Frontline Gold Looking to Acquire Royalties on Resource Exploration Properties
Toronto, Ontario -- (November 16, 2017) -- Frontline Gold Corporation (TSXV: FGC) ("Frontline" or the "Company") is pleased to announce that it is actively in the market to acquire net smelter royalties ("NSRs"). Frontline can provide explorers another way to fund exploration and/or property holding costs.
The Company is in active discussions with a number of mining companies and groups regarding the acquisition of royalties to further compliment its existing royalty assets highlighted below.
In the past the Company was successful in identifying exploration projects, creating and selling royalties on these exploration projects to principally fund the property acquisitions.
Given the numerous royalty opportunities presented to Frontline, and the Company's success in creating, structuring and selling NSRs, there is a real opportunity to build upon the Company's existing NSR portfolio.
The property group comprises 34 mineral claims and 2 mineral patents, totaling 274 claims units for a total area of approximately 4,420 hectares. The Red Lake Property Group primarily consists of 3 properties: 1) Baird/Heyson mineral claims ("Baird/Heyson Property"), 2) the Chukuni package, and 3) the Whitehorse Island Patents ("Whitehorse Property").
As part of the acquisition price the Company retained a 2% NSR, one-half of which may be purchased by the Company at any time for $1.0 million. In addition, PC Gold agreed to pay Frontline the amount of $200,000 in the event that a National Instrument 43-101 compliant resource in excess of 250,000 ounces of gold is calculated in respect of the acquired Claims.
On November 16, 2015, First Mining Finance Corp. ("First Mining") completed the acquisition of PC Gold Inc., which wholly owned the Pickle Crow Gold Project ("Pickle Crow"). Per First Mining Corp.'s website, "the Pickle Crow property, 13,184 hectares, is located in jurisdiction of northwestern Ontario, Canada and the project hosts a NI 43-101 compliant inferred resource of approximately 10.2 Mt grading 3.90 g/t gold containing approximately 1.3 million ounces of gold."
Frontline is actively looking to evaluate and acquire additional royalty opportunities. To contact Frontline, please call Walter Henry at 416-414-5825 to discuss any NSR opportunities that are available for purchase by Frontline.
Ron Wortel, P.Eng. an independent Qualified Person as defined by NI 43-101, reviewed and approved the contents of this news release on behalf of the Company.
Frontline is a Canadian junior mineral exploration company. The Company's principal Ontario properties include the following:
Red Lake Gold exploration properties consisting of 16 claims, totaling 6,400 acres on 160 claim units adjoining Pure Gold's Madsen Mine to the east and the south. This land package combined with the Company's Chukuni and White Horse Island Projects, provides the Company with one of the largest exploration land packages within the Red Lake District totaling just over 9,600 acres.
The Chukuni property which consists of seven contiguous claims, totaling 2,960 acres on 74 claim units in proximity to Goldcorp's Red Lake Gold Mine, and the proximity to Goldcorp's #3 Mine shaft.
Whitehorse Island property comprised of two contiguous claims, totalling 35.55 hectares hosts the Whitehorse Island gold shaft which are situated between the Goldcorp / Premier Gold Rahill-Bonanza Gold Property and Premier Gold's Hasaga Gold Property.
Cameron Lake Property Group consists of a 100% interest in seven gold properties in the Rainy River area of Ontario ("Rainy River Properties") which are strategically located adjacent to First Mining Finance's Cameron Gold Project ("Cameron Gold Project") in the Rainy River area.
Zealand Properties consist of a total of 72 claim units covering 1,152 hectares. All of the claims are located on or near the project boundaries to Treasury Metals' ("Treasury Metals") Goliath Gold Project.
Jubilee Lake Lithium consists of a total of 6 mineral claims covering 736 hectares, a strategic land package situated along the Birch-Uchi greenstone belt west of the Allison Lake Batholith.
Confederation Lake Project, the property which hosts a number of historical Cu-Zn bearing massive sulphide and stringer sulphide mineralized zones, hosted in strongly altered felsic volcanic pyroclastic rocks.
Birch-Uchi Greenstone Belt exploration property, which is adjacent to Sabina Gold and Silver's Golden Sidewalk property, hosts the past-producing Bathurst Mine;
Production Royalty and Net Smelter Royalty on a portion of First Mining Finance's Pickle Crow Gold Project which was acquired from PC Gold Inc.
In addition to the Ontario Exploration portfolio discussed above, the Company's international principal properties include the following:
Keban Tailings Project, is located approximately 45 km northwest from the city of Elazig, Elazig Province of Turkey in the Central East Anatolia region, via paved highway, is fully permitted and includes the exclusive rights to process a minimum 114,000 tonnes of mineralized milled tailings stored in two areas within the defined tailings boundaries.
Kambertepe Tailings Project, is located about 100 km east from the city of Elazig, Turkey includes the exclusive rights to process approximately up to 6,000 tonnes of mineralized tailings, with the following average reported grades per tonne of tailings: 2.1% Copper, 21 g/t Silver, 1.9% Zinc, 0.5% Titanium and over 50% Iron, based on assays completed by Bureau Veritas, Vancouver, Canada, as noted from a Firat University report on the project dated March 15th, 2016.
Menderes Gold Project, is a 6,194 ha (62 km²) contiguous land package located near the village of Efemçukuru, in Izmir Province, Western Turkey. The permits that make up the Menderes Gold Project were acquired for their excellent potential to host low to medium sulphidation, gold-mineralized epithermal vein systems. The Menderes Gold Project is contiguous to the eastern and southern property boundaries of Eldorado Gold's Efençukuru Mine (source www.eldoradogold.com).
Niaouleni Gold Project, is located in southern Mali in the heart of West Africa's prolific gold belt. Active gold exploration projects in the immediate vicinity of Niaouleni include African Gold Group Inc.'s Kobada Gold Project (www.africangoldgroup.com).
Further information about the Company is available on the Company's website, www.frontlinegold.com or our social media sites listed below:
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.
Walter Henry, President & CEO
FRONTLINE GOLD CORP.
Contact: Walter Henry
Telephone: (416) 414-5825
Fax: (416) 363-6872
Frontline Gold Corp. (TSX-V: FGC) 1 Toronto Street, Suite 201 Toronto, Ontario M5C 2V6
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