With an extensive aeromagnetic and radiometric geophysical survey completed by the Bulago joint venture, between Frontier Resources (ASX: FNT) and Ok Tedi Mining Ltd, in the north-west of Papua New Guinea.
The survey was conducted at a 50 metre sensor height on a 50 metre traverse spacing, with 500 metre spaced tie lines for around 2,848 total line kilometres.
Previous trench channel sampling from the project has been encouraging, with highlights including; 27 metres at 66.8 grams per tonne gold, 7.5 metres at 67.0 g/t gold, 18 metres at 40.3 g/t gold and 1.5 metres at 5.59 g/t gold, plus 2,555 g/t silver, 2.17% copper and 3.16% zinc.
Interpretation of the data will be available in 2 to 3 months, and will then be integrated with the existing geological and geochemical information to discriminate and rank targets for follow up exploration, potentially including drilling.
Ok Tedi Mining has the option to earn 58% of the Bulago JV by spending US$12 million within 6 years.
Frontier is carried from completion of earn-in to the completion of a Bankable Feasibility Study, with pro-rata (carried) repayments from 50% of its future metal sales.
Under certain circumstances, Ok Tedi Mining can purchase up to 80.1% equity in the project.
The Bulago JV is located near the Strickland River, in the Southern Highlands Province in north-west Papua New Guinea.