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FORTUNA METALS LTD Regulatory Filings 2012

Apr 26, 2012

64952_rns_2012-04-26_4452c81c-7db4-49e6-885a-11b4e9c3b2b3.pdf

Regulatory Filings

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CONTACTS PHONE EMAIL PO Box 52 +61 (08) 9295 0388 [email protected] West Perth FAX W EBSITE WA 6872 Australia +61 (08) 9295 3480 www.frontierresources.com.au

ABN 96 095 684 389

ASX : FNT

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ASX Limited

Company Announcements Office

27th April 2012

Stormont Gold – Bismuth Resource Successfully Upgraded to Indicated Status

Frontier Resources Ltd is pleased to announce that the recent drilling program at the Stormont Deposit in Tasmania (figure 1) has successfully upgraded the previous Inferred Resource (ASX Release 29/7/2009) to an Indicated Resource. Table 1 shows tonnes and grades of gold, bismuth and silver mineralisation estimated at various cut-off grades gold and Figure 2 shows it diagrammatically.

Peter McNeil M.Sc., Chairman and Managing Director of Frontier commented:

I am very pleased that drilling over the past 12 months has successfully converted the Inferred Resource at the Stormont Deposit to the higher confidence level of Indicated, with 150,800 tonnes grading 2.89g/t gold + 0.17% bismuth, containing 14,000 ounces of gold + 256 tonnes of bismuth.

The Indicated Resource contains similar tonnages, grades and total contained gold and bismuth to the previous Inferred Resource, that was defined with 16 drill holes compared to 44 drill holes. This is an encouraging result suggesting the mineralisation is relatively consistent in grade and distribution.

The nearby Narrawa Indicated Resource contains 162,750 tonnes grading 2.11g/t gold + 20.5g/t silver + 1.42% lead + 1.20% zinc for 11,000ozs gold + 107,000ozs silver + significant credits in lead and zinc. In addition, Narrawa has an Inferred Resource of 47,000 tonnes grading 2.07g/t gold, for an additional 3,100 ounces of gold.

A conceptual mining study is presently being undertaken by a consultant Mining Engineer for the Stormont and nearby Narrawa Deposit’s combined resources containing 28,000 ounces of gold + significant base metal credits, to define a development path for these projects.

Drilling will continue at the Stormont and Narrawa Deposits to test and define adjacent and nearby gold/ bismuth skarn mineralisation and to further define the total extent of the gold, bismuth, silver and base metals. The additional drilling targets have been defined by recently completed 3D-IP geophysics plus soil and additional geochemistry.

The Stormont Indicated Resource is well defined by cohesive aeromagnetic and 3D-IP conductivity anomalies. There are many similar aeromagnetic and conductivity anomalies in the vicinity of Stormont that appear to be

Stormont that appear to be
‘look-a-likes’. Most of these
are “hidden” beneath a thin
veneer of post mineralisation
basalt cover and have never
been prospected or tested at
all.
An
ASX
Release
dated
26/4/2012
illustrates
the
results of the recent 3D-IP
survey and the relationship of
conductivity
anomalies
to
known
mineralisation
at
Narrawa and Stormont.
Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades Table 1: Stormont Indicated Resource Tonnes, Grades and Contained Metal at Various Cut-Off Grades
Cut Off
Grade Gold
g/t

Tonnes
Grade Contained Metal
Gold
g/t

Silver
g/t

Bismuth
%

Gold
ounces
Silver
ounces

Bismuth
Tonnes
0.5 150,800 2.89 3.82 0.17 14,013 18,523 256
1.0 118,500 3.47 4.06 0.19 13,222 15,470 229
1.5 84,500 4.38 4.48 0.23 11,901 12,172 197
2.0 65,600 5.15 4.74 0.26 10,863 9,998 171
2.5 55,300 5.69 5.00 0.28 10,118 8,891 154
3.0 47,400 6.17 5.21 0.30 9,404 7,941 140
3.5 39,900 6.72 5.39 0.32 8,621 6,915 126
4.0 35,700 7.07 5.48 0.31 8,116 6,291 112
4.5 30,100 7.59 5.53 0.33 7,346 5,352 98
5.0 23,200 8.45 5.71 0.34 6,304 4,260 80

DETAILS

The Stormont and Narrawa Deposits are located in centralnorthern Tasmania (Figure 1), approximately 20km southwest of Sheffield and 40kms south of Devonport. Access is excellent, with nearby sealed roads and a formed gravel road to within a kilometre of the deposits. There are no unusual environmental or aboriginal heritage aspects that would be likely to inhibit possible development.

Stormont is a skarn style stratiform, replacement deposit located in the core and on the limbs of a shallowly plunging syncline (at its NE end). The deposit is located on or very near surface, is amenable to open pit mining, and ranges in stratiform thickness between 10 and 15m.

The resource estimation was completed by Frontier’s Tasmanian Exploration Manager Grant McDonald, under the supervision of Peter McNeil, Chairman of Frontier. The Indicated Resource was estimated using Surpac estimation software, all available drill holes, various cutoff grades and a specific gravity for the mineralisation of 2.9.

Figure 3 shows the geology of the Stormont Deposit with drill hole locations and the outline of the resource boundary projected to surface. Figure 3 is a cross section of the deposit and illustrates the on /near surface and easily mined location of the mineralisation.

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Figure 1.
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Figure 2.
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Table 1 shows the tonnages and grades of mineralisation at cut off grades between 0.5 g/t gold and 5.0 g/t gold and figure 2 shows the relationship between cut-off grade and tonnes in the Indicated Resource. Table 2 shows the drill hole intersections used in the resource estimation and table 3 shows the channel sample intersections used in the resource estimation

The Inferred Resource estimation utilised 16 diamond drill holes and 18 channel samples. The present Indicated Resource utilised 44 drill holes and 25 channel samples or 28 extra diamond core drill holes and 7 extra saw cut channel samples. Table 4 shows co-ordinates and collar/ orientation details of each hole.

For additional information relating to Frontier Resources, please visit the Company’s website at www.frontierresources.com.au or feel free to contact me.

FRONTIER RESOURCES LTD

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P.A.McNeil, M.Sc. CHAIRMAN / MANAGING DIRECTOR

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by, or compiled under the supervision of Peter A. McNeil - Member of the Aust. Inst. of Geoscientists. Peter McNeil is the Managing Director of Frontier Resources, who consults to the Company. Peter McNeil has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter McNeil consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Page 2 of 5

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Figure 3.
Figure 4.
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Page 3 of 5

Table 2. Drill holes and assays used in the Indicated Resource estimation Table 2. Drill holes and assays used in the Indicated Resource estimation Table 2. Drill holes and assays used in the Indicated Resource estimation Table 2. Drill holes and assays used in the Indicated Resource estimation Table 2. Drill holes and assays used in the Indicated Resource estimation Table 2. Drill holes and assays used in the Indicated Resource estimation Table 2. Drill holes and assays used in the Indicated Resource estimation Table 3. Channel samples/assays used in the Indicated Resource estimation. Channel samples/assays used in the Indicated Resource estimation. Channel samples/assays used in the Indicated Resource estimation. Channel samples/assays used in the Indicated Resource estimation. Channel samples/assays used in the Indicated Resource estimation. Channel samples/assays used in the Indicated Resource estimation.
Hole ID From
(m)

To
(m)
Length
(m)

Gold
(g/t)

Bismuth
( %)

Silver
(g/t)
Hole ID From
(m)

To
(m)

Length
(m)

Gold
(g/t)

Bismuth
( %)

Silver
(g/t)
SFD001 2.3 11.5 9.2 2.36 0.26 8.2
SFD002 4.0 10.0 6.0 2.88 0.64 17.8 FRSTC01 2.0 10.0 8.0 1.09 0.29 5.3
SFD003 1.5 13.5 12.0 0.43 0.13 2.3 FRSTC02 0.0 2.5 2.5 2.20 0.33 5.6
SFD004 1.7 13.0 11.3 3.38 0.31 6.2 FRSTC03A 0.0 2.2 2.2 2.95 0.34 7.8
incl. 8.0 11.0 3.0 11.30 0.31 6.0 FRSTC03B 0.0 5.8 5.8 4.21 0.16 4.9
FRSTC04 0.0 1.3 1.3 25.40 0.55 8.0
SFD005 7.9 26.0 18.1 6.49 0.26 4.5
FRSTC06 2.0 5.0 3.0 1.55 0.22 3.3
incl. 21.4 26.0 4.6 24.00 0.40 6.0
FRSTC07 0.0 15.2 15.2 2.44 0.24 3.8
SFD006 1.8 19.3 17.5 1.46 0.08 2.5
FRSTC08 0.0 3.5 3.5 1.49 0.04 2.3
SFD007 0.0 7.5 7.5 2.48 0.16 1.6 FRSTC09 0.0 11.0 11.0 6.01 0.21 6.3
SFD008 0.0 9.0 9.0 1.88 0.08 1.3 incl. 4.0 11.0 7.0 8.90 0.31 8.7
SFD009 0.0 16.1 16.1 6.05 0.68 5.1 FRSTC10 0.0 0.7 0.7 5.65 0.04 2.0
incl. 3.1 11.0 7.9 12.10 1.38 9.5 FRSTC11 0.0 1.9 1.9 0.68 0.02 1.0
SFD010 0.0 24.5 24.5 0.45 0.01 1.1 GFSTC01 0.0 19.0 19.0 10.00 0.77 4.2
incl. 0.0 10.0 10.0 15.50 0.59 4.8
SFD011 1.0 18.0 17.0 3.54 0.12 3.1
GFSTC02 0.0 4.0 4.0 3.10 0.19 2.0
incl. 11.5 16.0 4.5 8.86 0.31 4.2
GFSTC03 0.0 24.0 24.0 10.10 0.52 6.5
SFD012 4.8 16.1 11.3 0.09 0.00 0.2
GFSTC04 0.0 12.5 12.5 4.63 0.26 4.2
SFD013 3.5 21.2 17.7 0.39 0.03 2.3
GFSTC05 0.0 7.0 7.0 46.90 1.10 11.7
SFD014 27.7 32.0 4.3 0.21 0.02 2.2 GFSTC06 0.0 1.2 1.2 36.53 1.10 6.0
SFD17 0.7 17.9 17.2 0.22 0.11 2.0 GFSTC07 0.0 1.2 1.2 36.47 0.53 5.0
SFD18 1.1 18.0 17.0 0.44 0.13 2.6 GFSTC08 0.0 1.2 1.2 12.46 0.50 2.0
SFD19 0.6 16.0 15.4 1.27 0.10 2.3 GFSTC09 0.0 1.2 1.2 6.29 0.24 3.0
GFSTC10 0.0 1.2 1.2 11.20 0.47 3.0
SFD20 0.5 28.0 27.5 4.83 0.06 2.7
GFSTC11 0.0 1.2 1.2 8.48 0.25 7.0
incl. 4.5 18.0 13.5 8.34 0.11 4.6
GFSTC12 0.0 1.2 1.2 3.71 0.13 3.0
and 22.4 28.0 5.7 2.76 0.04 1.1
GFSTC13 0.0 1.2 1.2 3.44 0.07 2.0
SFD21 0.4 26.8 26.4 7.59 0.35 4.1
GFSTC15 4.0 34.0 30.0 5.08 0.57 2.0
incl. 7.5 12.0 4.5 37.30 1.47 10.4
SFD22 6.7 15.0 8.3 5.14 0.09 0.1
incl. 12.5 15.0 2.5 13.40 0.11 0.0
SFD23 1.2 16.0 14.8 0.60 0.12 2.1
SFD24 1.5 13.5 12.0 5.58 0.19 5.5
incl. 10.5 13.5 3.0 11.50 0.60 12.5
SFD25 1.5 15.2 13.7 2.92 0.12 3.5
incl. 9.0 11.6 2.6 8.05 0.26 6.6
SFD26 0.3 18.0 17.7 0.43 0.01 0.9
SFD27 6.0 26.7 20.7 4.76 0.24 2.0
incl. 11.5 24.0 12.5 7.77 0.39 3.4
SFD28 5.8 30.0 24.2 0.74 0.32 3.7
SFD30 8.0 25.3 17.3 2.40 0.26 1.4
incl. 10.0 17.0 7.0 5.39 0.65 3.4
SFD33 10.0 26.8 16.8 8.02 0.50 5.2
incl. 14.0 18.0 4.0 18.60 1.00 9.5
and 23.1 25.3 2.2 25.80 1.73 14.0
SFD35 0.2 30.2 30.0 0.96 0.25 3.3
incl. 3.4 8.0 4.6 2.70 0.38 3.7
SFD36 13.5 25.5 12.0 0.60 0.08 0.8
SFD39 13.0 27.0 14.0 3.60 0.12 0.8
SFD41 9.1 12.7 3.6 0.18 0.00 0.8
SFD42 0.0 11.4 11.4 0.20 0.00 1.7
SFD43 0.5 20.3 19.8 1.04 0.13 2.1
SFD44 0.5 19.3 18.8 11.30 0.34 4.4
incl. 3.8 6.0 2.2 12.10 0.32 6.0
and 13.0 17.0 4.0 39.30 0.84 9.3
SFD45 0.6 4.0 3.5 1.42 0.13 2.7
SFD46 4.5 12.5 8.0 0.67 0.07 1.1
SFD46 22.5 29.4 6.9 0.05 0.04 0.6
SFD47 15.0 26.2 11.2 3.33 0.11 2.7
incl. 17.0 20.0 3.0 9.97 0.14 0.6
SD1 4.5 19.5 15.0 3.58 0.40 0.5
SD3 16.9 19 2.1 12.8 0.35 0.0
SD36 0.0 16.7 16.7 2.07 0.03 0.0
incl. 14.2 16.7 2.5 8.63 0.13 0.0
SD34 13.9 17.3 3.4 0.01 0.00 0.0
SD39 0.0 19.6 19.6 2.87 0.09 0.0
incl. 15.6 17.6 2.0 16.80 0.56 0.0

Page 4 of 5

Table 4. Drill hole collar and orinatation information Table 4. Drill hole collar and orinatation information Table 4. Drill hole collar and orinatation information Table 4. Drill hole collar and orinatation information Table 4. Drill hole collar and orinatation information Table 4. Drill hole collar and orinatation information Table 4. Drill hole collar and orinatation information Table 4. Drill hole collar and orinatation information
Hole_ID Easting
(AGD66)
Northing
(AGD66)
RL
(masl)
Depth
(m)
Azimuth
(true)
Dip Type
SD1 418,890.3 5,405,925.0 629.4 145.0 266.7 -90 diamond
SD3 418,929.3 5,405,864.8 638.5 75.1 240.7 -90 diamond
SD34 418,925.0 5,405,859.2 639.2 49.0 0 -90 diamond
SD36 418,911.9 5,405,903.6 633.6 58.0 0 -90 diamond
SD39 418,876.1 5,405,916.5 629.1 61.5 74 -70 diamond
SFD001 418,864.7 5,405,938.8 626.9 38.4 225 -65 diamond
SFD002 418,864.8 5,405,939.0 626.9 18.0 225 -45 diamond
SFD003 418,867.5 5,405,942.0 626.9 33.6 45 -60 diamond
SFD004 418,867.2 5,405,941.7 627.0 38.6 45 -45 diamond
SFD005 418,893.9 5,405,898.8 631.7 31.0 45 -45 diamond
SFD006 418,893.6 5,405,898.4 631.8 33.3 0 -90 diamond
SFD007 418,891.1 5,405,896.0 631.8 36.0 225 -45 diamond
SFD008 418,890.9 5,405,895.8 631.8 22.6 225 -65 diamond
SFD009 418,915.5 5,405,881.3 635.5 26.9 45 -45 diamond
SFD010 418,915.1 5,405,881.0 635.5 47.3 45 -90 diamond
SFD011 418,915.3 5,405,881.2 635.5 18.0 45 -65 diamond
SFD012 418,912.7 5,405,878.9 635.4 34.4 225 -45 diamond
SFD013 418,912.8 5,405,879.1 635.3 30.1 225 -65 diamond
SFD014 418,924.3 5,405,827.3 644.5 59.7 45 -45 diamond
SFD17 418,885.5 5,405,921.7 629.3 33.0 224 -80 diamond
SFD18 418,885.5 5,405,921.6 629.4 30.0 224 -60 diamond
SFD19 418,885.4 5,405,921.4 629.3 28.5 224 -50 diamond
SFD20 418,914.9 5,405,897.4 634.5 34.5 225 -50 diamond
SFD21 418,915.1 5,405,897.6 634.5 34.2 225 -65 diamond
SFD22 418,933.3 5,405,863.9 638.9 21.4 39 -60 diamond
SFD23 418,876.6 5,405,929.2 628.6 26.0 231 -90 diamond
SFD24 418,876.2 5,405,928.8 628.3 25.0 231 -45 diamond
SFD25 418,876.4 5,405,929.0 628.4 23.9 231 -60 diamond
SFD26 418,887.2 5,405,906.9 629.9 20.5 0 -90 diamond
SFD27 418,903.4 5,405,923.1 630.7 35.9 215 -60 diamond
SFD28 418,903.7 5,405,923.5 630.7 39.5 215 -45 diamond
SFD29 418,903.8 5,405,923.6 630.9 33.9 215 -75 diamond
SFD30 418,893.4 5,405,937.0 629.0 35.0 225 -45 diamond
SFD33 418,943.6 5,405,877.6 637.7 31.5 223 -45 diamond
SFD35 418,886.4 5,405,908.2 629.9 33.7 47 -55 diamond
SFD36 418,954.0 5,405,846.8 643.5 37.5 225 -90 diamond
SFD39 418,961.6 5,405,856.5 643.4 27.0 225 -60 diamond
SFD41 418,882.0 5,405,954.8 628.5 12.7 218 -45.5 diamond
SFD42 418,930.8 5,405,877.4 636.5 25.5 225 -90 diamond
SFD43 418,930.8 5,405,877.4 636.5 26.7 225 -45 diamond
SFD44 418,930.8 5,405,877.4 636.5 25.1 225 -65 diamond
SFD45 418,861.0 5,405,959.0 617.5 6.5 0 -90 diamond
SFD46 418,950.8 5,405,865.3 641.3 39.0 225 -46 diamond
SFD47 418,950.8 5,405,865.4 641.3 36.0 225 -62 diamond
FRSTC01 418,838.7 5,405,969.0 618.0 11.3 52.2 4.2 channel
FRSTC02 418,846.9 5,405,968.9 616.0 2.5 229 72 channel
FRSTC03A 418,856.6 5,405,956.3 616.5 2.2 253.6 44 channel
FRSTC03B 418,855.0 5,405,956.8 618.0 5.8 253.6 channel
FRSTC04 418,895.8 5,405,922.1 617.4 1.3 219.7 0.3 channel
FRSTC06 418,850.6 5,405,977.1 617.7 5.5 133.8 -25 channel
FRSTC07 418,854.5 5,405,973.5 616.6 15.2 148.9 1.4 channel
FRSTC08 418,857.2 5,405,970.6 617.9 3.5 91.8 5.2 channel
FRSTC09 418,863.4 5,405,961.3 618.6 11.0 170.4 -4 channel
FRSTC10 418,861.8 5,405,962.0 619.1 0.7 95.8 -25.7 channel
FRSTC11 418,862.7 5,405,961.9 618.6 2.5 58.5 -9.4 channel
GFSTC01 418,867.6 5,405,951.9 617.0 19.0 147.1 0 channel
GFSTC02 418,877.7 5,405,938.9 617.0 5.0 67.4 0 channel
GFSTC03 418,878.9 5,405,936.8 617.0 24.0 150.1 0.83 channel
GFSTC04 418,875.9 5,405,937.0 617.0 12.5 226.7 0.96 channel
GFSTC05 418,890.6 5,405,927.0 618.6 7.1 134.0 21.6 channel
GFSTC06 418,895.8 5,405,922.1 617.6 1.3 219.7 30 channel
GFSTC07 418,894.1 5,405,924.4 618.4 1.5 225 37.5 channel
GFSTC08 418,892.9 5,405,925.9 618.4 1.3 225 42.5 channel
GFSTC09 418,891.4 5,405,927.3 618.4 1.3 225 27.6 channel
GFSTC10 418,889.9 5,405,928.6 618.4 1.3 225 18.6 channel
GFSTC11 418,888.6 5,405,930.2 618.3 1.3 225 21.5 channel
GFSTC12 418,887.4 5,405,931.8 618.3 1.3 225 34.12 channel
GFSTC13 418,886.1 5,405,933.3 618.1 1.3 225 25.7 channel
GFSTC15 418,838.7 5,405,969.0 618.0 35.7 52.2 4.3 channel

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