Exploration, Drilling and Enhanced Tenement Portfolio The Tasmanian Frontier

Transcription

1 209+ ADDRESS PHONE PO Bx (8) Nrth Perth FAX WEBSITE WA 6906 Australia +61 (8) ABN ASX : FNT ASX Limited Cmpany Annuncements Office Annuncement 5 th January 2011 Explratin, Drilling and Enhanced Tenement Prtfli The Tasmanian Frntier An extensive sil sampling prgram has been cmpleted at the Cethana-Narrawa Prject, with a primary fcus n tungsten plus gld and base metals. Frntier's 'tender' t Mineral Resurces Tasmania fr the Strmnt Gld Depsit was successful and ERA 834 awaits Ministerial apprval. Strmnt cntains an Inferred Resurce f 14,250 unces gld at 3.95g/t gld and excellent explratin ptential t grw the resurce. Frntier's custm diamnd drilling rig and equipment has been mbilised t the Ellitt Bay Prject and prepped fr the cmmencement f a 1,200m drilling prgram cmmencing mid-january, 2011 targeting high-value precius and base metal massive sulphide depsits. An Explratin License Applicatin was submitted targeting the highly prspective vlcanic rcks adjining (t the nrth) Frntier's Ellitt Bay Prject, maximising cverage f the prspective vlcanic hrizn. An Explratin License Applicatin was ldged targeting precius and base metals ver the Cygnet histric hard rck (t 100 g/t gld in utcrp) and alluvial gldfield in suthern Tasmania. A diamnd drilling prgram is planned fr the Cethana /Narrawa Prject in Q2, 2011 targeting tungsten, gld and base metal targets which will be defined by the sil sampling assays. Additinal custm built diamnd drilling rigs are being cnstructed in preparatin fr the 2011 drilling campaigns. The 2011 explratin team are very capable, incentivised and ready fr success. Figure 1

2 Frntier Resurces Ltd is pleased t annunce the cmpletin f field wrk at bth f the Cmpany s prject areas in Tasmania s highly mineralised vlcanic and intrusive belts. In additin, an aggressive pen grund and tendered acquisitin strategy has enhanced and will cnslidate the tenement prtfli. An extensive and detailed sil gechemical prgram was recently cmpleted at the Cethana and Narrawa tenements ver a 4km 2 area (at 100m x 50m centres), encmpassing and including the Narrawa Depsit and its sil grid. The highly mineralised Dlcath Granite has a spine like shape extending east- west that is respnsible fr a number f skarn and vein styles f gld, tungsten, tin, lead, zinc, silver and flurine mineralisatin. There are at least 55 histric wrkings (shafts, adits and small pen pits) within this targeted area testifying t its highly prspective and mineralised status. The primary cmmdity mined in the district was tungsten in at least 23 wrkings, tin in 9 wrkings and gld in 7 wrkings (many are unspecified). Previus Frntier tungsten drill intersectins included 1m grading 1.98% WO 3 near the NW end f the Narrawa Depsit, within a brad lw grade gechemical hal that averaged 14m f 0.20% WO 3 (frm 21m). The existing Narrawa Indicated and Inferred Resurce cntains 14,125 unces f gld, plus 131,300 unces f silver, 2,765 tnnes f lead and 2,335 tnnes f zinc (using a 0.5g/t gld cut-ff grade). The mineralisatin is cntained within 209,330 tnnes f rck grading 2.10 g/t gld, 19.5 g/t silver, 1.32% lead and 1.12% zinc. See the ''Details'' sectin fr additinal infrmatin. Frntier's detailed explratin and expenditure submissin t Mineral Resurces Tasmania fr Strmnt - ERA 834 was successful (ver ther tenders). ERA 834 cntains the n-surface Strmnt Depsit, with an Inferred Resurce f 14,250 unces gld, within 112,500 tnnes f mineralised rck grading 3.94 g/t gld at a 1.0g/t gld cut-ff grade. It is planned t increase the size f the resurce and upgrade it frm Inferred t Indicated. The 9 km 2 ERA (Explratin License) will cnslidate Frntier's tenement prtfli in the Central-Nrth f Tasmania and shuld be granted in due curse. A diamnd drilling rig and supprt equipment was successfully mbilised t the Ellitt Bay Prject and prepped fr the cmmencement f drilling at the Wart Hill Depsit in mid- January, A minimum 1,200m drilling prgram has been planned at Ellitt Bay testing the favurable hrizn suth f the ffsetting fault fr high- value massive sulphide depsits. A dwnhle electrmagnetic (DHEM) gephysical survey will be cnducted in at least 3 histric hles t test fr 'ff-hle' EM anmalies that culd represent base metal mineralisatin and prspective drilling targets. An Explratin License Applicatin (Mres Valley r Wanderer River) has been submitted ver the 'very lightly' explred belt f vlcanic rcks adjining and t the nrth f Frntier's Ellitt Bay Prject (EL 20/96). Page 2 f 7

3 The applicatin is highly prspective fr precius and base metal massive sulphide depsits and it will enhance and cnslidate Frntier's tenement prtfli in the SW f Tasmania. The ELA area will benefit being surveyed by deeper penetrating new generatin helicpter brne electrmagnetic methds. These will be flwn ver the entire tenement blck t delineate drilling targets upn granting. An Explratin License Applicatin was ldged fr precius and base metals ver the Cygnet histric hard rck and alluvial gldfield in suthern Tasmania The Cygnet area prduced abut 100kg f gld frm alluvials between 1877 and Histrical explratin has demnstrated up t 100g/t gld in utcrp and 1m f 24g/t gld frm limited drilling. Additinal gld in drill hle includes 17m f 1g/t gld and 3m f 2g/t, assciated with mineralised syenite prphyry. The area has gd quality airbrne gephysics and is an ideal 3D-IP explratin target. The applicatin shuld be granted in due curse. Figure 2 DETAILS Explratin has cmmenced n Frntier's Tasmanian Retentin and Explratin Licenses targeting knwn high-grade plus ptentially bulk mineable tungsten mineralisatin, gld and base metals. Cethana Prject (EL 29/2009 Cethana, RL 3/2005 Narrawa and ERA 834 Strmnt) The tw cntiguus tenements (and third when ERA 834 is granted) have excellent ptential fr a range f metals. The mineralising Dlcath Granite has a spine like shape extending east-west and is respnsible fr skarn and vein style gld, lead, zinc, tungsten, silver, tin, flurine mineralisatin in a number f frms. Explratin will target majr stand alne depsits f: tungsten and tin (+/- mlybdenum) adjacent t granite gld skarn mineralisatin gld veining in structures and the surce f the Bell Muntain gld alluvials The assciatin f magnetite with skarn mineralizatin is well understd, hwever, at Strmnt the gld ccurs in the less magnetic sectins f the skarn. There are high quality aermagnetics ver the areas f interest and this will assist in targeting but may nt necessarily crrespnd directly with gld mineralisatin. Figure 3 shws the merged histric aermagnetic data as a first vertical derivative image. The Strmnt ERA is in the central west (9 km 2 ), then is the excluded Mina Flurite depsit RL (2 km 2 ) and then the Narrawa RL (3km 2 ), within the large Cethana EL (109km 2 ). The 'blck' size is 1km x 1km. The Dlcath Granite is the green t blue rimmed circular aermagnetic lw n the SE crner f the Narrawa RL. The initial fcus is sil sampling n a 100m x 50m grid fr gld. Analysing fr multi-elements will be undertaken in 2011 using in-huse XRF assaying equipment currently being purchased. The grid will be infilled t 50m x 25m in anmalus znes. Sils have been effective in lcating gld, arsenic and tungsten n the Narrawa grid and shuld help lcate near surface ccurrences f thse metals in the newly gridded area. Page 3 f 7

4 The tungsten ptential f Narrawa was evaluated by the last hle drilled which demnstrated 0.65m grading 1.04% WO 3, within 10.5m grading 0.228% WO 3. This hle actually missed the target zne by drilling int the ld adit i.e. we drilled excellent grades but the best mineralisatin was already mined ut at that shallw level. We nw intend t drill t deeper levels. In additin Frntier undertk selected drill hle re-analysis f Narrawa Depsit cre and hle NC48 returned 1m grading 1.98% 0.228% WO 3, within 16m grading 0.178% 0.228% WO 3, frm 29.6m. Figure 3 These results have dcumented structurally cntrlled higher grade tungsten lcated within significant widths f lwer grade, but ptentially bulk mineable tungsten mineralisatin. Hles NC 48 and NC53 (abve) are lcated mre than 400m apart acrss strike but n the same general tungsten anmalus trend, indicating significant strike ptential and multiple mineralised ldes. The gld and base metals at Narrawa are lcated in ne set f structures and the tungsten is assciated with a different set f structures. Figure 4 shws the Cethana area sil sampling n a Mineral Resurces Tasmania gelgical plan, shwing the area sampled in blue dts (100m x 50m spacings) and the histric Narrawa grid in black dts. The clured Figure 4 Page 4 f 7

5 cnturs n the Narrawa grid represent tungsten with >100ppm in yellw and >250ppm in red. The gelgy grid is 1km square. Figure 5 shws the tungsten sil assays and histric drilling that have demnstrated a large area f anmalism. The +800m strike length between hles cntaining tungsten remains untested. The 2011 drill prgram will target this area. Six histric hles drilled fr gld als returned ptentially ecnmic grades f tungsten, peaking at 0.5m f 1.26% WO 3 with 0.12% mlybdenum. Five channel samples als returned anmalus tungsten with up t 1.5m grading 0.70% WO 3 and als 3m grading 1.17 g/t gld + 0.1% WO 3. The histric Squib Mine prduced 34.5 tnnes f tungsten. Dump samples have analysed up t 5% WO 3 and a sample frm a lde in a drive returned 3.19% WO 3. Nte that calculatins fr Ferrtungsten herein assume all cncentrate is FeW, equating t 76.7% tungsten, whereas cmmercial cncentrate typically cntains 70 t 75% tungstic xide (WO 3 ) r 55 t 63% tungsten. Figure 5 Narrawa Depsit (Histric Infrmatin) Narrawa is a steeply dipping, n/near surface, stratabund/ stratifrm skarn depsit hsted within 4 ldes which are near surface and can be mined by pen pit mining methds. The depsit cntains an Indicated and Inferred resurce with 14,125 unces f gld, plus 131,300 unces f silver, 2,765 tnnes f lead and 2,335 tnnes f zinc at 0.5g/t gld cut-ff grade. The mineralisatin is cntained within 209,330 tnnes f rck grading 2.10 g/t gld, 19.5 g/t silver, 1.32% lead and 1.12% zinc. An Indicated Resurce cnsists f 162,755 tnnes grading 3.61 g/t gld equivalent (2.11 g/t gld, 20.5 g/t silver, 1.42% lead and 1.2% zinc). The Indicated and Inferred Resurce is up t 220m lng, 20m wide and 60m deep. Gd scpe exists t cntinue t increase the Narrawa Resurce alng strike in bth directins, within the fault ffset dip cmpnent and in ther relatively untested sectrs f the prject area. Excellent mineralisatin ptential exists alng strike t the sutheast, with additinal drillhles yielding 3.7m f 1.11 g/t gld m f 0.19g/t gld + 42 g/t silver+ 2.0% lead % zinc % cpper and 2.2m f 0.12g/t gld + 15 g/t silver+ 0.79% lead % zinc % cpper, assciated with a UTEM anmaly. Page 5 f 7

6 In additin, acrss strike frm Narrawa in the 666 lde there are mineralised hles returning 1.5m f 25.2 g/t gld, 2m f g/t gld, 7m f 2.13 g/t gld and 4.5m f 3.26 g/t gld, that are nt included in the resurce estimatin. Strmnt Depsit Frntier previusly held the Strmnt Depsit as a Retentin License that expired mid The Cmpany submitted an applicatin (tender) fr ERA 834 Strmnt, cvering 9km 2 and was successful. The applicatin requires Ministerial apprval and shuld be granted in due curse. The Explratin License (when granted) cnslidate Frntier's tenement prtfli in the Central-Nrth f Tasmania. Strmnt is a skarn-style stratifrm depsit lcated in the cre and n the limbs f a shallwly sutheasterly plunging syncline at its nrthwestern end. The depsit is lcated n r very near surface and ranges in stratigraphic thickness between 10m and 15m. A cnsistently mineralised resurce is mdelled in the 150m lng, NW part f the central syncline, referred t as the high grade zne. The maiden Inferred Resurce fr the high grade zne at Strmnt cntains 13,430 unces gld, 27.7 tnnes bismuth and 10,340 unces silver, within 91,400 tnnes f mineralised rck grading 4.57g/t gld, 0.30% bismuth and 3.52g/t silver, utilising a 1.5g/t gld cut-ff grade(the resurce quted in the Summary sectin used a 1.0 g/t gld cutff grade). There is gd scpe t increase the resurce with additinal drilling in the SE f the central syncline, the untested western sectr f the western syncline and prximal t the eastern thrust. Significant high grade gld+/-bismuth intersectins have been demnstrated ver the entire 300m knwn length f the central syncline, with drillhles returning up t 4m f 12.7 g/t gld, that is nt included in the resurce estimatin. The gld and base metal resurces at the Narrawa and Strmnt Depsits will be upgraded with additinal drilling and metallurgical testwrk. The depsit are nly 6.5km apart. Fr infrmatin relating t Frntier Resurces, explratin in Tasmania r Papua New Guinea, please visit the Cmpany's website at r feel free cntact me. FRONTIER RESOURCES LTD P.A.McNeil, M.Sc. CHAIRMAN / MANAGING DIRECTOR The infrmatin in this reprt that relates t Explratin Results and Mineral Resurces is based n infrmatin cmpiled by, r cmpiled under the supervisin f Peter A. McNeil - Member f the Aust. Inst. f Gescientists. Peter McNeil is the Managing Directr f Frntier Resurces, wh cnsults t the Cmpany. Peter McNeil has sufficient experience which is relevant t the type f mineralisatin and type f depsit under cnsideratin t qualify as Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde f Reprting Explratin Results, Mineral Resurces and Ore Resurces. Peter McNeil cnsents t the inclusin in the reprt f the matters based n the infrmatin in the frm and cntext in which it appears. Abut Frntier Resurces Frntier is fcused n explring fr and develping mineral depsits in the highly mineralised Pacific Rim f Fire in Papua New Guinea and the highly prspective Dlcath Granite and Mt Read Vlcanics f Tasmania, Australia. The Cmpany has a 100% interest in 4 Explratin Licences (apprx. 1,140 km ² ) and 3 Explratin Licence Applicatins (apprx. 2,212km ² ) in PNG. 3 ELs and 2ELAs are subject t Jint Ventures with Ok Tedi Mining Ltd. Frntier als has 2 Explratin Licences + 1 Retentin Licence (123 km ² ), plus 2 EL Applicatins and 1 ERA in Tasmania. The prtfli ffers excellent mineral depsit ptential, with primary targets being Wrld Class cpper-gld-mlybdenum prphyry, high grade gld/silver epithermal, gld base metal skarn, tungsten skarn and plymetallic VMS (zinc-lead-silvergld) depsits. The prjects all have high-grade explratin results in rck, trenches and/r drill hle and are in the same r similar gelgical terranes as existing Wrld Class and/r majr mines. The 100% wned Mt Andewa EL in PNG has excellent gld and cpper mineralisatin ptential. Frntier recently cmpleted a very large (~25 km 2 ), grid-based gephysical, gechemical and gelgical explratin prgram that demnstrated a majr mineralised system with cmpelling new drilling targets in multiple prspect areas. The 3D Induced Plarisatin (3D-IP) survey defined up t 2km x 2km chargeability and resistivity anmalies that culd be directly assciated with base metal mineralisatin. Previus Frntier gld in trench assay results at Mt Andewa - Kmsen Prspect included 5.0m f 18.5 g/t, 3.7m f 12.6 g/t, 3m f 14.26g/t and 21.6m f 4.41 g/t gld and drill results include 7.9m f 10.0 g/t gld, 10.8m f 7.0 g/t gld and 3m f 11.0 g/t gld. Page 6 f 7

7 The Cmpany s drilling has shwn the Kmsen structure is cnsistently gld mineralised and it remains pen in all directins (t >320m depth). Highly prspective tenements and Frntier s explratin success in PNG culminated in an excellent strategic alliance - Jint Venture (relating t 3 ELs and 2 EL Applicatins) with Wrld Class cpper prducer Ok Tedi Mining Ltd (OTML) in May The jint ventures stipulate a ttal earn-in f US$60 millin ver 6 years, cnsisting f US$12 millin fr each f the 5 prjects. Frntier is then deferred carried t cmpletin f a Bankable Feasibility Study n each tenement. The Cmpany will retain a 42% interest (dilutable) in the Bulag and Lenard Schultz ELs t the cmpletin f a Bankable Feasibility Studies and a 19.9% interest (nn-dilutable) in the Likuruanga EL + Central and East New Britain EL Applicatins. OTML s minimum explratin cmmitment befre withdrawal is US$0.5 millin/prject, ttalling US$2.5 millin if the applicatins are granted. The JVs cver a ttal area f 2,763 km 2. OTML have cmpleted large aermagnetic and radimetric prgrams at each EL in the Jint Venture t discriminate and rank targets fr fllw up explratin, including drilling in OTML is a majr prducer f cpper cncentrate frm the Ok Tedi mine (that started peratins in 1984) and has becme the single largest business cntributr t the ecnmy f PNG. In 2009, OTML's exprt earnings were K4 billin, representing 33% f PNG's ttal exprt earnings. The cntributins f the mine t PNG are nt simply ecnmic, with emplyment, educatin and health services all facilitated by the mine. Frntier have retained 100% f the Andewa EL and the Sudest ELA. PNG explratin results frm the JV prjects have included: The Bulag JV with 10 znes f high-grade gld in utcrp channel samples at the Suguma and Funutu Prspects frm cntinuus chip utcrp channel samples. Trench intercepts included 27m f 66.8 g/t gld, 4m f g/t gld, 9m f 64.0 g/t gld, 16m f 36.5 g/t gld, 18m f 40.3 g/t gld, 7.5m f 67.0 g/t gld and 9m f 24.0 g/t gld. The Kru and nearby Wasi Prspects in the Lenard Schultz JV have excellent gld utcrp trench channel sample assay results including 16m f g/t gld cntained within 76m f 5.35 g/t gld. Additinal significant assay results included 22m f 2.71 g/t and 36m f 1.15 g/t (within 384.3m f 0.67 g/t gld) in utcrp trench. Likuruanga JV - Esis Prspect has 27m f supergene mineralisatin grading 0.71% cpper (frm 33m depth), plus 66m f primary grading 0.42% cpper (frm 86.6m t end f hle), with the last 7.6m f the hle grading 0.49% cpper. Frntier s Directrs have mre than 150 years cmbined experience in PNG and Australia t serve the interests f the Cmpany and its sharehlders. Frntier perates with a general plicy f DRILLING ur quality prjects using ur purpse built and self manufactured, cst effective, envirnmentally friendly, man-prtable diamnd cre rig. The Cmpany is an innvative and scially respnsible ASX listed junir mineral explrer whse shares als trade n the Frankfurt, Berlin and Munich Stck Exchanges. Page 7 f 7