AGGRESSIVE PNG minerals explorer Frontier Resources reports its has been ‘gifted’ exploration licence EL-2461 (Andewa) by its chairman and managing director Peter McNeil.
Mr McNeil said the company will now acquire 100% of the Andewa EL for nothing from his company WNB Resources Ltd, when transfer is allowed under the PNG Mining Act (no ‘Trading’ is allowed in ELs during their first 2‐year Term). This is an excellent outcome for Frontier’s shareholders.
The previous Option arrangements for Frontier to acquire Andewa required a ‘Fair and Reasonable’ Report to be presented to Frontier’s shareholders to enable them to vote on potentially obtaining the Projects, as I am a ‘related party’. The report must be written by an independent Financial Consultant, for a significant cost and there would be a long‐time lag until post‐AGM before we could undertake any work on the projects and hence a share price that continued to languish.
Frontier’s Bulago and Muller ELs are located in the PNG fold belt (Hela and Southern Highlands Provinces) and access will remain difficult due to the wet season until October, precluding conducting cost‐effective exploration.
This means the Andewa EL in New Britain is compatible for ‘alternate/ off season’ exploration.
The Andewa EL has an excellent pedigree, being last explored by the Newcrest /Frontier JV until 2013, with a required earn in expenditure of $19.25M, $1.915M reimbursement, $0.75M placement, a minimum spend = $2.5M and a 19.9% deferred carried interest.
The 100% acquisition of this Exploration Licence will reinvigorate Frontier and allow us to commence exploration again forthwith. Mineral prospectivity and access for possible future mine developments in the EL area is very good, with several square kilometres of strongly anomalous gold and copper in grid based soils, with large and deep 3D IP and resistivity anomalies and drill intercepts between 106.6m of 0.75 g/t + 0.30% copper and 993.3m of 0.10 g/t gold.
High grade gold drill intercepts at the Komsen Prospect include 1.5m of 39.3 g/t, 1.0m of 18.4 g/t, 5.9m of 13.1 g/t, 10.8m of 7.0 g/t and Mr McNeil said this will be targeted by resource estimation drilling ASAP.