Thursday, 19th June 2008 (557 views)

A new deal has been finalised between Fronteer Development and Newmont Mining Corporation.

The joint venture agreement with the Nevada partner aims to help advance the production decision on Fronteer's Sandman gold project within the next 36 months.

Newmont is investing $23 million (£11.7 million) in the Sandman project and so may earn up to a 60 per cent interest.

Fronteer president and chief executive officer Mark O'Dea said: "This deal is important to Fronteer because it maximises Sandman's near-term production potential by leveraging Newmont's proven experience, expertise and nearby infrastructure."

He added that the deal will also allow Fronteer's human and financial resources to pay more attention to their other Nevada gold projects.

Five resource areas currently contribute to Sandman, of which four have resulted in a indicated resource estimate of 271,900 ounces of gold and an inferred resource estimate of 38,000 ounces of gold.

Sandman covers 24,440 acres and is located west of Winnemucca, Nevada.

 

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