Frontline Gold Corporation
TSX VENTURE : FGC

Frontline Gold Corporation

February 04, 2011 10:22 ET

Frontline Gold Corporation Stewart Gold Camp Property Expansion Approved

HALIFAX, NOVA SCOTIA--(Marketwire - Feb. 4, 2011) - Walter Henry, President and CEO of Frontline Gold Corporation ("Frontline") (TSX VENTURE:FGC) announces that the property expansion of the Poly Au-Cu Project located in the Stewart Gold Camp has received TSX-V approval. 

Option of Lord Nelson Tenures to Expand Poly Property Approved by TSX-V

Further to Frontline's news release of January 11, 2011, the expansion of the Poly Project by option of the Lord Nelson Tenures ("the LNT") has received TSX-V approval. 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 on October 26, 2010 (the "Teuton Option") and the Teuton Option was assumed by Frontline on December 30, 2010 (the "Geofine-Teuton Assumption"), all pursuant to the Frontline-Geofine strategic alliance.

Pursuant to the Geofine-Teuton Assumption, Frontline reimbursed 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. Upon receipt of TSX-V approval, the shares were 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 totalling $195,000 and incurring exploration expenditures totalling $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 $45,000 $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 interpreted south-eastern extension of the favourable 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.

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