Fronteer Establishes 51%-49% Joint Venture at Its Majority-Owned Long Canyon Gold Projectadmin
Fronteer Development Group Inc. announce it has elected to continue as majority owner (51%) and manager of Long Canyon through a participating joint venture with AuEx Ventures Inc. (“AuEx”) (49%). Fronteer has elected to not earn an additional 14% by sole funding the project through to completion of a feasibility study.
Fronteer and AuEx will share funding 51% / 49%, with each interest subject to straight-line dilution for non-participation.
Near- and at-surface, oxide, high-grade gold mineralization has now been intersected in drilling over a strike length of 1,600 metres (one mile). Mineralization remains open in all directions and extends well beyond the current limits of soil geochemistry. Ongoing drilling, detailed mapping and geophysical work continue to contribute to the understanding of gold mineralization at Long Canyon, located 6.5 km (four miles) south of the I-80 Freeway corridor in northeastern Nevada.
A project-first NI 43-101 resource estimate is planned by the end of January 2009.
Fronteer is not invested in any short-term commercial paper or asset-backed securities. Fronteer has approximately C$84 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 an extensive portfolio of advanced stage gold projects in Nevada, a 40% interest in three gold and copper-gold projects in western Turkey, and a 42.2% interest in Aurora Energy Resources, a leading Canadian uranium company. For further information on Fronteer visit www.fronteergroup.com.