Sandman Gold Project On Track To Potential Production Decision

 

VANCOUVER, BC - Fronteer Development Group Inc. reported that results from ongoing exploration and development work by Newmont USA Limited demonstrate Fronteer's Sandman project is one of Nevada's highest grade gold projects nearing a production decision. Newmont has met its annual earn-in obligations and has continued to advance the project, completing more than 12,000 metres of drilling since 2008.

Work by Newmont has focused primarily on two near-surface gold deposits, Southeast Pediment and Silica Ridge, which are separated by six kilometres along the Sleeper Trend. These deposits are exemplified by zones of high-grade, gold and silver mineralization - characteristics of productive epithermal vein systems.

To meet its initial 51% earn-in obligations under the agreement with Fronteer, Newmont will need to spend an additional approximately $6 million in ongoing drilling and development work, and make a positive production decision by June 2011. As part of this year's program, Newmont is preparing an expanded Plan of Operations for 2010, which will include exploration drilling to test up to eight new targets, ongoing development drilling and additional geotechnical and metallurgical work.

Sandman is within trucking distance to Newmont's Twin Creeks mine, potentially eliminating the need for a stand-alone milling facility and other significant capital expenditures if the project were to proceed to production.

Sandman, Long Canyon and Northumberland comprise Fronteer's future gold production platform based in Nevada. All three gold deposits have high-grade oxide gold starting at- or near-surface, are open-pit mineable and have strong production attributes. Fronteer aims to build regional production by advancing these projects sequentially over the near-term, funding the company's organic growth with low-risk of dilution. In the near-term, Fronteer anticipates ongoing discovery and deposit growth to add significant gold ounces to its ledger and pending results from a variety of development activities will more clearly define the economic strength of the company's projects.

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