glass half empty., page-27

Fellas I rarely post on here but thought there was no harm in sharing some of the email Peter sent me a couple of weeks or so back (I am sure he wont mind)- as I like you guys was wondering where and when any news was forthcoming so thought I would email him (have never emailed him before so did so as a concerned shareholder...!!)

So here it is:

"Sorry about the slow response – be assured there is no way we are going under or blowing out the share capital unnecessarily.



I’m trying to get the next payment out of Newcrest for Andewa and sent the invoice last night. They responded this morning that their budgets would be done in a few weeks and he will look at the invoice next week. Their budgets were supposed to be done late Feb/March when I first asked last year.

I now have to tell him that we need ample time to remobilise our crew and ensure all required drilling consumables are available etc for the ‘said ‘ program and several weeks takes us into June and we are hoping for a July start.

They have their own issues also unfortunately. The PNG Manager I was dealing with was laid off and I’m back to the global manager for Exploration.

OTML I spoke again to their Chief Geo on Monday and he is to try and get me budgets and work programs also. Not very rapidly though obviously.

He said they had the final Esis results and would send them on when their QA/QC was finalised. The drilling at Leonard Schultz will be along sometime , but they take a very long time to get things done.

They want to move to Advanced Exploration on the ENB and CNB tenements, but we have some momentary leverage and I’m seeking they complete required drilling on ENB this year etc. It continues to move forward.

Gasmata and Schrader results are available and now that the invoice is out of the way I will deal with them.

Tenements are all in good standing and will be for quite a while except the Whiteman Range (QRL JV –our name) which needs recon work but this is low priority.


The Aria River JV – Stoneleigh Prospect (property in QRL’s name) needs some work and is a really good prospect – which is why I wanted the JV with QRL. We tried to get in there in early March and weather was Atrocious for weeks with flooding. Everything costs and we are balancing the risk/reward now and drill holes are the only thing that will cause a re-rating, so……. I want to go and explore the Stoneleigh Prospect, but we were trying on the cheap (could get to about 3km of one edge by the rover) AND probably should go by 2 helicopter trips next time…….more costs.

FNTs geologists are all contractors and have been laid off. QRL’s have just finished some exploration programs so they may get rested for a month and then go do Stoneleigh- have to get QRL to agree to the expenditure.

My feeling is that nothing we announce in the short term will be material to the share price, unless one of the JV partners decides to do a monster program (better NML as we then get 10% management fee on top)

There was virtually no buying at all yesterday and it took us from 1.3c to 2.0c ---it is very, very harsh out there.

We may decide to do a very small capital raising (I would put my hand up for a significant portion of it and Martin (Director) would do the same – he put in $930,000 at 23c) to do limited exploration on Stoneleigh and Whitman and later this year – Sudest. The dilution would be minimal.

Frontier celebrated its 10th birthday 1 month ago and 305M shares outstanding now is not too bad for the rough ride we had and also were given. We will rise again I have no doubt, but need a market to do such also.

Sorry it is not positive right now, but we will phoenix up again when the total outlook improves a bit."


So there it is from the horse's mouth guys ............hopefully this gives you a bit more insight to where FNT is at presently.......good luck to all........looks like I am in for the long haul on this one now as simply no point in selling at this low a price and the upside is now way more attractive given my investment and average price (unfortunately!)

Cheers
Balu