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Posts tagged ‘Fronteer Gold Inc (FRG)’

To The Fronteer

May 12th, 2011

Rye Patch Works Toward Eight Million Nevada Gold Ounces

By Ted Niles

Some junior miners are uncertain about it. Others are coy. Rye Patch Gold announces its intention in big block capitals on its website: “Build a critical mass of quality gold and silver ounces in the ground to entice a buyout.” President and CEO Bill Howald further elucidates the concept: “Newmont just paid over $400 per ounce to Fronteer Gold—they’re already miners, good miners, and we feel we’re pretty good finders. So the hand-in-glove fit is for us to deliver ounces to the likes of Newmont or Barrick or Kinross [which owns 15% of Rye Patch] or others already operating in Nevada.”

Rye Patch has four properties that occupy 85 square kilometres in Nevada. Its gold inventory consists of 986,000 gold ounces measured and indicated, 2.12 million ounces inferred. Its silver inventory consists of 9.84 million ounces measured and indicated, 30.5 million ounces inferred. All categories considered as gold equivalent totals 3.9 million ounces.

The increase in Rye Patch’s resource is being driven by its Wilco Project on the Oreana Trend. Howald says, “We picked it up back in 2006 as a Newmont farm-out. We had some new ideas with regards to the geology and mineralization and conducted drill programs on the property in 2007, 2008, 2009 as well as last year. In 2010, we started to hit some very high grades on the northern side of the Section Line resource area. We followed that up again in the fall and continued to have success in high grades over distances of five to 15 metres. We mounted a core program this year to try to get a better handle on the geology and a better understanding of the mineralization.”

Rye Patch Works Toward Eight Million Nevada Gold Ounces

Wilco assays released May 9 include 2.25 g/t gold and 10.2 g/t silver over 6.1 metres, 1.7 g/t gold and 28.4 g/t silver over 11.3 metres (including 4.28 g/t gold and 74.6 g/t silver over 2.8 metres), 2.25 g/t gold and 31.9 g/t silver over 12 metres (including 7.04 g/t gold and 92.1 g/t silver over 1.8 metres) and 6.22 g/t gold over 4.8 metres (including 16.4 g/t gold over 1.4 metres).

March assays included 2.17 g/t gold over 17.3 metres (including 9.98 g/t over 3 metres), 31.75 g/t gold and 106.3 g/t silver over 2.1 metres, and 3.86 g/t gold and 31.81 g/t silver over 37 metres (including 40.33 g/t gold and 175.88 g/t silver over 2.2 metres).

Howald calls the May results “pretty good” and the March results “outstanding.” He adds, “They show that the drilling is fairly predictable—we can predict where the structure’s going to be. And we’re hitting grades and alteration along a 500-metre long strike length. We’ll continue to delineate that through 2011, with the idea of putting out a new resource on Wilco, including this new high-grade zone, early in 2012.”

The hand-in-glove fit is for us to deliver ounces to the likes of Newmont or Barrick or Kinross – Bill Howald

He concludes, “We’re very happy with the project. Back in 2006, we had about 150,000 ounces gold to start with. We proved it up to over 2 million ounces and over 20 million ounces silver based on a new idea. I guess it goes to show that new ideas can bear fruit in old districts.”

The company’s shares have risen fairly steadily from a low of $0.12 in September 2010. There are currently 125 million shares trading at $0.37 for a market cap of $46 million.

According to a March 3 analyst report by Ubika Research: “We believe that Rye Patch is currently undervalued. With the acquisition of Fronteer Gold Inc by Newmont Mining Corporation, investor attention is being focused on Nevada gold juniors… Based on Fronteer Gold Inc’s known resource deposit of 8.1 million ounces (including the interim resource estimate at the Gold Canyon project) this takeover price represents a $288/oz valuation… As Rye Patch proves up its resource estimate and crosses the 5 million oz benchmark in ounces it would be in the sights of majors like Newmont or Barrick.”

Fronteer Gold to be bought by Newmont for $2.3B

February 3rd, 2011

Fronteer Gold Inc TSX:FRG announced that they have entered into an agreement whereby Newmont Mining Corporation NYSE:NEM will acquire all outstanding shares of Fronteer. Fronteer shareholders will receive $14.00 in cash and one common share in a new company, Pilot Gold, for each common share. The cash consideration represents a premium of approximately 37% to the closing price of the common shares of Fronteer on the TSX as of February 2, 2011 and equates to a value of approximately $2.3 billion for Fronteer Gold.

Fronteer President/CEO Mark O’Dea commented, “This transaction delivers an immediate and attractive premium to our shareholders. It not only recognizes the current value of our key Nevada gold projects, but rewards shareholders for their future growth. Newmont shares our view that Long Canyon, our flagship project, is a ‘best-in-class’ asset with excellent production attributes and significant growth potential. Importantly, this transaction continues to expose Fronteer Gold shareholders to our ongoing exploration and development success through Pilot Gold. Pilot will have an ideal new company structure, an experienced board of directors and management team, and sufficient financial resources to immediately undertake active exploration programs in both Turkey and Nevada.”

View Company Profile

Contact:
Newmont Mining Corporation
John Seaberg
Investor Contacts
303.837.5743

or Karli Anderson
Investor Contacts
303.837.6049

by Ted Niles

Fronteer reports Nevada Gold Assays up to 3.22 g/t over 32m

January 18th, 2011

Fronteer Gold Inc FRG:CA announced assay results from its Long Canyon Project in Nevada. Highlights include 3.22 g/t gold over 32 metres, 3.35 g/t over 38.1 metres (including 10.22 g/t over 6.1 metres), 3.3 g/t over 25 metres (including 14.4 g/t over 4 metres), 4.17 g/t over 12.3 metres, 2.11 g/t over 26.5 metres, 2.69 g/t over 15.7 metres and 1.76 g/t over 19.7 metres.

Chief Geologist Moira Smith said, “These initial step-out results demonstrate that the gold system extends to several new areas. The grade and widths are comparable to step-out holes drilled in late 2009 that through subsequent infill drilling in 2010 came to define continuous zones of high-grade mineralization. The initial results also demonstrate that our geological model is highly predictive and we look forward to drill-testing of new areas along strike, and to the west and east. In addition, several exciting new regional targets have been identified through soil sampling and mapping and will be aggressively pursued in 2011.”

View Company Profile

Contact:
Mark O’Dea
President/CEO
604.632.4677

or Patrick Reid
Senior Director, Institutional Marketing
604.632.4677

by Ted Niles