Fronteer champing at the drill bit

Fronteer Development Group (FRG-T, FRG-X) is eagerly awaiting drill permits after surface sampling turned up a new silver-gold discovery on the Clara project in southwestern Mexico.

Highlights from sampling on the 34 by 2-km area include the following:

* 34 metres grading 147.1 grams silver per tonne (or 4.29 oz. per ton), 0.28 gram gold, 0.18% lead, and 0.52% zinc, including an 8-metre section of 272.2 grams silver (7.94 oz.), 0.52 gram gold, 0.27% lead, and 1.22% zinc;

* 15.1 metres of 179.3 grams silver (5.23 oz.), 2.86 grams gold, 0.27% lead, and 0.63% zinc;

* 3.6 metres at 116.2 grams silver (3.39 oz.), 6.79 grams gold, 5.06% lead, 1.56% zinc, and 0.75% copper;

* 5 metres of 72 grams silver (2.1 oz.) and 2.74 grams gold;

* 3.4 metres running 95 grams silver (2.77 oz.) and 1.97 grams gold; and

* 5 metres of 30.9 grams silver (0.9 oz.), 2.77 grams gold, 2.35% lead and 0.62% zinc.

“This system is an outstanding new target with no historical drilling and excellent grade-tonnage potential,” says Fronteer’s vice-president of exploration, Rick Valenta. “We are very encouraged by our surface results and look forward to the upcoming drill program on the property.”

The company has already lined up land-use agreements with all of the local ejidos and private landowners. Drilling is scheduled for mid-May, pending permitting.

Fronteer can acquire the Clara and San Pedro properties from Teck Cominco (TEK.SV.B-T, TCKBF-O) by spending a total of US$2 million on exploration over four years. The company plans to spend some $500,000 exploring the two projects this year.

The two properties are around 100 km apart in Jalisco state. Both are centred on large, high-sulpidation epithermal gold systems. At San Pedro, the target area measures 600 by 700 metres. Mapping and sampling are under way in anticipation of drilling once the program at Clara wraps up.

Teck retains a back-in right on each project. The major also holds a 1.5-2% net smelter royalty, which would be extinguished if it exercises its back-in option. Teck can initially take back a 51% stake in either project by doubling Fronteer’s spending over three years. Another 14% can then be acquired by funding a feasibility study, with a further 5% available by arranging project financing.