Fronteer Hits More Wide Intervals of High-Grade Gold at Long Canyon, Nevada: Financial News

Fronteer Hits More Wide Intervals of High-Grade Gold at Long Canyon, Nevada
Monday October 27, 2008 7:00 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Oct 27, 2008 -- Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(AMEX:FRG - News) is pleased to announce that ongoing drilling continues to intersect wide intervals of high-grade, oxide gold mineralization at Long Canyon, Nevada.

Drill results continue to both expand and further define this growing deposit, demonstrating encouraging consistency and continuity of grade. New drill results include:

- 3.16 grams per tonne gold (0.092 oz/ton) over 59.5 metres (195 feet), including 7.08 g/t (0.207 oz/ton) over 4.6 metres (15 feet), in hole LC132.

- 6.99 g/t (0.204 oz/ton) over 13.7 metres (45 feet), including 10.26 g/t (0.299 oz/ton) over 7.6 metres (25 feet), in LC134.

- 5.19 g/t (0.152 oz/ton) over 19.8 metres (65 feet), including 13.9 g/t (0.406 oz/ton) over 4.6 metres (15 feet), in LC103C.

- 2.85 g/t (0.083 oz/ton) over 27.4 metres (90 feet), including 6.23 g/t (0.182 oz/ton) over 1.5 metres (5 feet), in LC123.

Gold mineralization at Long Canyon has now been intersected over a strike length of 1.6 kilometres (one mile) and across multiple zones, with a geochemical footprint of at least 300 metres (1,000 feet) in width. The deposit remains open in all directions. A 500-metre-long (1,500 feet) gold soil anomaly to the southwest of the currently drilled mineralized zone has yet to be tested.

With drilling consistently intersecting near-surface, high-grade oxide gold mineralization, Long Canyon is developing into a high-quality gold deposit.

Fronteer is majority owner (51%) and manager of Long Canyon through a participating joint venture with AuEx Ventures Inc. ("AuEx") (49%). Fronteer has proposed an initial joint venture project budget for Long Canyon of approximately US$3.9 million, which will see activities through to March 2009. Fronteer and AuEx will share funding obligations of this budget 51% / 49%, with each interest subject to straight-line dilution for non-participation.

 

LONG CANYON DRILL RESULTS

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                       Inter-
                        cept                                  Inter-
                         Len-                                  cept
           From     To   gth     Au      Au    From      To  Length     Au
Hole ID   (feet) (feet)(feet)  (ppb)(oz/ton)(metres)(metres)(metres)  (gpt)
--------------------------------------------------------------------------
LC100C      197    232    35   1840   0.054    60.1    70.7    10.7   1.84
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            467    487    20   1527   0.045   142.4   148.5     6.1   1.53
--------------------------------------------------------------------------
LC103C      165    230    65   5193   0.152    50.3    70.1    19.8   5.19
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including 176.8    185   8.2   6120   0.179    53.9    56.4     2.5   6.12
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            190    205    15  13898   0.406    57.9    62.5     4.6   13.9
--------------------------------------------------------------------------
LC123       225    315    90   2854   0.083    68.6    96.0    27.4   2.85
--------------------------------------------------------------------------
including   270    275     5   6230   0.182    82.3    83.8     1.5   6.23
--------------------------------------------------------------------------
            340    350    10    391   0.011   103.7   106.7     3.0   0.39
--------------------------------------------------------------------------
            375    385    10    673   0.020   114.3   117.4     3.0   0.67
--------------------------------------------------------------------------
            420    445    25    440   0.013   128.0   135.7     7.6   0.44
--------------------------------------------------------------------------
            490    500    10    468   0.014   149.4   152.4     3.0   0.47
--------------------------------------------------------------------------
LC132       210    220    10    827   0.024    64.0    67.1     3.0   0.83
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            285    480   195   3159   0.092    86.9   146.3    59.5   3.16
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including   295    305    10   7835   0.229    89.9    93.0     3.0   7.84
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            315    320     5   5230   0.153    96.0    97.6     1.5   5.23
--------------------------------------------------------------------------
            340    350    10   7835   0.229   103.7   106.7     3.0   7.84
--------------------------------------------------------------------------
            365    370     5   5410   0.158   111.3   112.8     1.5   5.41
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            390    405    15   7077   0.207   118.9   123.5     4.6   7.08
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LC134       405    450    45   6992   0.204   123.5   137.2    13.7   6.99
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including   425    450    25  10256   0.299   129.6   137.2     7.6  10.26
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            455    495    40   1135   0.033   138.7   150.9    12.2   1.13
--------------------------------------------------------------------------
LC136       340    360    20   2743   0.080   103.7   109.8     6.1   2.74
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including   345    350     5   8397   0.245   105.2   106.7     1.5   8.40
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LC140       370    410    40   1706   0.050   112.8   125.0    12.2   1.71
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            420    445    25   2114   0.062   128.0   135.7     7.6   2.11
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            500    510    10   6674   0.195   152.4   155.5     3.0   6.67
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including   505    510     5  12665   0.370   154.0   155.5     1.5  12.67
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(i)The geometry of mineralization at Long Canyon is still being determined.
   The current geological model predicts that the true widths of the
   mineralized intervals vary between 70-100% of the reported lengths of
   the drill intercepts. Holes LC105C, LC128, LC131, LC133, LC137 and
   LC138 had no reportable intercepts.

For a PDF of comprehensive drill results, please click: http://media3.marketwire.com/r/fronteer1027.

For the remainder of the season, the work program will focus on:

- infill drilling towards the northeast

- testing the full extent of the Shadow Zone, a new parallel zone of mineralization; and,

- infill drilling selected areas of the southern portion of the deposit.

Long Canyon is located 6.5 km (4 miles) south of the I-80 Freeway corridor in northeastern Nevada.

Robert Felder, M.Sc. and Certified Professional Geologist, as recognized by the American Institute of Professional Geologists, is designated as a Qualified Person for these Long Canyon drill results, with the ability and authority to verify the authenticity of, and validity of, this data. Drill composites were calculated using a cut-off of 0.30 g/tonne. Drill intersections are reported as drilled thicknesses. Reverse circulation cuttings were sampled on 5.0 ft. (1.52m) intervals and core was sampled at geologically selected intervals. All drill samples were assayed by American Assay Laboratories (ISO9002:2002) in Sparks, Nevada, for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 10.0 grams per tonne Au were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. QA/QC included the insertion of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 72-element geochemical suite by ICP-MS.

LIQUIDITY

Fronteer has no debt and is not invested in any short-term commercial paper or asset-backed securities. Fronteer has approximately C$84 million in cash that is fully liquid and held with a large Canadian commercial bank.

ABOUT FRONTEER

Fronteer is an exploration and development company with a track record of making big discoveries. Fronteer has an extensive portfolio of advanced stage gold projects in Nevada, a 40% interest in three gold and copper-gold projects in western Turkey, and a 42.2% interest in Aurora Energy Resources (Toronto:AXU.TO - News), a leading Canadian uranium company. For further information on Fronteer visit www.fronteergroup.com.

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to, those with respect to potential expansion of mineralization, potential size of mineralized zone, and size of exploration program involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Fronteer to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to international operations and joint ventures, the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of ore reserves and mineral resources, changes in project parameters as plans continue to be refined, future prices of gold and silver, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation and permitting requirements as well as those factors discussed in the section entitled "Risk Factors" in Fronteer's Annual Information form and Fronteer's latest Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although Fronteer has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Fronteer disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

News Release 08-25