🕐04.12.09 - 23:30 Uhr
Independent study: Michelin Uranium Project to generate regional benefits of $2.
9B in income, $1.82B in tax reven ues
http://www.industrymailout.com/customers/fronteer_group/frg_header.jpg
December 4, 2009
Independent study: Michelin Uranium Project to generate regional benefits of
$2.9B in income, $1.82B in tax revenues
09-35
Fronteer Development Group Inc.
(FRG - TSX/NYSE Amex) is pleased to announce
that an independent Economic Impact Assessment of the Michelin Uranium
Project indicates significant long-term economic benefits to regional
governments and communities.
The Michelin Project, located in North Coast Labrador, Canada, is held by
Aurora Energy Resources Inc., a wholly owned subsidiary of Fronteer.
The study estimates the Michelin Project would generate the following
combined benefits for the communities and governments of Nunatsiavut and
Newfoundland and Labrador:
* 31,200 person years of employment
* $2.9 billion in business and individual income
* $1.8 billion in tax revenues
Over the life of the mine, the Project would also provide significant
benefits to other Canadian provinces and the federal government, including a
combined $2.9 billion in income and $2.3 billion in tax revenues.
"The Economic Impact Assessment clearly shows that this is a project that
would create substantial, long-term benefits to both the region and Canada
as a whole," says Bruce Dumville, Aurora President and CEO.
"The construction and operation of the Michelin Project would provide
meaningful employment opportunities, contribute to local, provincial and
federal economies, and generate significant tax revenues for all levels of
government."
The study was conducted by Strategic Concepts, Inc.
(SCI) and Wade Locke
Economic Consulting, experienced consulting firms specializing in Canadian
resource-based economic impact assessments, with particular expertise in
Newfoundland and Labrador projects.
The purpose of the study was to measure
the economic impacts of the Michelin Project on governments and economies
locally and across Canada.
The findings of the Economic Impact Assessment underscore the large-scale,
economically robust character of the Project as demonstrated in the
Preliminary Economic Assessment (see September 9, 2009 news release,
Fronteer Reports Positive Preliminary Economic Assessment for Michelin
Uranium Project).
Summary of Results
Total employment
Person Years*
Nunatsiavut
4,200
Newfoundland & Labrador
(exclusive of Nunatsiavut)
27,000
Other Canadian provinces
37,000
Total
68,200
*includes direct, indirect and induced employment
Income to businesses & individuals
Amount
Nunatsiavut
$400 million
Newfoundland & Labrador
(exclusive of Nunatsiavut)
$2.5 billion
Other Canadian provinces
$2.9 billion
Total
$5.8 billion
Government Revenues
Amount
Nunatsiavut
$220 million
Newfoundland & Labrador
(exclusive of Nunatsiavut)
$1.6 billion
Other Canadian provinces
$518 million
Federal Government
$1.8 billion
Total
$4.1 billion
All dollar amounts are in Canadian dollars, unless otherwise stated, and
include 2% annual inflation.
About the Michelin Uranium Project
Fronteer recently issued the results of a Preliminary Economic Assessment
(PEA), prepared by AMEC Americas Limited, which supports a financially
robust open-pit and underground uranium mining operation at the Michelin and
Jacques Lake deposits, and a milling facility at the Michelin site capable
of processing 10,000 tonnes of mineralization per day, which will produce up
to 7.3 million pounds of U3O8 per annum.
Direct cash costs are stated at
US$28.57 per pound of U3O8 over the 17-year mine life.
At an 8% discount
rate, the Projects pre-tax net present value is US$914 million with a
pre-tax internal rate of return of 19.4% on an unlevered 100% equity basis,
and a pay-back period of 4.7 years.
NEXT STEPS
The recently completed PEA combined with this valuable Economic Impact
Assessment provide Fronteer with a context for establishing the most
advantageous method for developing of the Michelin Project.
Community consultations with Labrador residents are continuing which
includes meetings with the Michelin Project Community Panel.
Aurora is also
working to complete the tailings management plan for the Project and to
optimize project engineering and construction costs.
Environmental baseline studies are ongoing and Aurora continues to prepare
the project registration document for the regulatory process.
The Nunatsiavut Government is currently in the process of developing its
environmental legislation and Land Use Plan.
The Land Use Plan is a joint
process between Nunatsiavut Government and the Government of Newfoundland
and Labrador.
The Nunatsiavut Government requires these instruments to be in
place ahead of large-scale resource development projects.
Both initiatives
are expected to be completed on or before March 2011.
PREPARATION OF PEA AND QUALIFIED PERSON
The PEA has been prepared with the input from AMEC, J.R Goode and
Associates, SGS Lakefield Services Limited, and S.D.
Energy Associates
Limited.
AMEC is an international project management and engineering consultancy firm
with extensive experience in resource development projects.
J.R.
Goode and Associates, has more than 45 years of mineral and uranium
processing experience.
Mr.
Goode has worked on numerous uranium projects in
Canada and worldwide.
S.D.
Energy Associates is an international nuclear fuel market consultancy
and brokerage firm with extensive experience in uranium industry strategy
and marketing.
SGS Lakefield Research Limited is a global leader in providing mining and
metallurgical services.
Further details of the PEA are available in the updated National Instrument
43-101 Technical Report, dated Oct.
23, 2009, which is posted on SEDAR
(www.sedar.com
)
The PEA was prepared under the supervision of Mr.
Steve Cole, P.Eng,
Director of Engineering, Aurora, and Mark Hertel, P.Geo, Principal Geologist
AMEC, a "qualified person," as such term is defined in National Instrument
43-101.
Mr.
Cole has supervised the preparation of, and verified all
scientific and technical data pertaining to the PEA that is contained in
this news release.
FOR FURTHER INFORMATION
Bruce Dumville, President and CEO, Aurora Energy Resources
Andrea Marshall, Manager, Government Relations and Public Affairs
Phone 709-726-2223
www.aurora-energy.ca
Mark ODea, Ph.D, P.Geo, President and CEO, Fronteer Development Group
Richard Moritz, Director, Investor Relations
Glen Edwards, Director, Communications
Phone 604-632-4677 or Toll Free 1-877-632-4677
www.fronteergroup.com
This Economic Impact Assessment is preliminary in nature and intends to
provide a measurement of the economic impacts of a project on governments
and impacted economies.
The study provides fair estimations based on
acceptable assumptions and its content should not be considered definitive
or binding.
The PEA is also preliminary in nature as it includes inferred
mineral resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them to be
categorized as mineral reserves at this time and as such there is no
certainty that the preliminary assessment and economics set forth in the PEA
will be realized.
Mineral resources that are not mineral reserves do not
have demonstrated economic viability.
Except for the statements of historical fact contained herein, certain
information presented constitutes "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995 and Canadian securities laws.
Such forward-looking statements,
including but not limited to, those with respect to potential expansion of
mineralization, potential size of mineralized zone, and size and timing of
exploration and development programs and the timing and availability of
regulatory approvals, potential long and short term economic benefits to
regional, provincial and federal governments, communities and Fronteer,
results of community consultations and proposed management plans, future
project engineering and construction costs, and timing and availability of
regulatory and environmental approvals, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Fronteer to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements.
Such factors include, among others, risks
related to international operations and joint ventures, the actual results
of current exploration activities, conclusions of economic evaluations,
community consultations and future management plans, uncertainty in the
estimation of mineral resources, changes in project parameters as plans
continue to be refined, future prices of uranium, environmental risks and
hazards, increased infrastructure and/or operating costs, labour and
employment matters, and government regulation and permitting requirements as
well as those factors discussed in the section entitled "Risk Factors" in
Fronteers Annual Information form and Fronteers latest Form 40-F on file
with the United States Securities and Exchange Commission in Washington,
D.C.
and available on SEDAR at www.sedar.com.
Although Fronteer has
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be
as anticipated, estimated or intended.
There can be no assurance that such
statements will prove to be accurate as actual results and future events
could differ materially from those anticipated in such statements.
Fronteer
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, other than as required pursuant to applicable
securities laws.
Accordingly, readers should not place undue reliance on
forward-looking statements
FRG - TSX
C2009 Fronteer Development Group |
fronteergroup.com
FRG - NYSE Amex
Subscribe |
Unsubscribe
Suite 1650, 1055 West Hastings, Vancouver, BC V6E 2E9
http://www.industrymailout.com/Industry/W.aspx?q=168703675&qz=f0a07ec3b3fe56
5aa09b986a1c2dc1ca