Frontier Resources Ltd.
Frontier Resources Ltd.: 88% TONNAGE INCREASE IN THE KODU INFERRED RESOURCE TO
Frontier Resources Ltd. / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Frontier Resources Ltd. 18th June 2007 Australian Stock Exchange Company Announcements Office Announcement 88% TONNAGE INCREASE IN THE KODU INFERRED RESOURCE TO 203 MILLION TONNES GRADING 0.47% COPPER EQUIVALENT* • The revised Inferred Resource at the Kodu Deposit in Papua New Guinea contains 945,000 tonnes of copper equivalent* grading 0.47%, within 203 Million tonnes grading 0.28% copper + 0.32g/t gold + 73ppm molybdenum + 1.8g/t silver. • It contains 570,000 tonnes of copper, 65 tonnes of gold, 15,000 tonnes of molybdenum and 365 tonnes of silver (or 1.25 billion pounds of copper, 2.1 million ounces of gold, 33 million pounds molybdenum and 12 million ounces of silver) • A higher grade core appears to run the length of the deposit (closer to its northwestern margin and apparently plunging east) and could provide the basis for a ‘Starter Pit’. Additional drilling will clarify this. • Assay results are awaited for 5 Frontier diamond core holes (>1,607m), including 3 northeast sector strike and depth extension holes, plus KFD014 that is currently testing for ‘annulus’ mineralisation. These holes could all contribute substantial additional tonnage to the next revision of the Inferred Resource. • A Scoping Study will be undertaken to evaluate various parameters associated with possible development paths forward for the deposit and its further exploration. Frontier Resources Ltd is pleased to announce a substantial increase in the Inferred Resource tonnage at the Kodu Deposit to 203 million tonnes grading 0.47% copper equivalent* (0.28% copper, 0.32g/t gold, 1.8g/t silver and 73ppm molybdenum). Previously (on 11/8/06) the Company had announced an Inferred Resource of 108 million tonnes grading 0.52% copper equivalent* (both using a 0.2% copper equivalent* cut-off). Frontier Resources Ltd is pleased to announce a substantial increase in the Inferred Resource tonnage at the Kodu Deposit to 203 million tonnes grading 0.47% copper equivalent* (0.28% copper, 0.32g/t gold, 1.8g/t silver and 73ppm molybdenum). Previously (on 11/8/06) the Company had announced an Inferred Resource of 108 million tonnes grading 0.52% copper equivalent* (both using a 0.2% copper equivalent* cut-off). Peter McNeil, Managing Director commented: 'The revised Inferred Resource has exceeded the 200 million tonne hurdle, indicating it could have the critical mass to move towards production. A scoping study will now commence to evaluate possible development paths forward and requirements for continued exploration. Frontier is very well positioned with respect to copper and gold, given the major increase in the total copper equivalent in the Inferred Resource, the continued high copper- gold- molybdenum prices and outlook, the potential to further increase the global resource at Kodu and the excellent potential to locate additional copper- gold – molybdenum mineralisation at the Elo, Oomargi, Tamala and Ua’ Ule Prospects, also within EL1348. The next round of work should upgrade a substantial portion of the Inferred Resource to Indicated to allow initiation of a Pre-Feasibility Study. We expect to be releasing drill results to the market on a regular basis from the Kodu Deposit and Elo porphyry copper- gold – molybdenum occurrence, plus later from the Andewa gold Project. Frontier is now positioned for a very exciting future.' The Kodu Deposit is located approximately 55km NE of Port Moresby. Frontier’s drilling program thus far has substantially increased the estimated global tonnage of the deposit and three additional holes drilled in the far north-east sector of the resource can potentially add significant additional tonnage to the 203 million tonnes. Megascopically, mineralisation from this zone looks encouraging, with assay results expected in approximately 6 weeks. The strike of the deposit runs broadly northeast - southwest with a dyke like composite stock occupying the central part of the resource with mineralised phyllite on either side of the mineralised porphyry. The porphyry has generally been modelled as one unit with two narrow unmineralised dykes modelled crosscutting this unit in a NW-SE direction. The mineralised phyllite boundaries were determined using a 0.2% copper equivalent cut-off grade. The slightly lower copper equivalent* grade than that in the 11/8/06 estimation results from the edges of the resource being more thoroughly tested by drilling, with larger volumes of peripheral lower grade but still significantly mineralised wallrock (phyllite) being defined and included. This also accounts for the 22% increase in molybdenum grade which is more abundant peripheral to, than coincident with the copper mineralisation. The overall silver grade of the Inferred Resource has increased due to systematic sampling for silver in the recent drilling (not all previous drilling assayed for silver) and further intersections with an epithermal overprint higher in silver content (1.8g/t versus the previous average of 1.5g/t). The modelled Inferred Resource update includes drill hole assay data from nine new holes (2801.4m) from the Frontier drilling program. The Inferred Resource is now defined by a total of twenty four drill holes (8,151m). The block model has been run using the same interpolation parameters defined in the 2006 resource calculation, however current geological interpretation has been enhanced by infill drilling and mineralised boundaries have been expanded and late unmineralised dykes have been modelled in more detail. There is a significantly greater drill density than previously available. Bulk density values are considered conservative and the block size is considered appropriate for a porphyry deposit. Statistical analysis indicates that inverse distance weighting is appropriate and no top cuts were applied to the model. The Inferred Resource was estimated ‘In House’ using Surpac geological modelling software and the following method: • Drill hole collars were located in the field and are accurate to approximately 5m, holes were regularly surveyed every 50m down hole. • Assaying was undertaken on half core samples composited to 2m lengths. Assay data was verified by submitting standard reference materials with each lab batch to ALS Laboratories Townsville and repeatability of results has been verified. • The Inferred Resource is based on the geological database as at the 21st of May and assays for all historic holes and Frontier holes KFD001 through KFD007 + KFD009. • Sectional interpretation was undertaken using down hole geology and assays of both mineralised and unmineralised rock types between the 350 and 1150m RL, on sections spaced between 35 and 130m. Slices were cut through the sections at every 50m. • These flitches were then wire framed and checked against drill hole locations. • Two metre composites were generated and flagged for lithology type. • A block model was created using a block size of 10x10x5m. • A leached surface was digitised on sections and snapped to oxidation depths to account for waste material near surface. The block model was then clipped below this surface. • Block grade was then interpolated for Cu, Au, Ag, Mo and Copper Equivalent using inverse distance weighting (1/x3) within each geological wireframe. • Tonnage was calculated using density values of 2.65 and 2.8 for mineralised porphyry and mineralised phyllite, respectively. • A 0.2% copper equivalent cut-off grade was applied to eliminate waste blocks for the model output. Data density, and geological confidence are good, however the resource has all been classified as inferred at this stage. Extrapolation of end sections of the model are 50m to the south west and 75m to the north east. The width of mineralised porphyry is interpreted between sections 9760N and 9975N and is evident from mapping. Collar RL’s are matched to the DTM, which is believed to be accurate to +/- 15m. Bulk density data is based on limited sampling for the porphyry and an average ‘global density’ for phyllite from the Field Geologists Manual. For additional information relating to the Company and its projects please visit our website at www.frontierresources.com.au or feel free call me on +61 (0) 8 9295 0388. FRONTIER RESOURCES LTD P.A.McNeil, M.Sc. MANAGING DIRECTOR The information in this report that relates to Exploration Results, Mineral Resources is based on information compiled by, or compiled under the supervision of Peter A. McNeil - Member of the Aust. Inst. of Geoscientists, , Anson Griffiths- Member of the Aust I.M.M and Robert. D. McNeil Fellow of the Aust I.M.M. Peter McNeil and Robert McNeil are Managing Director and Chairman of Frontier Resources, respectively and neither is a full time employee of Frontier and Anson Griffiths is Chief Geologist, Mine Development for New Guinea Gold Corporation. Peter McNeil, Anson Griffiths and Robert McNeil, have collectively sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter McNeil, Anson Griffiths and Robert McNeil consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Contact German Investors: Email: team@silberinfo.de Homepage: http://www.silberinfo.com DGAP 18.06.2007 ----------------------------------------------------------------------
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