Frontline Gold Corporation

Frontline Gold Corporation

November 02, 2011 16:44 ET

Frontline Gold to Make Payment on the Poly Project in the Stewart Gold Camp, NW BC

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2011) -


Walter Henry, President and CEO of Frontline Gold Corporation ("Frontline" or the "Company") (TSX VENTURE:FGC) announces that, based on the positive results obtained from the 2011 exploration work on the Poly Property reported in the FGC Press Release of October 25, 2011, and subject to TSX Venture approval, Frontline will make a $25,000 payment due on the Poly Property by the issuance of 384,616 common shares from treasury based on November 1, 2011's closing price of $0.065 per share. The shares will be issued to Teuton Resources Corporation ("Teuton"), based in Vancouver, B.C.

As per the FGC Press Release of January 11, 2011 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 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. Going forward to maintain the Teuton Option Frontline will be required to make option payment totalling $165,000 and incurring exploration expenditures totalling $1,100,000 over the remaining four years as follows:

Date Payments Exploration Expenditures
Nov. 1, 2011 $25,000 (384,616 shares) $100,000 (completed)
Nov. 1, 2012 $35,000 $200,000
Nov. 1, 2013 $40,000 $200,000
Nov. 1, 2014 $40,000 $300,000
Nov. 1, 2015 $50,000 $400,000
Totals $165,000 $1,100,000

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 did not require TSX approval; the issuance of the 384,616 will requires TSX approval.

The LNT covers the postulated 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. Additionally, 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.

About Frontline's Poly/Stewart Project

Frontline holds an option to earn and acquire up to a 100% in both the Poly and Stewart Projects. The Poly and Stewart Projects are based in the Stewart Gold Camp in NW British Columbia. This is an evolving gold camp that hosts one of the world's richest Kuroko-type VMS precious metal deposits as well as one of the world's largest undeveloped Cu-Au porphyry deposits, KSM/Snowfield/Brucejack, with over 94Moz of Au, 607Moz of Ag and 14B lbs Cu in resources. The Poly Project is contiguous with Mountain Boy Minerals and Great Bear Resources mineral tenures that host the BA Ag-Pb-Zn VMS deposits as well as with Teuton/Sabina's tenures that host the Del Norte VMS trend. As far as the Stewart project is concerned, its western tenures are contiguous with the KSM (Seabridge Resources) and Snowfield/Brucejack (now Pretivm Resources) properties.

On June 30, 2011, Frontline announced the commencement of a C$1.0 MM exploration program at both the Poly and Stewart projects for 2011. The 2011 Poly exploration program is being supervised by Geofine Exploration Consultants Ltd. under the direction of David Molloy, P.Geo. and has been fully funded.

About Frontline Gold Corporation

Frontline is a Canadian junior mineral exploration company with an experienced discovery team and a proven record of accomplishment. The Company's flagship properties include the Niaouleni gold project in the heart of Mali South in West Africa's prolific gold belt and the Menderes gold project in the Izmir province of Western Turkey. Ongoing Canadian exploration includes the Poly (gold), the Stewart (gold-copper polymetallic) and the Red Lake (gold) projects.

For further information, please visit the Company's website at to view the most recent corporate presentation.

The Qualified Person under National Instrument 43-101-Standards of Disclosure for Mineral Projects ("NI 43-101") for this News Release is David Molloy, P. Geo., consultant to the Company, who has reviewed and is responsible for the technical information presented for the Poly Project in this news release.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Walter Henry, President & CEO


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

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