Vancouver — Fronteer Development Group (FRG-T, FRG-X) announced new drill results for its Agi Dagi gold project in northwestern Turkey that show significant gold mineralization in three new areas outside of the 2006 resource estimate boundaries
Three hundred and twenty-two holes have been drilled, totaling 51,000 metres.
Expansion drilling in the previously explored Deli zone, on the northeast end of the site, yielded some strong results. Hole AD-272, 50 metres southwest of the 2006 Deli resource boundary, found one zone with an average 3.95 grams gold per tonne over 11.5 metres and a second zone with an average 3.25 grams gold per tonne over 12.6 metres, including a 5.3 metre section with 6.49 grams gold per tonne. Other holes to the southeast and northeast of the previous boundaries also found significant mineralization, with all mineralized zones lying at depths between 45 and 125 metres.
Wide step-out drilling in the Baba zone in the southeast end of the Agi Dagi shows that this region also has expansion potential. A cut 140 metres north of the previous Baba resource boundary intersected 0.54 gram gold per tonne over 163.5 metres from 3 to 166.5 metres, including 2.12 grams gold per tonne over 15 metres. Another hole, located on the southern edge of the Baba boundary, found 4.35 grams gold per tonne over 7.5 metres.
Exploration also focused in on a new mineralized area called the Firetower zone, situated midway between the Deli and Baba zones. One of the Firetower holes intersected 0.6 gram gold per tonne over 25.5 metres from 72 to 97.5 metres, including 0.93 gram gold per tonne over 10.5 metres.
The results are in line with historical results that weve been getting over the past few years, said Mark ODea, Fronteers president and CEO. Its particularly encouraging that weve stepped out from last years resource boundaries to explore new areas, and were getting good, intervals, thick intervals that are economic grade.
The 2006 Agi Dagi resource estimate included 217,000 indicated and 1.04 million inferred oz. gold, as well as 425,000 indicated and 4.7 million inferred oz. silver. ODea said they expected to release an updated resource estimate, including the expanded and new areas, within a few weeks. That will put a pin in the project in a different place, he said. It will be pretty interesting to see.
ODea said the Agi Dagi deposits lend themselves to open-pit mining.
Fronteer currently owns the Agi Dagi site but Teck Comincos (TCK.B-T, TCK-N) Turkish subsidiary holds a vested 60% interest in the project. To earn the 60% Teck Cominco must spend approximately US$10 million on exploration before the end of April 2008.
Another 21,500 metres of drilling are planned for 2007 with four drill rigs currently in operation.
Fronteers price dropped 4.7%, to US$12.95 from US$13.58, on the announcement.