Update on FNT

Okay team,

I take back my mumblings about Peter not responding. I received two emails with significant detail about the way ahead. I have cut and paste the lot for you all to read yourselves and I will summarise or add my assessment after that. I have also attached or tried to attach the two maps but not having a lot of success:

1st Email:

Hi Jon
This is all basic information so it is OK to post on Hot Copper.

Sorry that didn’t work out with Gold Ridge. It was somewhat devastating. A consultant that we used in the end was trying to get us to re-visit Gold Ridge, but if they want what we offered they (GCIL) will revert.
To be polite , they are rather difficult and not straight in their dealings.

Future for FNT is:

1. Hopefully get some modest additional cash from Torque plus refunds of old PNG and Tasmanian EL bonds to slightly enhance the cash position. WE are still trying for heavy equipment leasing and may finally get some work if we ship the gear to Lae. The problem then is getting paid. Commercial drilling proposals have gone no-where for us. We will sell equipment if required. There has been some interest in our boat, but no-one is willing to pay a decent price for it, so it remains on a trailer in Kimbe at our yard. We are taking as much of ‘salaries’ in shares for debt now as possible to conserve cash
2. It is wet season now at Bulago (until say Nov), with the drill rig remaining onsite. The Bulago airstrip was never certified (nose wheel was ripped off the PAC 750) and this remains to be completed to enhance access (open the mapsource file in google earth to see what the walk over is like from Agali). Unfortunately there is a cost as always for transporting inspector, purchasing sock/cones etc.
3. Peter Sw will forthwith undertake a brief geophysical review of the Bulago data, specifically targeting the multiple skarn targets on the ridgeline to the south of where we have worked to date. But also my interpretation of the copper porphyry and other gold targets. There is a line of magnetic anomalies from the SE upslope part of the Bulago basin (downslope is the best gold in drainage anomalies [brilliant and consistent really] in the entire region) are in the region of a skarn target that OTML evaluated a little (attached).
4. Frontier will drill the best skarn target once defined and later in 2015 if we afford it.
5. Possible small scale alluvial gold sluicing/mining at Bulago in conjunction with landowners (needs to be negotiated). This may be more rewarding than it sounds, as 2 to >10m oz of gold may have been eroded out of the Bulago valley already to expose the copper-gold porphyry. It missed old timer alluvial mining because they went on upstream in the Strickland River to Porgera and missed Bulago. The area is very difficult to access, so is still virginal. The locals use gold pans only and pan enough to sell to gold buyers. Unfortunately, security then becomes more of an issue on the ground for us.
6. Undertake the Muller ELA Warden’s Court Hearing that was recently re-scheduled to 21st October.
7. Await re-granting of Andewa EL.
8. Shop Bulago around for a JV if absolutely needed, few would be interested but Anglo American and/or Highlands are looking around.

Cheers Peter

2nd Email:

Jon
This shows the line of targets going from the topo peak in SE to a funny lake in the NW located at the intersection of major regional structures. Looks excellent.
The drilled high grade Suguma area is on the south side of the jelly bean one located to the W of the word Idawe on the geology plan and in the middle (nice med red one) on the rotated version showing the aeromagnetic anomalies. This suggests more potential to the north, were we have not done anything. The larger anomaly to the NW hasn’t been evaluated at all and its drainages (where sampled) have some gold. Needs work. Same goes for the larger one to the E, as best drilling to date was on its E, with hundreds of metres of say 0.1g/t gold+ 0.15% copper in hole 7.
Cheers Peter


My opinion or assessment only:

I find these emails very encouraging but also frustrating. I am frustrated because we were diverted by Gold Ridge. I believe as apparently does Peter we could be a whisker away from making some serious gold discoveries. Diverting half our cash into the Gold Ridge venture really hurt the program. It took enough money away that we need a top up. While we have some money we need more! Without trawling through past reports I don't believe we are as bad off as 6-9 month ago but not far off it. We probably are $150K up on where we were then. The logistics and terrain is a real problem for continued operations, however can be overcome with money. Peter is looking at all options from hiring out his drills to selling the barge to a JV. I am encouraged that he has shown great ability to get JVs in the past and he is great at drilling and conducting operations on the smell of an oily rag, but we still need an oily rag.

Gold Ridge. I think this saga may not be completely over. In my view GCIL have proven themselves to operate in poor faith. FNTs public dealings with them will have likely caused other firms to be very hesitant or adverse to seek to re-establish operations at Gold rRdge. Many in the market may have liked it but I didn't. I believe it was a borderline venture in the first place. I would not be surprised if GCIL turn around and approach Peter for a renewed deal. Hopefully Peter tells them where to go. They have shown they are a not good people to do business with. In time if they (GCIL) don't realise it already they may realise that FNT were their only hope of getting the Gold Ridge mine going again. When they realise that and decide to try and re-engage as I have said I hope we don't go there.

Importantly FNT can't really get back into operations until November due to the weather. So we have several months for Peter to top up the money we have. I was thinking about selling out but now I will hold and stay in.

best of luck all.