Frontline Gold Corporation
TSX VENTURE : FGC

Frontline Gold Corporation

January 11, 2011 08:45 ET

Frontline Gold Corporation Reports the Expansion of Its Stewart Gold Camp Projects, NW BC

HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 11, 2011) - Walter Henry, President and CEO of Frontline Gold Corporation ("Frontline") (TSX VENTURE:FGC) announces the expansion of the Poly and Stewart Au-Cu Projects located in the Stewart Gold Camp.

Poly Expansion and Option of Lord Nelson Tenures

Based on the positive results obtained from the 2010 exploration work on the Poly Property reported in the FGC Press Release of November 29, 2010 the Poly Project has been enlarged to include the Lord Nelson Tenures ("the LNT"). The LNT comprise about 2450 hectares contiguous with the southeast boundary of the Poly Property.

Geofine Exploration Consultants Ltd. ("Geofine") optioned the LNT from Teuton Resources Corporation by an option agreement dated October 26, 2010 (the "Teuton Option"). Pursuant to the strategic alliance between Geofine and Frontline the tenures, which fall within the Area of Influence of the Poly Property, were offered to Frontline and by an assumption agreement dated December 30, 2010 (the Geofine-Teuton Assumption") Frontline assumed the Teuton Option. Pursuant to the Geofine-Teuton Assumption Frontline will reimburse Geofine its initial $15,000 option payment by issuing to the Weekes' Investment Group ("INV") 88,236 shares at a value of $0.17 per share. The shares will be issued to Ralph R. Weekes (35,294 shares), John L. Tranter (26,471 shares) and James R. Cameron (26,471 shares). To maintain the Teuton Option Frontline will be required to make option payment totaling $195,000 and incurring exploration expenditures totaling $1,200,000 over five years as follows:

  Date Payments   Exploration Expenditures  
  November 1, 2011 $25,000 (or shares in lieu)   $100,000  
  November 1, 2012 $35,000   $200,000  
  November 1, 2013 $40,000   $200,000  
  November 1, 2014 $40,000   $300,000  
  November 1, 2015 $50,000   $400,000  
  Totals $195,000   $1,200,000  

The LNT is subject to a 2% Net Smelter Return royalty subject to a 1% buy-back for $1,000,000. If the Teuton Option is exercised then advance royalty payments of $50,000 per annum subject to inflation adjustment will commence November 1, 2016. The Geofine-Teuton Assumption and the Teuton Option do not require TSX approval; the issuance of the 88,235 will requires TSX approval.

The LNT cover the postulated southeastern extension of the favorable VMS environment on the Poly Property and includes a number of gossan zones and structural fabric along strike of the principal targets on the Poly Tenures. The LNT are also contiguous to the west with the Mountain Boy Minerals Ltd. and Great Bear Resources Ltd. BA Project that hosts the BA Ag-Pb-Zn deposit 5 km to the west. The LNT are also contiguous on the south with the Sabina Gold & Silver Corp. and Teuton Del Norte Project, which hosts VMS style and vein-type gold-silver mineralization. FGC has the right to earn a 100% interest in the Poly Property subject to the underlying NSR royalties.

The Stewart Project Expansion

The Stewart Project has been expanded by the staking of 3 additional tenures that comprise 800 hectares contiguous with the northwest boundary of the Stewart Property. The new tenures fall within the Area of Influence of the Stewart Property and will be governed by the Stewart Option Agreement. FGC has the right to earn a 100% interest in the Stewart Property subject to the underlying NSR royalties. The additional ground covers the along strike extension of a number of historic IP and conventional soil geochemical anomalies, the importance of which has been confirmed by a 2010 follow-up MMI-M soil survey. The target is stratabound base metal mineralization associated with buried Hazelton Group stratigraphy in close proximity to the Stewart-Cassiar Hwy 37, along which the Northwest Transmission Line will be constructed. A 2011 drill program will be recommended on the Stewart Project, including the principal Deltaic Grid Au-Cu porphyry target, once the results of the 2010 VTEM airborne survey, flown over most of the Property, have been received. The 2010 exploration program was supervised by Geofine Exploration Consultants Ltd. under the direction of David Molloy, P.Geo.

Stewart Property Payment

Further to Frontline's news release of December 15, 2010, a Stewart Project property payment of 42,857 shares was made, the required TSX approval having been received.

Frontline has an experienced management group, a solid exploration team and a promising portfolio of gold exploration projects in the Stewart and Red Lake Camps of Canada and in the heart of the prolific West African gold belt in Niaouleni, West Mali, 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