FRP acquires Perama Gold DepositFrontier Pacific Receives Formal Notification of Perama Hill Gold Project Acquisition
12/9/04
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VANCOUVER, Dec 09, 2004 (Canada NewsWire via COMTEX) --
Further to the press release dated December 8, 2004, Frontier Pacific Mining Corporation (the "Company" or "Frontier Pacific") announces that the Company has received formal notification from its legal counsel in Greece that the Prime Minister and his Cabinet of the Government of Greece have approved the transfer of 100 percent of the share capital of Thracean Gold Mining and Industrial S.A. ("Thracean") to Frontier Pacific from an affiliate of Newmont Mining Corporation and S and B Mining S.A., a Greek mining company. Thracean holds a 100 percent interest in the Perama Hill gold project, located in Northeastern Greece. The Company is now proceeding to the closing of the acquisition which is now expected to occur within the next week.
"Approval of the acquisition by the company "FRONTIER PACIFIC MINING
CORPORATION", having its register seat in Vancouver of Canada, of
shares representing 100% of the share capital of the societe anonyme
under the trade-name "THRACEAN GOLD MINING AND INDUSTRIAL S.A." and the
distinctive title "THRACEAN GOLD MINING M.S.A.", registered in Register
for S.A. companies under serial no. 24268/01/B/91/484/01, which has its
registered seat in Athens."
The Perama Hill Project is the subject of a detailed Optimization Study conducted by Kvaerner Engineering & Construction UK Limited in 1999. This study was updated in July 2000 and the costs were updated again in May 2003. The mineable reserve used in the study was 11.0 million tonnes of oxide material grading 3.71 grams per tonne ("g/t") gold and 8.3 g/t silver. The estimated mine life waste to ore ratio is 0.4 to 1. The proposed annual milling rate is 1.25 million tonnes per year through a conventional carbon-in-leach plant. Estimated recoveries for gold and silver are 90% and 60% respectively. Total estimated gold production over the 9 year mine life is 1.2M ounces at total cash costs of US$136 per ounce. Estimated initial capital cost is US$72.6 million.
Several drill holes below the oxide resource encountered higher grade gold mineralization which has not been incorporated in the overall resource estimation of the Property.
Frontier Pacific is committed to recognizing and developing high-value projects and exceeding environmental, social, and economic standards. The Company is based in Vancouver and actively pursuing other advanced stage opportunities with the goal of providing substantial economic and social benefits to the local communities where Frontier Pacific conducts its business. This goal will directly enhance shareholder value.
For further details on Frontier Pacific Mining Corporation, please visit our company's website at https://www.frontierpacific.com.
"Peter F. Tegart"
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Peter F. Tegart, P.Geo., President