Frontier Mining starts operations and Naimanjal gold and silver project

The company has started construction of the open pit mine at its flagship project in Kazakhstan.  Frontier is targeting initial production in the first half of 2011.

Wardell Armstrong envisages two open-pit mines producing 5Mtpa copper & 1Mtpa gold, with NPV’s of US$191m and US$110.9m respectively.

Frontier has budgeted an expenditure of US$2.8 million for Koskuduk for 2010 after spending US$0.8 million in the year to date, expecting it to provide 10,000 oz of gold from 500,000 tonnes of ore in 2010.

Kazakhstan focused Frontier Mining is confident everything is in place to turn its flagship Benkala copper-molybdenum-gold deposit into the company transforming asset it believes it to be.

Transcript of the audio interview conducted on 6 July 2009 between Harry Norman of Proactiveinvestors and Erlan Sagadiev, CEO and Chairman of AIM listed copper-gold junior, Frontier Mining.

The company is quickly advancing towards full commercial production in 2011, The permits allow construction work on the mill expansion and the mine shaft of the Ming copper mine to begin before the winter sets in.

The group has found cashflow that will help it through the tricky 10-month construction of its Ming copper-gold mine. It will process ore from Tenacity Gold Mining's two projects at its Nugget Pond Mill in Newfoundland, Canada.

The group plans to expand the Demonstration Plant which is currently working away nicely, producing some 5 tonnes per day of high quality cathode copper. Construction is targeted to start in late Q3 2010.

Movements in the currency markets and the impact of speculation and ‘paper accounts’ have the potential to at least curb the price appreciation brought about by economic growth.

What is driving the copper rally and how sustainable is it likely to be?

China has been a key driver behind the rebound in copper prices during 2009, with the country looking to increase its copper holdings and diversify away from the US dollar

It has commisioned work to evaluate its gold project in Slovakia with a view to adjusting the siting of infrastructure and assessing the potential for additional revenues.

Namibia is most commonly associated with its prolific diamond industry though has since been recognised as a hot-spot for uranium, base metals and gold prospectors

The company continues to make progress with the restart of Rio Tinto, having secured a positive opinion from the department that prohibited any works on the mine site five years ago.

As scoped the project DFS arrived at an Net Present Value of US$240 million pre‐tax at $6,500/t Cu, with a a total funding requirement of up to US$118 million.