Bigger resource equals higher market value for Fronteer

A 53% increase in its resource estimate brought Fronteer Development (FRG-T, FRG-X) close to a 10% bump in its share price.

The new resource estimate comes from its Agi Dagi and Kirazli deposits in Turkey, but back in Toronto its shares moved up $1.13 to $13.34 on 894,000 shares traded.

The new results put measured and indicated resources at 1.5 million oz. of gold and 9.1 million ounces of silver with 1.6 million oz. of gold with 6.7 million oz. of silver in the inferred category.

The company says overall discovery costs come in at roughly US$5 per ounce.

And president and chief executive Mark O’Dea doesnt think the company is done yet.

“our deposits are still growing, he says in a statement. They are all at, or near, surface and characterized by excellent infrastructure, conventional metallurgy, high gold recoveries, and are proximal to one another to allow for strong development synergies.”

While the projects are owned 100% by Fronteer, Teck Cominco (TCK.A-T, TCK.B-T, TCK-N) can earn a 60% interest in both by spending roughly US$15 million on exploration by April 2008. Fronteer says its has spent US$12 million so far.

Agi Dagi and Kirazli are situated in northwestern Turkey.

Agi Dagi is made up of the Deli and Baba zones, which occur at either end of a 3-km long hill. The project has seen total of 322 drill holes, for 51,000 metres drilled on it.

The Kirazli deposit sits 25-km northwest of Agi Dagi and is a single resource area with near surface gold and silver grades. A total of 170 drill holes, for 30,000 metres of drilling, have been completed here, Fronteer says.

Currently there are seven rigs turning at Agi Dagi and Kirazli with plans to drill 25,000 metres in 2007.