Andewa EL 'Gifted' 100% to Frontier and Strategy for the Second Half of 2017
Perth, July 19, 2017 AEST (ABN Newswire) - Frontier Resources Ltd (
ASX:FNT) (Frontier or the Company) is very pleased to announce that it has been 'gifted' EL 2461 - Andewa and to advise of our Strategy for the remainder of 2017.
- Commence Reconnaissance at Stoneleigh Copper- Gold Porphyry Prospect to Define Drill Targets
- Raise Capital to Fund Exploration and Drilling
- Undertake High Grade Gold Resource Drilling at Komsen Prospect, Andewa
- Open Up Tinga Copper- Gold (Muller) for Evaluation, then Joint Venture it to a Major or Drill Test
- Evaluate Future Exploration Requirements and Timing for Bulago Copper- Gold
- Obtain the Excellent Tolukuma Gold ELA
Chairman and Managing Director Peter McNeil M.Sc., stated:
Frontier will now acquire 100% of the Andewa EL for nothing from my company WNB Resources Ltd, when transfer is allowed under the PNG Mining Act (no 'Trading' is allowed in ELs during their first 2-year Term). This is an excellent outcome for Frontier's shareholders.
The previous Option arrangements for Frontier to acquire Andewa required a 'Fair and Reasonable' Report (under ASX Listing Rule 10.1), to be presented to Frontier's shareholders to enable them to vote on potentially obtaining the Projects, as I am a 'related party'. The report must be written by an independent Financial Consultant, for a significant cost and there would be a long-time lag until post-AGM before we could undertake any work on the projects and hence a share price that continued to languish.
Frontier's Bulago and Muller ELs are located in the PNG fold belt (Hela and Southern Highlands Provinces) and access will remain difficult due to the wet season until October, precluding conducting cost-effective exploration. This means the Andewa EL in New Britain is compatible for 'alternate/ off season' exploration.
The Andewa EL has an excellent pedigree, being last explored by the Newcrest /Frontier JV until 2013, with a required earn in expenditure of $19.25M, $1.915M reimbursement, $0.75M placement, a minimum spend = $2.5M and a 19.9% deferred carried interest.
The 100% acquisition of this Exploration Licence will reinvigorate Frontier and allow us to commence exploration again forthwith. Mineral prospectivity and access for possible future mine developments in the EL area is very good, with several square kilometres of strongly anomalous gold and copper in grid based soils, with large and deep 3D IP and resistivity anomalies and drill intercepts between 106.6m of 0.75 g/t + 0.30% copper and 993.3m of 0.10 g/t gold.
High grade gold drill intercepts at Komsen Prospect include 1.5m of 39.3 g/t, 1.0m of 18.4 g/t, 5.9m of 13.1 g/t, 10.8m of 7.0 g/t and will be targeted by resource estimation drilling ASAP.
The results above and previous terms for the Option to obtain a 90% equity in the Andewa EL were announced to the ASX 28th April 2017.
To view figures, please visit:
http://abnnewswire.net/lnk/UMDTNIW4
For additional information relating to Frontier, please visit the website at http://www.frontierresources.com.au
About Frontier Resources Limited
Frontier Resources Limited (ASX:FNT) is an innovative and socially responsible mineral exploration company. The Company is focused on discovering copper-gold-molybdenum porphyry, high grade and bulk mineable gold/ silver epithermal, gold and 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.
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