Frontier Mining (AIM: FML) has secured the extension of the licence period over the Koskuduk, Baitimir, Naimanjal, Beschoku and associated satellite deposits from Kazakhstan’s Ministry of Energy and Mineral Resources (MEMR), which has allocated the company 12 months to confirm its reserves into the State Reserve Balances and to submit its development working programme for those reserves.
The extension has enabled Frontier to continue test production at all deposits. Frontier has appointed the National Centre of Earth Science, Metallurgy and Concentration to undertake supervision of the associated scientific and technical work programme required at each of the aforementioned deposits.
“We are especially pleased that this licence extension was achieved during the reorganisation of the MEMR as it will provide our new management with sufficient time to undertake more thorough development work, particularly in the promising Baitimir copper deposit,” said chief executive of Frontier Mining Erlan Sagadiev.
Back in December, the company said that Naimanjal had produced US$2.6 million worth of metals in the year to date with 2,442 oz (ounces) of gold and 8,896 oz of silver sold from the deposit with 158,247 t (tonnes) of ore containing approximately 4,335 oz of gold and 72,000 oz of silver are currently stacked. The project is expected to produce 1,500 oz of gold at Naimanjal in 2010.
Frontier plans to spend US$2.8 million at Koskuduk this year after spending US$0.8 million last year, expecting it to provide 10,000 oz (ounces) of gold from 500,000 tonnes of ore in 2010. The mining and stacking operations at Kuskuduk are set to commence in April.
Production of 3,000 oz of gold or gold equivalent is targeted at Beschoku for the second half of 2010.
Shares in the company rose 2% on the news.
Disclosure: The author holds no positions in the company