Toronto-based FrontlineGold Corp. has secured two new tailings projects in Turkeyfollowing a successful tender process.
President and CEO Walter Henry said April 7 that theacquisition of the fully permitted Keban and Kambertepe tailings projects,which are both in the Elazig Province, place Frontline in an "excellentposition" to transition to a revenue generating entity within the next 60days.
The Keban project includes the exclusive rights to process aminimum 114,000 tonnes of mineralized milled tailings at average grades of 1.78g/t of gold, 96 g/t of silver, 2.94% lead and 0.63% zinc.
Frontline has entered into an excavating and transportationagreement with AHSA Muh. Mut. ins Mad San Tic Ltd Sti, the company's agentduring the tender process.
The tailings production schedule is about 18 months withaverage daily tailings excavation ranging from 250 tonnes to 400 tonnes per day.
The Kambertepe project, meanwhile, includes the exclusiverights to process up to 6,000 tonnes of mineralized tailings at average gradesof 2.1% copper, 21 g/t of silver, 1.9% zinc, 0.5% titanium and over 50% iron.
Excavation and transport at Kambertepe is set to begin inthe next 15 days, with completion expected two weeks after the start ofoperations.
Under the deal, Frontline is required to pay 2.6 millionTurkish lira over the next 12 months for the Keban project and has 24 months tocomplete the exploitation of the tailings.
For Kambertepe, the company will pay 80,000 lira over thenext 90 days.
Frontline is looking for an investor or partner to fasttrack the full tailings recovery at both the Keban and Kambertepe tailingsprojects.
Henry said the revenue from the tailings projects willenable the company to advance its other projects in Turkey, Mali and Red Lake,capitalize on other strategic acquisitions and seek opportunities andregulatory approvals to restructure Frontline's capital structure.
As of April 7, US$1was equivalent to 2.86 Turkish lira.