FML Frontier Min

TIDMFML

RNS Number : 2355H

Frontier Mining Ltd

18 June 2013

FRONTIER MINING LTD

("Frontier" or "the Company")

Operational Update

Frontier Mining (AIM:FML), the independent copper producer operating in Kazakhstan, today announces a production update for its flagship Benkala Copper Project and further drilling at its exploration site in Baitemir.

Benkala

In line with management's expectations, Frontier is pleased to announce that shipment of copper cathode started during the first week of June 2013. Since commissioning in August last year, the Benkala SX-EW plant has produced more than 1,000 tonnes of LME Grade A copper-cathode and shipped and sold approximately 953 tonnes to date.

Frontier has commenced the construction of an additional four leach pads which will be bring the total number of leach pads up to six. Implementation of optimisation studies on the agglomeration, stacking and leach kinetics are being implemented which will result in increased rate of extraction. Work continues to produce a JORC compliant resource at South Benkala.

Baitemir

Further technological studies and exploration drilling has been undertaken at Baitemir incorporating trenching and geophysics, so that the Company can gain further understanding of the resource. The full dataset will be sent to Wardell Armstrong International to compile an independent JORC compliant resource. The Company has also continued assessment of the Beschoku deposit to further determine its potential as a satellite feeder for proposed facilities at Baitemir. The Company looks forward to updating the markets regarding both projects in the near future.

For further details please contact:

 
 
   Frontier Mining                                      +44 (0) 20 7898 
   Ltd                     Yerlan Minavar               9019 
 Libertas Capital                                     +44 (0) 20 7569 
  (NOMAD)                Sandy Jamieson                9650 
                         John Harrison                +44 (0) 20 3440 
 RFC Ambrian (Broker)     Richard Morrison             6800 
                         Lianne Cawthorne (Media 
                          Enquiries) 
 Walbrook PR              Paul Cornelius (Investor    +44 (0) 20 7933 
  Walbrook IR             Enquiries)                   8780 
 

Notes to Editor

Frontier Mining Limited is a copper company with production, development and exploration operations in Kazakhstan.

The Company's main activity is at Benkala, an open pit copper mine and SX-EW production facility, located on the Urals copper gold ore belt in North West Kazakhstan. Frontier has a 100% interest in Benkala through its subsidiary KazCopper LLP. Frontier is undertaking exploration activities at Baitemir, a potential copper gold porphyry deposit with associated gold and molybdenum, situated on the Naimanjal exploration licence area in North East Kazakhstan. The Company has a 100% interest in Baitemir through its wholly owned subsidiary FML Kazakhstan.

Frontier maintains an administrative and technical office in Almaty, the former capital city of Kazakhstan and the main business centre in the South East. The Company also maintains offices in Aktyubinsk and Semipalatinsk, close to the Benkala and Baitemir operations respectively.

Benkala

A Competent Persons Report completed by Wardell Armstrong International ("WAI") in June 2010, estimated a NPV of $190 million for the oxide section of the Benkala project. This section represents development limited to only 10% of the total resource at Benkala, based on 0.5% diluted copper grade, 63% recovery and 185,000 tonnes of contained metal, pricing copper at 6,000 USD per tonne WAI updated their Joint Ore Reserves Committee resource estimate in February 2011, significantly increasing the measured and indicated resource for both oxide and sulphide ores. The oxide resource has increased by a total of 9.72kt to 174.38kt (+5.9%) and the sulphide resource by 65.54kt to 779.28kt (+9.2%) of copper. Further to the overall increase, both ore types have significantly more resource in the measured category in addition to an increase in the average oxide grade percentage. In addition, the overall inferred resource has also increased by 42.8kt to 607.70kt of copper (+7.6%).

Frontier broke ground at the Benkala production facility in October 2010 and shipped the first batch of copper cathode from the cutting-edge SX-EW plant less than 23 months later in September 2012.

In January 2012 Frontier added the South Benkala mining area to its existing Benkala licence. The South Benkala area is approximately 10 kilometres south of Benkala and has a GKZ forecast resource estimate of 94.5kt of oxide and 515.1kt of sulphide copper.

Baitemir

Identified as the most attractive prospect on the Naimanjal licence area, Frontier have completed a 17,000 metre exploration drill program at Baitemir to confirm the deposit size and grades and are now working to further define the mineral inventory in anticipation of a mineral resource prepared in accordance with both the GKZ resource standard and the guidelines of the JORC Code.

Issued Share Capital

Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.

Frontier has 1,860,913,920 ordinary shares issued.

For further information please visit: www.frontiermining.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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