Frontier Rare Earths' Zandkopsdrift progresses at advanced stage

   Frontier Rare Earths' Zandkopsdrift progresses at advanced stage
Frontier Rare Earths provided an update to exploration and development work currently underway at its 95 percent owned flagship Zandkopsdrift rare earth property in the northern region of Cape Province in South Africa.
 
   The preliminary economic assessment (PEA) for the mine is progressing at an advanced stage, the company said.

   Expected to confirm the technical and economic viability of the mine, the PEA is anticipated for completion in the fourth quarter of 2011. Following the completion of the report, Frontier said it will prepare an NI 43-101 compliant technical report on the results of the PEA, which will be formally released in the first quarter of 2012.

   In light of the positive initial results it has already received from the PEA, Frontier said it has commenced a preliminary feasibility study (PFS) on the property. The PFS is expected for release within six months after the publication of the PEA.

   Metallurgical test work at Zandkopsdrift is also progressing. The tests have already identified two alternative process flow sheets for the purposes of the PEA, Frontier said. Work is continuing with the intention of optimizing these flow sheets for the planned PFS.

   Final assays from the recently completed, 20,000-metre drill program at Zandkopsdrift are expected in December. Drilling is expected to upgrade most of the mine's resources to the measured and indicated category, Frontier said, with a revised resource estimate expected for the first quarter of 2012.

   Frontier's most current NI 43-101 report for the Zandkopsdrift property includes a resource of 43 million tonnes at an average grade of 2.2% total rare earth oxides (TREO).

   In other news, Frontier said it continues to advance talks of a strategic partnership with state-owned Korea Resources Corp, in regards to the development of the Zandkopsdrift property.

   under the terms of the initial agreement, which Frontier signed in July, Korea Resources may acquire up to a 20 percent interest in the Zandkopsdrift mine, and up to a ten percent stake in Frontier.

   A definitive agreement is expected to be reached by the fourth quarter, though Frontier said it continues to be approached by other potential strategic partners.
In Toronto, Frontier shares rose 3.85 percent to $1.35, as of 2:41 pm EDT.