Hey GuysGold IS A FINANCIAL INSTRUMENT! And has been for...

Hey Guys

Gold IS A FINANCIAL INSTRUMENT! And has been for civilisations across the globe for thousands of years.

It is now entering a new phase of importance in the global financial system.

A very interesting development occurred this week.

Newcrest has bought into tiny FNT Frontier Resources that is exploring in PNG.

I'm not trying to start rubbish rumours about takeover for IndoChine. With 80% of our shares held by the Top 20 Shareholders this is highly unlikely.

The point I'm trying to make here is why would a Blue Chip Gold Miner like Newcrest Mining with 45 million ounce gold deposit in Wafi-Golpu, let alone the millions of ounces of gold at Telfer and Cadia Valley buy into a tiny explorer in PNG?

Because the size, grade and scale of gold mines in PNG are the world's biggest and best!!!

As has been stated on HC before, mining in virgin high grade gold areas is what every gold miner wants.

The quality and size of the gold deposit of IndoChine's mine at Mt Kare has already shown to be world class. Even though it has only been drilled 350m deep.

We are in the Value Creation Phase of a small cap explorer, the JORC/PFS and BFS stages of a mining company's life cycle, which yields the highest market capitalisation increases.

We just need to let Mr Promnitz and his experienced team do their job over coming weeks and months.

Grab a coffee and enjoy the read below.

PS Always good to compare like for like!

Compare those high grade gold results below with ours at Mt Kare.......when we begin deeper drilling then we will be able to compare our deep drill holes too!

As they say GOLD IS KING!


Frontier Resources signs up Newcrest Mining as Mt Andewa gold project partner
Wednesday, March 07, 2012 by Bevis Yeo
Frontier Resources signs up Newcrest Mining as Mt Andewa gold project partner

Frontier Resources (ASX:FNT) has scored a major coup, signing up Newcrest Mining (ASX:NCM) as both an investor and a potential farm-in partner for its Mt Andewa gold porphyry in New Britain, Papua New Guinea.

Newcrest has agreed to subscribe for A$750,000 in Frontier shares priced at A$0.1067 each and will negotiate terms for the Mt Andewa farm-in.

Funds from the share placement will be used to fund exploration in Frontier’s various tenements.

Meanwhile, the farm-in will involve Newcrest taking a 60% interest in Mt Andewa by spending A$15.25 million over 4 years from the beginning of this year.

Newcrest will have the option to earn a 60% stake in the adjacent Schrader exploration area, once Frontier secures the licence ELA1951 over it, by spending a further A$4 million.

It will also have the option to increase its stake in the project by an additional 12% by paying Frontier a payment of 12% of the ore reserve gold ounces (at US$46 per ounce) specified in any subsequent feasibility study to develop Mt Andewa and/or Schrader.

Newcrest has the option to withdraw from the farm-in after it has spent at least A$2.5 million over about 18 months.

Recent drilling at Mt Andewa has highlighted its potential with diamond drill holes ADH 008 and ADH 009 intersecting gold mineralised intrusive and volcanic lithologies from the surface to the bottom of the holes.

While the gold and copper grades encountered have been modest, the intercept lengths and reflect a very large and pregnant system with excellent prospectivity.

ADH 008 intersected 403.5 metres at 0.27 grams per tonne (g/t) gold and 0.05% copper with higher grade intercepts including 6.4 metres at 2.75g/t gold and 0.08% copper and 1 metre at 2.94g/t gold and 0.46% copper.

ADH 009 intersected 407.9 metres at 0.23g/t gold and 0.06% copper including 58.5 metres at 0.33g/t gold and 0.09% copper, 9.3 metres at 0.72g/t gold and 0.14% copper and 3 metres at 1.15g/t gold and 0.05% copper.


http://www.proactiveinvestors.com.au/companies/news/26058/frontier-resources-signs-up-newcrest-mining-as-mt-andewa-gold-project-partner-26058.html