Fronteer (FRG) lets uranium people worry about uranium

In December 2008, Fronteer (FRG) bought the 58% of shares in Aurora Energy that it didn't already own for $110m worth of its shares. The deal put a value of around $190m on Aurora and also came with the $86m in cash held by Aurora that was folded into the FRG books....so wrap that one with a neat bow and say FRG paid $104m for the Aurora assets.

Today, FRG has disposed of those assets. Paladin Energy (PDN.to) has agreed to pay $260m in stock for the Aurora assets. At first pass it looks like a decent win-win situation, where FRG gets to unload (and capitalize) on a decent asset that wasn't part of its core plan moving forward (it wants to be a gold miner.....lord knows why?) and Paladin gets to do what it's good at with a very good looking uranium asset (that's still under moratorium). And for the last two years, FRG has basically done zipsquat with Aurora thanks to that moratorium.

A final thought: Maybe FRG is now more attractive to majors as a purer gold play. Maybe today's move will start M&A rumours....maybe maybe maybe.....

Fronteer Gold (FRG) (FRG.to): That didn't take long, did it?

From yesterday's post "Fronteer Gold: Time for ten":

"FRG closed at U$9.42 last night. It'll be higher than that very soon and if we don't see 10 today, it's only a matter of time before we do. DYODD."

Here's the two day chart:

So it took precisely 24 hours and 35 minutes from that post yesterday. Just sayin'.

Fronteer Gold (FRG) (FRG.to): Time for ten

Want a stock to play the move in spot gold this morning? Look no further:

FRG is out with more great drilling numbers today, more extension to Long Canyon (check the map), more reason to own. And of course, if you look very very carefully at that chart above you may be able to spot a trend.

FRG closed at U$9.42 last night. It'll be higher than that very soon and if we don't see 10 today, it's only a matter of time before we do. DYODD.

Long-term

Y'know, I sometimes get moaned at for taking a longer-term view on junior mining investments and, quite frankly, I find my methods somewhat boring too, sometimes. After all, I could be in and out of a dozen stocks every month, picking and running with the latest momo play, or the hyped-up dog getting passed off as a real deal, or the fashion metal du jour with its waiting explorers.

But then sometimes it doesn't worry me so much. An example of that is this morning when checking on the longer-term performance of one of The IKN Weekly's recommended stocks, Fronteer Gold (FRG) (FRG.to) which has been a permanent member of the 'Stocks to Follow' list since The IKN Weekly's inception back in May 2009 (and I held FRG before that time, something which Gary Biiwii deserves credit for).As of this morning we're now 390% up on the position. Not shabby, even though they don't always work out this well (which is easily checked by subbers, as all trades ever opened or closed are available to see in every edition).

If you look very, very carefully you may be able to spot a pattern. DYODD.

Fronteer (FRG) (FRG.to) versus AuEx (XAU.to) year to date

An interesting chart.


Subscribers got a Flash update regarding FRG sent over before the bell this AM, by the way.

AuEx Ventures (XAU.to) and Fronteer Gold (FRG) (FRG.to), the Long Canyon buddies

Here's the year-to-date chart of AuEx Ventures (XAU.to) (dark blue line) versus Fronteer Gold (FRG) (FRG.to) (yellow line) in 2010 to date. If you thought that the ongoing success at the very promising Long Canyon gold project in Nevada would offer up better price leverage to the smaller XAU than FRG.....well, you'd have been wrong.

PS: Thanks to a timely headsup from the wonderful Gary Biiwii back in 2009, this author owns FRG. It's also been a recommended buy at The IKN Weekly since week one and we're now over 200% up on that position. We owned and reco'd XAU.to as well, but sold the position late May for a more modest but still pleasing 35% win. just sayin'.

Fronteer (FRG)

So the corp slogan sucks and they have one of those annoying deliberate typos in the name (EZ-Kleen!!). Who cares when the stock price roars?

Leaders lead, followers follow.

IKN dedicates a track to Fronteer Development (FRG) (FRG.to)

Just two months ago this jewel was trading under U$4.....


......so today we dedicate a full-on killer special kickass track to FRG. Take it away, Muddy:



disclosure: yeah, course i'm long

Fronteer Development Corp (FRG) (FRG.to): an observation

On Jan 25th I posted on Fronteer Development Corp (FRG)(FRG.to) noting a decent news release and the share price pop it got as a result. since then the stock has managed to perform badly, dropping by about 10%. Dem's da breaks. I like the stock, its story, its assets and its future and have skin in the game here, so the drop is on my mind...not worried, just wanted to know a bit more about why it should perform this way.

So here's a thing. Check out the year-to-date chart on FRG and we see that......

......every time it's released news to the market this month, the price has performed well. But every time the news is incorporated, the PPS has dropped away afterwards. To make it easier, here are the links to the NRs on Jan 6th, the second on Jan 6th, then this on Jan 11th next this one on Jan 15th and finally this on Jan 25th. A fairly large amount of significant news for a single month.

What to make of this? Well, it does point to the general inertia in the gold junior sector, but it also says that FRG has plenty of good news to feed to the market and when it does that feeding, the market likes what it reads. All in all, it adds up to plenty of short term trading opportunity for the nimble amongst you, I'd say. Personally, I'm good about simply holding through this choppy season...but that's just me.

DYODD, dude.

Oh Mr. Sandman, bring me a dream......

....make it the cutest drillcore I've ever seen.

Fronteer released results from the ongoing exploration of the Sandman project in Nevada, with the headline number a real eyecatcher:

Sandman Delivers More High-Grade Gold to Fronteer's Nevada Platform With 90.28 G/T Gold Over 3.47 Metre

Yep, that's nigh on three ounces of gold per metre there and checking more of the drill highlights we get........

--  90.28 grams per tonne gold (2.633 ounces per ton) and 126.54 g/t silver
 (3.691 oz/ton) over 3.47 metres in NSM-142;
--  86.91 g/t gold (2.535 oz/ton) over 1.19 metres and 13.15 g/t gold (0.384
 oz/ton) over 7.16 metres in NSM-141;
--  20.03 g/t gold (0.584 oz/ton) over 2.99 metres in NSM-126;
--  22.37 g/t gold (0.652 oz/ton) over 3.47 metres in NSM-123.

--  52.45 g/t gold (1.53 oz/ton) over 1.01 metres, in NSM-147;
--  9.23 g/t gold (0.269 oz/ton) over 1.22 metres in NSM-146.

Mmmmmmm....tasty. So did the market like the news?

Sure did, that late day sell-off Friday is now ancient history and the stock has gapped up in style on good volumes this morning. Along with its Long Canyon JV (with XAU.to), Fronteer has nailed some excellent gold prospects in the Nevada region and this stock, a mainstay component of The IKN Weekly Stocks to Follow list, is a nigh-on double for subscribers. Thanks due to Gary BiiWii for giving me the headsup on this quality junior around this time last year.

I love that line the Chordettes sing about Liberace, by the way. Beats the Metallica song hands down.

Fronteer (FRG), AuEx Ventures (XAU.to) and Long Canyon

News out from both companies about their JV asset, Long Canyon in Nevada.

The FRG version is on this link

The XAU.to version is on this link

Here's how the FRG PR kicks off (and after reading the first para, any minehead will want to click through and read the whole thing).

VANCOUVER, BRITISH COLUMBIA--(Marketwire - 09/17/09) - Fronteer Development Group Inc. (TSX:FRG - News)(AMEX:FRG - News) announces today that new drilling along Long Canyon's intensely altered West Zone has extended high-grade oxide gold mineralization an additional 200 metres along strike.

The West Zone is one of five parallel elongate gold zones that make up the evolving Long Canyon deposit. Examination of drill core from the West Zone suggests that alteration intensity is increasing westward, and additional drilling may lead to identification of a feeder zone or zones toward the west. Highlights from important new step-out holes from the West Zone include:

- 7.39 grams per tonne gold (0.216 ounces per ton) over 12.7 metres, including 28.70 g/t (0.838 oz/ton) over 2.7 metres in LC285C;

- 12.52 g/t (0.366 oz/ton) over 12.5 metres, including 40.10 g/t (1.171 oz/ton) over 3.6 metres in LC291C; and

- 2.50 g/t gold (0.73 oz/ton) over 23.0 metres, including 9.62 g/t (0.281 oz/ton) over 3.0 metres in LC292C.

The IKN Weekly subscribers know how much I like both stocks; quality mgmt, quality assets, serious juniors. And by way of a reminder, Nevada is where Newmont (NEM) is looking to gather resource ounces in the future. Yeah, that's the same Newmont that has just raised U$2Bn for expansion and M&A reasons.

Fronteer Development (FRG) (FRG.to): A very interesting chart

If you're really feeling bullish about the future of the world look where this quality miner play was just two years ago....and look at the price it just printed yesterday.

click to enlarge (gets big)

Oh and while we're at it, look at the price we recommended and bought when the stock went under the analysis microscope known as the NOBS report. Toot toot.

FRG: Gary, you nailed the sucker

I've been telling you Gary at biiwii is good at what he does for how long now? A year and a bit, ever since this humble corner of cyberspace began, probably. So look at this chart he published on his free access blog May 4th 2009 (i.e. last Monday) about Fronteer (FRG) (FRG.to):

(click to enlarge)

And here we are 7 days later with FRG at U$3.18 on strong volume. It's already up 20% in a week and looks on the way to Gary's U$3.50 short-term target. I can also tell you, as one of the people who gets his NFTRH newsletter delivered each week, that the quality of info in his (rather inexpensive) paid service is even better than the stuff on his blog. Here's the link to find out more about his newsletter. Highly recommended*.

UPDATE: Gary's added a new post on FRG this morning; again, good advice on offer.

*and no, I'm not on any sort of commission. I just like recommending quality services.

The IKN Weekly: Issue Two Out Tomorrow (Sunday)

Nice pitch

Here's what you're about to miss if you don't subscribe to The IKN Weekly, as issue two hits inboxes tomorrow afternoon (yes, this is another boring pitch to try and get you on board).

• A NOBS bespoke fundamental report on Minera Andes (MAI.to)

• A "stocks to follow" list (already in the green)

• Detailed comments on political risk in Peru and Argentina (and how to benefit, of course)

• Hot news on Fronteer (FRG), Rusoro (RML.v) and Fortuna (FVI.v) that you won't find anywhere else, guaranteed.
  

• Plenty of other stuff too, as the whole report runs to 17 pages.

Also, I'm still throwing in Issue One as the free kicker to new subscribers, but be clear that those not on board before the bell Monday morning won't get to see Issue Two. After all, subscribers is as subscribers does. I hope you decide to try out the service; at $25 a month and with easy unsubscribe there's very little to lose and plenty of intel to gain. More information can be found on this link and the subscription buttons are over there on the right. Any further queries or doubts? Just send me a mail at...

otto.rock1 (AT) gmail.com

...and I'll be happy to answer. Thanks for suffering through this pitch and enjoy the weekend. As for already-on-board subscribers, expect Issue Two of The IKN Weekly right on time Sunday afternoon. The ETA looks good from this end ;-)

Fronteer (FRG) (FRG.to): A new NOBS report available

I mentioned in passing yesterday that there's a new $10 report available and was pleasantly surprised at the reaction, with 12 of you taking me up on the offer. So consider this post as a second, more blatant and final offer so that others might step up to the plate, get a copy of the report and make a giant stride towards owning a winning investment.

Order your copy of this bespoke report and you'll get to see why I like the company and why it's trading at a real bargain price right now. You get a breakdown of its financials, its operative background, all relevant facts and plenty of 'no BS' opinion, too. You also get a solid price target with a timeline. All you need to do is send U$10 to my PayPal account, which is.....

otto.rock1 (AT) gmail (DOT) com

.....and I'll send you your copy back by return. As mentioned before, U$10 is less than the price you pay for commission on a trade. It's a small price to pay to get wise on a quality mining company and in my considered opinion there's plenty of profit to be made by investing in FRG for those who take the current pricing levels, as the current risk/reward equation is very favourable indeed. To make things easier, here's a pre-set button you can use to put your order in. Via PayPal you can use all the usual credit cards, too. It's a quick, simple and totally safe transaction.

Disclosure: I recently went long FRG at U$2.25 and added at U$2.10, though it's not a big position...yet. However, apart from the recently taken long position I have no affiliation with FRG or anyone connected with it. In other words, I'm doing my independent thing as always.

Positive PR Headsup: Fronteer (FRG)

The press release published this morning by Fronteer (FRG) (FRG.to) is very impressive stuff. Here's the link, go read.

FRG currently trading at U$2.27.

UPDATE: The Canadian traded stock (FRG.to) got a very nice rebound on the news. From sinking to C$2.77 on the general gold market malaise this morning it has popped back to C$2.86.

disclosure: I don't own.