Toronto, Ontario--(Newsfile Corp. - April 7, 2016) - Frontline Gold Corporation (TSXV: FGC) ("Frontline" or the "Corporation") is pleased to announce that on March 29th, 2016, through its Tender Process Agent, AHSA Muh. Mut. ins Mad San Tic Ltd Sti ("AHSA"), that the Corporation was awarded and purchased both the fully permitted Keban and Kambertepe Tailings Projects, which are both located in the Elazig Province of Turkey in the Central East Anatolia region.
The acquisition includes the following:
| 1) | The Keban Tailings Project, approximately 45 kms from the city of Elazig, fully permitted, which includes the exclusive rights to process a minimum 114,000 tonnes of mineralized milled tailings stored in two areas within the property boundary. |
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| | An independent comprehensive report, including a metallurgical assessment of the mineralized tailings, was completed by Dr. Sasmaz, Phd, Geologist, Firat University, dated June 2015. Per the report, 40 assay samples were collected at Keban and assays completed, for 34 element ICP - MS analysis, by Bureau Vertias Mineral Laboratories out of Vancouver, Canada on behalf of the Firat University and its report. According to the Bureau Vertias assayed analysis, the assays averaged Au 1.78 g/t, Ag 96 g/t, Pb 2.94%/t and Zn 0.63%/t. |
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A location map of the Keban tailings areas and the location of the assays taken and the assays results are attached.
| 2) | The Kambertepe Tailings Project, approximately 100 kms from the city of Elazig, includes the exclusive rights to process approximately up to 6,000 tonnes of mineralized tailings, with the following average grades per tonne of tailings: 2.1% Copper, 21 g/t Silver, 1.9% Zinc, 0.5% Titanium and over 50% Iron, noted. |
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| | Kambertepe Tailings excavating and transport to begin in the next 15 days and is scheduled to be completed approximately 2-week period following start of operation. |
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Commentary
Mr. Walter President and CEO of Frontline commented, "We feel very fortunate to have secured these two opportunities. With both projects being fully permitted, with all the assay work done by both Acme and AGAT labs in Canada, it is an excellent opportunity for Frontline to be come cashflowing within the next 60 days. Additionally, because of the transportation agreement that we signed (details provided below) and the way we have been to able to structure the payment terms of the tailing projects and the processing agreements, we have created an opportunity to become cashflowing in the very near term given the challenging environment for rising exploration funds."
"Cash flow will enable us to 1) organically advance our other projects in Turkey, Mali and in Red Lake, 2) allow Frontline to capitalize on the other great tailings opportunities that are available in the surrounding region, 3) capitalize on strategic opportunities in the mining sector and 4) subject to regulatory approval seek alternatives to restructuring Frontline's capital structure."
Acquisition Terms
The terms of the tender agreements require Frontline to pay the following each tailing project:
| | i) | Keban - the payment of 2,550,000 turkish lira, approximately C$1,200,000, payable over a 12-month period. |
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| | ii) | Kambertepe - the payment of 80,000 turkish, approximately C$37,000, payable of a 12- month period. |
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Historical Mining conducted at Keban Tailings Project
The Keban tailings Project is the site of an old lead/zinc/silver mine where between 1940-1983 nearly 800,000 tonnes of ore was mined and Pb/Zn/Ag recovered by floatation with tailings of possibly 200-300,000 tonnes being dumped into the Firat (Euphrates) River. Frontline's sole focus will be the processing of only the land based tailings.
About The Keban Property
The Keban Property is approximately 50 kms from centre of the Elazig city. The Keban tailings have been stored in 2 different locations (KA and KY) see attached within the Keban property boundary. The total area of tailings is approximately 5,660 square metres. According to drilling of the tailings area completed as per the independent Firat University report on the Keban tailings, the average depth of the KY area calculated from 8 drill holes is 6.5 metres and the average depth of the KA area calculated from 3 drill holes is 1.6 metres.
Keban Tailings Assays
The following is a summary of the assayed results for gold, silver, lead, copper and zinc. Note that out of the 40 assayed samples, 12 assays show Au g/t over 2.5 g/t, with the highest Au g/t assay over 3.7 g/t. In addition to the significant gold assays, there were significant silver and lead assays noted.
| Assay ID | Au g/t | Ag g/t | Pb %/t | Zn %/t |
| KY-1 | 1.834 | 73 | 1.70% | 0.31% |
| KY-2 | 1.411 | 48 | 1.17% | 1.78% |
| KY-3 | 1.795 | 180 | 5.26% | 0.12% |
| KY-4 | 3.221 | 152 | 3.64% | 0.50% |
| KY-5 | 2.659 | 300 | 7.04% | 0.24% |
| KY-6 | 3.244 | 101 | 2.49% | 0.43% |
| KY-7 | 3.754 | 300 | 8.79% | 0.16% |
| KY-8 | 0.924 | 71 | 1.64% | 0.37% |
| KY-9 | 1.974 | 93 | 2.01% | 0.77% |
| KY-10 | 0.456 | 55 | 1.46% | 0.88% |
| KY-11 | 0.631 | 42 | 0.92% | 0.45% |
| KY-12 | 0.676 | 55 | 1.41% | 5.38% |
| KY-13 | 1.158 | 108 | 2.79% | 0.00% |
| KY-14 | 0.193 | 10 | 0.26% | 1.49% |
| KY-15 | 1.595 | 94 | 2.29% | 0.55% |
| KY-16 | 1.341 | 300 | 10.00% | 0.53% |
| KY-17 | 0.444 | 28 | 0.65% | 0.18% |
| KY-18 | 3.206 | 107 | 2.46% | 0.19% |
| KY-19 | 1.295 | 216 | 4.94% | 4.39% |
| KY-20 | 2.659 | 251 | 6.95% | 0.81% |
| KY-21 | 1.071 | 154 | 4.68% | 1.29% |
| KA-1 | 1.121 | 62 | 1.40% | 0.93% |
| KA-2 | 1.955 | 81 | 1.54% | 0.15% |
| KA-3 | 1.504 | 67 | 1.33% | 0.39% |
| KA-4 | 1.742 | 47 | 1.16% | 0.14% |
| KA-5 | 2.658 | 171 | 5.25% | 0.59% |
| KA-6 | 2.477 | 139 | 3.46% | 0.08% |
| KA-7 | 2.704 | 169 | 3.81% | 0.04% |
| KA-8 | 3.474 | 153 | 3.32% | 0.05% |
| KA-9 | 0.458 | 22 | 0.49% | 0.07% |
| KA-10 | 1.952 | 102 | 2.27% | 0.25% |
| KA-11 | 2.041 | 110 | 2.41% | 0.22% |
| KA-12 | 2.717 | 110 | 2.15% | 0.08% |
| KA-13 | 1.29 | 56 | 1.36% | 0.43% |
| KA-14 | 2.556 | 110 | 2.50% | 0.25% |
| KA-15 | 2.59 | 88 | 1.61% | 0.14% |
| KA-16 | 0.297 | 14 | 0.30% | 0.13% |
| KA-17 | 1.117 | 46 | 0.97% | 0.14% |
| KA-18 | 0.815 | 67 | 1.71% | 0.25% |
| KA-19 | 2.011 | 100 | 2.14% | 0.14% |
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In support of its due diligence, Frontline had AGAT Labs, based out of Mississauga, Ontario, assay 12 samples the Corporation had independently taken, the results are:
| | Au g/t | Ag g/t | Pb %/t | Zn %/t |
| 16-0106 AFS 2016-01 No 1 | 2.83 | 129.0 | 2.52% | 0.39% |
| 16-0107 AFS 2016-01 No 2 | 1.90 | 78.5 | 2.00% | 0.38% |
| 16-0107 AFS 2016-01 No 3 | 2.97 | 142.0 | 4.06% | 0.27% |
| 16-0107 AFS 2016-01 No 4 | 2.90 | 110.0 | 2.43% | 0.26% |
| 16-0107 AFS 2016-01 No 5 | 3.24 | 150.0 | 3.53% | 0.37% |
| 16-0107 AFS 2016-01 No 6 | 1.54 | 55.5 | 1.31% | 0.27% |
| 16-0107 AFS 2016-01 No 7 | 2.10 | 64.0 | 1.37% | 0.16% |
| 16-0107 AFS 2016-01 No 8 | 1.87 | 77.4 | 2.64% | 1.24% |
| 16-0107 AFS 2016-01 No 9 | 2.59 | 97.7 | 2.61% | 0.42% |
| 16-0107 AFS 2016-01 No 10 | 2.49 | 90.1 | 2.28% | 0.35% |
| 16-0107 AFS 2016-01 No 11 | 0.57 | 41.0 | 0.94% | 0.67% |
| 16-0107 AFS 2016-01 No 12 | 0.84 | 59.5 | 1.44% | 2.93% |
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Keban Tailing Processing
Frontline is in final negotiations with a processing company which is proposing toll processing at its existing plant approximately 80km away with tank leaching in cyanide so only Au and Ag would be recovered and Pb to report to waste (it is possible this could be recovered by floatation/gravity in another circuit). The processing cost is US$10 per tonne.
Keban Tailing Production Timeline
The tailings production schedule is approximately 18 months with average daily tailings excavation ranging from 250 to 400 tonnes per day. The excavating and transportation costs per tonne is approx. US$17.75 per tonne.
Frontline has entered into an excavating and transportation agreement AHSA who was the Corporation's agent during the Tender Process noted above.
Frontline has not completed the work required to verify the historical estimates mining estimates noted above and is not treating these historical estimates as being compliant with current standards under NI 43-101 and as such these historical estimate should not be relied upon. Caution should be used when evaluating these resources as they were calculated prior to NI 43-101 existing and a qualified person has not done work to classify the historical estimate as a current mineral resource.
Frontline is actively searching for investor/partner(s) in order to expedite to full tailings recovery at both the Keban and Kambertepe tailings projects. In addition, there is an opportunity to acquire additional tailing projects in the Elazig region. To contact Frontline, please call Walter Henry at 416-414-5825 or visit the company's website.
The technical information herein was reviewed by Mr. Greg Isenor, P. Geo., who acts as Frontline's Qualified Person as defined by National Instrument 43-101.
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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 principal properties include the Menderes gold project in the Izmir province of Western Turkey, the Flint Lake and Sandhill Lake gold projects which are adjacent to Chalice Gold's Cameron Lake Gold Deposit in Ontario and the Niaouleni gold project in southern Mali in the heart of West Africa's prolific gold belt. Other Canadian exploration properties include its Red Lake (gold) property groups which include the Whitehorse Island Mining Patents.
For further information, please visit the Company's website at www.frontlinegold.com to view the most recent corporate presentation.
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.
| | Contact: | Walter Henry |
| | Telephone: | (416) 362-9100 |
| "Walter Henry" | Fax: | (416) 362-9300 |
| Walter Henry, President & CEO | Email: | info@frontlinegold.com |
| FRONTLINE GOLD CORP. | Website: | www.frontlinegold.com |
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| | Frontline Gold Corp. (TSXV: FGC) |
| | 1 Toronto Street, Suite 201 |
| | Toronto, Ontario M5C 2V6 |
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