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ASX Limited

Market Announcements Platform

28 February 2022

128,000 oz Au Maiden Inferred Resource at Saki Prospect PNG

  • Maiden Inferred Mineral Resource of 2.0 Mt @ 2.0 g/t gold for 128,000 oz Au estimated for the Saki system of gold veins that occur 3km to the north‐east of the Tolukuma Gold Mine.
  • Scoping economic studies recommended ahead of further drilling.
  • Upside with apparent potential for further strike and depth extensions with the veins having been tested to only 120m depth and above the base of mineralisation.

Brian Thomas, Technical Director of Frontier Resources Ltd, commented: "This maiden Mineral Resource Estimate for the Saki Gold Prospect is an exciting step for Frontier in unlocking the potential of Saki. Recent geological mapping and trench sampling has allowed Frontier to better understand the controls on gold mineralisation, and this has been incorporated into the interpretation of historic diamond drilling. The new Mineral Resource provides Frontier with a solid basis for planning further work to infill and extend the mineralisation. Frontier is in the process of evaluating a haul road between Saki and the nearby Tolukuma Gold Mine, which will allow site access for trucks."

Frontier Resources Limited (Frontier or the Company) is pleased to announce the results of an independent analysis of historical drilling coupled with Frontier's recent geological mapping to produce a Maiden Inferred Resource Estimate of the Saki gold prospect in Papua New Guinea (Figures 1 and 2).

Frontier requested Steve Rose of Rose and Associates, Mining Geology Consultants (RMG), carry out a Mineral Resource estimate over the Saki Gold Prospect. Saki is an epithermal gold deposit, with mineralisation sitting in a series of north‐west striking veins which outcrop or lie close to surface.

Saki has 46 historical diamond drill holes for a total of totalling 4191.85 metres. Recent mapping by Frontier geologists showed the extent and outcrop of mineralised veins and together with trenching results has allowed the Mineral Resource to be classified.

The Mineral Resource estimate of 2.0 Mt @ 2.0 g/t gold for 128,000 ounces Au (using a 1 g/t Au cut‐off)

has been classified using JORC 2012 (Table 1A).

Table 1A: Saki Mineral Resource Estimate using 1g/t Au cut-off

Classification

Volume (Mm3)

Tonnes (Mt)

Gold (g/t)

Ounces Au

Inferred

0.8

2.0

2.0

128,000

Note: Figures are rounded to reflect appropriate level of confidence. Apparent differences may occur due to rounding.

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The veins have been modelled to reflect Frontier's mapping and there appears potential for further strike extensions, particularly for Saki‐1, Saki‐3, Saki‐4, and Saki‐5 veins.

The veins are only tested down to a depth of 120m below surface. Grade seems to be controlled by a flattish plunge to the north, which if applied to new drilling could see improved success rates.

Epithermal gold systems can have distinct and abrupt bases to economic mineralisation. Indications during the resource estimation process are that drilling is above this base with potential additional mineralisation at depth.

Figure 1: Frontier Gold Prospects within EL2531 and Nearby Tolukuma Mine Tenements

From its recently completed mapping, trench and rock sampling program, Frontier demonstrated significant gold and silver grades along the Saki III vein including trench sample results of 1m @ 128.5g/t Au + 94g/t Ag, 3m @ 40.28g/t Au + 27.92g/t Ag including 1m @ 115.0g/t Au + 54.1g/t Ag (refer to ASX Announcement dated 26 October 2021).

Frontier has completed a preliminary geotechnical site investigation of a proposed route from Saki to Tolukuma Mine along local bush tracks and old horse tracks along ridges. The access road is 5km in length starting from Hoyu Creek at Saki to New Gutiva village which connects to mine roads within mining lease ML104 (refer to ASX Announcement dated 31 March 2021). A preliminary geotechnical site investigation of a suitable hydro dam plant site has also been completed (refer to ASX Announcement dated 27 April 2021).

Saki forms part of the Saki‐Yava gold system (Figure 2) with an envelope of mineralisation of more than 3.6 sq.km, providing a substantial footprint to expand on potential resources. The Saki, Yava, Soju and Salat prospects were discovered and initially explored by Newmont during 1986‐89 with most significant results of 5.4m @ 8.7 g/t Au and 1m at 32.5 g/t Au at Saki and 2m at 5.3 g/t Au and 1,750 g/t Au in rock float at Soju (refer to ASX Announcement dated 28 May 2019).

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Figure 2: Saki‐Yava System of Gold Veins

Summary of Saki Mineral Resource Estimate

Frontier confirms the reporting of the Mineral Resource Estimate for the Saki Gold Deposit as at 25 February 2022.

The estimate of Mineral Resources is reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 (JORC Code) and the Australia Securities Exchange Listing Rules. This report summarised the information contained in the JORC Code Table 1 which is included in the Appendix to this report. The breakdown of the total Mineral Resource estimate into the categories specified in the JORC Code is contained in Table 1A. A summary of JORC Table 1 is provided below for compliance with the Mineral Resource Estimate and in line with the requirements of ASX listing rule 5.8.1.

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Project Tenure

The Saki Gold Project is in Papua New Guinea (PNG), roughly 100 km to the north of Port Moresby, and 3 km east of the Tolukuma Gold Mine (Figure 1). The prospect sits within EL2531 which covers an area of 441.72 km2 and surrounds the mining lease of the Tolukuma Gold Mine.

Geology and Geological Interpretation

Mineralisation at Saki is similar to the neighbouring Tolukuma gold deposit and is considered a low‐sulfidation epithermal gold‐quartz vein deposit.

The vein system is localised near the intersection of the graben‐like structural contact between Cretaceous basement Owen Stanley metamorphic rocks and the overlying Pliocene Mt Davidson Volcanics. The volcanism has been dated at 4.8Ma. The Mt Davidson volcanics comprise basalts, tuffs, agglomerates and breccias intruded by diorites and porphyries. The basement Kagi sequence consists of slate, phyllite schist, and minor gneiss. Locally, carbonaceous phyllites containing metamorphic quartz veins predominate as the basement rocks. Diatreme breccias contain mixed basement and volcanic material.

The volcanics and intrusives have undergone pervasive alteration to an intermediate argillic assemblage of quartz‐albite‐illite‐chlorite±carbonate. Adularia replaces primary feldspar in the wall rock immediately adjacent to veining. Illite clay, commonly postdates adularia alteration.

Mineralisation is primarily hosted within the Mt Davidson Volcanics.

Gold occurs within a series of steeply dipping, narrow quartz‐adularia epithermal veins within a north‐south trending structural corridor. Tension structures have developed linking some of the veins and can be mineralised.

The mineralisation has been defined with a strike length of about 1 km. The veins average between one and two metres in width. Five veins have been modelled in this MRE (Figure 3 and 4), based on diamond drilling, surface mapping and surface trenching.

Figure 3: Saki Modelled Veins and Drillhole Locations

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Figure 4: Saki Modelled Veins Oblique Section

Sampling and Sub‐Sampling Techniques

The Saki MRE is based on logging and sampling of 46 surface diamond drillholes for 4,191.85m, with approximately 1,672 drilling samples with interval ranges from 0.1m to 2.1m, but predominantly with an interval of 1m. The drillholes have a variable spacing, but average about 80 m between collars. The drilling type is all surface diamond drilling at HQ core size. The diamond drillholes were all sampled based on geological boundaries to a nominal maximum length of 1m, marked up prior to being cut in half length wise using a diamond saw. A consistent side of the core was submitted for analysis.

Drilling Techniques

Data used for the Saki MRE are from historical diamond drilling between 2002 and 2012 by Tolukuma Gold Mines and then Petromin. The drilling method was surface diamond drilling at HQ core size.

Mineral Resource Classification

Mineral Resource classification criteria are based on the level of data informing both geological model and grade estimation.

The Mineral Resource has been constrained to a maximum vertical depth of 120 m below surface. Blocks have been classified as Inferred based on drill hole spacing, geological continuity, collar survey accuracy, and limited QAQC data.

The Inferred Mineral Resource was defined where there was a moderate level of geological confidence in geometry, there was continuity of grade, and drill spacing was generally less than 80 m.

Unclassified mineralisation has not been included in this Mineral Resource. This is the material where drill spacing is wider than 80 m (Figure 5).

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Frontier Resources Limited published this content on 27 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 February 2022 22:51:03 UTC.