Frontier Mining to publish bankable feasibility study for Benkala copper project shortly
Sept 05. Proactive Investors USA & Canada
By Andre Lamberti
Kazakhstan-focused copper and gold exploration and development company Frontier Mining Ltd (LON:FML) said it expects to publish the bankable feasibility study for the Benkala project shortly.
In a statement prepared ahead of today’s AGM, the group said it is making good progress in the commissioning of the Benkala SX-EW plant (solvent extraction and electrowinning), with crushing expected to commence in October and copper production before the end of the current financial year.
Chief executive Erlan Sagadiev said: “All equipment is now on site and we are confident that Frontier will be producing copper before the end of the year. Frontier is in a strong financial position and we fully anticipate moving the company forward to the next stage in its development.”
The group also reported ontinued progress at Koskuduk and Baitemir operations. At Baitimir the company has commenced a 6,000 meter drilling program to further define the mineral inventory, anticipating the generation of a JORC compliant resource in 2012. Last month, Frontier received the second US$5 million tranche of the US$10 million funding for Benkala it announced in mid-June.
The deal is part of a copper off-take agreement with Red KiteMine Finance. The agreement is for four years from the commencement of production at Frontier’s Benkala copper oxide project.
Benkala is a 32.6 million tonne copper oxide resource, grading at 0.54 percent copper.
Frontier Mining Ltd is a mineral exploration and development Company focussed on gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties. Frontier currently operates two licenses in Kazakhstan, Naimanjal (100% owned) and Benkala (50% owned). Naimanjal operations currently consist of five projects; a producing gold mine, a test stage gold production project, a potential copper porphyry deposit with associated gold and molybdenum, and copper/gold prospects along a 25km trend including both VMS and porphyry types. Benkala is a copper-molybdenum-gold deposit located in north-western Kazakhstan, within the Urals gold/copper ore belt.