Fronteer expects Long Canyon resource in Q1 ’09

Fronteer Development Group (FRG-T) has released some strong gold grades from recent drilling on its 51%-owned Long Canyon project in Elko County, Nevada, that will go towards an initial resource estimate in the first quarter of 2009.

The most recent drill results show that mineralization extends even farther than thought.

Fronteer tested a 150-metre long gap between mineralized holes in the West zone where it intersected a 25.8-metre intersection grading 9.03 grams gold per tonne, including 6.9 metres grading 14.44 grams gold.

The company also received positive results from some step-out holes drilled to extend the Northeast and Shadow zones.

Highlights include 7.6 metres grading 5.45 grams gold per tonne, including 3 metres grading 9.36 grams gold.

Another hole returned 16.8 metres grading 4.34 grams gold per tonne, including 6.1 metres grading 6.63 grams gold.

According to Fronteer, drilling has consistently intersected near-surface, high-grade oxide gold mineralization.

So far, mineralization has been intersected over a 1.7 km long strike length and across several zones that add up to 400 metres in width combined.

Mineralization remains open in all directions so far, including at depth. The deepest hole in the most recent results was drilled to a depth of 161.6 metres.

AuEx Ventures (XAU-T) holds the remaining 49% of the Long Canyon project. Fronteer, the operator, recently turned down an option to earn an added 14% of the project by paying for a bankable feasibility study.

Fronteer has drilled about 24,700 metres in 164 holes over 2008 at Long Canyon. Assays from 50 holes have not been received yet. Once the final assays are in, the company plans to tally a resource estimate for the project.

Fronteer also holds the Sandman and Northumberland projects in Nevada.

Northumberland has an indicated resource of 36.5 million tons grading 1.92 grams gold per ton, 7.72 grams silver for 2.3 million oz. gold and 9.1 million oz. silver.

Inferred resources stand at 6.9 million tons grading 3.49 grams gold per ton and 6.3 grams silver for a total of 776,000 oz. gold and 1.4 million oz. silver.

The Sandman project has a measured and indicated resource of 8 million tons grading 1.17 grams gold per ton for 272,000 oz. gold and an inferred resource of 1.4 million tons grading 0.93 gram gold per ton for 38,000 oz. gold.

Fronteer shares were up 10¢ today, or 4%, to $2.35 per share on a trading volume of 645,000 shares.

The stock has a 52-week trading high of $11.50, reached last January, and a low of $1.55 in November. The company has 83.5 million shares outstanding and a quoted market value of $196.3 million.