Feb 5 2011
Walter Henry, President and CEO of Frontline Gold Corporation (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:
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.
Source: Frontline Gold Corporation