FNT – Frontier Resources | Aussie Stock Forums

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The media hasn’t started beating them so there must be more upside!

Frontier Resources Limited (FNT) surged 300% in early trading, jumping

36c to $0.48 after announcing the acquisition of a 100% stake in the

Kodu Deposit in Papua New Guinea. The small cap gold miner said that

the JORC compliant inferred resource at Kodu contains approximately

340,000 tonnes of copper and 51 tonnes of gold with a significant but

unquantified amount of Molybdenum.

Frontier Resources reported that a preliminary desktop economic study

by an independent consultant of a hypothetical reserve of 120 million

tonnes, similar to the Kodu Deposit, suggests the Kodu Project could

be financially attractive if the present inferred resource can be

converted/ upgraded to the hypothetical reserve.

The desktop study showed that at the project has the potential to

achieve an internal rate of return (IRR) of 55%, with a cumulative

cash flow to shareholders of US$1,300,000,000 and an estimated net

present value (NPV) of US$515,700,000.

The junior minerals explorer advised that there is scope to

significantly increase the inferred resource at Kodu after only 16

drill holes have been completed to date for approximately 5,530m, with

11 holes being terminated in mineralisation.

The company said advantages of any potential mining operation at the

Kodu Deposit include the near surface nature of the copper/gold

deposit as well as the possibility of a starter pit in the southern

higher-grade near surface gold zone for more rapid capital payback.

Frontier also noted that the potential operation was in a logistically

simple and `cheaper’ location for development, being only 55km NE of

Port Moresby.

The group explained that its strategy forward is to concentrate

exploration on the most advanced projects in PNG and progress them

rapidly and cost effectively into the development phase.

To achieve this, Frontier intends to confirm and extend the limits of

the known Kodu Deposit inferred resource, with approximately 10,000m

of drilling, planned to commence in the last quarter of 2006.

The company reported that it would initiate a pre-feasibility study at

Kodu to assess requirements and possible paths forward, followed by a

3D-Induced polarisation survey at the large Elo porphyry copper/gold/

molybdenum prospect, then drill testing it and other porphyry

prospects near Kodu.

The group said that it would concurrently fast track evaluation of the

Komsen gold Prospect at Andewa in New Britain, with the view to

defining on and near surface, moderate grade, vat leachable gold

resources for possible `near term’ development.

The company also announced that it has acquired a 100% interest in a

7,500 square kilometre portfolio of gold properties, positioning

itself to become a major explorer in mineral rich PNG.

At the end of the days trading, shares in Frontier Resources were up

36c to $0.48.

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