Fronteer Earns Majority Interest in Long Canyon Gold Project, Nevadaadmin
Fronteer Development Group Inc. announce that it has now earned a majority interest in Long Canyon, an important new gold project in northeastern Nevada.
Under the terms of the agreement with AuEx Ventures Inc., Fronteer has expended the required $5 million on exploration within a five-year period to vest a 51% interest in the project. AuEx and Fronteer entered into the exploration earn-in agreement on December 22, 2006.
Fronteer and AuEx will execute a formal joint venture agreement governing activities going forward for the Long Canyon project and Fronteer will continue as the project operator.
AuEx has elected to participate in pro-rata joint funding of the Long Canyon project. Fronteer has until December 10, 2008 to notify AuEx if it elects to earn an additional 14% interest in the project for a total of 65% by carrying all further costs through the completion of a feasibility study within five years.
Each party will reserve a 3% net smelter royalty on lands contributed by them to the Long Canyon project.
Ongoing drilling and detailed mapping continue to contribute to our understanding of gold mineralization at Long Canyon. The deposit is strongly oxidized and is exposed at surface. Mineralization is sediment-hosted and associated with fault and collapse breccias along a limestone-dolomite contact.
Fronteer plans to produce a project-first NI 43-101 resource estimate by year end.
Fronteer is not invested in any short-term commercial paper or asset-backed securities. Fronteer has approximately C$86 million in cash that is fully liquid and held with a large Canadian commercial bank.
Fronteer is an exploration and development company with a track record of making big discoveries. Fronteer has a 40% interest in three gold and copper-gold projects in western Turkey, an extensive portfolio of advanced stage gold projects in Nevada, and a 42.2% interest in Aurora Energy Resources (Toronto:AXU.TO – News), a leading Canadian uranium company.