionals."
Enquiries:
Frontier Mining Ltd George Cole +44 (0)20 7898 9019
Libertas Capital Sandy Jamieson +44 (0)20 7569 9695
Walbrook PR Louise Goodeve / Leah Kramer +44 (0)20 7933 8780
Notes to Editors:
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 estimated 47.75 Mt at an average grade of 0.36% Copper ("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, and at a 10% Discount Rate and a $1.5/lb Cu price, the Benkala Project has an NPV approaching $500M. 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 in 2011.
Issued Share Capital
Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.
Frontier now has 917,336,219 issued and 21,812,009 reserved options giving 939,148,228 fully diluted ordinary shares.
For further information please visit; www.frontiermining.com
This information is provided by RNS
The company news service from the London Stock Exchange
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Frontier is a development stage gold and copper mining company operating in Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties
