FRONTEER DEVELOPMENT GROUP has purchased the right to earn 100% interest in the Dixie Lake property. It is located near Red Lake, Ont., home of two high-grade gold mines: the Campbell mine of Placer Dome and the Red Lake mine of Goldcorp. Fronteer can earn its interest in Dixie Lake by paying $80,000 and issuing up to 200,000 shares to the vendor over four years. The vendor retains a 2% NSR, but Fronteer also has the option of buying half of that back for $1 million.
Several gold-bearing zones have been identified on the Dixie Lake property. Work done in 1989 and 1990 estimated the mineralization to be 1.1 million tons grading 0.10 opt Au in one zone. That zone is open at depth, according to Fronteer, and may be linked to three other zones.
Fronteer has several other gold properties in the Red Lake Belt. For more information see www.fronteergroup.com