Frontier Pacific acquiring Newmont’s Turkish mine

Vancouver – Frontier Pacific Mining (FRP-V) is purchasing the Ovacik gold mine in western Turkey from Newmont (NEM-N) subsidiary Autin Investments.

The deal propels Frontier Pacific to mid-tier producer status, adding a significant asset within a region the company is already active.

The company will pay US$30 million for the mine plus additional deferred, contingent payments totaling up to US$14 million. Frontier will assume full economic benefit of the operation as of July 1st.

The mine, Turkey’s first and now largest gold producer, is located near the Aegean Sea and has both open pit and underground operations. Annual production in 2003 was 173,000 oz. gold (484,000 tonnes milled at 11.8 grams gold per tonne). Production at Ovacik commenced in July 2001 as a joint venture by Newmont and Normandy Mining (acquired by Newmont in 2002).

Open pit proven and probable reserves at Ovacik are 561,000 tonnes grading 13.3 grams gold (239,000 contained ozs.) and underground inferred reserves are 655,000 tonnes of 12.5 grams gold (263,000 contained ozs.)

Gold mineralization at Ovacik is hosted in epithermal quartz and breccia veins with several bonanza-grade ore shoots contained in the deposit. A surrounding 25,000 hectare land package included in the acquisition holds strong exploration potential.

The mine, which employs over 460 people, utilizes a unique cyanide destruction system for processing solutions and has minimal environmental impact due to zero-discharge of waste water and a sealed tailings pond.

Frontier Pacific has initiated debt and equity financing for the acquisition and necessary working capital.

The company also has the advanced stage Perama Hill gold project (another acquisition from Newmont) located in northeastern Greece, just over 200 km. from Ovacik. Other gold projects in Frontier’s portfolio are San Javier in Bolivia and Dixie Creek in Nevada.

Investors rallied behind the acquisition, upon resumption of trading the issue closed up at 45 on volume of over 278,000 shares. As of the latest figures, the company reports 32 million shares outstanding.