Frontline Gold Corporation
TSX VENTURE : FGC

Frontline Gold Corporation

August 25, 2010 09:16 ET

Frontline Triples Land Package at Efemcukuru, Turkey

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 25, 2010) - Walter Henry, President and CEO of Frontline Gold Corporation. ("Frontline") (TSX VENTURE:FGC) announces that Frontline has acquired two additional exploration permits at Efemçukuru, Turkey.

Highlights

  • Two new exploration permits triples land package at Efemçukuru
  • Contiguous to Eldorado Gold's 2,262 hectares operating licence Efemçukuru Project which is under construction and scheduled for production in 2011
  • Frontline's total land package increased to 6,100 hectares (61 km²), all contiguous to Eldorado Gold

Commentary

"The potential of the Efemçukuru area of Western Turkey has already been proven by Eldorado Gold" said president and CEO Walter Henry. "Frontline has now secured two additional exploration permits bringing our total land package to 6,100 hectares all contiguous to Eldorado Gold. We have a core team and a strategic partner in Turkey and are planning exploration to begin in the first quarter of 2011."

Efemçukuru Permit Option

Frontline, through its 90% owned Turkish subsidiary, has optioned two new mineral exploration permits, 1896.43 and 1863.45 hectares respectively, located at Efemçukuru, Turkey from Ena Mining Limited, also known as ENA Madencilik Ltd. Şti., ("Ena"), an arms' length Turkish corporation. Frontline now holds 4 permits totaling 6,100 hectares at Efemçukuru (collectively the "Efemçukuru Permits") (See attached map): http://media3.marketwire.com/docs/M1FGC824.pdf.

Frontline's Efemçukuru Permits are contiguous to Eldorado Gold's 2,262 hectares Efemçukuru operating licence which currently hosts significant high-grade gold reserves and resources:

Proven and Probable Reserves 1,506,000 ounces Au 9.10 g/t
Measured and Indicated Resources 1,700,000 ounces Au 9.55 g/t
Inferred Resources 352,000 ounces Au 6.43 g/t
 
Pursuant to the option agreement Frontline must pay to Ena a total of $225,000 over three years as follows: 
      On closing $25,000 (paid)  
      December 31, 2011 $50,000  
      December 31, 2012 $50,000  
      December 31, 2013 $100,000  

The two new permits at Efemçukuru are subject to a 2% NSR of which 50% may be acquired for $1,000,000.

Frontline has a strategic alliance in Turkey with Aegean Gold Madencilik Ltd. Şti., a Turkish corporation, for the acquisition and exploration of mineral exploration properties in Turkey. Aegean Gold assisted with the sourcing and acquisition of these new permits and owns the remaining 10% of Frontline's Turkish subsidiary.

Frontline is re-positioning itself as a pure-gold exploration company with experienced management, a solid exploration team and a promising portfolio of gold exploration projects offering investors an excellent opportunity.

Please visit our website at www.frontlinegold.com for the most recent presentation.

On Behalf of the Board

Walter Henry, CFA, ICD.D, President & CEO

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Frontline Gold Corporation
    1550 Bedford Highway Suite 802,
    Sun Tower Bedford, NS B4A 1E6
    (902) 832-5555
    (902) 832-2223 (FAX)
    info@frontlinegold.com