Fronteer hits Agi Dagi high-grade

Vancouver – Fronteer Development Group (FRG-T) has tied into a new high-grade gold zone on its Agi Dagi project in Turkey.

Drilling on the western edge of Deli zone returned up to 39 metres (from 60 metres depth) grading 4.4 grams gold per tonne in hole 118, including a high-grade portion of 8.4 metres averaging 12.4 grams gold.

The intercept is interpreted as a possible high-grade feeder structure within the largely tabular and flat lying Deli zone.

The drill program also cut 51 metres of 1.1 grams gold, including 15 metres of 2.2 grams gold in hole 114; and 46 metres of 1.2 grams gold, including 4.1 grams gold across 7 metres in hole 116.

Agi Dagi (pronounced Ah-Dah) is a large, high-sulphidation epithermal system, which includes a mineralized silica cap measuring about 4 km by 2 km. Mineralization occurs along a main northeast-southwest structural trend.

Fronteer’s 8,000 metre drill program is focused on delivering a resource figure by late-2005.

An historic resource, calculated by Teck Cominco (TEK-T) prior to implementation of National Instrument 43-101, outlined an inferred 11.3 million tonnes grading 1.2 grams gold on the Baba zone, equivalent to about 435,000 contained oz.

In mid-2004, Fronteer entered an option agreement with Teck Cominco whereby it can earn 100% interest from the major by spending US$5 million in exploration and issuing 350,000 shares over four years. Teck Cominco retains a 1% net smelter return or a production bonus of US$10 per oz. from a maximum of 600,000 oz. of gold.

The major also retains back-in rights on the project to recapture a 60% interest. Prior to the junior fully earning its interest, Teck Cominco can back-in by spending two times Fronteer’s accrued expenditures or US$5 million. After Fronteer has fully earned its 100%, the senior can back-in by spending US$10 million.