Fronteer, AuEx eye new resource at Long Canyon

Vancouver – On its way to a resource upgrade at the Long Canyon project in Nevada, Fronteer Development (FGR-T) says it is supporting the continuity of its gold deposit with a new set of drillhole results. Fronteer, which owns a 51% stake in the Long Canyon project with AuEx Ventures (XAU-V) holding the balance, also outlined general plans for producing gold in Nevada.

Fronteer released results from 21 infill drillholes that are to help upgrade its so far 4.8-million-tonne indicated resource grading 2.35 grams gold per tonne at Long Canyon.

In the West zone hole 341C hit 10 metres starting aboutt 40 metres downhole grading 4.07 grams gold per tonne and 21 metres grading 8.59 grams gold starting around 60 metres downhole.

Collared about 400 metres northeast of hole 341C, in the Discovery zone hole 343C hit 6 metres grading 7.6 grams gold starting around 100 metres downhole.

Fronteer says it should have an updated resource estimate finished for the first quarter of 2010.

Long Canyon is Fronteer and AuEx’s flagship project.

In the press release outlining the updated resource estimate, Fronteer also painted the broad strokes of its plans for future production. Fronteer says the company’s goal is to sequentially advance three gold projects in Nevada: Long Canyon, Sandman and Northumberland. Each, Fronteer says, have high-grade oxide gold near to surface that would be amenable to open-pit mining.

“Fronteer aims to build regional production by advancing these projects sequentially over the near-term, funding the company’s organic growth with low-risk of dilution,” Fronteer states in the press release.

Northumberland, 100% owned by Fronteer, has the company’s largest resource estimate. A past-producing mine, Fronteer pegs it at 36.5 million indicated tonnes at 1.92 grams gold.

Fronteer says Northumberland was shuttered due to low gold prices in the early 1990s, but until then had produced between 200,000 and 300,000 oz. gold.

At Northumberland permitting is ongoing. Fronteer is hoping to get the go-ahead on a 280 metres decline that will allow it to extract a bulk metallurgical sample. Fronteer says it plans to conduct metallurgical testing throughout 2010.

On news the latest drill results Fronteer’s shareprice dropped 27¢ to $3.93. It has close to 120 million shares outstanding.

Auex, on the other hand, gained 7¢ to $2.89. It has just under 36 million shares outstanding.