TORONTO, ONTARIO -- (Marketwired) -- 03/30/15 -- Frontier Rare Earths Limited (TSX: FRO)(OTC: FREFF) ("Frontier" or the "Company") announces the filing of its 2014 MD&A, Financial Statements and Annual Information Form, which includes an update on the status of the Zandkopsdrift Pre-Feasibility Study ("PFS"), the Company's other exploration activities and corporate strategic initiatives. Key points to note from the 2014 MD&A include:
Zandkopsdrift PFS
The Company has made good progress on the various studies that are required to allow the PFS report on Zandkopsdrift (the "PFS Report") to be completed. These studies cover all aspects of the proposed Zandkopsdrift development, including design of the Zandkopsdrift Processing Plant, Saldanha Separation Plant, power, water, roads, tailings, mining, reagent supply, logistics and environmental management. All of the PFS studies have now been completed and the PFS report is being compiled. The results of the PFS are expected to be announced in April 2015 and following which the PFS Report will be filed on SEDAR.
Graphite
As previously announced, the Company holds a 70% interest in Dombeya Mineracao, Lda ("Dombeya"), a private company that holds a number of exploration licenses in Mozambique over areas with proven graphite mineralisation that are considered to have good economic potential. Frontier is responsible for carrying all of Dombeya's expenses up to completion of feasibility studies on the company's projects.
Two of the Dombeya licence areas, which are known as Lurio and Satemua, contain high grade graphite deposits for which historical, non-code compliant, resources were defined by exploration work carried out in the 1980s.
Geological mapping, ground geophysical surveys, sampling, trenching, metallurgical test work and conceptual engineering studies have been undertaken in the Lurio project area, the results of which have confirmed the presence of high grade, large flake graphite mineralisation, identified the potential for the production of a high purity large flake graphite concentrate and indicated that the project has sufficient economic potential to warrant further exploration and evaluation work be undertaken. Initial bench scale metallurgical test results indicate that the graphite can be easily liberated, with approximately 60% of the flake concentrate being classified at +80 mesh. The Company plans to continue evaluation work on the Lurio and Satemua projects in 2015.
Strategic Review
As previously reported, the Company has been undertaking a strategic review of its activities due to, inter alia, the ongoing poor performance of the listed junior mining sector, the poor market rating of companies in the rare earths sector, including Frontier, the outlook for the rare earths market and conditions in the overall equity and debt capital markets. This review is expected to be concluded in Q2 2015, after publication of the PFS Report. In the absence of a marked improvement in the rare earths sector, junior mining sector and overall equity capital markets in the coming months, it is considered likely that the Board of Frontier will recommend to shareholders that a new strategic direction be pursued with the objective of maximising the value of the Company's assets for shareholders.
All regulatory filings including the latest MD&A and company updates are available on the Company website and on SEDAR.
About Frontier Rare Earths Limited (TSX: FRO)(OTC: FREFF)
Frontier Rare Earths Limited (www.frontierrareearths.com) is a mineral exploration and development company principally focused on the development of rare earths projects in Africa. Frontier's flagship asset is the Zandkopsdrift rare earth project, which is located in the Northern Cape Province of South Africa and is one of the largest, highest grade undeveloped rare earth deposits worldwide. Frontier has a direct 64% interest and an 85% economic interest in Zandkopsdrift following the acquisition by its strategic partner Korea Resources Corporation of an initial 10% interest in Zandkopsdrift. In March 2012 Frontier filed a Preliminary Economic Assessment ("PEA") on the Zandkopsdrift project prepared in accordance with National Instrument 43-101. The results of the PEA indicated that the proposed development of the Zandkopsdrift Project is both technically feasible and economically robust with a low risk profile. In conjunction with the PEA a mineral resource estimate for Zandkopsdrift confirmed 42.5m tonnes at an average total rare earth oxide ("TREO") grade of 2.2%(i) containing approximately 940,000 tonnes total rare earth oxides (applying a 1% cut-off) and with 78% of the mineral resource in the indicated category. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Fiona Harper, Pr.Sci.Nat, was the independent qualified person from Venmyn Rand (Pty) Ltd. responsible for the PEA. For additional quality assurance program and the quality control measures applied, as well as other relevant technical information in respect of the Zandkopsdrift project, please refer to our technical report entitled "Amended Independent Technical Report on the Results of a Preliminary Economic Assessment of Frontier Rare Earths Limited's Zandkopsdrift Rare Earths Project, Located in the Northern Cape Province Of South Africa", dated March 30, 2012, which is available on SEDAR at www.sedar.com.
Frontier is listed on the main board of the Toronto Stock Exchange and currently has 89,562,781 shares outstanding. Frontier is well funded with approximately $23 million in cash and no debt.
(i)Breakdown of TREO grade by distribution of individual element is as follows: La2O3 (0.56%), Ce2O3 (0.97 %), Pr2O3 (0.10%), Nd2O3 (0.35%), Sm2O3 (0.05%), Eu2O3 (0.01%), Gd2O3 (0.03%), Tb2O3 (0.004%), Dy2O3 (0.02%), Ho2O3 (0.003%), Er2O3 (0.01%), Tm2O3 (0.001 %), Yb2O3 (0.005%), Lu2O3 (0.001%), Y2O3 (0.09%).
Contacts:
Frontier Rare Earths Limited
+352 208 80249
IR@frontierrareearths.com
www.frontierrareearths.com
