J1580Amended NI 43-101 Resource Estimate and TechnicalReport on the Zandkopsdrift Rare Earth Element (REE)Project, located...
INDEPENDENT TECHNICAL REPORT29 October, 2010The DirectorsFrontier Rare Earths Limited9 Allée SchefferL-2520 LuxembourgDear...
Budgets for the exploration and evaluation programmes described in this report amount to atotal expenditure of approximate...
Yours faithfullyPete Siegfried Consulting GeologistMSAProject J1580                                            Page: ivFro...
Table of ContentsINDEPENDENT TECHNICAL REPORT ...............................................................................
6.4.3      Reverse Circulation and Diamond drilling 1988 .......................................... 30              6.4.4 ...
13.3 Sample Security ........................................................................................................
22    REFERENCES.............................................................................................................
List of FiguresFigure 4-1       Location of Zandkopsdrift REE Project                             20Figure 5-1       Digit...
Figure 14-1      Anglo American drill collars                                    71Figure 14-2      Anglo American pulps a...
1         SUMMARY1.1 Introduction          The MSA Group (“MSA”) has been commissioned by Frontier Rare Earths          Li...
1.3 Geology and Mineralisation          Zandkopsdrift is a REE bearing carbonatite associated with the Cretaceous age     ...
resulted in Frontier completing several mineralogical and petrographical studies          and culminating in a 13 hole rev...
contained within the A Zone and the C Zone contained within the B Zone. These          zones will be the primary focus of ...
and Inferred Resources. REE mineralisation has been identified within near          surface, deeply weathered phases/parts...
2         INTRODUCTION2.1 Scope of Work          The MSA Group (“MSA”) was commissioned by Frontier to provide an         ...
by the Prospecting Right, which is large, has sufficient technical merit to justify          the proposed programmes and a...
Neither MSA, nor the authors of this report, has or has had previously, any          material interest in Frontier or the ...
In compiling this report, the authors have also relied extensively on reports and          personal communications with Dr...
Zandkopsdrift Project up to bankable feasibility stage, a payment from certain of          the BEE Shareholders following ...
4.3 South African Minerals Legislation4.3.1 Introduction          Minerals legislation in South Africa is governed by the ...
4.3.3     Royalties          The Mineral and Petroleum Resources Royalty Act, 2008 came into effect on 1          May 2009...
night. Seasonal variations in the local climate are not expected to impact on          planned activities/operations at th...
network coverage. Petrol and diesel are readily available from Garies and          Bitterfontein.          The regional ce...
Figure 5-1                                        Digital Elevation Model over ZRPProject J1580                           ...
Figure 5-2                                                         Zandkopsdrift carbonatite (looking South East)Project J...
6         HISTORY          The Zandkopsdrift carbonatite has been subject to several geological,          mineralogical an...
U3O8 and 140 g/t ThO2). As a result, Anglo American terminated all work and          withdrew from the project in late 197...
Figure 6-1 Historical Drilling at Zandkopsdrift up to 1987 *          * Note that the drill positions for the Phelps Dodge...
6.4 Anglo American 1985 – 1988          Anglo American returned to the property in 1985, following its focus on          i...
No details relating to Anglo American’s sampling methodology or QA/QC are          available.          Assays were carried...
Figure 6-2                                           Anglo American Cross Section across ZandkopsdriftProject J1580       ...
Figure 6-3                                                         Anglo American diamond drill log ZKD39Project J1580    ...
Figure 6-4                                              Reverse circulation, diamond and wagon drilling at ZandkopsdriftPr...
Table 6-1                                        Drilling completed over Zandkopsdrift                                    ...
Figure 6-5                                                         Historical drilling at ZandkopsdriftProject J1580      ...
6.4.4     Mineralogy and Metallurgy          Anglo American carried out a series of metallurgical and mineralogical tests ...
Test work concluded that up to 88 % La and Ce could be leached at a          temperature of 200° C at an acid (H2SO4) cons...
7         GEOLOGICAL SETTING7.1 Regional Geology          The ZRP is located within the southern parts of the tectonostrat...
Figure 7-1                                           Regional Geological Setting                                     (afte...
Figure 7-2                                          Koegel Fontein Complex                                              (a...
7.2 Property Geology          Frontier’s Prospecting Right covers a large area of the northern margins of the Koegel      ...
Figure 7-3                                                         Project GeologyProject J1580                           ...
Figure 7-4                       Carbonatite breccia (left) and brecciation of country rock (right).          Anglo Americ...
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101
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Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101

  1. 1. J1580Amended NI 43-101 Resource Estimate and TechnicalReport on the Zandkopsdrift Rare Earth Element (REE)Project, located in the Republic of South AfricaPrepared by The MSA Group on behalf of:Frontier Rare Earths LimitedAuthor(s): Mike Venter Regional Consulting Geologist Pr.Sci.Nat Mike Hall Consulting Geologist Resources MAusIMM Pete Siegfried Consulting Geologist MAusIMM James Brown Senior Metallurgist MASc P.EngDate: 28 September, 2010Amended Date: 29 October, 2010Project Code: J1580Author Qualified Person Qualified Person Qualified PersonMike Venter James Brown Mike Hall Pete Siegfried
  2. 2. INDEPENDENT TECHNICAL REPORT29 October, 2010The DirectorsFrontier Rare Earths Limited9 Allée SchefferL-2520 LuxembourgDear Sirs,The MSA Group (“MSA”) has been commissioned by Frontier Rare Earths Limited (“Frontier”)to provide a Resource Estimate and Independent Technical Report on the Zandkopsdrift RareEarth Element (REE) Project (“ZRP”) located in the Republic of South Africa in which Frontierhas an interest. This report forms part of the Policy 2.1 Minimum Listing Requirements of theToronto Stock Exchange (TSX) & TSX Venture Exchange (“TSX-V”). This NI 43-101Technical Report has been prepared in accordance with National Instrument 43-101Standards of Disclosure for Mineral Projects and Form 43-101F1, as issued by the CanadianSecurities Administrators (CSA).MSA has not been requested to provide an Independent Valuation, nor have we been askedto comment on the Fairness or Reasonableness of any vendor or promoter considerations,and we have therefore not offered any opinion on these matters.MSA has based its review of the ZRP on information and independent reports of othersprovided by Frontier, along with other relevant published and unpublished data. PeteSiegfried, who is one of the Qualified Persons for this report, has considerable experience incarbonatite and REE mineral systems gained during 25 years of exploration experience. Sitevisits were undertaken to the ZRP by Pete Siegfried and Mike Venter between 1 December to5 December, 2009 and by Mike Venter from 10 to 11 November 2009. A final draft of thereport was also provided to Frontier, along with a written request to identify any material errorsor omissions prior to lodgement.The ZRP comprises a single prospecting right located in the Northern Cape Province of SouthAfrica. The prospecting right is held by Sedex Minerals (Pty) Ltd (Sedex), a 74% ownedsubsidiary of Frontier. The present status of the prospecting right listed in this report has beenverified by Frontier’s legal advisors, Taback and Associates (Proprietary) Limited, and a copyof the prospecting right and the legal opinion in relation thereto have been observed by theauthors.The ZRP is considered to be sufficiently prospective on the basis that a significant amount ofhistorical exploration and evaluation work has been completed over the ZRP, the results ofwhich warrant further exploration and assessment of the project’s economic potential,consistent with the programmes proposed by Frontier.Project J1580 Page: iiFrontier NI 43-101 Technical Report – 29 October, 2010
  3. 3. Budgets for the exploration and evaluation programmes described in this report amount to atotal expenditure of approximately USD$ 16 million. Frontier has prepared staged explorationand evaluation programmes, specific to the potential of the project, which are consistent withthe budget allocations. MSA considers that the relevant areas have sufficient technical meritto justify the proposed programmes and associated expenditure.The Independent Technical Report has been prepared on data and information available up toand including 23 April 2010. MSA has provided consent for the release of the NI 43-101Technical Report in the form and context in which it appears.MSA is an exploration and resource consulting firm, which has been providing services andadvice to the international mineral industry and financial institutions since 1983. This reporthas been compiled by Pete Siegfried, Mike Venter and Mike Hall and supported by Mr JamesBrown from SGS Minerals Services, Canada.Mr. Venter is a professional geologist with 17 years experience in the exploration andevaluation of mineral properties and is a full time employee of MSA. He is Regional ConsultingGeologist for MSA and is a member in good standing with the South African Council forNatural Scientific Professions (SACNASP). Mr. Hall is a professional geologist with 29 yearsexperience in the exploration and evaluation of mineral properties and resource reportingthereof and is a full time employee of MSA. He is Consulting Geologist – Mineral Resourcesfor MSA and is a member in good standing with the Australian Institute for Metallurgy andMining (AusIMM) and has the appropriate relevant qualifications, experience, competence andindependence to be considered a “Qualified Person” under the definitions provided in theReporting Code. Mr. Siegfried is a professional geologist with 25 years experience in theexploration and evaluation of mineral properties and is a Consultant to MSA.Mr. Siegfried is a member in good standing with the Australian Institute for Metallurgy andMining (AusIMM) and has the appropriate relevant qualifications, experience, competence andindependence to be considered a “Qualified Person” under the definitions provided in theReporting Code. The metallurgical review was carried out by Mr James Brown, a professionalmetallurgist with 6 years experience. Mr Brown is Senior Metallurgist at SGS MineralsServices, Canada as well as a member of the Canadian Institute of Mining and Metallurgy anda licensed Professional Engineer in the province of Ontario, Canada. Mr Brown has theappropriate relevant qualifications, experience, competence and independence to act as a“Qualified Person” as that term is defined in National Instrument 43-101 (Standards ofDisclosure for Mineral Projects).Neither MSA, nor the authors of this report, have or have previously had any material interestin Frontier or the mineral property in which Frontier has an interest. Our relationship withFrontier is solely one of professional association between client and independent consultant.This report is prepared in return for professional fees based upon agreed commercial ratesand the payment of these fees is in no way contingent on the results of this report.Project J1580 Page: iiiFrontier NI 43-101 Technical Report – 29 October, 2010
  4. 4. Yours faithfullyPete Siegfried Consulting GeologistMSAProject J1580 Page: ivFrontier NI 43-101 Technical Report – 29 October, 2010
  5. 5. Table of ContentsINDEPENDENT TECHNICAL REPORT ..................................................................................... II1 SUMMARY...................................................................................................................... 11 1.1 Introduction ............................................................................................................ 11 1.2 Property, Location and Ownership ......................................................................... 11 1.3 Geology and Mineralisation .................................................................................... 12 1.4 Exploration Concept ............................................................................................... 12 1.5 Status of Exploration .............................................................................................. 12 1.6 Mineral Resources ................................................................................................. 13 1.7 Metallurgical Review............................................................................................... 14 1.8 Conclusions and Recommendations ...................................................................... 142 INTRODUCTION ............................................................................................................. 16 2.1 Scope of Work ....................................................................................................... 16 2.2 Principal Sources of Information............................................................................. 16 2.3 Qualifications, Experience and Independence........................................................ 173 RELIANCE ON OTHER EXPERTS ................................................................................. 184 PROPERTY DESCRIPTION AND LOCATION................................................................ 19 4.1 Area and Location .................................................................................................. 19 4.2 Mineral Tenure ....................................................................................................... 19 4.3 South African Minerals Legislation ......................................................................... 21 4.3.1 Introduction................................................................................................. 21 4.3.2 Legislation Summary .................................................................................. 21 4.3.3 Royalties..................................................................................................... 225 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY............................................................................................................ 22 5.1 Access ................................................................................................................... 22 5.2 Climate................................................................................................................... 22 5.3 Local Resources and Infrastructure........................................................................ 23 5.4 Physiography ......................................................................................................... 246 HISTORY ........................................................................................................................ 27 6.1 Historical manganese evaluation............................................................................ 27 6.2 Anglo American 1973 – 1975 ................................................................................. 27 6.3 Phelps Dodge 1977................................................................................................ 28 6.4 Anglo American 1985 – 1988 ................................................................................. 30 6.4.1 Percussion drilling 1986.............................................................................. 30 6.4.2 Wagon drilling 1988.................................................................................... 30Project J1580 Page: 5Frontier NI 43-101 Technical Report – 29 October, 2010
  6. 6. 6.4.3 Reverse Circulation and Diamond drilling 1988 .......................................... 30 6.4.4 Mineralogy and Metallurgy .......................................................................... 37 6.4.4.1 Mineralogy .................................................................................................. 37 6.4.4.2 Metallurgy ................................................................................................... 377 GEOLOGICAL SETTING ................................................................................................ 39 7.1 Regional Geology................................................................................................... 39 7.1.1 The Koegel Fontein Complex ..................................................................... 39 7.2 Property Geology ................................................................................................... 428 DEPOSIT TYPE .............................................................................................................. 459 MINERALISATION.......................................................................................................... 4610 EXPLORATION AND EVALUATION .............................................................................. 48 10.1 Ground magnetic and radiometric surveys ............................................................. 48 10.2 Petrographic and mineralogical investigations........................................................ 49 10.3 Age estimation of Zandkopsdrift Carbonatite.......................................................... 49 10.4 Data Compilation and re-interpretation................................................................... 51 10.5 Preliminary deposit/pit modelling ............................................................................ 51 10.6 REE Analyses and additional mineralogy ............................................................... 51 10.7 Compilation of Anglo American data and generation of databases ........................ 5211 DRILLING ....................................................................................................................... 52 11.1 Objectives .............................................................................................................. 52 11.2 Historical Drilling..................................................................................................... 52 11.3 Validation drilling .................................................................................................... 53 11.4 Results of drilling.................................................................................................... 56 11.5 Main lithologies....................................................................................................... 56 11.5.1 Fe-Mn Wad................................................................................................. 56 11.5.2 Melnoite ...................................................................................................... 57 11.5.3 Carbonatite ................................................................................................. 57 11.6 Orientation of mineralisation................................................................................... 5712 SAMPLING METHOD AND APPROACH........................................................................ 60 12.1 Pulp Sampling ........................................................................................................ 60 12.2 RC drilling and sampling ........................................................................................ 60 12.3 Density and Magnetic Susceptibility Measurements ............................................... 62 12.3.1 Density Logging .......................................................................................... 62 12.3.2 Magnetic Susceptibility ............................................................................... 6213 SAMPLE PREPARATION, ANALYSIS AND SECURITY ................................................ 63 13.1 Pulp sample preparation ........................................................................................ 63 13.2 Drill Sample Preparation......................................................................................... 64 13.2.1 Primary Laboratory ..................................................................................... 65 13.2.2 Referee Laboratory..................................................................................... 65Project J1580 Page: 6Frontier NI 43-101 Technical Report – 29 October, 2010
  7. 7. 13.3 Sample Security ..................................................................................................... 65 13.4 Quality Assurance and Quality Control ................................................................... 66 13.4.1 Blanks and Certified Reference Materials (CRMs) and Duplicates ............. 67 13.5 Drill hole database.................................................................................................. 68 13.6 Adequacy of Procedures ........................................................................................ 6814 DATA VERIFICATION..................................................................................................... 69 14.1 Introduction ............................................................................................................ 69 14.2 Sample preservation .............................................................................................. 70 14.3 Anglo American drill hole and pulp/sample verification ........................................... 70 14.4 Frontier Validation drilling ....................................................................................... 7215 ADJACENT PROPERTIES ............................................................................................. 7616 MINERAL PROCESSING AND METALLURGICAL TESTING........................................ 77 16.1 Introduction ............................................................................................................ 77 16.2 Summary................................................................................................................ 7717 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES................................... 77 17.1 Summary................................................................................................................ 78 17.1.1 Current Resource Estimate......................................................................... 78 17.1.2 Known Issues that Materially Affect the Mineral Resources ........................ 78 17.2 Assumptions, Methods and Parameters for the 2010 Resource Estimates ............ 78 17.2.1 Input Database Validation and Preparation................................................. 79 17.2.2 Geological Interpretation and Modelling...................................................... 80 17.2.3 Block Model Creation.................................................................................. 82 17.2.4 Input Data Exploratory Data Analysis and Compositing .............................. 82 17.2.5 Estimation Parameters and Grade Estimation ............................................ 82 17.2.6 Validation, Bias and Block Model Grade Distributions................................. 83 17.2.7 Block Exclusions......................................................................................... 83 17.3 Resource Classification.......................................................................................... 83 17.3.1 Geological Losses ...................................................................................... 84 17.4 Resource Reporting ............................................................................................... 84 17.4.1 Depth and Lateral Grade Continuity............................................................ 86 17.5 Distribution of Individual REO’s .............................................................................. 90 17.6 Uranium and Thorium............................................................................................. 99 17.7 Checklist for Reporting on Resources .................................................................... 99 17.8 Conclusions.......................................................................................................... 10118 OTHER RELEVANT DATA AND INFORMATION ......................................................... 10219 INTERPRETATION AND CONCLUSIONS.................................................................... 10320 RECOMMENDATIONS ................................................................................................. 10421 ACKNOWLEDGEMENTS ............................................................................................. 108Project J1580 Page: 7Frontier NI 43-101 Technical Report – 29 October, 2010
  8. 8. 22 REFERENCES.............................................................................................................. 10823 DATE AND SIGNATURE PAGE ................................................................................... 111List of TablesTable 1-1 Indicated Mineral Resources at Zandkopsdrift 13Table 1-2 Inferred Mineral Resources at Zandkopsdrift 13Table 1-3 Indicated Mineral Resources - Zones A, B and C 14Table 1-4 Inferred Mineral Resources - Zones A, B and C 14Table 6-1 Historical Drilling completed over Zandkopsdrift 35Table 11-1 Frontier validation drilling details 53Table 17-1 REE to REO conversion factors 79Table 17-2 Comparison of borehole and estimated block means 83Table 17-3 Zandkopsdrift Indicated Resources 84Table 17-4 Zandkopsdrift Inferred Resources 84Table 17-5 Indicated Mineral Resources – Zones A,B and C 85Table 17-6 Inferred Mineral Resources – Zones A, B and C 85Table 17-7 Significant Intercepts 86Table 17-8 Relative distribution of REO’s by weight 90Table 17-9 Individual REO in the Indicated and Inferred Resource Categories 91Table 17-10 Indicated Mineral Resources – REO Distribution 92Table 17-11 Inferred Mineral Resources – REO Distribution 92Table 17-12 Checklist for Resource Reporting (CIM) 100Table 20-1 Work program cost estimate 106Table 20-2 Phase 1 and 2 Budget Summary 107Project J1580 Page: 8Frontier NI 43-101 Technical Report – 29 October, 2010
  9. 9. List of FiguresFigure 4-1 Location of Zandkopsdrift REE Project 20Figure 5-1 Digital Elevation Model over ZRP 25Figure 5-2 Zandkopsdrift carbonatite (looking South East) 26Figure 6-1 Historical Drilling at Zandkopsdrift to 1987 29Figure 6-2 Anglo American cross section across Zandkopsdrift 32Figure 6-3 Example of Anglo American DD log – ZKD39 33Figure 6-4 Revere circulation, diamond and wagon drilling at Zandkopsdrift 34Figure 6-5 Historical drilling at Zandkopsdrift 36Figure 7-1 Regional Geological Setting 40Figure 7-2 Kogel Fontein Complex 41Figure 7-3 Project Geology 43Figure 7-4 Photographs of carbonatite brecciation at Zandkopsdrift 44Figure 8-1 Schematic cross section, Mt Weld Carbonatite Complex, Australia 46Figure 9-1 Chondrite normalized plot of average Zandkopsdrift REE content 47Figure 10-1 Ground magnetics and scintillometer surveys 50Figure 11-1 Frontier Drilling 55Figure 11-2 Photographs of Fe-Mn wad outcrops 56Figure 11-3 Southwest-Northeast Section across Zandkopsdrift 58Figure 11-4 Northwest-Southeast Section across Zandkopsdrift 59Figure 12-1 RC sample collection 61Figure 12-2 Cone and Quartering of wet/damp samples 61Figure 13-1 Pulp sub sampling by Frontier 63Project J1580 Page: 9Frontier NI 43-101 Technical Report – 29 October, 2010
  10. 10. Figure 14-1 Anglo American drill collars 71Figure 14-2 Anglo American pulps and rejected pulps 71Figure 14-3 Validation hole ZKR29V 72Figure 14-4 Anglo American and Frontier drilling 73Figure 14-5 Validation drilling comparison with Anglo American pulp data 75Figure 17-1 Carbonatite cylinder, base of drilling and block model 81Figure 17-2 Grade-Tonnage Curve: Indicated Resources 87Figure 17-3 Grade-Tonnage Curve: Inferred Resources 88Figure 17-4 Continuity from surface of blocks >3% TREO 89Figure 17-5 Plan view of block model at 1% TREO cut-off 93Figure 17-6 Plan view of block model – Zone A at 1.5% TREO cut-off 93Figure 17-7 Plan view of block model – Zone B at 2.5% TREO cut-off 94Figure 17-8 Plan view of block model – Zone C at 3.5% TREO cut-off 94Figure 17-9 Zandkopsdrift Block Model at 1% TREO cut-off 95Figure 17-10 Zone A Zandkopsdrift Block Model at 1.5% TREO cut-off 96Figure 17-11 Zone B Zandkopsdrift Block Model at 2.5% TREO cut-off 97Figure 17-12 Zone C Zandkopsdrift Block Model at 3.5% TREO cut-off 98List of AppendicesAppendix 1 : Glossary and Definition of Terms UsedAppendix 2 : Certificate of Qualified Persons and authors consentsAppendix 3 : Drill hole StatisticsAppendix 4 : QA/QC SummariesAppendix 5 : SGS Metallurgical ReportAppendix 6 : Borehole Strip logsProject J1580 Page: 10Frontier NI 43-101 Technical Report – 29 October, 2010
  11. 11. 1 SUMMARY1.1 Introduction The MSA Group (“MSA”) has been commissioned by Frontier Rare Earths Limited (“Frontier”) to undertake a Mineral Resource estimate and compile a technical report on the Zandkopsdrift Rare Earth Element (REE) Project (ZRP) in South Africa. Following a full review by the Ontario Securities Commission (OSC), and upon recommendation by the OSC, certain aspects of the technical report were amended to reflect additional details relating to individual REO grade distribution at the ZRP, as well as to clarify details relating to the metallurgical aspects of this report. This amended report is to comply with disclosure and reporting requirements set forth in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards (2005) and National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects, and in accordance with Form 43-101F1 (the “Technical Report”) in the National Instrument.1.2 Property, Location and Ownership The ZRP is located in the Northern Cape Province of South Africa and comprises prospecting right number 869/2007 PR (the “Prospecting Right”) covering an area of 58 862 ha and is located southwest of the town of Garies. The Prospecting Right is held by Sedex Minerals (Pty) Ltd (Sedex), which is a 74% owned subsidiary of Frontier. Sedex has complied with the BEE equity ownership requirements as laid down by the Mining Charter and MPRDA, through shareholder agreements with historically disadvantaged South African individuals and entities that together hold the remaining 26% of the issued share capital of Sedex. In addition to Frontier’s direct interest in the Zandkopsdrift Project through its 74% shareholding in Sedex, Frontier shall also be entitled to, in consideration for Frontier’s funding of the BEE Shareholders’ share of Sedex’s expenditure on the Zandkopsdrift Project up to bankable feasibility stage, a payment from certain of the BEE Shareholders following the completion of the bankable feasibility study equal to 21% of the then valuation of the Zandkopsdrift Project. This gives Frontier an effective 95% interest in the Zandkopsdrift Project until such payment has been received.Project J1580 Page: 11Frontier NI 43-101 Technical Report – 29 October, 2010
  12. 12. 1.3 Geology and Mineralisation Zandkopsdrift is a REE bearing carbonatite associated with the Cretaceous age alkaline Koegel Fontein intrusive complex located within the Mesoproterozoic Namaqua-Natal Province. It occurs as a circular intrusive that rises some 40 m above the surrounding plains and is represented in outcrop by deeply weathered secondary Fe-Mn material or “wad”. To date, 30 smaller satellite intrusives/plugs (some REE bearing) have been identified proximal to the Zandkopsdrift main carbonatite pipe. REE mineralisation at Zandkopsdrift is related to a number of phases of carbonatite intrusion that have undergone several stages of alteration and weathering resulting in a deeply weathered, vertically zoned horizon. Exploration work to date over Zandkopsdrift has identified several REE enriched zones, mostly within the upper 80 m of the carbonatite, that broadly correspond to these zones of deep weathering/alteration/supergene enrichment. The majority of the REE bearing minerals identified at Zandkopsdrift consist of late stage, probably supergene, monazite and crandallite. A number of other minerals such as cheralite and gorceixite also occur at Zandkopsdrift.1.4 Exploration Concept Carbonatites often have the most variable mineral compositions of all igneous rocks and therefore are host to a variety of (and a large proportion of) commodities including phosphates, Nb and REE as well as a variety of industrial minerals such as vermiculite, fluorite and zircon. REE mineralisation in carbonatites is generally related to secondary REE minerals that are enriched following later stage hydrothermal and lateritic/supergene alteration. Exploration at Zandkopsdrift is focused on testing the lateral and vertical extents and prospectivity of a deeply weathered REE enriched zone that has to date been identified by historical drilling. Prospectivity of a zone/domain is defined by its REE grades, geological structure and depth below surface. The presence of potential REE resources located within the satellite pipes and plugs identified proximal to Zandkopsdrift should also be considered.1.5 Status of Exploration The deposit has been investigated with numerous phases of historical drilling, with the most recent being completed by Anglo American in 1989. This phase of reverse circulation and diamond drilling comprised 33 holes, with a majority being drilled vertically on a rough 100 m grid to an average depth of 100 m. Frontier has acquired both the historical data and samples from exploration carried out on Zandkopsdrift by Anglo American. Compilation of the data hasProject J1580 Page: 12Frontier NI 43-101 Technical Report – 29 October, 2010
  13. 13. resulted in Frontier completing several mineralogical and petrographical studies and culminating in a 13 hole reverse circulation (RC) validation drilling program in late 2009. This drilling and re-sampling exercise was successful in validating Anglo American’s historical database and results.1.6 Mineral Resources The following NI 43-101 compliant Mineral Resource Estimates for Total Rare Earth Oxides (TREO) have been declared at the Zandkopsdrift deposit: Table 1-1 Indicated Mineral Resources at Zandkopsdrift* Contained Cut Off TREO Mt TREO (%TREO) grade (%) (‘000t) 1.0 22.92 2.32 532 Table 1-2 Inferred Mineral Resources at Zandkopsdrift* Contained Cut Off TREO Mt TREO (%TREO) grade (%) (‘000t) 1.0 20.81 1.99 415 * The mineral resource classifications that have been applied are in accordance with CIM Definition Standards. The mineral resource estimates reflect 100% of the estimated resources at Zandkopsdrift. Frontier’s 74% owned subsidiary, Sedex, has complied with the BEE equity ownership requirements as laid down by the Mining Charter, and MPRDA, through shareholder agreements with historically disadvantaged South African individuals and entities that together hold the remaining 26% of the issued share capital of Sedex. In addition to Frontier’s direct interest in the Zandkopsdrift Project through its 74% shareholding in Sedex, Frontier shall also be entitled to, in consideration for Frontier’s funding of the BEE Shareholders’ share of Sedex’s expenditure on the Zandkopsdrift Project up to bankable feasibility stage, a payment from certain of the BEE Shareholders following the completion of the bankable feasibility study equal to 21% of the then valuation of the Zandkopsdrift Project. This gives Frontier an effective 95% interest in the Zandkopsdrift Project until such payment has been received. A cut off grade of 1% has been selected on the basis of initial capital and operating cost studies commissioned by Frontier, and this forms the basis for the current Zandkopsdrift resource estimate. Detailed breakdowns of the above resource estimates by individual REO are provided in Tables 17-10 and 17-11. However, there are a series of higher grade zones within this resource that are considered to be of sufficient size to be exploited as discrete units within the Zandkopsdrift deposit. Three such zones have been identified and are referred to as A Zone, B Zone and C Zone in Tables 1-3 and 1-4 below and are defined by cut off grades of 1.5%, 2.5% and 3.5% TREO, respectively. The B Zone isProject J1580 Page: 13Frontier NI 43-101 Technical Report – 29 October, 2010
  14. 14. contained within the A Zone and the C Zone contained within the B Zone. These zones will be the primary focus of further work on Zandkopsdrift. Table 1-3 Indicated Mineral Resources – Zones A, B and C Contained TREO Zone TREO Mt TREO grade (%) (‘000t) Cut Off % A 1.5 16.55 2.74 453 B 2.5 7.83 3.67 287 C 3.5 3.23 4.57 148 Table 1-4 Inferred Mineral Resources – Zones A, B and C* Contained TREO Zone TREO Mt TREO grade (%) (‘000t) Cut Off % A 1.5 12.89 2.48 319 B 2.5 4.52 3.61 163 C 3.5 1.54 4.72 73 Detailed breakdowns of the above resource estimates by individual REO are provided in Tables 17-10 and 17-11.1.7 Metallurgical Review A review carried out by SGS Minerals Services of Lakefield, Ontario (SGS) of metallurgical and mineralogical studies at Zandkopsdrift indicates that there appears to be considerable potential for upgrading by flotation of a majority of the REE containing minerals and that hydrometallurgical treatment of the Zandkopsdrift REE deposit has a number of leaching options that give encouraging levels (>90%) of recovery of rare earth elements to solution. This suggests that the REE element bearing minerals are likely amenable to conventional extractive processes. However, additional metallurgical test work and characterisation studies are critical to obtaining a better understanding of the REE mineralogy and the optimal beneficiation routes to use.1.8 Conclusions and Recommendations Frontier has successfully completed a data validation and drilling exercise over the ZRP that has culminated in the declaration of NI 43-101 compliant IndicatedProject J1580 Page: 14Frontier NI 43-101 Technical Report – 29 October, 2010
  15. 15. and Inferred Resources. REE mineralisation has been identified within near surface, deeply weathered phases/parts of the Zandkopsdrift carbonatite with mineralisation styles similar to those of other known REE bearing carbonatites being evaluated or developed globally. An additional amount of infill drilling and delineation is required in order to upgrade the resources to higher confidence categories. A review of metallurgical and mineralogical studies carried out at Zandkopsdrift indicates that there appears to be considerable potential for upgrading by flotation of a majority of the REE containing minerals and that hydrometallurgical treatment of the Zandkopsdrift REE deposit has a number of leaching options that give encouraging levels (>90%) of recovery of rare earth elements to solution. This suggests that the REE element bearing minerals are likely amenable to conventional extractive processes. The ZRP is considered to have significant potential and is considered by the authors to represent one of the largest known rare earth resources outside of China classified under international resource reporting standards. The ZRP warrants further exploration, evaluation, and assessment of its economic potential, consistent with the proposed programmes set out below. In addition, continued exploration elsewhere within the Prospecting Right as well as regional targeted exploration may lead to the discovery of additional satellite deposits with potential resources of either higher grade or different REE distributions that could provide supplemental or alternative feed to a mining and processing operation at Zandkopsdrift. Exploration and evaluation programme budgets summarized in the report amount to a total expenditure of approximately USD$ 16,000,000.Project J1580 Page: 15Frontier NI 43-101 Technical Report – 29 October, 2010
  16. 16. 2 INTRODUCTION2.1 Scope of Work The MSA Group (“MSA”) was commissioned by Frontier to provide an Independent Technical Report (“ITR”) for Frontier’s ZRP in South Africa for which Frontier holds (through 74% owned subsidiary Sedex Minerals (Pty) Ltd) a valid prospecting right (869/2007PR). This ITR is to be summarised in and filed with the applicable Canadian securities regulators in connection with a Prospectus pursuant to which Frontier plans to undertake an Initial Public Offering on the Toronto Stock Exchange (TSX), with the objective of raising funds principally for the purpose of exploration and evaluation of the ZRP and for the acquisition of additional prospecting rights for REE in the region and carrying our exploration on these prospecting rights. This ITR has been prepared to comply with disclosure and reporting requirements set forth in the TSX Company Manual, Canadian National Instrument 43-101, Companion Policy 43-101CP, Form 43-101F1, the ‘Standards of Disclosure for Mineral Projects’ of December 2005 and the Mineral Resource and Reserve classifications adopted by CIM Council in August 2000. All monetary figures expressed in this report are in United States of America dollars (US$) unless otherwise stated. A glossary of all technical terms and abbreviations is attached as Appendix 1.2.2 Principal Sources of Information MSA has based its review of the ZRP on information produced by Anglo American, JOGMEC and other independent parties, from reports commissioned by Frontier, from work carried out by Frontier itself and from other relevant published and unpublished data. A listing of the principal sources of information is included at the end of this ITR. Site visits were made by the Qualified Person (“QP”) Pete Siegfried and Mike Venter during the period 1 December to 5 December 2009 and by Mike Venter from 10 to 11 November 2009 to the ZRP. QP Certificates are included as Appendix 2. We have endeavoured, by making all reasonable enquiries, to confirm the authenticity and completeness of the technical data upon which the ITR is based. A final draft of the report was also provided to Frontier, along with a written request to identify any material errors or omissions prior to lodgement. Frontier has prepared staged exploration and evaluation programmes, specific to the potential of the ZRP, which are consistent with the recommended budget allocations. The ZRP has been developed on the basis of considerable historical exploration over the last several years and MSA considers that the area coveredProject J1580 Page: 16Frontier NI 43-101 Technical Report – 29 October, 2010
  17. 17. by the Prospecting Right, which is large, has sufficient technical merit to justify the proposed programmes and associated expenditure. It is logical and prudent, however, that those less prospective parts of the area covered by the Prospecting Right are progressively relinquished as the results of ongoing exploration are evaluated. The Independent Technical Report has been prepared on information available rd up to and including 23 April 2010. MSA has provided consent for the inclusion of the Independent Technical Report in the Prospectus for the Initial Public Offering, and has not withdrawn that consent prior to lodgement.2.3 Qualifications, Experience and Independence MSA is an exploration and resource consulting and contracting firm, which has been providing services and advice to the international mineral industry and financial institutions since 1983. This ITR has been compiled by Mr Pete Siegfried, who is a professional geologist with 25 years experience, the majority of which has involved the exploration and evaluation of industrial, precious and base metal mineral properties, throughout the world. Mr Siegfried is a Consultant to MSA, a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Siegfried has the appropriate relevant qualifications, experience, competence and independence to act as a “Qualified Person” as that term is defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects). The ITR was co-authored by Mr Mike Venter, who is a professional geologist with 17 years experience in exploration of mineral properties throughout Southern Africa. Mr Venter is a Professional Natural Scientist (Pr.Sci.Nat) registered with the South African Council for Natural Scientific Professions and is a Member of the Geological Society of South Africa and Society for Economic Geologists. Mr Venter is a Regional Consulting Geologist with MSA and is based in MSA’s Cape Town office. Resource estimation and reporting was carried out by Mr Mike Hall, who is a professional geologist with nearly 30 years experience in resource estimation and Datamine modelling, as well as underground and surface exploration for a variety of commodities. Mr Hall is Consulting Geologist - Mineral Resources with MSA. The metallurgical review was carried out by Mr James Brown, a professional metallurgist with 6 years experience. Mr Brown is Senior Metallurgist at SGS Minerals Services Canada as well as a member of the Canadian Institute of Mining and Metallurgy and a licensed Professional Engineer in the province of Ontario, Canada. Mr Brown has the appropriate relevant qualifications, experience, competence and independence to act as a “Qualified Person” as that term is defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).Project J1580 Page: 17Frontier NI 43-101 Technical Report – 29 October, 2010
  18. 18. Neither MSA, nor the authors of this report, has or has had previously, any material interest in Frontier or the mineral properties in which Frontier has an interest. Our relationship with Frontier is solely one of professional association between client and independent consultant. This report is prepared in return for professional fees based upon agreed commercial rates and the payment of these fees is in no way contingent on the results of this report.3 RELIANCE ON OTHER EXPERTS The ZRP consists of prospecting right 869/2007PR issued in terms of the South African Minerals Petroleum Resources Development Act (MPRDA), 2002, in which Frontier holds an interest through its 74% owned subsidiary Sedex Minerals (Pty) Ltd. (Sedex). This report deals exclusively with this Prospecting Right, which covers an area of 58,862 ha. This report has been prepared by MSA for Frontier. The information, conclusions, opinions and estimates herein are based on:  Information available to MSA at the time of preparation of the report;  Assumptions, conditions and qualifications as set forth in this report; and  Data, reports and other information supplied by Frontier and other third parties. For the purpose of this report, the legal status and rights of Frontier in relation to the Prospecting Right have been independently verified by South African minerals law specialists at Taback and Associates (Proprietary) Limited in Johannesburg. The present status of the Prospecting Right listed in this report is accordingly based on information provided by Frontier. Copies of the Prospecting Right and communication with the South African Department of Minerals and Energy (DME) have been observed by the authors. MSA expresses no opinion as to the ownership or status of the Prospecting Right. Neither MSA nor the authors of this report are qualified to provide comment on environmental issues associated with the ZRP. The ZRP has to date seen reconnaissance mapping, geophysical surveying, rock chip sampling, pitting and validation drilling with consequent minimal environmental implications. MSA has relied on SGS for information relating to metallurgical reviews and conclusions on the ZRP. SGS completed a review on Frontier’s behalf in 2010 and has consented to the inclusion of their report and extracts from their review in this report.Project J1580 Page: 18Frontier NI 43-101 Technical Report – 29 October, 2010
  19. 19. In compiling this report, the authors have also relied extensively on reports and personal communications with Dr. Stuart Smith (Frontier VP Exploration), and other Frontier executives, employees and consultants. Except for the purposes legislated under Canadian provincial securities laws, any use of this report by any third party are at that party’s sole risk.4 PROPERTY DESCRIPTION AND LOCATION4.1 Area and Location The ZRP consists of Prospecting Right 869/2007 PR that covers a total area of 58,862 ha and is located in the south western part of the Northern Cape Province of South Africa. The Prospecting Right is located on the boundary with the Western Cape Province to the southeast. The ZRP is located approximately 450 km north of Cape Town, approximately 130 km from Springbok, the regional capital, with the nearest town of Garies located approximately 25 km to the northeast. The Zandkopsdrift carbonatite complex, which is the focus of the Technical Report, is located at the south-eastern end of the area covered by the Prospecting Right (Figure 4-1).4.2 Mineral Tenure Sedex Minerals (Pty) Ltd was awarded the Prospecting Right for all minerals other than diamonds, kaolin and heavy minerals by the South African Department of Mineral Resources (“DMR”) on 5 September 2007, for a period of 5 years until 4 September 2012. According to the work program outlined in the prospecting right application, Sedex has committed to a minimum exploration expenditure of USD420,000 over the five year tenure of the Prospecting Right. This full five year expenditure commitment has already been satisfied by Frontier. In terms of the MPRDA, Sedex has the right to renew the Prospecting Right for an additional three years, subject to compliance with the requirements for renewal set out in the MPRDA. Sedex has also obtained approval of its Environmental Management Plan (EMP) for the Prospecting Right in accordance with the MPRDA, along with a deposit of USD25,000 that was placed in trust with the DMR for rehabilitation. Sedex has complied with the BEE equity ownership requirements as laid down by the Mining Charter and MPRDA, through shareholder agreements with historically disadvantaged South African individuals and entities that together hold the remaining 26% of the issued share capital of Sedex. In addition to Frontier’s direct interest in the Zandkopsdrift Project through its 74% shareholding in Sedex, Frontier shall also be entitled to, in consideration for Frontier’s funding of the BEE Shareholders’ share of Sedex’s expenditure on theProject J1580 Page: 19Frontier NI 43-101 Technical Report – 29 October, 2010
  20. 20. Zandkopsdrift Project up to bankable feasibility stage, a payment from certain of the BEE Shareholders following the completion of the bankable feasibility study equal to 21% of the then valuation of the Zandkopsdrift Project. This gives Frontier an effective 95% interest in the Zandkopsdrift Project until such payment has been received. The authors have been provided copies of the first year and second year progress reports required to be submitted to the DMR in terms of MPRDA and both appear to be sufficient for the purposes of compliance with the requirements of the Prospecting Right and relevant regulations. Figure 4-1 Location of Zandkopsdrift REE ProjectProject J1580 Page: 20Frontier NI 43-101 Technical Report – 29 October, 2010
  21. 21. 4.3 South African Minerals Legislation4.3.1 Introduction Minerals legislation in South Africa is governed by the Minerals Petroleum Resources Development Act (MPRDA) of 2002 and MPRDA Amendment Act No.49 of 2008. The Minerals and Petroleum Resources Development Act, Act No.28 of 2002 (MPRDA), became effective legislation on 1 May 2004, replacing the Minerals Act of 1991. The objectives of the MPRDA are to adopt the internationally accepted right of the State to exercise sovereignty over the mineral and petroleum resources within South Africa and to give effect to the principle of the State’s custodianship of the nation’s mineral and petroleum resources. In addition, the MPRDA seeks to improve opportunities for HDSA’s to become involved in the country’s mineral and petroleum resources, whilst at the same time promoting development and economic growth.4.3.2 Legislation Summary The DMR has granted the Prospecting Right to Sedex. The Prospecting Right is valid for an initial period of five years with a subsequent renewal period of up to three years. In terms of the legislation, prospecting must commence within 120 days of a prospecting right being granted, and prospecting must be conducted continuously and actively thereafter. At the end of the eight-year validity of the prospecting rights, the MPRDA provides for a Retention Permit that is granted for a period of up to three years with one renewal of an additional two years. The Retention Permit may only be granted after the holder of the prospecting right has completed the prospecting activities including a feasibility study, established the existence of a mineral reserve, studied the market and found that the mining of the mineral in question would be uneconomic due to prevailing market conditions. The MPRDA also provides for a Mining Right that is valid for up to 30 years and can be renewed for similar periods of up to 30 years. Sedex will retain its Prospecting Right if it:  maintains its HDSA status, and  adheres to the Work Programme it submitted with its original Prospecting Right application. The Work Programme includes environmental and social compliance and a proposed exploration budget.Project J1580 Page: 21Frontier NI 43-101 Technical Report – 29 October, 2010
  22. 22. 4.3.3 Royalties The Mineral and Petroleum Resources Royalty Act, 2008 came into effect on 1 May 2009 following extensive public sector review. The royalty rate for refined minerals is capped at a maximum of 5.0%; the rate for unrefined minerals is capped at 7.0%. According to the Act, REE are classified as unrefined and would be subject to the following formula: Royalty (%) = 0.5 + (EBIT/(Gross Sales x 9)) * 100 Where EBIT = Earnings Before Interest and Tax.5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY5.1 Access The ZRP is served by several maintained all weather gravel roads which connect to Garies, located approximately 25 km to the northeast and Bitterfontein 30 km to the southeast (Figure 4-1). The town of Garies is located approximately 450 km north of Cape Town and is reachable by the tarred National Highway (N7) that connects Cape Town and Namibia. Several small towns and settlements are located proximal to the project area, including Kotzerus and Rietpoort. The nearest railhead is located at Bitterfontein approximately 60 km south east of Garies. This railway line ultimately meets up with the Sishen – Saldanha bulk iron ore railway line that terminates at Saldanha Bay 230 km to the south. In addition to handling the bulk of South Africa’s iron ore exports, Saldanha Bay is the location of a smelter which processes ilmenite from Exarro’s nearby Namakwa Sands heavy mineral sands mining operation. The closest airport is located at Springbok, 113 km north from Garies. No commercial/scheduled flights currently operate into Springbok, but charter flights are readily available from Cape Town.5.2 Climate The ZRP area lies within the region known as Namaqualand that can be described as having a semi arid/desert climate. The region normally receives about 113 mm of rain per year and because it receives most of its rainfall during winter it has a Mediterranean climate. It receives the lowest rainfall (0 mm) in January and the highest (22 mm) in June. The monthly distribution of average daily maximum temperatures shows that the average midday temperatures for the area ranges from 18.4° C in July to 29.5° C in February. The region is the coldest during July when the temperature drops to 5.8° C on average during theProject J1580 Page: 22Frontier NI 43-101 Technical Report – 29 October, 2010
  23. 23. night. Seasonal variations in the local climate are not expected to impact on planned activities/operations at the ZRP.5.3 Local Resources and Infrastructure The area is sparsely populated, and for the most part inhabited by farmers and farm labourers. Economic activities in the area are dominated by livestock farming (sheep and goats), with occasional wheat farming in areas of higher and more regular rainfall. Electricity generation and reticulation is handled by Eskom, the South African electricity generation and distribution Authority. The nearest high voltage (400kV) line is located at the Juno substation located near Vredendal, approximately 100 km to the south. Eskom has plans to develop the 800 MW Kudu Combined Cycle Gas Turbine (CCGT) power station at Oranjemund. This would result in the construction of a 400 kV line that would pass through or very close to the ZRP, but the date of this development is not known. South Africa’s only nuclear power station (which is also the only nuclear power station in Africa) is located at Koeberg, approximately 200km south of Saldanha Bay. Koeberg has two large turbine generators with a combined rating of 1800MW. Radioactive waste from Koeberg is disposed of and stored at the Vaalputs Radioactive Waste Disposal facility which is located approximately 100 km south of Springbok and approximately 100 km north east of the ZRP project area. Due to efforts by Eskom to ensure sufficient power supply to cater for ongoing and planned economic growth in Southern Africa, Eskom has been forced to increase electricity prices significantly. It is anticipated that electricity prices will be increased on average 25% per annum over the next three years in order for Eskom to develop new generative capacity and infrastructure. Being a semi-arid region, Namaqualand has limited surface and groundwater resources, with a majority of water supply being sourced from groundwater supplies. Several westerly flowing rivers are present within or proximal to the project area, including the seasonal Groen and Swartdoring Rivers that form a confluence to the northwest of the Zandkopsdrift carbonatite complex. A detailed hydrographical survey will be required in order to delineate and assess existing and new water sources required for development of the ZRP, although the anticipated scale of possible mining operations are reasonably expected to be adequately supplied by available water sources. Telecommunication infrastructure is comprised of landlines serving the local farming community and cellular/digital telephone coverage in many parts of the project area, including the Zandkopsdrift carbonatite complex. Garies, Bitterfontein and most large towns along the N7 highway have access to cellularProject J1580 Page: 23Frontier NI 43-101 Technical Report – 29 October, 2010
  24. 24. network coverage. Petrol and diesel are readily available from Garies and Bitterfontein. The regional centre, Springbok, is located along the N7 highway, approximately 113 km north of Garies, and is a source of local skilled labour as well as engineering expertise as a result of base metals mining (lead/zinc at Anglo American’s former Black Mountain mine at Aggeneys, approximately 200 km to the northeast of the ZRP, and copper mining around Springbok (now dormant)) and coastal/marine diamond mining by De Beers and others in the region. The nearest large scale mining facilities are at Exxarro’s Namakwa Sands Facility at Brand se Baai, approximately 40 km to the south of the ZRP. Quarrying for dimension stone and the exploitation of salt deposits from salt pans comprise the other mining activities in the region and an important additional source of employment in the region. Tourism, mainly drawn by spectacular spring flowers, is becoming an increasingly important source of revenue for the Namaqualand region.5.4 Physiography The project area is dominated by recent and surficial sand dunes that cover most of the western parts of the Prospecting Right area. Elevation in the area varies from 100 mamsl in the west to a maximum height of 302 mamsl at Rondawelkop. The westerly flowing Groen and Swartdoring Rivers dissect the northern parts of the Prospecting Area (Figure 5-1). The Zandkopsdrift carbonatite complex and focus of this report is located as an outcropping isolated hill (“Swartkop”) that rises approximately 40 m from the surrounding plain (Figure 5-2).Project J1580 Page: 24Frontier NI 43-101 Technical Report – 29 October, 2010
  25. 25. Figure 5-1 Digital Elevation Model over ZRPProject J1580 Page: 25Frontier NI 43-101 Technical Report – 29 October, 2010
  26. 26. Figure 5-2 Zandkopsdrift carbonatite (looking South East)Project J1580 Page: 26Frontier NI 43-101 Technical Report – 29 October, 2010
  27. 27. 6 HISTORY The Zandkopsdrift carbonatite has been subject to several geological, mineralogical and metallurgical investigations by academics as well as various exploration companies over the past 40 years. The carbonatite was initially investigated for its manganese potential in the 1950’s, followed by phosphate (P2O5) and niobium (Nb2O5), and finally for its REE potential. The majority of the work was carried out by Anglo American during two phases of detailed exploration over Zandkopsdrift. Since the award of the Prospecting Right in 2007, Frontier has acquired (for a cash consideration) all of Anglo American’s data including diamond core, RC chips and sample pulps. This data, along with work completed by Frontier to date, forms the basis for Frontier’s ongoing evaluation and resource estimation of the REE potential at Zandkopsdrift.6.1 Historical manganese evaluation Exposures of manganiferous material were described from the farm Zandkopsdrift, where grab samples were taken grading from 9.3% to 63.9% MnO2 (De Villiers, 1955 and Cornelissen, 1959). No records of any drilling or resource estimates were carried out and manganese mineralisation (at the time) was attributed to hydrothermal activity along shear zones.6.2 Anglo American 1973 – 1975 Following previous reports of manganese occurrences and coupled with a regional aerial photographic targeting exercise, Anglo American acquired the prospecting rights over two portions of the farm Zandkopsdrift 537 for the purposes of evaluating the phosphate potential of the property. Anglo American completed a series of ground radiometric as well as rock chip and soil geochemical surveys targeting niobium and phosphate potential with encouraging results. This information confirmed the presence of a carbonatite complex (and associated fenitisation of country rock) and resulted in the drilling of 14 drill holes (totalling 549 m) on a broad 200 m x 200 m grid to a depth of 50 m (Figure 6-1). Results from the drilling program could not define a specific mineralised horizon. No details relating to Anglo American’s sampling methodology or Quality Assurance and Quality Control (QA/QC) are available. Anglo American completed bulk sampling from two pits in order to determine the metallurgical characteristics of the phosphate material. Results from a series of metallurgical process methods (including gravity separation, magnetic separation and flotation) were poor and it was concluded that the material was not amenable for beneficiation. Anglo American then assessed uranium and thorium potential, however grades were considered too low, (52 g/tProject J1580 Page: 27Frontier NI 43-101 Technical Report – 29 October, 2010
  28. 28. U3O8 and 140 g/t ThO2). As a result, Anglo American terminated all work and withdrew from the project in late 1975.6.3 Phelps Dodge 1977 Phelps Dodge carried out a mineralogical investigation on the phosphate potential following a surface sampling program with the assistance of Verwoerd (1977). His conclusions described a multiphase carbonatitic intrusive containing highly altered material surrounding a central core. Minerals identified included apatite, churchite, betafite and pyrochlore. Phelps Dodge drilled a single diamond drill hole in order to test the central parts of the carbonatite (Figure 6- 1). Results from the drilling described a vertically dipping brecciated zone located between fenitised country rock and the intrusive carbonatite complex. The hole was terminated at a (down hole) depth of 254 m following loss of drilling fluids at 145 m. No details relating to Phelps Dodge’s sampling methodology or QA/QC are available. Based on these results, Phelps Dodge elected not to continue any further work at Zandkopsdrift and offered the property to Union Carbide Exploration in 1978. Following a brief review, Union Carbide elected not to participate and all exploration options and rights were allowed to lapse.Project J1580 Page: 28Frontier NI 43-101 Technical Report – 29 October, 2010
  29. 29. Figure 6-1 Historical Drilling at Zandkopsdrift up to 1987 * * Note that the drill positions for the Phelps Dodge and Anglo American drilling in 1974 are estimated, as the collars could not be located in the field. Locations have been extracted from Anglo American drilling plans. Anglo American’s ZKP series drill holes were located and verified in the field.Project J1580 Page: 29Frontier NI 43-101 Technical Report – 29 October, 2010
  30. 30. 6.4 Anglo American 1985 – 1988 Anglo American returned to the property in 1985, following its focus on identifying REE resources in Southern Africa. Ground scintillometer, magnetic and Induced Polarity/Resistivity surveys, rock chip sampling, geological mapping and drilling confirmed elevated REE from the Zandkopsdrift carbonatite as well as the Klipheuvel intrusive breccia located to the southwest of Zandkopsdrift. Despite this level of work, Anglo American only carried out a majority of its assays for La and Ce only (using XRF), with a small number of full REE analyses being carried out using Inductively Coupled Plasma Optical Emission Spectrography (ICP-OES), which became available in the later stages of Anglo American’s work.6.4.1 Percussion drilling 1986 In 1986, Anglo American completed a 6 hole percussion drilling program (ZKP1 – ZKP6) with samples being composited into 5 m lengths and assayed for La and Ce utilising XRF. Hole ZKP 2 gave an average of 4.8% (La + Ce) from surface to a depth of 25 m, whilst results from other holes gave averages of between 0.2% and 0.5% (La + Ce) over the length of the holes (average depth of 50 m) (Figure 6-1). No details relating to Anglo American’s sampling methodology or QA/QC are available.6.4.2 Wagon drilling 1988 In order to delineate the mineralised margins of the Zandkopsdrift carbonatite, Anglo American embarked on a short hole or wagon drilling program. A total of 92 holes were drilled, each to an average depth of 5 m on a north-south 50 m x 200 m grid. Samples were composited into upper and lower samples and were- assayed by Anglo American’s in house XLaCe method (XRF). The results of the wagon drilling were effective in delineating the higher grade, near surface parts of the carbonatite (Figure 6-4). No details relating to Anglo American’s sampling methodology or QA/QC are available.6.4.3 Reverse Circulation and Diamond drilling 1988 Anglo completed a series of 31 Reverse Circulation (RC) and 2 Diamond drill (DD) holes in 1988. All holes were collared on a broad 100 m x 100 m grid, with most holes being drilled vertically, apart from two -60° angle RC holes that were drilled to the south. A total of 2 522.33 m was drilled (Figure 6-4). Sampling was carried out using a 1 m interval, with samples being composited (varying from 2 m to 4 m composites).Project J1580 Page: 30Frontier NI 43-101 Technical Report – 29 October, 2010
  31. 31. No details relating to Anglo American’s sampling methodology or QA/QC are available. Assays were carried out for La and Ce only using the XLaCe method with a small selection being assayed for the full REE suite by ICP-OES. Despite lithological detail being captured into individual borehole logs by Anglo American geologists, the level of detail was found to be very basic – this as a result of the very fine grained and homogenous nature of the material being intersected by the RC drilling programmes (Figures 6-2 and 6-3). Elevated La and Ce grades were intersected in most holes, with higher grades being associated with a very fine grained lithological unit logged as Fe-Mn wad and to a lesser extent with a lithological unit called “melnoite”. La and Ce grades displayed a marked decrease as fresher (i.e. less weathered) carbonatite was intersected at depth. The depth of weathering and therefore grade profiles across the carbonatite seem to be extremely variable (Figures 6-2). Anglo American generated a series of basic cross sections across the carbonatite, and although these provided limited information as to the specific lithologies and morphology of the mineralised zone/s, they do provide vertical grade profiles (La+Ce only) (Figure 6-2). Table 6-1 and Figure 6-5 provide a summary of the historical drilling completed over the Zandkopsdrift carbonatite up to 1988.Project J1580 Page: 31Frontier NI 43-101 Technical Report – 29 October, 2010
  32. 32. Figure 6-2 Anglo American Cross Section across ZandkopsdriftProject J1580 Page: 32Frontier NI 43-101 Technical Report – 29 October, 2010
  33. 33. Figure 6-3 Anglo American diamond drill log ZKD39Project J1580 Page: 33Frontier NI 43-101 Technical Report – 29 October, 2010
  34. 34. Figure 6-4 Reverse circulation, diamond and wagon drilling at ZandkopsdriftProject J1580 Page: 34Frontier NI 43-101 Technical Report – 29 October, 2010
  35. 35. Table 6-1 Drilling completed over Zandkopsdrift Holes drilled in Zandkopsdrift Carbonatite Hole Type Date Depth (m) Angle Comment Anglo American 220W/0 Percussion 1973-1974 46 -90° stopped in sand 220W/40S Percussion 1973-1974 50 -90° 180W/0 Percussion 1973-1974 50 -90° 180W/40S Percussion 1973-1974 18 -90° stopped by water 180W/80S Percussion 1973-1974 35 -90° stopped by water 180W/60S Percussion 1973-1974 8 -90° stopped by water 180W/35S Percussion 1973-1974 50 -90° 180W/4S Percussion 1973-1974 50 -90° 180W/8S Percussion 1973-1974 40 -90° 140W/0 Percussion 1973-1974 50 -90° 140W/40S Percussion 1973-1974 39 -90° stopped by water 100W/0 Percussion 1973-1974 22 -90° stopped by water 150W/40S Percussion 1973-1974 50 -90° 220W/50S Percussion 1973-1974 41 -90° Total 549 Phelps Dodge 1 hole ZDD2 Diamond 1977 245 -45° East hole ZDD1 collapsed Anglo American ZKP-1 Percussion Jul-86 66 -90° chips, pulp ZKP-2 Percussion Jul-86 50 -90° no material ZKP-3 Percussion Jul-86 47 -90° chips, pulp ZKP-4 Percussion Jul-86 50 -90° chips, pulp ZKP-5 Percussion Jul-86 50 -90° chips, pulp ZKP-6 Percussion Jul-86 50 -90° chips, pulp ZKR-7 RC Percussion Dec-87 50 -90° chips, pulp ZKR-8 RC Percussion Dec-87 50 -90° chips, pulp ZKR-9 RC Percussion Dec-87 50 -90° chips, pulp ZKR-10 RC Percussion Dec-87 50 -90° chips, pulp ZKR-11 RC Percussion Dec-87 50 -90° chips, pulp ZKR-12 RC Percussion Dec-87 94 -90° chips, pulp 92 holes Wagon drill Mar-88 487 -90° each 5-6 m deep, no material available ZKR-13 RC Percussion Aug-Sept-88 52 -60° South chips, pulp ZKR-14 RC Percussion Aug-Sept-88 63 -60° South chips, pulp ZKR-15 RC Percussion Aug-Sept-88 100 -90° chips, pulp ZKR-16 RC Percussion Aug-Sept-88 99 -90° chips, pulp ZKR-17 RC Percussion Aug-Sept-88 100 -90° chips, pulp ZKR-18 RC Percussion Aug-Sept-88 65 -90° chips, pulp ZKR-19 RC Percussion Aug-Sept-88 62 -90° chips, pulp ZKR-20 RC Percussion Aug-Sept-88 50 -90° chips, pulp ZKR-21 RC Percussion Aug-Sept-88 45 -90° chips, pulp ZKR-22 RC Percussion Aug-Sept-88 46 -90° chips, pulp ZKR-23 RC Percussion Aug-Sept-88 52 -90° chips, pulp ZKR-24 RC Percussion Aug-Sept-88 75 -90° chips, pulp ZKR-25 RC Percussion Aug-Sept-88 94 -90° chips, pulp ZKR-26 RC Percussion Aug-Sept-88 100 -90° chips, pulp ZKR-27 RC Percussion Aug-Sept-88 100 -90° chips, pulp ZKR-28 RC Percussion Aug-Sept-88 82 -90° chips, pulp ZKR-29 RC Percussion Aug-Sept-88 67 -90° chips, pulp ZKR-30 RC Percussion Aug-Sept-88 100 -90° chips, pulp ZKR-31 RC Percussion Aug-Sept-88 76 -90° chips, pulp ZKR-32 RC Percussion Aug-Sept-88 58 -90° chips, pulp ZKR-33 RC Percussion Aug-Sept-88 65 -90° chips, pulp ZKR-34 RC Percussion Aug-Sept-88 100 -90° chips, pulp ZKR-35 RC Percussion Aug-Sept-88 58 -90° chips, pulp ZKR-36 RC Percussion Aug-Sept-88 100 -90° chips, pulp ZKR-37 RC Percussion Aug-Sept-88 97 -90° chips, pulp ZKD-38 Diamond Sep-88 100 -90° core, chips, pulp ZKD-39 Diamond Oct-88 176 -70° North core, chips, pulp Total 2839Project J1580 Page: 35Frontier NI 43-101 Technical Report – 29 October, 2010
  36. 36. Figure 6-5 Historical drilling at ZandkopsdriftProject J1580 Page: 36Frontier NI 43-101 Technical Report – 29 October, 2010
  37. 37. 6.4.4 Mineralogy and Metallurgy Anglo American carried out a series of metallurgical and mineralogical tests on samples drawn from their percussion drilling “ZKP” and reverse circulation drilling “ZKR” programmes. Frontier has acquired all of the data and results from these tests, which have, in addition to data from work done on behalf of Frontier by JOGMEC and Siegfried, been used as a basis for Frontier’s ongoing evaluation of the mineralogy and metallurgy at Zandkopsdrift. A full evaluation and independent review of the above work has been carried out by SGS Minerals Services in Canada. A summary of the results of this review is detailed in Section 16 and the entire SGS report is included in Appendix 5.6.4.4.1 Mineralogy The mineralogy of 52 borehole samples was assessed using XRD and transmitted light petrography. The presence of REE mineralisation correlated well with secondary monazite that is contained within a residual micaceous goethitic zone located directly above relatively fresh, unaltered carbonatite. This information was critical in creating an understanding of REE enrichment processes at Zandkopsdrift. Here REE are seen to be leached from fresh carbonatite under acid conditions and then re concentrated and deposited along and within highly oxidised and weathered portions within the overlying Fe – Mn rich residuum or “wad”.6.4.4.2 Metallurgy Several phases of metallurgical test work were completed by Anglo American from composited drill samples taken from the ZKP and ZKR drilling programmes. Three samples were composited from ZKP2 and subjected to heavy mineral separation utilising bromoform, a superpanner and magnetic separation. All fractions contained detectable amounts of REE bearing minerals, and it was concluded that a significant concentration of REE could not be achieved using these methods. Samples were then subjected to acid leaching utilising H2SO4. REE’s in the acid solution were determined by ICP and acid consumption measured. Results from this leach test work on the highly weathered samples were encouraging with >90% recoveries and acid consumption in the region of 40 – 60 kg/t of material. Lower grade and fresher carbonatite samples displayed a dramatic increase in acid consumption. Alkali pressure and acid leach tests were carried out over material from the RC drilling program with poor results. The Johnson Matthey Technology Centre completed a series of extraction tests using mineral acids and an alkaline leach.Project J1580 Page: 37Frontier NI 43-101 Technical Report – 29 October, 2010
  38. 38. Test work concluded that up to 88 % La and Ce could be leached at a temperature of 200° C at an acid (H2SO4) consumption of 67.5 kg/t. Soon after the results of the Johnson Matthey work, Anglo American decided to withdraw from the project and allowed all exploration options to lapse. No NI 43- 101 compliant resource estimates or average grades were produced by Anglo American during this period.Project J1580 Page: 38Frontier NI 43-101 Technical Report – 29 October, 2010
  39. 39. 7 GEOLOGICAL SETTING7.1 Regional Geology The ZRP is located within the southern parts of the tectonostratigraphic Bushmanland Terrane of the Proterozoic age Namaqua - Natal Province. Here the rocks of the Bushmanland terrane are the most voluminous, covering an 2 area of some 60 000 km and are represented by a series of 2000 Ma granitic gneisses, 1600 to 1200 Ma amphibolite to granulite grade supracrustal rocks and 1200 to 1000 Ma granitoids (Cornell et al., 2006 and Moore 1998). The Namaqua - Natal Province forms an arcuate belt along the southern and western margins of the Archaean age Kaapvaal craton (Hartnady et al., 1985; Thomas et al., 1994). To the west, the Bushmanland Terrane rocks are overprinted by thermal deformation effects related to the Pan African age (500 Ma) Gariep Orogeny and overlain by younger Vanrhynsdorp and Karoo Group sediments to the south (Figure 7-1). In the extreme southern parts, the Bushmanland Terrane is intruded by the Cretaceous age Koegel Fontein Complex, of which the Zandkopsdrift carbonatite is thought to be part. The tectonic model for the evolution of the Namaqua-Natal Province is still being investigated and has been compounded by numerous structural, metamorphic and intrusive complexities.7.1.1 The Koegel Fontein Complex The Project area is located on the northern margins of the Koegel Fontein Complex, a Cretaceous age alkaline complex that was intruded during the rifting phase preceding the opening of the South Atlantic Ocean some 130 Ma ago (De Beer et al., 1998, 2002). The complex comprises of a variety of alkali granites, syenites, as well as intrusives of a carbonatitic affinity, such as at Zandkopsdrift (Figure 7-2). The Koegel Fontein Complex can be considered as an equivalent to other similar Cretaceous alkaline complexes of Damaraland in Namibia (e.g. Brandberg, Messum, Okonjeje and Grosse Spitzkoppe) (De Beer et al., 1998, 2002).Project J1580 Page: 39Frontier NI 43-101 Technical Report – 29 October, 2010
  40. 40. Figure 7-1 Regional Geological Setting (after Thomas et al., 1994b and Hartnady et al., 1985) Project AreaProject J1580 Page: 40Frontier NI 43-101 Technical Report – 29 October, 2010
  41. 41. Figure 7-2 Koegel Fontein Complex (after De Beer et al., 2002)Project J1580 Page: 41Frontier NI 43-101 Technical Report – 29 October, 2010
  42. 42. 7.2 Property Geology Frontier’s Prospecting Right covers a large area of the northern margins of the Koegel Fontein Complex and underlying Bushmanland granite-gneiss terrane which, to a large extent is covered by surficial Quaternary sands and unconsolidated sediments. Bedrock exposures (primarily Bushmanland Terrane granites and gneisses) are restricted to the eastern and northern parts of the Prospecting Right area, in particular along the exposed river beds of the Groen and Swartdoring Rivers. The Zandkopsdrift carbonatite is exposed as a well defined outcropping hill extending 40 m above the surrounding plain at the eastern end of the Prospecting Right (Figures 5-2 and 7-3). Detailed mapping of the ZRP area (1:250 000 3017 Garies Sheet) by the Council for Geoscience is still in progress. Apart from investigations by Moore and Verwoerd and detailed surface geological mapping of the Zandkopsdrift carbonatite and immediate surrounds by Anglo American (Figure 6-1) and Frontier, little mapping has been carried out. This has been as a result of the large amount of surficial sediments that blanket a majority of the Prospecting Right Area. Moore and Verwoerd, (1985) published the first comprehensive account of the Zandkopsdrift carbonatite complex. A vertical shaft (~2 m in diameter), numerous prospecting pits and a borehole (ZDD2, drilled by Phelps Dodge) showed that the main component of the carbonatite was a soft greenish micaceous rock called glimmerite. Blocks of olivine melilitite are common and several thin (<1 m thick) dykelets of quartz söviet criss-cross the body and were intersected in the borehole along with a carbonate rich lamprophyre dike. Another feature of the complex is the occurrence of manganiferous gossans containing an unusual suite of minerals such as churchite, goyazite-gorcexite, pyrochlore and carbonate-apatite. REE mineralisation, radioactivity and anomalous Zn, Nb and P are associated with the complex. They noted that intensely fenitised gneiss with calcite, fibrous blue amphibole and aegerine-augite occurred both in situ and as loose blocks within the complex. Signs of brecciation are present up to 1 km from the complex (Figure 7-4). The pipe has been interpreted as a deeply weathered root zone of a carbonatite type volcano (Verwoerd et al 1995).Project J1580 Page: 42Frontier NI 43-101 Technical Report – 29 October, 2010
  43. 43. Figure 7-3 Project GeologyProject J1580 Page: 43Frontier NI 43-101 Technical Report – 29 October, 2010
  44. 44. Figure 7-4 Carbonatite breccia (left) and brecciation of country rock (right). Anglo American drilling results and limited outcrop mapping indicate the intrusion to be dominated by carbonatite breccias, glimmerites and calcio-carbonatites. It is extensively altered and, at surface, all outcrops can be noted to be intensely replaced and altered through surficial weathering. The most visible aspect of supergene alteration is the pervasive presence of secondary manganese, limonite and illite. The complex appears to be dominated by hypabyssal carbonatite facies but much of this is clearly overprinted by possible metasomatic alteration. It is important to note that this part of South Africa has deep soil profiles – this as a result of past palaeo-climatic weathering events and therefore extensive supergene alteration and mineralogical replacement has also occurred at Zandkopsdrift. The borehole core (ZKD39 and ZKD38) shows weathering is present to a depth of at least 80 m and probably more in some zones. Three main rock types are regarded to comprise the complex and include carbonatite breccias, glimmerites and calcio- carbonatite. The latter is almost always dark brown to yellow in colour and may rather suggest a ferrocarbonatite – although due to the pervasive weathering and limonite replacement, a geochemical study needs to be completed to define the actual amount of iron present. Resolution of the carbonatite’s detailed geology and relative timing of the various mineralised phases forms an integral part of the current and planned exploration activities at Zandkopsdrift and is further described in Section 20. The other unexplored parts of the Prospecting Right area remain prospective for the location of additional similar intrusive/carbonatite complexes, and this will require the input of remote sensing, geochemistry and geophysical techniques in order to “look through” the veneer of surficial Quaternary age sedimentary cover that blankets a majority of the Prospecting Right area to the west.Project J1580 Page: 44Frontier NI 43-101 Technical Report – 29 October, 2010

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