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Mining industry

Fronteer Development Group Expands Gold Portfolio in Mexico

Strategic Insights

— 2 min read

Fronteer Development Group Inc. has announced the acquisition of two new discovery-stage gold projects, San Pedro and Clara, from Teck Cominco Limited's Mexican subsidiary, Minera Teck Cominco SA de CV. The Projects are located in the western state of Jalisco, approximately 60 kilometres west and southwest of Guadalajara. These Projects complement Fronteer's existing gold portfolio in Mexico and Turkey.

The two new Projects are 100 kilometres apart and have large gold alteration footprints similar in style to Fronteer's advanced gold projects in Turkey. The principal target on San Pedro is a gold-rich feeder zone beneath a 600 metre by 700 metre silica cap, which has never been drill tested. On Clara, previous work has outlined a large dickite zone interpreted to cap a gold-rich silica core, also never drill tested. Silicified vein breccias from the Clara property assayed up to 24.8 g/T Au, and specularite-cemented breccias assayed up to 9.64 g/T Au.

Key Takeaways:

  • Fronteer Development Group has added two new discovery-stage gold projects, San Pedro and Clara, to its portfolio in Mexico.
  • These Projects are located in the western state of Jalisco, approximately 60 kilometres west and southwest of Guadalajara.
  • The Projects are 100 kilometres apart and have large gold alteration footprints similar in style to Fronteer's advanced gold projects in Turkey.
  • The principal target on San Pedro is a gold-rich feeder zone beneath a 600 metre by 700 metre silica cap, which has never been drill tested.
  • On Clara, previous work has outlined a large dickite zone interpreted to cap a gold-rich silica core, also never drill tested.
  • Silicified vein breccias from the Clara property assayed up to 24.8 g/T Au, and specularite-cemented breccias assayed up to 9.64 g/T Au.
  • Fronteer may earn 100% interest in both Projects by spending a combined total of US $2.0 million over four years on exploration.
  • Teck Cominco will retain a 1.5% - 2% net smelter royalty on each project, which will be extinguished for a project if Teck Cominco earns back an interest.
  • Drilling on the Projects is anticipated to commence by early 2006.

Statistics:

  • Two new discovery-stage gold projects acquired by Fronteer Development Group in Mexico.
  • Projects are located in Jalisco state, approximately 60 km from Guadalajara.
  • Projects have large gold alteration footprints similar in style to Fronteer's advanced gold projects in Turkey.
  • San Pedro project has a 600 m x 700 m silica cap target.
  • Clara project has a large dickite zone target, 3 km² in size.
  • Silicified vein breccias from Clara property assayed up to 24.8 g/T Au.
  • Specularite-cemented breccias from Clara property assayed up to 9.64 g/T Au.
  • US $2.0 million in exploration expenditure required to earn 100% interest in both projects.
  • Drilling to commence by early 2006.

Sources:

  • Fronteer Development Group Inc. via CCNMatthews
  • CCNMatthews
  • COMTEX

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