TORONTO, ONTARIO–(Marketwired – June 30, 2016) – Frontier Rare Earths Limited (“Frontier” or the “Company”) (OTCQX:FREFF) announces the filing on SEDAR of a Canadian National Instrument 43-101 compliant technical report incorporating a maiden mineral resource estimate for its 70% owned Lurio graphite project (“the Project”) in Mozambique.
The Project is located approximately 80 km southwest of the port city of Pemba in the Cabo Delgado Province and contains a number of known graphite sequences. As previously reported, a series of phased, systematic exploration activities was conducted on the Project up to the end of 2014, including geological mapping, rock-chip sampling, trenching, mineralogical analysis, ground geophysical surveys and metallurgical test work.
Drilling
Previous work on the Project was predominantly focussed on the Nipacue graphite sequence, which was considered to be the most promising of the sequences in the Project area. In 2015 the most prospective of the graphite layers in the Nipacue sequence, the Nipacue Outer (“NPO”) layer, was evaluated by means of a reverse circulation (“RC”) and diamond (“DD”) drilling programme in order to provide data for the preparation of a Mineral Resource estimate. Three areas on the NPO layer were selected for drilling, known as Nipacue North, Nipacue Central and Nipacue South.
The drilling programme comprised 16 RC holes for a total of 1,297 m and 22 DD holes for a total of 3,127 m in the Nipacue North area, 6 RC holes totalling 478 m in the Nipacue Central area, and 9 RC holes for 581 m in the Nipacue South area. Drill spacing was roughly 150 m along strike and 50 m down dip for both RC and DD drilling. Where alternate lines of RC and DD were drilled at Nipacue North, the drill spacing was reduced to 75 m x 50 m. Drilling was generally angled vertically downwards at -90°, although two DD drillholes were angled at -60° at Nipacue North to perpendicularly intersect the graphitic mineralisation. Four of the DD boreholes were twinned with RC boreholes for logging and grade comparison of the two drilling methods.
Mineral Resource Estimate and Technical Report
The MSA Group (Pty) Ltd (“MSA”) was commissioned to prepare Mineral Resource estimates for Nipacue North, Nipacue Central and Nipacue South and an Independent Technical Report (“the Report”) for the Project based on total graphitic carbon (“TGC”) assays from the RC and DD drillholes, density measurements from cores of the 22 DD drillholes, and data from mineralogical, metallurgical and other exploration work carried out on the Project.
The estimates represent the maiden Mineral Resource estimates for the Project, and incorporate drilling data which, in the QP’s opinion, were collected in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum’s (“CIM”) “Exploration Best Practices Guidelines” (2000). The drilling assay data were validated through a rigorous QA/QC programme and in the opinion of MSA are deemed acceptable for use in the estimation of Mineral Resources.
The Mineral Resource estimates and the Report were prepared to comply with disclosure and reporting requirements set forth in the Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), the corresponding Companion Policy 43-101CP, the corresponding Form 43-101F1 Technical Report, the CIM Definition Standards – For Mineral Resources and Mineral Reserves (2014) and the CIM Best Practice Guidelines (2003).
The Mineral Resource estimates as at 1 June 2016 are presented in the table below.
| Nipacue Prospect | Mineral Resource Category | Reporting Depth (m) | Tonnes (millions) |
TGC (%) |
Contained Graphite (‘000 tonnes) |
Density (t/m3) |
| North | Indicated | 200 | 26.4 | 7.34 | 1,936.3 | 2.51 |
| TOTAL | Indicated | 26.4 | 7.34 | 1,936.3 | 2.51 | |
| North | Inferred | 200 | 17.3 | 5.98 | 1,033.8 | 2.50 |
| Central | Inferred | 120 | 5.2 | 7.51 | 392.8 | 2.48 |
| South | Inferred | 120 | 7.1 | 8.13 | 578.9 | 2.46 |
| TOTAL | Inferred | 29.7 | 6.76 | 2,005.5 | 2.49 | |
| Data has been rounded and as a result minor computational errors may occur |
| Mineral Resources which are not Mineral Reserves have no demonstrated economic viability |
The Mineral Resource is stated as that material contained within the high-grade (“HG”) domain that has been defined at Nipacue, which is generally >4% TGC. No cut-off grade is applied within the HG domain as, in MSA’s opinion, all such contained material has “reasonable prospects for economic extraction” when considering the mining and processing assumptions applied.
In compliance with regulatory requirements, the Report will today be filed on SEDAR (www.sedar.com) and will also be made available on the Company’s website at www.frontierrareearths.com.
Anton Geldenhuys, GSSA, GASA, Pri.Sci.Nat. and Robert N. Barnett, FGSSA, Pri.Sci.Nat. of MSA have reviewed and approved the technical contents of this release.
About Frontier Rare Earths Limited (US: FREFF)
Frontier Rare Earths Limited (www.frontierrareearths.com) is an unlisted mineral exploration and development company principally focused on the development of rare earths and graphite projects in Africa. Frontier’s flagship asset is the Zandkopsdrift rare earth project, which is located in the Northern Cape Province of South Africa. Frontier has a direct 64% interest and an 85% economic interest in Zandkopsdrift. Frontier also owns a 70% interest in the Lurio graphite project located in the Cabo Delgado Province in Mozambique.
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Readers can identify many of these statements by looking for words such as “will”, “intends”, “projects”, “anticipates”, “estimates”, “achieving”, or similar words or the negative thereof. Such forward looking information includes, among other things, anticipated recovery rates, timing of receipt of mining rights and environmental permits, realization of construction activities and mining operations, estimated capital expenditures and operating costs, estimated market prices and statements regarding NPV and IRR. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, commodity prices, availability of financing for the Company and the Company’s ability to raise additional capital, results of feasibility studies, dependence upon regulatory approvals, the estimation of mineral resources and the realization of mineral reserves based on mineral resource estimates and estimated future development, if any, and possible variations of ore grade or recovery rates; the Company development, if any, and possible expectations regarding competition from other producers globally, possible customer and supplier relationships, anticipated trends and challenges in the Company regarding competition; mineral resource estimates and supply outlook and growth opportunities, the future price of and future demand for rare earth elements, title disputes or claims including Black Economic Empowerment initiatives, the timing and possible outcome of pending regulatory and permitting matters and the factors described or referred to under “Description of the Business – Risk Factors” in Frontier’s annual information form filed on SEDAR at www.sedar.com.
Readers are cautioned that the assumptions used in the preparation of such information, 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. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Actual results may differ materially from those anticipated. Readers are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Frontier disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
IR@frontierrareearths.com
www.frontierrareearths.com