High-Grade Gold Intersected In Footwall Zone Of Sandman Gold Deposit

 

VANCOUVER, BC - Fronteer Development Group Inc. reported that Newmont Limited, a subsidiary of Newmont Mining Corporation, has provided the results from a further 10 holes recently drilled as part of their 2009 US$5M development program at the Sandman gold project in Nevada.

Work at Sandman is focused on both advancing the project towards production and concurrently building the resource base in this underexplored region of Nevada. Given Sandman's proximity to established infrastructure, including milling facilities, Fronteer believes Sandman to be the nearest term production-stage project among the company's large Nevada gold platform.

Work to date at Sandman has focused on two near-surface gold deposits, Silica Ridge and Southeast Pediment, which are separated by six kilometres along the Sleeper Trend. Both deposits are extensively oxidized and potentially amenable to open-pit mining.

Southeast Pediment is an outcropping, moderately-dipping, high-grade vein system hosting a predominantly oxide gold resource at the intersection of two prominent structures. At a down-hole depth of 114 metres, a new hole has intersected a wide zone of high-grade sulphide mineralization below the oxide gold vein. This hole, NSM-51, not only reinforces the high-grade nature and strong continuity of mineralization at Southeast Pediment, but further demonstrates the presence of multiple mineralized vein structures in the deposit.

Highlights from this hole include:   Near-surface: 8.05 grams per tonne oxide gold (0.23 ounces per ton) over 0.58 metres, within a broader interval containing 1.28 g/t (0.04 oz/ton) over 9.45 metres.   In the footwall: 28.90 g/t sulphide gold (0.84 oz/ton), over 2.07 metres, within a broader interval containing 3.16 g/t (0.09 oz/ton) over 32.03 metres

Southeast Pediment has only been tested to a vertical depth of 200 metres and remains open in all directions and two strong geophysical/geochemical anomalies have yet to be drill tested.

Silica Ridge is a high-grade vein system localized along the folded contacts of a Tertiary andesite dyke in proximity to a significant fault intersection. The deposit is entirely oxidized and and has been drill tested to a depth of approximately 60 metres. Three new holes at Silica Ridge have intersected high grade oxide gold mineralization, all within 45 metres of surface. Wider intervals of lower grade mineralization were also intersected in numerous holes. Highlights include:   32.14 g/t (0.94 oz/ton) over 2.62 metres, as well as 1.07 g/t (0.03 oz/ton) over 18.71 metres in NSM-110.   17.70 g/t (0.52 oz/ton) over 3.11 metres in NSM-44.   8.40 g/t (0.25 oz/ton) over 3.2 metres in NSM-42

Mineralization at Silica Ridge occurs over a 700x250m area and remains open in all directions.

Under the terms of the Sandman option and joint-venture agreement, Newmont can earn an initial 51% interest in the project by making a positive production decision by June 2011, spending a minimum of US$14 million on exploration and development, making a commitment to fund and construct a mine, and completing a feasibility study. Thereafter, Newmont may earn an additional 9% interest in Sandman by spending a further US$9 million on development. Fronteer can elect to have Newmont arrange financing for its 40% of ongoing development costs in the joint venture through commencement of commercial production.

The companys address is Suite 1650, 1055 West Hastings, Vancouver, BC V6E 2E9, 604.632.4677, fax: 604.632.4678, email: [email protected].