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Company Statement
Frontier Mining Ltd is a mineral exploration and development Company, incorporated in Delaware (USA) on 05 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 operates two licenses in Kazakhstan, Naimanjal (100% owned) and Benkala (50% owned).
Naimanjal operations currently consist of five projects; a producing gold mine (Naimanjal Complex), a test stage gold production project (Koskuduk), a potential copper porphyry deposit with associated gold and molybdenum (Baitimir), and copper/gold prospects along a 25km trend including both VMS and porphyry types (Beschoku and Yubileiny). Metallurgical tests on its copper prospects confirm that the oxide copper ore is amenable to extraction using low cost SX-EW technology.
Benkala is a copper-molybdenum-gold deposit located in north-western Kazakhstan, within the Urals gold/copper ore belt. A Competent Persons Report completed by Wardell Armstrong International in March 2007, estimates some 2.8 million tonnes of contained copper.
Current Operations
Benkala
Frontier Mining acquired a 50% interest in Benkala in November 2007 for US$21million; $18.5 million cash and convertible note and 6,250,000 of Frontier shares.
Along with the relevant mineral and exploration rights, Benkala is owned and managed by a joint-venture company called KazCopper LLP. This in turn is owned by US Megatech BVI, the shareholding of which is split 50:50 between Frontier Mining Ltd and Coville Intercorp Ltd, a Kazakhstani company with local private shareholders.
The project is an Oxide/Sulphide Copper deposit located within the Urals Copper/Gold ore belt in north west Kazakhstan, approximately 450km East of Aktobe.
Presently, Frontier aim to establish a JORC compliant resource assessment and compile a feasibility study before the second quarter of 2010.
Civil engineering work on the project has recently commenced, connecting the site to the mains electricity supply, the construction of a camp for 120 people and initiation of foundation works for the planned SX-EW copper cathode plant. Permission has been received from the local authorities for overburden stripping to commence in 2010 and a total of 3 million cubic metres has been approved for initial removal. This approval will enable the Benkala pit construction to start as scheduled in the summer of 2010.
Frontier expects production to commence in the last quarter of 2011.
Naimanjal
The Naimanjal Licence currently represents four commercial discoveries covering 529km˛, including five active Frontier operations:
- Naimanjal Complex (Mining & Production)
- Koskuduk (Test Stage Gold Project)
- Beschoku (Copper/Gold Prospect)
- Yubileiny (Copper/Gold Prospect)
- Baitimir (Exploration Stage Copper Project).
The licence area is located in north east Kazakhstan, approximately 200km West of Semipalinsk.
Naimanjal Complex
The complex is a near surface oxide gold-silver mine with six satellite deposit extensions (Baritovy, Naiman, Ergozy, Toksanbay, Jal and Jantilak), currently producing at an initial annual rate of 25,000 oz.
Measured and indicated resources are 150,000 oz of gold and 3.4 million oz of silver to JORC standards, although management believes there is potential for 2+ million ounces of gold.
The ore is mined by standard open pit mining techniques, then processed through a three-stage crushing circuit.
Crushed ore is then conveyed to a stock pile for conventional cyanide heap leach.
The precious metals are recovered using Merrill Crowe technology to produce a dore product for export.
Koskuduk
A test production stage gold project, with open pit/heap leach mining, Koskuduk is a near surface oxide gold target with sulphide potential at depth.
Resources are estimated at 250,000 oz (C1+C2), although Management believe potential for at least 1,000,000 oz.
Construction of a plant complex at Koskuduk began in 2009, with production scheduled to commence in 2010. Management anticipate the plant to produce approximately 10,000 oz of gold from 500,000 tonnes of ore by 2011.
Beschoku & Yubileiny
Beschoku is an established gold-copper discovery located at the northern end of a 25 km copper-gold trend. First mined in the late 19th Century following the discovery of Oxide Copper, at the height of production the mine produced 1,000 tonnes per year.
Gold was intercepted by a single drill hole in the 1950’s. Recent bulk metallurgical sampling produced Copper Cathode (SXEW Leachable), followed by the discovery of hydrothermal breccia with high-grade gold and copper.
Management believes that geology and geochemistry indicate several more high grade breccias in the immediate area, results to date have identified two large mineralised systems; a copper/gold VMS deposit including oxide mineralisation and a copper/molybdenum porphyry deposit.
Estimates suggest a P1 resource of 620,000 tonnes of contained copper with 1 percent grade for the VMS type deposit, and 1.86 million tonnes of contained copper with 1 percent grade for the porphyry copper.
Yubilieny is positioned south east of Beschoku along the 25km trend of copper-gold projects & prospects.
Excellent correlation with historic mine workings and recent drilling suggest high-grade copper mineralisation.
Estimates suggest a C2 resource of 30,000 tonnes of contained copper with an assumed grade of 1% and a P1 resource of 80,000 tonnes of contained copper with an assumed grade of 1%. to the north of the C2 area.
Baitimir
An exploration stage copper prospect with associated gold and molybdenum. Geology indicates that mineralisation is within a 3km-wide contact zone, and preliminary resource estimates include 210 million tonnes of ore at 0.40% copper or 840,000 tonnes of contained copper.
Geographical Spread
Kazakhstan
Board of Directors and Key Management
| Directors | |
| Erlan Sagadiev | CEO & Chairman of the Board |
| George Cole | Chief Financial Officer |
| TOM Sinclair | Executive Director |
| Brian Savage | Non-Executive Director |
| Boyd Bishop | Non-Executive Director |
Company Address4 Park Place
|
Additional Address/Key ContactKazakhstan |
CapitalShares in Issue; 917,336,219
|
Year End31st December |
Nominated BrokersLibertas Partners |
Major Shareholders
| Teratorn International Limited | 108,896,714 | 11.8% |
| BMF International Limited | 108,896,713 | 11.8% |
| River House Consultants Limited | 470,040,030 | 51.2% |
Related News
15/07/10 - Frontier Mining Moves To Initial Gold Production In Kazakhstan, And Is Getting Close To A Breakthrough On Its Copper Project Too10/06/10 - Frontier Mining Is Just About To Start Gold Production From Koskuduk Project In Kazakhstan
25/03/10 - Frontier Mining Is Making Great Progress With Its Gold And Copper Projects, And 2011 Should Shape Up As A Big Year
23/06/09 - With Funding Now Secure, Frontier Mining Hopes To Bring The Benkala Copper Project In Kazakhstan Into Production In Short Order
Most Recent Statement
26/07/10 - Gold Production Update14/07/10 - Gold Production Update
05/07/10 - Intention to Re-domicile
28/06/10 - Annual Financial Report
24/06/10 - Benkala Project Update
21/06/10 - Technical Design Contract