Frontline Announces Increase in Keban Tailings Tonnage and Provides Update on Developments at its Kambertepe and Keban Tailing Projects
Toronto, Ontario--(Newsfile Corp. - May 10, 2016) - Frontline Gold Corp. (TSXV: FGC) ("Frontline" or the "Company") is pleased to announce an update on the development of its Keban and Kambertep Tailings projects within the region of Elazig, Turkey, as highlighted in its April 7, 2016 press release ("Frontline Acquires Fully Permitted Keban and Kambertepe Tailings Projects" www.frontlinegold.com/s/NewsReleases.asp?ReportID=744760&_Type=News-Releases&_Title=Frontline-Acquires-Fully-Permitted-Keban-and-Kambertepe-Tailing-Projects.)
Keban Assay Sampling at Depth
Frontline has completed the taking of 14 assay samples, average depth of the sample taken was 4 feet, spread over the Keban tailing project (see the attached map for sample locations and https://www.facebook.com/photo.php?fbid=241979209524170&set=pcb.241979966190761&t ype=3&theater for pictures of the sampling work done at Keban). The rationale for the sampling program at depth was to verify the Company's position that given the age of the tailings at depth (since the 1940's) and the potential seepage of the tailings at surface due to rain water and snow, that the tailings grade will be higher at depth. According to the Bureau Vertias assayed analysis, the Firat University report of June 2015 noted that the 40 assays, taken entirely on surface at Keban, collectively averaged Au 1.78 g/t, Ag 96 g/t, Pb 2.94%/t and Zn 0.63%/t.
The 14 samples have been shipped for assay analysis to ALS Global's assay lab in Izmir, Turkey. Frontline has previous used this lab to test samples taken from its Menderes Gold Project, which is adjacent to Eldorado's Efemcukuru Gold Mine located in the Izmir Province, Turkey. The results of the assays on the 14 samples are expected in the coming weeks.
A New Tailings Area Identified within Keban Property Boundary
During the sample process discussed above on the Keban Tailings, an additional tailings area was discovered on the property that was not previously identified (see map for the location of newly discovered tailings area). This additional tailings area is covered over in cement and was originally part of the historical processing mill that remains on the Keban tailing property. Based on estimated calculations using area, a 2-metre depth and the same density level, 4 g/cc identified in the Firat University Report - June 2015, the additional tonnes of tailings is approximately 25,000 to 35,000 tonnes. Frontline, in the sample program discussed above, took 2 samples for assaying. Frontline's acquisition of the Keban Tailings includes the exclusive rights to process all the mineralized milled tailings stored within the Keban property boundary.
Possessing Agreements
Frontline has signed a processing agreement with a subsidiary of Pera Maden A.S., for the processing of the Keban Tailings. The key contractual terms are:
1) | To process a minimum of 114,000 tonnes of Keban tailings; | |
2) | Processing agreement covers a 24-month period; | |
3) | Pera Maden will process a minimum of 10,000 tonnes per month; and | |
4) | Processing fee is US$10 per tonne | |
Negotiations on the Kambertepe tailings processing agreement are on similar terms as the Per Maden agreement continues. Frontline is confident that this agreement will be executed within the next few weeks. Based on current discussions there is interest to directly buy all the Kambertepe tailings prior with the transaction value based on the value of only the copper contained within the tailings. This opportunity potentially allows Frontline the opportunity to monetize the Kambertepe tailings earlier without the need for processing.
Commentary
Mr. Walter Henry, President and CEO of Frontline commented, "I am very happy with the level of progress we have made at advancing both the Keban and Kambertepe tailings projects since the first week of April 2016. The two new tailing areas found at Keban provides an opportunity to build on the value we believe exists at Keban. Our assay sampling program at Keban to test the grades at depth based on the age of the Keban tailings and the surface seepage is expected to provide continued positive results for this project in the coming weeks. Lastly, the processing agreement executed with Pera Maden establishes the parameters for what we believe will be a positive relationship for Frontline and its Keban Project.
"As previously noted the revenue from the tailings projects will enable us to: 1) organically advance our other projects in Turkey, Mali and Red Lake; 2) allow Frontline to capitalize on other strategic acquisitions; and 3) seek opportunities and regulatory approvals to restructure Frontline's capital structure."
Keban Tailings Project
Located approximately 45 km northwest from the city of Elazig, via paved highway, which is fully permitted, which includes the exclusive rights to process a minimum 114,000 tonnes of mineralized milled tailings stored in two areas within the property boundary.
Kambertepe Tailings Project
Located approximately 100 km east from the city of Elazig, via paved highway, includes the exclusive rights to process approximately up to 6,000 tonnes of mineralized tailings, with the following average reported grades per tonne of tailings: 2.1% Copper, 21 g/t Silver, 1.9% Zinc, 0.5% Titanium and over 50% Iron, as noted from a Firat University report on the project dated March 15th, 2016.
Frontline did not complete the work required to verify the historical mining estimates noted above and is not treating these historical estimates as being compliant with current standards under NI 43-101 and as such these historical estimates should not be relied upon. Caution should be used when evaluating these resources as they were calculated prior to NI 43-101 existing and a qualified person has not done work to classify the historical estimate as a current mineral resource.
Frontline continues to actively seek additional investor/partner(s) in order to continue to expedite the full tailings and contained metal recovery at both the Keban and Kambertepe tailings projects. To contact Frontline, please call Walter Henry at 416-414-5825 or visit the company's website.
The technical information herein was reviewed by Mr. Greg Isenor, P. Geo., who acts as Frontline's Qualified Person as defined by National Instrument 43-101.
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company with an experienced discovery team and a proven record of accomplishment. The Company's principal properties include the Menderes gold project in the Izmir province of Western Turkey, the Flint Lake and Sandhill Lake gold projects which are adjacent to Chalice Gold's Cameron Lake Gold Deposit in Ontario and the Niaouleni gold project in southern Mali in the heart of West Africa's prolific gold belt. Other Canadian exploration properties include its Red Lake (gold) property groups that include the Whitehorse Island Mining Patents.
Further information about the Company is available on the Company's website, www.frontlinegold.com, or our social media sites listed below:
Facebook: https://www.facebook.com/frontlinegold.corp
Twitter: https://twitter.com/frontlinegold
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Contact: | Walter Henry | |
Telephone: | (416) 362-9100 | |
"Walter Henry" | Fax: | (416) 362-9300 |
Walter Henry, President & CEO | Email: | info@frontlinegold.com |
FRONTLINE GOLD CORP. | Website: | www.frontlinegold.com |
Frontline Gold Corp. (TSXV: FGC) | ||
1 Toronto Street, Suite 201 | ||
Toronto, Ontario M5C 2V6 | ||
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To view an enhanced version of the Keban Tailings Map, please visit:
https://orders.newsfilecorp.com/files/2192/20521_frontline1enhanced.jpg