Perama Progress & NewsWe are methodically moving closer to our target. I like the well thought out nature of this process.
I view this statement as a commitment to people of Greece that shows our true desire to make this a win/win project.
(In addition, the Company is submitting an Environmental Rehabilitation Plan, which will cost 16 million Euros, not included in the capital estimate and will last 5 years after the mine closure.)
Cheers to managements strategy.
News release posted below.
Completion of Capital Cost Estimate for Perama Hill, Greece
Vancouver, British Columbia – November 16, 2006 - Frontier Pacific Mining Corporation (TSX-V:FRP) (the “Company”) is pleased to announce the completion of the Capital Cost Estimate Revalidation for the Perama Hill Gold Mine Project in North Eastern Greece, undertaken by Aker Kvaerner Engineering Services Ltd. (UK), Scott Wilson Mining (UK) and Golder Associates (UK).
The 2006 Capital Cost Estimate calculates the pre-production capital requirement for the development of the Perama Hill Gold Mine at US $90,923,574. This estimate shows an increase in Capital Costs of 15.2% from the 2003 Cost Review, also prepared by Aker Kvaerner, which indicated a pre-production cost of US $78,885,756. The cost increase between 2003 and 2006 is due largely to the escalation in currency exchange rates between the Euro and the US Dollar of +15%:
Exchange Rates: 2003 1 Euro = 1.106 US$
2006 1 Euro = 1.275 US$
This revised Capital Cost Estimate is well within the internal costs projected by the Company of US $97 million as shown on the Company website, www.frontierpacific.com, and will not affect the projected economics of the Perama Hill Gold Mine Project.
As described in the previous news release of October 17, 2006, the Company is working to formalize the approval of the project Environmental Terms of Reference (ETR). The design of the Perama project has been executed with the highest international standards, exceeding the legislative, environmental and structural requirements set for such projects within the European Union and internationally. In addition, the Company is submitting an Environmental Rehabilitation Plan, which will cost 16 million Euros, not included in the capital estimate and will last 5 years after the mine closure.
In addition to the capital investment of 72 million Euros for the Perama project, another 180 million Euros will be needed as operational costs. Approximately 70% of the capital cost and 100% of the operational expenditures are expected to remain in Greece, precisely in the area of Thrace, in the form of salaries, services rendered and purchase of supplies in addition to the taxes generated by the operation which are estimated at 100 million Euros. Direct company social and sustainable projects to the communities surrounding the project will add to the benefits realized from the project. Of utmost importance to the local communities of Thrace are the number of new direct and indirect job positions totaling a minimum of 200 at the mine operation and 800 indirectly providing services to the mine from the region.
Preparations are in hand to begin detailed engineering, capital loan negotiations and order placement of long lead production equipment upon formal approval of the ETR.
Peter Tegart, P.Geo., a Qualified Person under the guidelines of National Instrument 43-101 policies, is responsible for the contents of this news release.
About Frontier Pacific :
In addition to Perama Hill, the Company holds an option to earn a 50% interest in the Macusani Uranium Project from joint-venture partner Solex Resources Corp.(TSX-V: SOX) and a 100% mining lease option on the Dixie Creek gold property in Nevada’s Carlin Trend. Please visit https://www.frontierpacific.com for more information on Frontier Pacific.
On behalf of the Board of Directors,
FRONTIER PACIFIC MINING CORPORATION
“Peter F. Tegart”
Peter F. Tegart, P. Geo., President & CEO
The statements made in this News Release may contain certain forward-looking statements. Actual events and/or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results achieved by the Company. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.