Frontier Rare Earths - Resource Estimate / Technical Report - NI 43 101

J1580

Amended NI 43-101 Resource Estimate and TechnicalReport on the Zandkopsdrift Rare Earth Element (REE)Project, located in the Republic of South Africa

Prepared by The MSA Group on behalf of:

Frontier Rare Earths Limited

Author(s): Mike VenterMike HallPete SiegfriedJames Brown

Regional Consulting GeologistConsulting Geologist ResourcesConsulting GeologistSenior Metallurgist

Pr.Sci.NatMAusIMMMAusIMMMASc P.Eng

Date:Amended Date:

28 September, 201029 October, 2010

Project Code: J1580

AuthorMike Venter

Qualified PersonJames Brown

Qualified PersonMike Hall

Qualified PersonPete Siegfried

Project J1580 Page: iiFrontier NI 43-101 Technical Report – 29 October, 2010

INDEPENDENT TECHNICAL REPORT

29 October, 2010

The Directors

Frontier Rare Earths Limited

9 Allée Scheffer

L-2520 Luxembourg

Dear 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 Rare

Earth Element (REE) Project (“ZRP”) located in the Republic of South Africa in which Frontier

has an interest. This report forms part of the Policy 2.1 Minimum Listing Requirements of the

Toronto Stock Exchange (TSX) & TSX Venture Exchange (“TSX-V”). This NI 43-101

Technical Report has been prepared in accordance with National Instrument 43-101

Standards of Disclosure for Mineral Projects and Form 43-101F1, as issued by the Canadian

Securities Administrators (CSA).

MSA has not been requested to provide an Independent Valuation, nor have we been asked

to 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 others

provided by Frontier, along with other relevant published and unpublished data. Pete

Siegfried, who is one of the Qualified Persons for this report, has considerable experience in

carbonatite and REE mineral systems gained during 25 years of exploration experience. Site

visits were undertaken to the ZRP by Pete Siegfried and Mike Venter between 1 December to

5 December, 2009 and by Mike Venter from 10 to 11 November 2009. 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.

The ZRP comprises a single prospecting right located in the Northern Cape Province of South

Africa. The prospecting right is held by Sedex Minerals (Pty) Ltd (Sedex), a 74% owned

subsidiary of Frontier. The present status of the prospecting right listed in this report has been

verified by Frontier’s legal advisors, Taback and Associates (Proprietary) Limited, and a copy

of the prospecting right and the legal opinion in relation thereto have been observed by the

authors.

The ZRP is considered to be sufficiently prospective on the basis that a significant amount of

historical exploration and evaluation work has been completed over the ZRP, the results of

which warrant further exploration and assessment of the project’s economic potential,

consistent with the programmes proposed by Frontier.

Project J1580 Page: iiiFrontier NI 43-101 Technical Report – 29 October, 2010

Budgets for the exploration and evaluation programmes described in this report amount to a

total expenditure of approximately USD$ 16 million. Frontier has prepared staged exploration

and evaluation programmes, specific to the potential of the project, which are consistent with

the budget allocations. MSA considers that the relevant areas have sufficient technical merit

to justify the proposed programmes and associated expenditure.

The Independent Technical Report has been prepared on data and information available up to

and including 23 April 2010. MSA has provided consent for the release of the NI 43-101

Technical Report in the form and context in which it appears.

MSA is an exploration and resource consulting firm, which has been providing services and

advice to the international mineral industry and financial institutions since 1983. This report

has been compiled by Pete Siegfried, Mike Venter and Mike Hall and supported by Mr James

Brown from SGS Minerals Services, Canada.

Mr. Venter is a professional geologist with 17 years experience in the exploration and

evaluation of mineral properties and is a full time employee of MSA. He is Regional Consulting

Geologist for MSA and is a member in good standing with the South African Council for

Natural Scientific Professions (SACNASP). Mr. Hall is a professional geologist with 29 years

experience in the exploration and evaluation of mineral properties and resource reporting

thereof and is a full time employee of MSA. He is Consulting Geologist – Mineral Resources

for MSA and is a member in good standing with the Australian Institute for Metallurgy and

Mining (AusIMM) and has the appropriate relevant qualifications, experience, competence and

independence to be considered a “Qualified Person” under the definitions provided in the

Reporting Code. Mr. Siegfried is a professional geologist with 25 years experience in the

exploration 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 and

Mining (AusIMM) and has the appropriate relevant qualifications, experience, competence and

independence to be considered a “Qualified Person” under the definitions provided in the

Reporting Code. 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).

Neither MSA, nor the authors of this report, have or have previously had any material interest

in Frontier or the mineral property 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.

Project J1580 Page: ivFrontier NI 43-101 Technical Report – 29 October, 2010

Yours faithfully

Pete Siegfried Consulting Geologist

MSA

Project J1580 Page: 5Frontier NI 43-101 Technical Report – 29 October, 2010

Table of Contents

INDEPENDENT TECHNICAL REPORT..................................................................................... II

1 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 ...................................................................... 14

2 INTRODUCTION............................................................................................................. 16

2.1 Scope of Work ....................................................................................................... 16

2.2 Principal Sources of Information............................................................................. 16

2.3 Qualifications, Experience and Independence........................................................ 17

3 RELIANCE ON OTHER EXPERTS................................................................................. 18

4 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..................................................................................................... 22

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE ANDPHYSIOGRAPHY............................................................................................................ 22

5.1 Access ................................................................................................................... 22

5.2 Climate................................................................................................................... 22

5.3 Local Resources and Infrastructure........................................................................ 23

5.4 Physiography ......................................................................................................... 24

6 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.................................................................................... 30


6.4.3 Reverse Circulation and Diamond drilling 1988 .......................................... 30

6.4.4 Mineralogy and Metallurgy.......................................................................... 37

6.4.4.1 Mineralogy.................................................................................................. 376.4.4.2 Metallurgy................................................................................................... 37

7 GEOLOGICAL SETTING................................................................................................ 39

7.1 Regional Geology................................................................................................... 39

7.1.1 The Koegel Fontein Complex ..................................................................... 39

7.2 Property Geology ................................................................................................... 42

8 DEPOSIT TYPE .............................................................................................................. 45

9 MINERALISATION.......................................................................................................... 46

10 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 ........................ 52

11 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................................................................................... 57

12 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 ............................................................................... 62

13 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..................................................................................... 65


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 ........................................................................................ 68

14 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 ....................................................................................... 72

15 ADJACENT PROPERTIES ............................................................................................. 76

16 MINERAL PROCESSING AND METALLURGICAL TESTING........................................ 77

16.1 Introduction ............................................................................................................ 77

16.2 Summary................................................................................................................ 77

17 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.......................................................................................................... 101

18 OTHER RELEVANT DATA AND INFORMATION......................................................... 102

19 INTERPRETATION AND CONCLUSIONS.................................................................... 103

20 RECOMMENDATIONS ................................................................................................. 104

21 ACKNOWLEDGEMENTS ............................................................................................. 108


22 REFERENCES.............................................................................................................. 108

23 DATE AND SIGNATURE PAGE ................................................................................... 111

List of Tables

Table 1-1 Indicated Mineral Resources at Zandkopsdrift 13

Table 1-2 Inferred Mineral Resources at Zandkopsdrift 13

Table 1-3 Indicated Mineral Resources - Zones A, B and C 14

Table 1-4 Inferred Mineral Resources - Zones A, B and C 14

Table 6-1 Historical Drilling completed over Zandkopsdrift 35

Table 11-1 Frontier validation drilling details 53

Table 17-1 REE to REO conversion factors 79

Table 17-2 Comparison of borehole and estimated block means 83

Table 17-3 Zandkopsdrift Indicated Resources 84

Table 17-4 Zandkopsdrift Inferred Resources 84

Table 17-5 Indicated Mineral Resources – Zones A,B and C 85

Table 17-6 Inferred Mineral Resources – Zones A, B and C 85

Table 17-7 Significant Intercepts 86

Table 17-8 Relative distribution of REO’s by weight 90

Table 17-9 Individual REO in the Indicated and Inferred Resource Categories 91

Table 17-10 Indicated Mineral Resources – REO Distribution 92

Table 17-11 Inferred Mineral Resources – REO Distribution 92

Table 17-12 Checklist for Resource Reporting (CIM) 100

Table 20-1 Work program cost estimate 106

Table 20-2 Phase 1 and 2 Budget Summary 107


List of Figures

Figure 4-1 Location of Zandkopsdrift REE Project 20

Figure 5-1 Digital Elevation Model over ZRP 25

Figure 5-2 Zandkopsdrift carbonatite (looking South East) 26

Figure 6-1 Historical Drilling at Zandkopsdrift to 1987 29

Figure 6-2 Anglo American cross section across Zandkopsdrift 32

Figure 6-3 Example of Anglo American DD log – ZKD39 33

Figure 6-4 Revere circulation, diamond and wagon drilling at Zandkopsdrift 34

Figure 6-5 Historical drilling at Zandkopsdrift 36

Figure 7-1 Regional Geological Setting 40

Figure 7-2 Kogel Fontein Complex 41

Figure 7-3 Project Geology 43

Figure 7-4 Photographs of carbonatite brecciation at Zandkopsdrift 44

Figure 8-1 Schematic cross section, Mt Weld Carbonatite Complex, Australia 46

Figure 9-1 Chondrite normalized plot of average Zandkopsdrift REE content 47

Figure 10-1 Ground magnetics and scintillometer surveys 50

Figure 11-1 Frontier Drilling 55

Figure 11-2 Photographs of Fe-Mn wad outcrops 56

Figure 11-3 Southwest-Northeast Section across Zandkopsdrift 58

Figure 11-4 Northwest-Southeast Section across Zandkopsdrift 59

Figure 12-1 RC sample collection 61

Figure 12-2 Cone and Quartering of wet/damp samples 61

Figure 13-1 Pulp sub sampling by Frontier 63


Figure 14-1 Anglo American drill collars 71

Figure 14-2 Anglo American pulps and rejected pulps 71

Figure 14-3 Validation hole ZKR29V 72

Figure 14-4 Anglo American and Frontier drilling 73

Figure 14-5 Validation drilling comparison with Anglo American pulp data 75

Figure 17-1 Carbonatite cylinder, base of drilling and block model 81

Figure 17-2 Grade-Tonnage Curve: Indicated Resources 87

Figure 17-3 Grade-Tonnage Curve: Inferred Resources 88

Figure 17-4 Continuity from surface of blocks >3% TREO 89

Figure 17-5 Plan view of block model at 1% TREO cut-off 93

Figure 17-6 Plan view of block model – Zone A at 1.5% TREO cut-off 93

Figure 17-7 Plan view of block model – Zone B at 2.5% TREO cut-off 94

Figure 17-8 Plan view of block model – Zone C at 3.5% TREO cut-off 94

Figure 17-9 Zandkopsdrift Block Model at 1% TREO cut-off 95

Figure 17-10 Zone A Zandkopsdrift Block Model at 1.5% TREO cut-off 96

Figure 17-11 Zone B Zandkopsdrift Block Model at 2.5% TREO cut-off 97

Figure 17-12 Zone C Zandkopsdrift Block Model at 3.5% TREO cut-off 98

List of Appendices

Appendix 1 : Glossary and Definition of Terms Used

Appendix 2 : Certificate of Qualified Persons and authors consents

Appendix 3 : Drill hole Statistics

Appendix 4 : QA/QC Summaries

Appendix 5 : SGS Metallurgical Report

Appendix 6 : Borehole Strip logs


1 SUMMARY

1.1 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.


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 has


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*

Cut Off(%TREO)

MtTREO

grade (%)

ContainedTREO(‘000t)

1.0 22.92 2.32 532

Table 1-2

Inferred Mineral Resources at Zandkopsdrift*

Cut Off(%TREO)

MtTREO

grade (%)


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 is


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

Zone TREO MtTREO

grade (%)


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*

Zone TREO MtTREO

grade (%)


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 Indicated


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.


2 INTRODUCTION

2.1 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 covered


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

up to and including 23rd

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).


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.


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 LOCATION

4.1 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 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.

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 Project


4.3 South African Minerals Legislation

4.3.1 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.


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 PHYSIOGRAPHY

5.1 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 the


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 cellular


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).


Figure 5-1

Digital Elevation Model over ZRP


Figure 5-2

Zandkopsdrift carbonatite (looking South East)


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/t


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.


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.


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


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


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).


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.


Figure 6-2

Anglo American Cross Section across Zandkopsdrift


Figure 6-3

Anglo American diamond drill log ZKD39


Figure 6-4

Reverse circulation, diamond and wagon drilling at Zandkopsdrift


Table 6-1

Drilling completed over Zandkopsdrift

Hole Type Date Depth (m) Angle CommentAnglo American

220W/0 Percussion 1973-1974 46 -90° stopped in sand220W/40S Percussion 1973-1974 50 -90°180W/0 Percussion 1973-1974 50 -90°

180W/40S Percussion 1973-1974 18 -90° stopped by water180W/80S Percussion 1973-1974 35 -90° stopped by water

180W/60S Percussion 1973-1974 8 -90° stopped by water180W/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 water100W/0 Percussion 1973-1974 22 -90° stopped by water150W/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 materialZKP-3 Percussion Jul-86 47 -90° chips, pulpZKP-4 Percussion Jul-86 50 -90° chips, pulp

ZKP-5 Percussion Jul-86 50 -90° chips, pulpZKP-6 Percussion Jul-86 50 -90° chips, pulp

ZKR-7 RC Percussion Dec-87 50 -90° chips, pulpZKR-8 RC Percussion Dec-87 50 -90° chips, pulpZKR-9 RC Percussion Dec-87 50 -90° chips, pulp

ZKR-10 RC Percussion Dec-87 50 -90° chips, pulpZKR-11 RC Percussion Dec-87 50 -90° chips, pulp

ZKR-12 RC Percussion Dec-87 94 -90° chips, pulp92 holes Wagon drill Mar-88 487 -90° each 5-6 m deep, no material availableZKR-13 RC Percussion Aug-Sept-88 52 -60° South chips, pulp

ZKR-14 RC Percussion Aug-Sept-88 63 -60° South chips, pulpZKR-15 RC Percussion Aug-Sept-88 100 -90° chips, pulp

ZKR-16 RC Percussion Aug-Sept-88 99 -90° chips, pulpZKR-17 RC Percussion Aug-Sept-88 100 -90° chips, pulpZKR-18 RC Percussion Aug-Sept-88 65 -90° chips, pulp


ZKR-22 RC Percussion Aug-Sept-88 46 -90° chips, pulpZKR-23 RC Percussion Aug-Sept-88 52 -90° chips, pulp






ZKR-37 RC Percussion Aug-Sept-88 97 -90° chips, pulpZKD-38 Diamond Sep-88 100 -90° core, chips, pulpZKD-39 Diamond Oct-88 176 -70° North core, chips, pulpTotal 2839

Holes drilled in Zandkopsdrift Carbonatite


Figure 6-5

Historical drilling at Zandkopsdrift


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.


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.


7 GEOLOGICAL SETTING

7.1 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

area of some 60 000 km2

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).


Figure 7-1

Regional Geological Setting

(after Thomas et al., 1994b and Hartnady et al., 1985)

Project Area


Figure 7-2

Koegel Fontein Complex

(after De Beer et al., 2002)


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).


Figure 7-3

Project Geology


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.


8 DEPOSIT TYPE

The geology mapped by various authors (Anglo American, various internal reports;

Moore and Verwoerd, 1986) indicates that the Zandkopsdrift carbonatite intrusion is

large, possibly over 5 km in diameter, and is dominated by carbonatite breccias,

glimmerite and calcio-carbonatite rock types. Due to extensive weathering controlled

alteration, at surface the outcropping lithologies show intensive replacement and it is

difficult in most places to identify the primary rock types. One of the most visible

aspects of this weathering is the pervasive presence of secondary manganese.

Carbonatite calcite is often enriched in manganese and a content of 1 – 2 % Mn in the

carbonate lattice would easily explain the extreme enrichment encountered in the field.

The Zandkopsdrift REE deposit is characterized by a deeply weathered carapace of

REE enriched, residual material overlying the unaltered carbonatite. Boreholes have

shown this zone of weathering to be in excess of 60 m and in many instances closer to

80 meters in depth. Supergene weathering is an important facet to be considered in

the development of an economic carbonatite associated deposit. Eluvial as well as

supergene processes can cause significant upgrading of economic minerals.

Enrichment of 4 to 5 times hard rock grades of phosphate and niobium are particularly

common. Vermiculite - the weathered product of phlogopite or biotite alteration - is also

common. Generally however, such upgrading of the REE demands a more specialized

weathering process or processes and only a small number of REE deposits are known,

of which Zandkopsdrift is one, in which significant enrichment has occurred. It seems

that for the majority of these deposits the development of the weathered zone is driven

by lateritic weathering processes. The climatic regime, either present day or past, is

therefore an important aspect in the understanding of the main controls in the

formation of such deposits.

Supergene and hydrothermal monazite constitute large tonnages in some potentially

economic REE enriched carbonatite complexes that have been subjected to deep

lateritic weathering. These include examples such as Araxa and Catalao 1 in Brazil,

and Mount Weld in Australia. In these deposits, monazite is produced from the release

of REE contained within calcite, dolomite and apatite during weathering and its

subsequent reconstitution with PO43-. It is highly probable that separate weathering

events – which could be separated by millions of years, add to both the grade and

complexity of this process.

The higher solubility and migratory capacity of yttrium and heavy REE’s in certain

environments of supergene weathering appears to be important in the isolation of

these elements from light REE-dominant sources and their subsequent precipitation as

xenotime and churchite mineralization, such as recorded at Mount Weld, Australia

(Figure 8-1). The REE-bearing members of the crandallite group include florencite


[(REE)Al3(PO4)2(OH)6], gorceixite [(Ba,REE) Al3(PO4)2(OH5.H2O)], goyazite

[(Sr,REE)Al3(PO4)2(OH5.H2O)], and crandallite [(Ca,REE)Al3(PO4)2(OH5.H2O)], are all

confined to the zone of weathering of carbonatites. A similar situation is noted in the

case of Zandkopsdrift.

Figure 8-1

Schematic section through Mt Weld REE deposit

(source: www.lynascorp.com)

Detailed ground magnetic surveys carried out by Frontier have furthermore indicated

the presence of sand-covered satellite plugs around the main intrusion. To date, over

30 of these small bodies (1 - 2 ha) have been delineated. Pitting has shown that they

are composed of fine grained fragmental carbonatite breccias. Such plugs are

commonly associated with large carbonatite complexes and represent degassing of

the main body during intrusion

9 MINERALISATION

Supergene alteration has modified the elemental composition and mineralogy of the

original carbonatite lithologies. As the depth of surface weathering is indicated to be

greater than 80 m in places, and given the present arid nature of the area, various

supergene processes within the regolith have been active for some time. The presence

of sulphides, including pyrite and pyrrhotite would have further accelerated the

breakdown of the carbonatite rock. This can be noted in the vivid yellow and orange

colouration of the carbonatite as well as actual sulphides seen in unaltered core

(Figure 11-2).


Mineralogical studies (Siegfried, 2008; Watanabe et al, 2009) show that the majority of

REE-bearing minerals consist of late stage, probably supergene, monazite and

crandallite, although a number of other minerals such as cheralite and gorceixite occur.

To date, the minerals have been identified as fine grained and often having intergrown

textures.

During late stage cooling of carbonatites there is often hydrothermally associated

crystallization of the REE-bearing minerals through introduction of REE-rich fluorine

solutions. Evidence for this is noted by the late stage nature of all the REE-minerals

identified (monazite, gorceixite, cheralite) and the associated brecciation with this

event. The REE distributions plotted as a chondrite normalized curve is consistent with

carbonatites in general (note the lack of Eu anomaly) although significant redistribution

has occurred during weathering (Figure 9-1).

Figure 9-1

Chondrite normalised profile of average Zandkopsdrift REE distribution

Petrographic studies show that the most common brown, banded to pisolithic

carbonatite is composed of rounded clasts, usually 1 - 2 mm in size (some 10 – 15

mm). Clasts are of (i) fine grained carbonate-rich material (often with a hatch work

intergrowth), (ii) of finer and coarser grained carbonatite – essentially similar to the

matrix and, (iii) of magnetite. Magnetite is generally euhedral and medium to coarse

grained. Rare, coarse grained euhedral zircon is also present and a single, completely

altered, possible coarse grained olivine xenocryst was noted. The matrix consists of

banded limonite and magnetite-bearing ferro-carbonatite and calcite.

In conclusion, the main REE-bearing minerals identified are monazite and crandallite,

and the proposed metallurgical studies will focus on the extraction, beneficiation and


processing of these minerals that generally occur within the upper, near surface,

deeply weathered parts of the Zandkopsdrift carbonatite.

10 EXPLORATION AND EVALUATION

Since acquiring the Prospecting Right at Zandkopsdrift, Frontier’s exploration and

evaluation activities have principally comprised of:

Ground magnetic and radiometric surveys

Petrographical studies and mineralogical analyses

Age estimation

Data compilation and re-interpretation

Preliminary pit and deposit modelling

REE analyses and additional mineralogical work

Compilation of all historical Anglo American data into a relational exploration

databases and creation of databases to house Frontier drilling and pulp re-assay

data

Completion of a validation drilling and pulp re-assay programme

Completion of a metallurgical review by SGS Minerals Services, Lakefield,

Ontario, Canada

Preparation of a CIM compliant resource estimate

10.1 Ground magnetic and radiometric surveys

Due to the poor exposure of the entire carbonatite complex, Frontier completed a

ground magnetic survey in order to delineate the carbonatite’s dimensions. The survey

was carried out using a G5 Proton Magnetometer on 100 m spaced lines with readings

being taken every 10 m. A similar magnetometer was set up as a base station to

compensate for diurnal magnetic variations. All data was processed by Remote

Exploration Services in Cape Town.

Results of the survey were effective in delineating the main pipe as a strong dipole as

well as defining several smaller, discrete dipoles that could represent additional,

smaller carbonatite intrusives. Frontier also completed a ground radiometric (total

count) survey over the carbonatite utilising a handheld RadEye PRD scintillometer.

Survey parameters were the same, although the survey area covered during the

scintillometer survey was slightly smaller (Figure 10-1). As with the magnetic survey,

the scintillometer survey was effective in delineating the main pipe and some of the


peripheral pipes, although detection of buried intrusives under surficial cover using

radiometrics is extremely limited.

Follow-up pitting by Frontier over suspected satellite pipes was successful in

identifying several fine grained pelloidal fragmental carbonatite breccias. This, coupled

with the presence of a known REE enriched (4.5% La and 7.2% Ce) carbonatite plug

(Klipheuvel) (identified by Anglo American – see Figure 7-2) located 6 km to the

southwest of Zandkopsdrift carbonatite, indicates that these satellite plugs present

additional targets in their own right, for either higher grade deposits or HREE-enriched

deposits.

10.2 Petrographic and mineralogical investigations

Based on the petrographic and mineralogical work completed by Anglo American, it

was clear that a wide range of mineral suites had been identified at Zandkopsdrift. This

points to the complex and highly zoned and phased nature of mineralisation within the

carbonatite complex. Mr Pete Siegfried was contracted to carry out additional

mineralogical and petrographical work over selected samples from Zandkopsdrift.

Samples were selected from drillcore ZKD38 and ZKD39 and submitted for

mineralogical evaluation using X-Ray Diffraction (XRD) (Geological Survey of Namibia)

and transmitted light petrography respectively.

A common feature identified during this study was the ubiquitous presence of late

stage, hydrothermal REE bearing mineral gorceixite as well as secondary supergene

monazite and crandallite. This suggests that Zandkopsdrift has undergone significant

late stage, hydrothermal alteration with a large supergene overprint (Siegfried, 2008).

10.3 Age estimation of Zandkopsdrift Carbonatite

Work completed by Verwoerd (1993) placed the age of the Zandkopsdrift carbonatite

complex at between 54 and 56 Ma, with this inference based on the location of

Zandkopsdrift relative to the age of surrounding olivine mellilite pipes from the Koegel

Fontein Complex (Moore and Verwoerd, 1985).

Hugh Jenner-Clarke completed an estimate of the age of the Zandkopsdrift carbonatite

using his extensive knowledge and understanding of palaeo surfaces in the region.

Jenner-Clarke’s interpretation suggests that some 150 m of the pipe has been eroded

since emplacement, and this comparison with other olivine mellilite pipes places the

age of Zandkopsdrift at 55 Ma, which agrees well with Verwoerd’s estimates.


Figure 10-1

Ground magnetic and scintillometers surveys


10.4 Data Compilation and re-interpretation

Despite the extensive drilling and metallurgical program carried out by Anglo

American, no resource estimates were ever completed. Frontier decided to carry out a

review and compilation of all Anglo American data in order to better define the

distribution of REE mineralisation at Zandkopsdrift. In March 2008, Frontier contracted

Mr GL Palmer (former Anglo American project geologist at Zandkopsdrift) to carry out

this work (Palmer, 2008). Palmer based all of his work on Anglo American drilling and

assay data generated from the 31 RC and 2 diamond drill holes completed in 1988.

The results of Palmer’s work was effective in assisting Frontier in delineating areas for

carrying out validation drilling and ultimately to define the resource estimates detailed

later in this ITR.

10.5 Preliminary deposit/pit modelling

In November 2008, Mr Siegfried contracted J. Wilson & Associates cc from

Johannesburg to provide a preliminary economic assessment of the Zandkopsdrift

carbonatite (Wilson, 2008). This work utilised all of the historical Anglo American data

in order to define preliminary grade distribution and generation of pit optimisation

models. Mineralisation was modelled to a maximum depth of 130 m below surface and

a stripping ratio of 0.10:1 was estimated. A density of 2.5 t/m3

was assumed.

10.6 REE Analyses and additional mineralogy

In collaboration with the Geological Survey of Japan, the Japan Oil, Gas and Metals

National Corporation (JOGMEC) and the Council for Geoscience completed a site visit

in February 2009 and took surface and diamond core samples for the purposes of

carrying out full REE analyses as well as additional mineralogical studies.

The team collected 17 surface samples as well as 30 samples (pulps) from drill holes

ZKD39 and ZKD38. Samples were analysed by Activation Laboratories in Canada for

the full REE suite by ICP-MS. XRD as well as petrographical investigation (including

SEM and EDX) was also carried out over selected samples.

Conclusions drawn from the study were that the broad lithological sequence (from

surface) intersected by drill holes ZKD38 and ZKD39 was that of a typical weathered

profile of a carbonatite and that the zone defined by Palmer correlate well with the

lithologically distinct and deeply weathered Fe-Mn wad and crandallite-rich zone. The

surface Fe-Mn wad is enriched with Light REE (LREE) compared to the relatively fresh

carbonatite intersected at depth (Watanabe et al, 2009). These observations and

results support previous findings by Siegfried relating to the preferential enrichment or

supergene enrichment of REE within the upper, deeply weathered portions/phases of

the Zandkopsdrift carbonatite.


10.7 Compilation of Anglo American data and generation of databases

All of Anglo American’s hardcopy geological, drilling and sample data was captured

and digitised into custom designed relational exploration databases as well as

incorporated into ArcGIS, a Geographical Information System (GIS). Similar databases

were also designed to house Frontier validation drilling and pulp re-assay data.

11 DRILLING

11.1 Objectives

In order to complete an NI 43-101 compliant resource estimate over Zandkopsdrift,

Frontier undertook a validation exercise of Anglo American’s assay database, pulps

and drill hole data in November and December 2009. This exercise had the following

key objectives:

Audit of all existing Anglo American drilling pulps samples to assess integrity for

re-assay for the full REE suite by ICP-MS by Frontier. This process also

identified specific holes where Anglo American’s pulp and chip samples had lost

sample integrity (i.e. damaged/lost samples) and therefore had to be re-drilled.

Validate Anglo American drilling through the twinning of at least 10% of Anglo

American’s holes in order to confirm lithology and grade distribution as well as to

establish confidence in the Anglo American database and drilling/sampling

methods.

Re-assay all audited and existing Anglo American drilling pulps for the full REE

suite using ICP-MS.

Details relating to the drilling and pulp auditing exercise carried out by MSA are

provided in more detail in Chapter 14 – Data Verification.

11.2 Historical Drilling

Anglo American and Phelps Dodge previously undertook drilling programmes of

varying scales and intensities. Although the drilling method is known in each case,

sampling methodology and QA/QC data were not available. RC chips and pulps from a

majority of the Anglo American RC holes core from the two diamond core holes have

been acquired by Frontier and are stored in Frontier’s secure facility in Springbok.

While the majority of the RC chips and pulps were well preserved and labelled, much

of the diamond core was disturbed and out of sequence, and hence was not used for

the purposes of the validation and re-assay work which has been carried out.


11.3 Validation drilling

Based on the outcome of the validation and pulp auditing exercise, Frontier completed

a total of 13 RC holes (for a total of 1,005 m) over the Zandkopsdrift carbonatite.

Frontier focused its drilling and validation efforts over the high grade areas defined by

Anglo American data/Palmer, and lower grade Anglo American holes drilled to the east

of this block were not validated (Figure 11-1) Table 11-1 provides details on all holes

drilled by Frontier.

Five holes were twinned with the Anglo American holes, with an additional five holes

being drilled to provide samples for assay (due to Anglo American’s original pulps

being not available/suitable). All validation holes and re-drill holes were located within 5

m of the Anglo American collars which were well preserved.

The historical collar for ZKR26 was never located in the field; therefore an additional

hole (ZKR26V) was redrilled at its correct position. Two additional holes (ZKR40 and

ZKR41) were drilled as infill holes to assist with the closing off of higher grade areas

defined by Palmer’s resource blocks (Figure 11-1 and Table 11-1).

Table 11-1

Frontier validation drilling details

BH_ID Start Date End Date Easting Northing Elevation EOH Purpose Comments

ZKR13V 2009/12/14 2009/12/15 783546.16 6581617.23 197.54 54 Redrill

ZKR14V 2009/12/14 2009/12/14 783659.94 6581265.18 187.06 57 Redrill

ZKR19V 2009/12/02 2009/12/03 783856.06 6581373.11 180.9 59 Redrill

ZKR26V 2009/12/03 2009/12/04 783454.34 6581362.53 188.49 64 New hole Anglo ZKR26 not located

ZKR27V 2009/12/04 2009/12/05 783453.54 6581466.80 194.27 108 Validation Validate against ZKR27

ZKR28V 2009/12/05 2009/12/07 783650.12 6581568.80 196.34 77 Redrill

ZKR29V 2009/12/02 2009/12/02 783751.06 6581518.21 190.32 68 Redrill


ZKR34V 2009/12/11 2009/12/12 783758.67 6581197.56 179.58 87 Redrill



ZKR40 2009/12/09 2009/12/10 783668.47 6581656.85 197.74 103 New hole Infill

ZKR41 2009/12/11 2009/12/11 783497.14 6581543.12 199.39 82 New hole Infill

Frontier Validation Drilling December 2009

WGS84 UTM 33S

Frontier engaged MSA to carry out all logging, sampling and management of the

drilling program. Drilling was carried out by Hayes Drilling, based out of Springbok. All

holes (including all historical drill hole collars) were surveyed by Mr Carel Venter, a

professional surveyor using a Differential GPS in December 2009. A high resolution

digital elevation model was also completed for the purposes of NI 43-101 compliant

resource estimation, along with downhole gamma density and magnetic susceptibility

logging over all holes, including two historical holes. Magnetic susceptibility and total


count scintillometer readings were taken over every sample interval (1 m) and

captured by the geologists on site.


Figure 11-1

Frontier Drilling


11.4 Results of drilling

The drilling completed by Frontier was successful in validating Anglo American’s

original drilling and sampling program and confirmed the presence and enrichment of

REE mineralisation within highly weathered phase/phases of the carbonatite,

described by Anglo American as Fe-Mn wad and, to a lesser extent, ‘melnoite’. Each

hole was logged using Anglo American’s original lithological logging codes and

descriptions in order to compare lithologies between holes for the purposes of the

validation exercise.

11.5 Main lithologies

The original Anglo American lithological logs, although basic, were used as a baseline

for all lithological logging carried out by MSA at Zandkopsdrift. The following major

lithologies were identified during the drilling program:

11.5.1 Fe-Mn Wad

This material forms several outcropping irregularly shaped exposures at Zandkopsdrift

(Figures 6-3 and 11-2).

Figure 11-2

Outcrop of Fe-Mn wad (left) with Anglo American hole ZKR36 in the foreground

(right)


The material is extremely porous, heterogenous, and petrographic work by Siegfried

has classified it as a highly weathered magnetite bearing ferro carbonatite that has

undergone a significant amount of surficial and supergene alteration.

11.5.2 Melnoite

Despite the introduction of the lithological descriptor ‘melnoite’ by Anglo American as a

separately identified phase of the carbonatite, its suitability as a primary lithological

identifier is questioned. Although possible relict olivines were noted during

petrographic investigations (Siegfried 2008), no evidence of a ‘melnoite’ rock type was

indicated. Sensu stricto a ‘melnoite’ is represented by a mantle derived ultramafic rock.

All primary rocks studied consist of > 30% carbonate and are therefore correctly

identified as carbonatites. Detailed mineralogy and petrography is required in order to

identify this phase correctly.

11.5.3 Carbonatite

Carbonatite as logged by Anglo American at Zandkopsdrift shows a degree of

weathering and alteration at the exposed top part of the carbonatite and in contact with

the Fe-Mn wad which seems to envelop both the carbonatite and ‘melnoite’. Apatite,

magnetite and phlogopite are common minerals with >30 % calcite as the major

minerals. Fresh carbonatite contains a variety of minerals including disseminated pyrite

and nepheline which has a greenish colour with calcite and quartz or silica.

11.6 Orientation of mineralisation

Orientation of mineralisation at Zandkopsdrift has not yet been accurately determined

due to limited understanding of the geometry and nature of the carbonatite intrusion(s).

However due to the typical style and nature of carbonatite intrusive events, lithological

contacts are assumed to be vertical. Although this may be the case at Zandkopsdrift,

an extended period of deep weathering and a component of supergene enrichment

has resulted in a broad horizontal REE grade distribution across the carbonatite

intrusive with higher grades being associated with deeply weathered (and in some

cases supergene enriched) zones (Figures 11-3 and 11-4). These varied weathering

profiles are assumed to be controlled by the mineralogy and grain size, as well as

influence of later stage structures/faults that would have been responsible for the

introduction of oxidising/weathering fronts into deeper parts of the carbonatite.

Additional diamond and infill RC drilling will further define these zones and provide

better understanding of the horizontal and vertical REE distribution within

Zandkopsdrift.


Figure 11-3

Southwest-Northeast sections across Zandkopsdrift


Figure 11-4

Northwest-Southeast section across Zandkopsdrift


12 SAMPLING METHOD AND APPROACH

Frontier completed two forms of sampling over Zandkopsdrift:

Sampling of historical Anglo American pulps

Sampling of RC cuttings from the validation drilling program carried out in

December 2009

12.1 Pulp Sampling

Following the completion of a pulp and sample audit by the Authors, all of the historical

Anglo American pulps required homogenisation and splitting. Details relating to these

methods and protocols are provided in Chapters 13 and 14.

12.2 RC drilling and sampling

MSA and Frontier geological staff and assistants were present during the drilling of all

RC holes and were responsible for taking samples for assay.

One meter samples were taken from RC drilling. Sample cuttings were collected from

the cyclone and placed into a large plastic bag and then weighed on a scale and the

weight noted by the Geologist/Geological assistant (Figure 12-1). This was followed

by repeated splitting of the sample using a riffle splitter until a representative sample of

approximately 2 kg to 2.5 kg was taken for sample preparation and analyses at the

laboratory. A small sample was taken from the bag and placed in a chip tray for visual

inspection and logging by the geologist who also took magnetic susceptibility and total

gamma readings from every meter. Major water intersections encountered by drilling

were also captured by the geologist on site.

The riffle splitter was cleaned with compressed air and a rubber mallet after every

sample to diminish contamination. The cyclone was blown out with compressed air

after every rod drilled.


Figure 12-1

Collecting sample from the cyclone (left) and splitting with a riffle splitter (right)

Wet or damp samples were split utilising the “cone and quarter” method until a

representative sample was obtained. Here the sample was placed on a clean plastic

sheet, formed into a cone and split into four using a plastic covered edge. Opposite

quarters were then composited again and coned/split accordingly until the

representative sample was obtained and then bagged (Figure 12-2).

Figure 12-2

Cone and quartering of wet/damp samples


Samples from the drilling operations in the field were transported to Frontier’s storage

facility in Springbok. Samples that had been split in the field represented 1 m intervals

down the hole and weighed between 1 and 5 kg. Some samples were wet and in

certain cases contained free flowing water. These samples were transported to

Scientific Services laboratories in Cape Town for further processing.

The drilling method and sample recovery/methodologies implemented at Zandkopsdrift

were deemed appropriate for the objectives and purposes of validating Anglo

American data.

12.3 Density and Magnetic Susceptibility Measurements

Frontier contracted Terratec Geophysical Surveys Namibia to complete downhole

density surveys over Frontier’s holes in order to obtain accurate density and magnetic

susceptibility measurements for the purposes of NI 43-101 compliant resource

estimation. A total of 15 holes were surveyed (all of the validation holes and two of the

historical holes) for a total of 1,088 m.

12.3.1 Density Logging

Density logging was carried out using a gamma-gamma sonde. The sonde has a Cs

137 source which generates gamma rays which interact with the rock. Based on the

return scattered flux of gamma radiation from the formation, a measure of density can

be achieved. The sonde is side walled. Two sensors are provided which are offset

from the probe source so as to provide two density measurements, which reflect a

smaller/near and larger/far density sample into the side wall. The measurements can

be combined to yield a compensated density. Based on calibration sources an

accuracy of 0.1- 0.05 g/cm3

is possible. Background radiation via U and Th was

corrected for by running the tools without the Cs source and applying a background

correction.

12.3.2 Magnetic Susceptibility

The tool provides a measure of susceptibility using Bartington components at a

frequency of 1.4 KHz. The probe relies on the principle whereby a current is induced

by an oscillating magnetic field in the probe within a toroidal zone of formation at some

radial distance from the probe coils. The oscillating current produces a secondary field

that is detected by the receiver coils. The “in phase” signal is a measure of

susceptibility in formations with magnetic properties. Logging would be done at a

speed of 3-5 meters per minute. The susceptibility would pick up the presence of

magnetic minerals. The tool is calibrated to provide susceptibility values in SI units.


The methods used to collect density and magnetic susceptibility measurements at

Zandkopsdrift were deemed appropriate for the objectives and purposes of providing

appropriate data for the purposes of NI 43-101 compliant resource estimation.

13 SAMPLE PREPARATION, ANALYSIS AND SECURITY

13.1 Pulp sample preparation

As the Anglo American pulps had been stored in their containers for several years and

were transported from the Anglo American laboratories in Johannesburg to Kimberley

for storage and then onto Springbok when acquired by Frontier, the possibility exists

that some segregation within the sample pulps had taken place.

The samples were homogenised by using a modified “Cone and Quartering” method.

Here the samples were poured from the container onto two overlapping sheets of

glossy paper in a zigzag fashion across the join of the overlapping sheets (Figure 13-

1). The top sheet, containing approximately half the sample, was then lifted and turned

180o

and the sample poured on top of the sample contained on the lower sheet. This

exercise was repeated and the sample poured back into the original container.

Figure 13-1

Pulp sub sampling by Frontier

The sheets of paper used for the homogenisation process were disposed off after

each sample. Fifteen grams of the sample material was then weighed and placed in a

small zip-lock plastic bag (Figure 13-1). The bag was labelled using a permanent

marker, with a ticket number from a book of printed tickets (containing two tear-off


numbered segments and a numbered stub with place to make notes) and one ticket

was torn off and placed in the bag. The Anglo American sample number was written

on the stub of the ticket. The bag was then rolled up, zip-locked and taped closed

using sellotape and placed in a sample box ready for shipment to the analytical

laboratory. From every tenth sample a duplicate was prepared. If there was insufficient

sample left, the next sample containing sufficient material was duplicated. The entire

process was implemented and supervised by Frontier geologists.

The glossy paper was analytical grade and supplied by Scientific Services (Pty) Ltd. in

Cape Town. The plastic bags used for the 15 g samples were made from food grade

virgin resin.

13.2 Drill Sample Preparation

Security in the case of mineral exploration is an assurance that geological samples

have been transported in such a manner as to be completely traceable from the field to

a commercial laboratory. A Chain of Custody is designed to prevent unauthorized

sample handling or tampering, and adds credibility to the exploration program.

All drill samples for the Zandkopsdrift project were sealed in plastic sample bags at the

drill site and delivered directly to Frontier personnel in Springbok, where samples were

checked and sorted into batches. They were then sent by road to the preparation

facility at Scientific Services Laboratories in Cape Town.

The following sample preparation procedure was applied at Scientific Services:

Samples received were sorted and weighed and any discrepancy between the

samples and the accompanying sample consignment sheet was communicated

immediately to Frontier;

Samples were placed on trolleys and then dried in an electric drying oven

overnight at 80º C;

Wet samples that have dried to a “cake” were then rolled and crushed with a

glass bottle.

Samples were then split through a Jones splitter (1.2 cm aperture) to provide a

100 g sub-sample;

The 100 g sub-samples were then milled and pulverized in a swing mill to 80%

passing 80 μm.

The pulp rejects and pulverized samples were returned to Frontier. The rejects

were stacked in order and labelled by drill hole and are stored in Springbok.


13.2.1 Primary Laboratory

Activation Laboratories Limited (Actlabs) in Ancaster, Ontario, Canada was selected as

the primary laboratory for the analysis of the Zandkopsdrift samples. In order to obtain

the correct precision and accuracy for the rare earth elements the laboratory manager

advised that the samples be analysed using their 4Litho Quant procedures. The

analysis involved a lithium metaborate/tetraborate fusion of 0.2 g of sample followed

by ICP-MS analysis. This procedure provided results for the usual 10 major elements

plus LOI and 44 trace elements including the rare earth elements, Y, U, Th and Mo. As

a P2O5 content of >0.3% was anticipated for most of the samples it was recommended

that Nb be determined by fusion XRF which was accepted. The samples, as shipped

from Cape Town, were not fine enough and had to be re-milled by Activation

Laboratories to -75 μm.

Actlabs is accredited with the following Canadian and International Organisations:

Standards Council of Canada (SCC) for ISO 17025, Health Canada, National

Environmental Laboratory Accreditation Conference (NELAC) and Food and Drug

Administration (FDA).

13.2.2 Referee Laboratory

Intertek - Genalysis Laboratory Services (Genalysis) in Maddington, Western Australia,

was selected as the referee laboratory. The analysis of the referee samples was

carried out using a sodium peroxide fusion followed by ICP-MS analysis (method code

DX/MS). The elements selected for analysis were the 14 rare earth elements, Y, Th

and U. Once again the samples were not considered fine enough and had to be re-

milled in Australia by Genalysis to -75 μm

Genalysis is accredited by The National Association of Testing Authorities Australia

(“NATA”) following demonstration of its technical competence, to operate in

accordance with ISO/IEC 17025, which includes the management requirements of ISO

9001: 2000. This facility is accredited in the field of Chemical Testing for the tests

shown in the Scope of Accreditation issued by NATA (Date of Accreditation: 20

September 1991 - Accreditation number: 3244). Genalysis has in place an internal

quality control program which includes selected repeat analyses and introduction of

standard reference samples and control blanks with each batch. These quality control

sample results are reported with each batch assay certificate.

13.3 Sample Security

All drilling and pulp samples were kept under supervision of Frontier staff at the

exploration base until dispatch. Samples were sent to Frontier’s storage facility in

Springbok for checking by senior Frontier staff and then road freighted to Scientific

Services Laboratory in Cape Town for preparation. Once a batch of between 250 and


500 samples was prepared, the boxes containing the samples were taped shut and the

whole parcel wrapped in bubble wrap. The samples were then shipped to the primary

or referee laboratory, as appropriate, using Corporate Couriers based in Cape Town.

Corporate Couriers would advise Frontier when the batch of samples had been

delivered at their destination laboratory. The destination laboratory would confirm

receipt of the samples by email.

MSA considers that there was little opportunity for sample tampering by an outside

agent.

13.4 Quality Assurance and Quality Control

Appropriate quality assurance and quality control (“QA/QC”) monitoring is a critical

aspect of the sampling and assaying process in any exploration programme.

Monitoring the quality of laboratory analyses is fundamental to ensuring the highest

degree of confidence in the analytical data and providing the necessary confidence to

make informed decisions when interpreting all the available information. Quality

assurance (QA) may be defined as information collected to demonstrate that the data

used further in the project are valid. Quality control (QC) comprises procedures

designed to maintain a desired level of quality in the assay database. Effectively

applied, QC leads to identification and corrections of errors or changes in procedures

that improve overall data quality. Appropriate documentation of QC measures and

regular scrutiny of quality control data are important as a safeguard for project data

and form the basis for the quality assurance programme implemented during

exploration.

In order to ensure quality standards are met and maintained, planning and

implementation of a range of external quality control measures is required. Such

measures are essential for minimising uncertainty and improving the integrity of the

assay database and are aimed to provide:

An integrity check on the reliability of the data,

Quantification of accuracy and precision,

Confidence in the sample and assay database,

The necessary documentation to support database validation.

Upon advice of the Qualified Person, Frontier has adopted a set of standard operating

procedures which cover all aspects of the exploration programme, and which are

designed to ensure best practice and, ultimately, integrity of data.

Prior to submitting samples to the selected analytical laboratory, each batch of 200

samples/pulps had four blank samples (2%), eight samples of Certified Reference

Material (“CRM”) (4%) and 20 duplicate samples/pulps (10%) inserted into the sample


stream. Blanks, CRMs and duplicates were assigned sample numbers within the

sample sequence. All samples/pulps submitted for analysis were accompanied by

standard submission sheets listing only a unique sequential batch number, sample

numbers and instructions on the analytical procedure. No information concerning the

project name, drill hole number, depth, or any geological information was included with

the samples.

13.4.1 Blanks and Certified Reference Materials (CRMs) and Duplicates

Blank samples were submitted to monitor inadvertent or voluntary contamination of

samples. The blank material was prepared from barren Magaliesburg quartzite chips

supplied in 2 kg bags. These were milled to -75 μm by Scientific Services (Pty) Ltd and

the milled batches were composited into one large sample. A batch of 100 blank

samples was prepared by weighing 15 g of the blank material into a sample bag ready

for insertion into the stream of samples prepared from the Anglo American pulps. For

the validation holes drilled by Frontier, 200 g of the quartzite chips were bagged and

inserted in the sample stream prior to drying and milling of the samples.

The carbonatite reference material, SARM 40, was the CRM used as one of the

standards inserted into the sample stream. SARM 40 was supplied by MINTEK in 100

gram bottles. 10 g of the material was weighed from the bottle into a plastic bag and

inserted into the sample stream when required. Although SARM 40 is sourced from a

carbonatite and has a relatively high P2O5 content (2.05 %) its abundance of the rare

earth elements is low. Consequently an internal standard was prepared which had an

average ~ 4% TREO content. The Anglo American hole ZKR36 is well mineralised

from surface to 58 m depth. Anglo American originally analysed the material from this

hole using 2 m composite samples. La and Ce were determined using the XLaCe

method. As the 2 m composite samples were not used for the validation process, 20 g

from each of the 28 composite samples (one sample ZKR36-56 was missing) was

weighed into a large (280 x 500 mm) robust plastic bag.

Two fist-sized, rounded and smooth quartz cobbles were placed in the bag and the top

of the bag folded over and stapled shut. The bag was then gently shaken with a

tumbling action for 8 hours by the Frontier staff in Springbok. Once this mixing process

was completed the top of the bag was cut off, cobbles removed and the material

weighed into 15 g aliquots and placed in the sample bags ready for insertion into the

sample stream. Ten samples of this internal standard were selected at random and

analysed for selected trace elements Zr, La, Sr, Ba and Zn using a Niton hand held

XRF. The coefficient of variation for these elements in the 10 samples was 2.2%,

2.4%, 2.1%, 2.8% and 4.9% respectively. It was concluded that ZKR36-OZC could be

usable as an internal standard. Following appropriate testing by a certified standards

authority, Frontier plans to use this material as a certified CRM for future drilling and

QA/QC campaigns.


Field duplicates (representing 10% of the sample stream) were created by Frontier

through the splitting of RC cuttings and pulps. These were submitted to monitor

sampling and sample preparation precision.

A summary of QA/QC results and plots from the Zandkopsdrift pulp re-sampling and

drilling programme is located in Appendix 4.

13.5 Drill hole database

All geological data were compiled by Frontier from a variety of hard copy reports and

drill hole files that were acquired from Anglo American. The digital relational

exploration database used for capturing this data was designed by MSA.

All new information was sent through by Frontier to MSA and was then loaded into the

custom designed database. The database is capable of storing data from different

sources. All input data are verified by a number of standard checks. These include, but

are not limited to, identifying sample overlaps, ensuring all data fall within the logged

length of the drill hole and highlighting missing samples. Data can be combined and

extracted from the database according to the needs of the user.

13.6 Adequacy of Procedures

In the authors’ opinion, the analytical methods and laboratories adopted are

considered appropriate. Sampling methods, chain of custody procedures, sample

preparation procedures and analytical techniques are considered appropriate and

compatible with industry standards. It is recommended that Frontier acquire additional

CRMs (including accreditation of the internal standard used, ZKR36-OZC) as well as

procure alternative blank material for future drilling and sampling programmes.


14 DATA VERIFICATION

14.1 Introduction

During the latter half of 2007 and early 2008 Frontier entered into negotiations with

Anglo American to acquire their database and material generated from the work that

Anglo American had carried out on the Zandkopsdrift carbonatite between 1985 and

1989. On the 30th

January 2008, Frontier visited Anglo American’s core and sample

storage facility in Kimberley to inspect the condition of the core, percussion chips and

sample pulps generated during their drilling programme at Zandkopsdrift. Numerous

types of samples for each of the percussion holes were available and included a split

of the raw percussion chips, sample pulps for every 1 m drilled and composite pulps,

commonly every 2 m but for some holes every 4 m, and irregular composites of 5 or

more metres. For the diamond drill core, half sections of core were available although

the footage blocks were often unreadable and not in sequence, and jaw crushed chips

and sample pulps for every 1 m interval were well preserved.

For the purposes of this ITR, the Anglo American historical drilling database has been

used as a basis to estimate NI 43-101 compliant resources and therefore the

discussions in this section refer only to those quality control measures and data

verification procedures as applied to this data.

MSA undertook various aspects of data verification both during and prior to the

December 2009 site visit. Results from the 13-hole 2009 RC validation drilling

program were received by Frontier in March 2010. The Zandkopsdrift database was

finalized for the purposes of resource modelling on 23 April, 2010.

Verification activities conducted by MSA included:

Site visit to the ZRP and inspection of historical drill hole collars

Audit and verification of Anglo American pulp, chip and core sample storage and

integrity in Springbok

Review of sample storage facilities in Springbok

Review of RC drilling, sampling and logging procedures at Zandkopsdrift

Review of the sample preparation facility in Cape Town, discussed in more detail

in Section 13-1

Audit of historical and exploration databases being used for resource estimation


14.2 Sample preservation

Three types of containers were used by Anglo American to store the pulps originating

from the core and percussion chips. The pulps were commonly stored in brown paper

packets (~250 ml volume) clearly labelled with the hole number and end depth of the

sampling interval. The paper bags were generally in good condition but for a small

number of bags the bottoms or seams had split and sample was lost or contaminated.

Pulps from some holes were also stored in plastic phials (~100 ml) with pop off lids.

Frequently the ring around the neck of the phials holding the lid on the bottle had

perished and broken and in other instances the lids had fallen off. For these samples

the pulps had either spilled out or were possibly contaminated. The final type of

container consisted of small (~25 ml) soil sample bags consisting of stiff brown paper

bags and wire through the closing flap to seal the container once closed. All these

sample bags were intact. For samples where their integrity had been preserved, there

was 10-150 g of material available that had been ground to approximately -75 μm. For

a few samples (<1%) there was only 10 g or less.

14.3 Anglo American drill hole and pulp/sample verification

Site visits to Zandkopsdrift confirmed the locality of all but one (ZKR26) of Anglo’s RC

and diamond drill hole collars. Drill hole collars were preserved by Anglo American by a

steel standpipe capped with a concrete cap, steel rod including a steel plate depicting

the borehole number (Figure 14-1). Evidence of the old Anglo American baselines

were also noted (Figure 14-1).

A full audit of all of Anglo American’s pulps, RC chips and data was completed by MSA

in November 2009. Historical pulps were preserved in clearly marked plastic phials or

brown paper packets described above (Figure 14-2). Pulp samples that had integrity

compromised through broken seals and subsequent spillage were rejected, resulting in

Frontier re-drilling five holes to obtain samples.


Figure 14-1

Anglo American drill collars ZKR8 (left) and ZKD38 (right)

Figure 14-2

Anglo American pulps from ZKR37 (left) and rejected hole ZKR21 (right)


14.4 Frontier Validation drilling

Frontier twinned a total of five RC holes (ZKR29V, ZKR33V, ZKR36V, ZKR27V and

ZKR37V) out of thirty three Anglo American holes (thirty one RC holes and two

diamond drill holes) to confirm grade and lithologies intersected by Anglo American.

Validation holes were chosen such that both high and low grade areas were

intersected (based on Palmer’s resource blocks). An additional five were re-drilled in

order to obtain samples where Anglo American’s pulps were considered not suitable

(lost integrity) (Figure 14-4). ZKR26V was drilled at the position listed by Anglo

American, as the collar was never located in the field. All holes were drilled within 5 m

of the original Anglo American collar (Figure 14-3).

Figure 14-3

ZKR29V (validation) being drilled; note location of Anglo collar ZKR29

ZKR29


Figure 14-4

Anglo American Drilling 1987/1988 and Frontier Drilling


Results from the validation drilling confirmed lithological and grade variations across

holes ZKR37V, ZKR27V, ZKR33V and ZKR36V. ZKR33V, located close to the edge of

the mineralised zone in the east (based on Palmer’s resource estimates) showed some

variation in grade distribution compared with the original Anglo American pulp samples

(Figure 14-5). ZKR33V encountered significant water influxes whilst drilling, and a

possible explanation for the grade variance between ZKR33 and ZKR33V could be

attributable to loss of REE-bearing fines through water during the drilling process.

Significant grade variation can also be encountered close to a phase/pipe margin,

where contacts are usually vertical and significant grade variation across a vertical hole

could be observed. Strip logs containing lithological and TREO grade data can be

found in Appendix 6.

In the authors’ and QP’s opinion, the validation drilling exercise confirms the integrity of

the Anglo American drilling and pulp data and therefore this data can be used for the

purposes of NI 43-101 reporting and resource estimation.

Overall it is concluded by MSA that appropriate QA/QC procedures have been applied

by Frontier and that analytical issues have been identified and appropriate remedial

action taken. Industry standard practices have been followed and the quality of the

Frontier database meets NI 43-101 standards and CIM best practice guidelines.


Figure 14-5

Validation drilling comparisons with Anglo American pulp data


15 ADJACENT PROPERTIES

No properties with similar geological characteristics exist adjacent to, or proximal to the

ZRP.


16 MINERAL PROCESSING AND METALLURGICAL TESTING

16.1 Introduction

Anglo American carried out a series of metallurgical and mineralogical tests on

samples drawn from their work on Zandkopsdrift. 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 reviewed by SGS Minerals Services in

Canada. The summary below is reproduced directly from the summary of the SGS

report, and the entire SGS report is included in Appendix 5. SGS Canada has

consented to the inclusion of their report and extracts of their report in this ITR.

16.2 Summary

A review has been made of mineralogy and metallurgical testing reports for treatment

of the Zandkopsdrift REE deposit with a view to establishing if the deposit is amenable

to application of conventional REE extraction technologies.

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

samples from the Zandkopsdrift REE deposit indicates that a number of leaching

options gave very good levels of recovery (>90%) of rare earth elements to solution.

This would indicate that the REE bearing minerals are likely amenable to conventional

extractive processes.

Acid and caustic cracking of rare earth minerals for preliminary dissolution of rare earth

elements have been routinely applied in the historical development of processes for

recovering rare earth compounds. Preliminary test results indicate the amenability of

the REE-bearing minerals in the Zandkopsdrift deposit to either technique. This being

the case then development of a flowsheet for further recovery of either mixed or single

rare earth compounds would follow established industrial routes for rare earth

recovery.

17 MINERAL RESOURCE AND MINERAL RESERVE

ESTIMATES

Mineral resource estimates for Zandkopsdrift have been completed by Mr Mike Hall,

Consulting Geologist – Mineral Resources at MSA, who is considered to be a Qualified

Person according to NI 43-101. A consent form from Mike Hall can be found in

Appendix 2.


17.1 Summary

The current resource estimate is based on Frontier drilling and re-assay of Anglo

American pulps for the whole suite of REE’s to NI 43-101 standards.

17.1.1 Current Resource Estimate

The current resource estimate is based on borehole data as supplied by Frontier, and

was generated from a database compiled and validated by MSA from the Frontier

drilling programme as well as from re-assays of the pulps from Anglo American’s

historical work. An internal MSA audit procedure and itemised checklist was utilised for

the assessment of data quality and integrity. A checklist of criteria applied is contained

in Section 17.7, and each of these aspects has been elaborated and detailed

throughout this ITR.

17.1.2 Known Issues that Materially Affect the Mineral Resources

MSA is unaware of any material factors that could detrimentally affect mineral

resources arising from the current exercise for Zandkopsdrift.

17.2 Assumptions, Methods and Parameters for the 2010 Resource

Estimates

The methodology, assumptions and process for preparation of the mineral resource

estimations are discussed under the following sections:

Input Database Validation and Preparation

Geological interpretation and modelling

Block model creation

Assay data compositing

Exploratory data analysis (EDA) for TREO

Variogram modelling and fitting

Estimation parameters

Grade estimation

Validation

Factors considered for classification of resources


17.2.1 Input Database Validation and Preparation

The input database consisted of drill hole sample data including collar, lithology,

sampling and assay data. These data were from a 13-borehole drilling and sampling

programme carried out in late 2009 and from a programme of re-assays of REE

undertaken by Activation Laboratories in Ontario, Canada, in early 2010. The database

included lithological data, assays for all REE, a selection of major element oxides and

downhole survey data for some boreholes.

Two diamond-core and twenty nine reverse circulation boreholes were drilled vertically

with two reverse circulation holes being drilled at -60°.

The 2010 input database contains 2,522 m from Anglo American surface boreholes.

This comprised 276 m in diamond cored boreholes and 2,246 m in reverse circulation

boreholes. In addition, there are 1,005 m of reverse circulation drilling in 13 boreholes

from the 2009 Frontier drilling programme, giving a total of 3,527 m of drilling. There is

a total of 1,958 m assayed for individual REE analyses in the resource estimation input

drilling database.

The individual REE analyses in the database were converted to RE Oxides (REO) by

MSA, using the factors shown in Table 17-1.

Table 17-1

REE to REO Conversion Factors

Element Conversion Oxide Element Conversion Oxide

Analysed Factor Formula Analysed Factor Formula

Ce 1.171 Ce2O3 Nd 1.166 Nd2O3

Dy 1.147 Dy2O3 Pr 1.170 Pr2O3

Er 1.143 Er2O3 Sm 1.159 Sm2O3

Eu 1.157 Eu2O3 Tb 1.150 Tb2O3

Gd 1.152 Gd2O3 Tm 1.141 Tm2O3

Ho 1.145 Ho2O3 Y 1.269 Y2O3

La 1.172 La2O3 Yb 1.138 Yb2O3

Lu 1.137 Lu2O3

The drilling data were de-surveyed and original 1-m samples were retained. All the

metreage was included in composites. This served as the input data for the resource

estimation exercise. Statistics of the drilling data total REO (TREO) and density are

included in Appendix 4.


17.2.2 Geological Interpretation and Modelling

Datamine Studio 2 and Studio 3 software was used for all three-dimensional geological

modelling and for the resource estimation. Snowden Supervisor software was used for

the geostatistics and univariate statistical analysis.

The modelled mineralised envelope was generated from the outline of the main

carbonatite body, further constrained by a polygon joining the outer ring of borehole

collars, expanded by 50 metres, being half the average borehole spacing. Lithologies

within the cylindrical body were not modelled, as, at present, there is no defined

preferential host to the mineralisation. As no significant variation was observed in the

relative distribution of the individual REOs across the assay database, a TREO grade-

only approach was adopted for the purposes of this resource estimation exercise.

A wire frame was created for the cylinder of the main carbonatite body, later cut by the

ground surface generated from the surveyed topography and from borehole collars. An

oblique view of the main carbonatite cylindrical body is shown in Figure 17-1.


Figure 17-1

Modelled carbonatite cylinder, base of drilling plane and block model: >1% TREO

Oblique view looking SW


17.2.3 Block Model Creation

The wire frame solid for the cylindrical body was used to generate a 3D block model

for Zandkopsdrift.

The origin for the model is: Easting (X): 782 500

and Northing (Y): 6 580 500

Coordinates are in WGS84, UTM Zone 33 South.

Block size used was 50 m (easting) x 50 m (northing) and exact wire frame boundary

fitting for the Z height. Sub-celling of the blocks was used in the east-west and north-

south directions, creating 12.5 m by 12.5 m sub-blocks, to allow for limited

volume/tonnage selectivity.

The area is covered by drill hole data with average separations of approximately

100 m.

The model was subsequently truncated in height by an X-Y surface representing the

base of the boreholes plus half the variographic range in the Z direction.

17.2.4 Input Data Exploratory Data Analysis and Compositing

The drill hole sample data from the verified database were retained as 1 metre

composites. Only those borehole samples within the confines described above were

used for the current resource exercise.

Top Cutting

No top-cutting or capping was performed.

Variography

Variographic analysis was carried out on Zandkopsdrift data. A roughly omnidirectional

search ellipse was determined, with the slightly longer axis oriented north-south. The

Coefficient of Variation (CoV) of the population is low but the distribution displays some

bi-modality (Appendix 4). Search radii were set at one half the variographic ranges to

define Indicated resources, the remainder being assigned to the Inferred category.

Bulk density data was included in the database for nearly all the samples in the 2009

drilling programme but was only available for two boreholes in the historical database.

Density was estimated as part of the resource exercise.

17.2.5 Estimation Parameters and Grade Estimation

Ordinary Kriging was selected as the grade estimation method for this resource

iteration. A minimum of 3 and a maximum of 5 samples were utilised for an estimate.

No restrictions were placed on the minimum number of drill holes since this could have

resulted in creating estimates between drill holes but not at the drill hole itself, in areas


of lower drill hole density. Missing estimations of density data were assigned a S.G of

2.3, which is the average of the results from the holes that were surveyed. Parent cell

estimation was applied to the sub-cell.

17.2.6 Validation, Bias and Block Model Grade Distributions

Scattergrams and correlation coefficient determinations performed on the data yielded

acceptable results representing an amount of local variability and/or smoothing.

Comparisons between average grades of the input data and average estimated grades

indicate that the resource is appropriately estimated as shown in Table 17-2.

It is noted that there has been limited smoothing of grade data during the estimation

process (Appendix 4 and Table 17-2).

Table 17-2

Comparison of Borehole and Estimated Block Means

*Includes data below the block model depth limits

Considering the intricate wireframe truncations on the data and in some areas, sparse

drilling data and uneven drillhole spacing from twinned holes, it is considered that the

Zandkopsdrift estimates are appropriate and confirm a current, moderate level of

suitability of the grade estimation parameters used, befitting Indicated and Inferred

status. The grade estimation, based on all drillhole data is low, or conservative by

approximately 7.2%, which represents only a marginal estimation bias. The Inferred

category blocks are under-estimated relating to areas of sparser borehole coverage.

17.2.7 Block Exclusions

No block exclusions were enforced within the cylinder.

17.3 Resource Classification

Those resources within a 50% multiple of the variographic range (the search radius for

samples) are classified as Indicated and the remainder classified as Inferred.

Area Unit TREO (%)

Zandkopsdrift Drillholes* 1.95*

Zandkopsdrift Indicated Block Estimates 1.81

Zandkopsdrift Inferred Block Estimates 1.46


17.3.1 Geological Losses

No geological loss factors were applied for the resources, which are expected to be

open-castable.

17.4 Resource Reporting

The following NI 43-101 compliant Mineral Resource Estimates for Total Rare Earth

Oxides (TREO) have been declared at the Zandkopsdrift deposit, and represent 100%

of the estimated resources defined to date over the ZRP:

Table 17-3

Zandkopsdrift Indicated Resources*

Cut Off(%TREO)

MtTREO

grade (%)


1.0 22.92 2.32 532

Table 17-4

Zandkopsdrift Inferred Resources*

Cut Off(%TREO)

MtTREO

grade (%)


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.

Approximately 415,000 tonnes of TREO are present at Zandkopsdrift in the Inferred

category and approximately 532,000 tonnes of TREO are present in the Indicated

category at a 1% TREO cut off. A cut off grade of 1% has been selected on the basis

of initial capital and operating cost studies, and this forms the basis for the current

Zandkopsdrift resource estimate. These resources are depicted graphically in Figure

17-2 and Figure 17-3. Detailed breakdowns of the above resource estimates by

individual REO are provided in Tables 17-10 and 17-11.


It is important to note that there are a series of higher grade zones within the overall

resource estimate at Zandkopsdrift that are considered to be of sufficient size to be

exploited as discrete units within the overall deposit. Three zones have been identified

and are referred to as A Zone, B Zone and C Zone in the tables above and are defined

by cut off grades of 1.5%, 2.5% and 3.5% TREO, respectively. The B Zone is

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 (Tables 17-5 - 17-8):

Table 17-5

Indicated Mineral Resources – Zone A, B and C

Zone TREO MtTREO

grade (%)


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 17-6

Inferred Mineral Resources – Zone A, B and C

Zone TREO MtTREO

grade (%)


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.

Some of the notable high grade intercepts encountered within the B and C Zones are

shown below in Table 17-7 below, and provide a good illustration of the consistent high

grade intervals at or close to the surface of the deposit.


Table 17-7

Significant intercepts

Drill

hole

Intersection

(m)

Average

grade

(% TREO)

ZKR36 0-58 4.3

ZKR08 26-33 5.8

ZKR13V 19-42 5.4

ZKR28V 3-17 3.6

ZKR12 22-46 5.6

ZKR15 46-56 4.5

and 76-86 4.1

ZKD38 0-19 4.4

and 43-49 11.4

including 44-45 18.9

ZKR27V 52-55 4.8

and 90-108 * 3.3

ZKR33V 7-65 4.0

ZKR07 15-35 4.1

ZKR26 35-51 3.5

ZKR16 35-49 3.2

* Hole terminated in mineralisation

17.4.1 Depth and Lateral Grade Continuity

The moderate to good continuity of higher-grade blocks within the resource is shown in

Figure 17-4. There is up to 60m of vertical continuity, from surface, of blocks above 3%

TREO in the northern arm of the mineralised body, as well as up to 80m in the eastern

lobe of the deposit, also from surface. These features are best suited to further

analysis using dedicated open pit optimisation software such as Whittle 4X.


Figure 17-2

Grade-Tonnage Curve: Indicated Resources

22.9

2

16.5

5

10.7

5

7.83

5.85

3.23

1.94

1.26

0.78

0.50

0.29

0.18

0.12

0.10

0.10

0.08

0.06

0.05

0.01

0.01

2.32

2.74

3.27

3.67

3.98

4.57

5.14

5.63

6.18

6.74

7.43

8.17

8.77

9.099.20

9.52

9.799.90

10.5710.66

0

5

10

15

20

25

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5

TREO Cut Off %

Millio

nT

on

nes

0

2

4

6

8

10

12

TR

EO

%


Figure 17-3

Grade-Tonnage Curve: Inferred Resources

20.8

1

12.8

9

7.00

4.52

3.26

1.54

0.95

0.67

0.40

0.25

0.17

0.14

0.11

0.10

0.08

0.07

0.06

0.02

0.01

1.99

2.48

3.10

3.61

3.95

4.72

5.35

5.81

6.54

7.28

7.98

8.38

8.808.98

9.299.39

9.62

10.01

10.34

0

5

10

15

20

25

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0

TREO Cut Off %

Mil

lio

nT

on

ne

s

0

2

4

6

8

10

12

TR

EO

%


Figure 17-4

Continuity from surface of blocks >3% TREO looking SW (top) and looking SE (bottom)


17.5 Distribution of Individual REO’s

Table 17-8 shows the proportion of each individual REO in the borehole database.

Table 17-8

Relative distribution of REOs by weight in the borehole database

REE OXIDE Proportion

Lanthanum La2O3 25.36%

Cerium Ce2O3 44.20%

Praseodymium Pr2O3 4.55%

Neodymium Nd2O3 15.74%

Samarium Sm2O3 2.31%

Europium Eu2O3 0.59%

Gadolinium Gd2O3 1.44%

Terbium Tb2O3 0.17%

Dysprosium Dy2O3 0.77%

Holmium Ho2O3 0.13%

Erbium Er2O3 0.32%

Thulium Tm2O3 0.04%

Ytterbium Yb2O3 0.23%

Lutetium Lu2O3 0.03%

Yttrium Y2O3 4.12%

TOTAL 100.00%

It should be noted that the highest value HREO’s, namely Europium, Terbium and

Dysprosium, are contained at elevated levels at Zandkopsdrift by comparison to a

number of other similar REE bearing carbonatite deposits being evaluated globally. If

the relative distribution is assigned to the resource model data, the following indicative

individual REO contents are calculated at a 1% TREO cut off (Table 17-9):


Table 17-9

Individual REO in the Indicated and Inferred Resource Category (1% TREO cut off)

Indicated Category Inferred Category

Oxide‘000

Tonnes Oxide‘000

Tonnes

La2O3 134.8 La2O3 105.22

Ce2O3 234.96 Ce2O3 183.4

Pr2O3 24.19 Pr2O3 18.88

Nd2O3 83.67 Nd2O3 65.31

Sm2O3 12.3 Sm2O3 9.6

Eu2O3 3.13 Eu2O3 2.44

Gd2O3 7.64 Gd2O3 5.96

Tb2O3 0.88 Tb2O3 0.69

Dy2O3 4.08 Dy2O3 3.19

Ho2O3 0.68 Ho2O3 0.53

Er2O3 1.68 Er2O3 1.31

Tm2O3 0.21 Tm2O3 0.17

Yb2O3 1.22 Yb2O3 0.95

Lu2O3 0.17 Lu2O3 0.13

Y2O3 21.9 Y2O3 17.09

TOTAL 531.51 TOTAL 414.87

Tables 17-10 and 17-11 provide a breakdown of REO grades for each of Zones A, B

and C as well as the global resource.


Table 17-10

Indicated Mineral Resources - REO grade breakdown

Global Zone A 1.5% Cut off Zone B 2.5% Cut off Zone C 3.5% Cut off

REE OXIDE % % % %

Lanthanum La2O3 0.588 0.694 0.931 1.160

Cerium Ce2O3 1.025 1.210 1.622 2.022

Praseodymium Pr2O3 0.106 0.125 0.167 0.208

Neodymium Nd2O3 0.365 0.431 0.578 0.720

Samarium Sm2O3 0.054 0.063 0.085 0.106

Europium Eu2O3 0.014 0.016 0.022 0.027

Gadolinium Gd2O3 0.033 0.039 0.053 0.066

Terbium Tb2O3 0.004 0.005 0.006 0.008

Dysprosium Dy2O3 0.018 0.021 0.028 0.035

Holmium Ho2O3 0.003 0.003 0.005 0.006

Erbium Er2O3 0.007 0.009 0.012 0.014

Thulium Tm2O3 0.001 0.001 0.001 0.002

Ytterbium Yb2O3 0.005 0.006 0.008 0.011

Lutetium Lu2O3 0.001 0.001 0.001 0.001

Yttrium Y2O3 0.096 0.113 0.151 0.188

Total TREO 2.32 2.74 3.67 4.57

INDICATED CATEGORY

Table 17-11

Inferred Mineral Resources - REO grade breakdown

Global Zone A 1.5% Cut off Zone B 2.5% Cut off Zone C 3.5% Cut off

REE OXIDE % % % %

Lanthanum La2O3 0.506 0.629 0.915 1.198

Cerium Ce2O3 0.881 1.096 1.596 2.088

Praseodymium Pr2O3 0.091 0.113 0.164 0.215

Neodymium Nd2O3 0.314 0.390 0.568 0.744

Samarium Sm2O3 0.046 0.057 0.084 0.109

Europium Eu2O3 0.012 0.015 0.021 0.028

Gadolinium Gd2O3 0.029 0.036 0.052 0.068

Terbium Tb2O3 0.003 0.004 0.006 0.008

Dysprosium Dy2O3 0.015 0.019 0.028 0.036

Holmium Ho2O3 0.003 0.003 0.005 0.006

Erbium Er2O3 0.000 0.008 0.011 0.015

Thulium Tm2O3 0.001 0.001 0.001 0.002

Ytterbium Yb2O3 0.005 0.006 0.008 0.011

Lutetium Lu2O3 0.001 0.001 0.001 0.002

Yttrium Y2O3 0.082 0.102 0.149 0.195

Total TREO 1.99 2.48 3.61 4.72

INFERRED CATEGORY

Figures 17-5, 17-6, 17-7 and 17-8 show plan views of the resource blocks that either

outcrop on or are close to surface for the Zandkopsdrift resource and for the A, B and


C Zones respectively. 3D Views of the Zandkopsdrift block model at different cut off

grades are shown in Figures 17-9, 17-10, 17-11 and 17-12.

Figure 17-5

Plan view of block model at 1% TREO cut-off

Figure 17-6

Plan view of block model - Zone A (1.5% TREO cut-off)


Figure 17-7

Plan view of block model – Zone B (2.5% TREO cut-off)

Figure 17-8

Plan view of block model – Zone C (3.5% TREO cut-off)


Figure 17-9

Block Model at 1% TREO cut-off, looking southwest (view from below surface)


Figure 17-10

Block Model - Zone A (1.5% TREO cut-off), looking southwest (view from below surface)


Figure 17-11

Block Model - Zone B (2.5% TREO cut-off), looking southwest (view from below surface)


Figure 17-12

Block Model - Zone C (3.5% TREO cut-off), looking southwest (view from below surface)


17.6 Uranium and Thorium

Uranium and Thorium are both present in the Zandkopsdrift deposit, at relatively low

concentrations compared to many other carbonatite REE deposits being developed

worldwide. The average grades of Uranium and Thorium in the area in which the

resource has been defined vary between 60-70 ppm and 215-235 ppm, respectively.

17.7 Checklist for Reporting on Resources

Table 17-12 details the criteria and data integrity checks, applied and assessed for the

Zandkopsdrift project, as recommended by CIM (2005). Specific details can be found

in previous sections of the ITR.


Table 17-12

Checklist for Resource Reporting (CIM 2005)

Drilling techniquesReverse circulation and HQ diameter diamond drillholes

LoggingAll drillholes were geologically logged by qualified geologists. Thelogging was of an appropriate standard for grade estimation.

Drill sample recovery Recoveries are documented in borehole logs for the majority of thedrillholes and is greater than 95% within mineralised zones.

Sampling methods Percussion drilling chips and core samples were collected with anaverage sample length of 1m.

MSA’s observations indicated that the routine sampling methods wereof a high standard and suitable for evaluation purposes.

Quality of assay data andlaboratory tests

The Zandkopsdrift assay database displays industry standard levels ofprecision and accuracy and meets the requirements for use in a MineralResource estimate. Appendix 3 contains summaries of QA/QC data

Verification of sampling andassaying

Internal data verification is carried out as a standard. An externalverification of approximately 10% of the Zandkopsdrift data fromdrillhole collar positions to assay QA/QC was carried out by MSA.

Location of data points All of the drillhole collars have been surveyed by a qualified surveyorusing a differential GPS. No drillholes were downhole-surveyed as theyare shallow depths and drill directions were accepted as laid-off for alldrillholes.

Tonnage factors (in situ bulkdensities)

Density determinations were made for drillhole samples using downholegamma logging methods. Bulk density values were interpolated into theblock model.

Data density and distribution Reverse circulation drillholes were collared on a grid of approximatelyon a 100 m by 100 m grid. The level of data density, over portions, ofthe project area is sufficient to assume geological and grade continuityfor an Indicated Mineral Resource estimate for this type ofmineralisation.

Database integrity Data were stored in an acceptable, relational database. MSA haschecked the integrity of the database and considers that the database isan accurate representation of the original data collected.

Dimensions The Mineral Resource occurs over a length of 920 m north to south and700 m east to west. It varies in thickness between 70 m and 200 m. Nodip is determinable as the mineralisation is undulating. The MineralResource occurs from surface and has been constrained by a modelledsurface representing an extent of 23.5 m below borehole depths.

Geological interpretation There is adequate geological information.

Domains The deposit has not been sub-divided into zones;

Compositing Drillholes were retained at the 1 m length intervals, as appearing in thedatabase.

Statistics and variography Anisotropic variograms were used to model the spatial continuity.


Top or bottom cuts for grades Top cut analysis was completed that indicated that top cutting was notappropriate. No grade caps or cut were applied

Data clustering Drillholes were drilled on an approximately regular grid in the westernpart of the deposit but inconsistent depth of drilling has lead todistributional anomalies .

Block size 50 m N by 50 m E by 1 m RL three dimensional block models.

Grade estimation Metal grades were estimated using ordinary kriging. Grades wereinterpolated within a search ellipse representing the ranges of theanisotropic variograms.

Resource Classification The classification incorporated the confidence in the drillhole data, thegeological interpretation, data distribution, and variogram ranges.Blocks informed within half the first search radius and within thewireframe were classified as Indicated Resources. Blocks informed bythe second search radius were classified as Inferred Mineral Resources.

Cut-off grades A cut-off grade of 1% has been selected for the purposes of resourceestimation.

Mining Cuts No mining cuts have been applied.

Metallurgical factors orassumptions

Preliminary metallurgical results were considered in choosing thereporting cut-off grades.

Audits and reviews The following audit and review work was completed by MSA:

a review of the database against the original drillhole logs

a review of drillhole data collection protocols and QA/QCsystems

a site based review of the drillhole data.

QA/QC audits by Mr. S Hill of MSA

17.8 Conclusions

The following conclusions were drawn from the mineral resource estimation exercise:

The mineralisation at Zandkopsdrift resembles a series of stacked, irregular

layers.

The currently delineated resources at Zandkopsdrift are the result of a purely

grade-continuity, or grade shell approach.

Additional drilling data will assist improved variography analysis.

It is important to determine the controls on the mineralisation in order to improve

the confidence level of resource classification.


18 OTHER RELEVANT DATA AND INFORMATION

No other relevant data or information is available relating to the ZRP.


19 INTERPRETATION AND CONCLUSIONS

This ITR for the ZRP provides a summary of all technical work completed to date by

historical operators as well as Frontier. Following the completion of ground radiometric

and magnetic surveys, additional petrographic and mineralogical studies, Frontier has

also successfully completed a data validation and drilling exercise over the ZRP that

has culminated in the declaration of NI 43-101 compliant Indicated and Inferred

Resources. Compilation of historical exploration work coupled with recent drilling has

resulted in a clearer understanding of the geology and REE mineralisation processes

at Zandkopsdrift, although a significant amount of additional diamond drilling and

associated mineralogical/petrographical studies are required in order to fully

understand the deposit’s morphologies and grade distribution within the carbonatite

complex.

The Zandkopsdrift REE deposit is hosted within an early Tertiary age carbonatite

complex. Based on work carried out to date by Frontier, REE mineralisation is hosted

by late stage and possible supergene REE bearing minerals that are concentrated

within the upper, more deeply weathered portions of the carbonatite phase(s). Drilling

to date has identified average depths of weathering of between 50 m and 80 m from

surface, with the weathering profile varying laterally and vertically due to later stage

structural events as well as fluctuations of the water table over time.

Although a significant amount of drilling has been completed by Anglo American and

Frontier, additional infill drilling and delineation drilling is required in order to advance

the existing resource estimate to the Measured category. Metallurgical test work and

characterisation studies are critical to obtaining a better understanding of the REE

mineralogy and optimal beneficiation routes to use at Zandkopsdrift.

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 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.

The data compilation and validation exercises completed by Frontier to date have been

successful in achieving the objective of delineating NI 43-101 compliant resources at

Zandkopsdrift. The Zandkopsdrift REE Project 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 Zandkopsdrift REE Project warrants further exploration, evaluation,

and assessment of its economic potential, consistent with the proposed programmes

set out below. In addition, evaluation of the identified satellite pipes/carbonatite

intrusives, continued exploration elsewhere within the Prospecting Right as well as

regional targeted exploration may lead to the discovery of additional deposits with

potential sources of supplemental or alternative feed to Zandkopsdrift.

20 RECOMMENDATIONS

The authors recommend further resource definition drilling in parallel with detailed

metallurgical test work on Zandkopsdrift as well as exploration in other parts of the

area covered by the Prospecting Right, including the 30 satellite intrusives/plugs

already identified. It is important that the exploration process follows a phased

approach, is results-driven and is designed to add value. Continued application of best

practice procedures, as has been the case for the work carried out by Frontier for the

purposes of this ITR, through a documented standard procedures manual is essential,

to ensure that all work is executed correctly and is auditable.

The following phased approach is recommended to further define and evaluate the

economic potential of the project:

Phase 1

Bench scale metallurgical test work should be completed in tandem with infill

drilling to optimise concentrate grades and to further characterise optimal REE

recoveries at Zandkopsdrift. The results of this work should be sufficient to allow

a scoping study to be undertaken on the project.

Infill drilling is recommended to upgrade the material to higher confidence

Mineral Resource categories, as well as step out drilling to potentially expand the

existing Mineral Resource base. In addition, a program of deeper/stratigraphic

drilling should be planned to identify and test depth extensions of the deposit to

allow for potential future mine optimisation studies/planning.

Baseline Environmental Impact Studies, Social Impact Studies, Geotechnical

Studies and Geohydrological Studies.

The above work should allow a pre-feasibility study to be completed with

preliminary project engineering and economics.

Sampling, evaluation and preliminary drill testing of target satellite plugs and

pipes identified to date at Zandkopsdrift.

Initiation of regional exploration to target additional carbonatite intrusives within

the existing Prospecting Right and to include areas proximal to the Koegel

Fontein alkaline complex.


Phase 2

Although the commencement of Phase 2 is partly contingent on receiving positive

results from Phase 1, some work could be undertaken in parallel.

Additional infill drilling for resource estimation/metallurgical studies as required

based on the results from Phase 1.

Phase 2 metallurgical test work, including development test work, flow sheet

evaluation and selection and pilot plant testing. Bulk sampling of various horizons

may be required to optimise engineering and metallurgical flow sheet design.

Initiation of sustainable development initiatives including energy/water

conservation, carbon balance (cost), emission control, clean technology

applications etc..

Drill testing of identified targets within existing satellite pipes/plugs as well as

from exploration carried out elsewhere in the Prospecting Right area.

Based on a positive outcome from the Phase 2 work program, Frontier will be in a

position to undertake a bankable feasibility study over the ZRP in order to assess the

full techno-economic, social and environmental aspects of exploiting the deposit.

Table 20-1 provides an estimate on the cost of the envisaged work programs

described in Phase 1 and 2 above, with Table 20-2 providing a summary.


Table 20-1

Work Programme Cost Estimate

RC $245,000Diamond PQ $192,000Resource definition drilling - RC $252,000Stratigraphic drilling - DD $240,000

Sub Total $929,000

Assay Cost (incl QAQC) $940,800

Database management and interpretation Ongoing $40,000Geological Support (2 Project Geos plus Senior Geo) 12 months $500,000Geological Model/Interpretation Ongoing $40,000Mineral Resource Estimation 1 month $40,000Vehicles/Transport Ongoing $100,000QP Reporting 2 months $50,000

$2,639,800

Ore characterisationFlotation scoping testsReagent scheme developmentConceptual flowsheet developmentLocked cycle testingOre Variability tests

$1,500,000

Environmental and Social Impact Assessments 6 months $250,000

Scoping Study 3 months $250,000

Geophysical data acquisitionRe processing of ZK data 1 month $15,000Ground and airborne geophysical surveys 3 months $150,000Data interp and modelling 1 month $20,000Geological Support (2 Project Geologists) 6 months $200,000Mineralogy and Petrology 2 months $50,000RC Drill testing 1 month $350,000DD drill testing 3 months $350,000QP Reporting 1 month $25,000Assay Cost (incl QAQC) $960,000

TOTALS $2,120,000

$8,111,760Phase 1 estimate (incl 20% contingency)

Zandkopsdrift satellite and Prospecting Right scale exploration

TOTALS

Cost Estimate

6m

on

ths

PHASE 1 (12 months) Duration

6m

onth

s

Infill and Exploratory Drilling Programme

TOTALS

Metallurgical Bench Scale Testwork (SGS)


RC $210,000DD $120,000Assay Cost (incl QAQC) $400,000

Database management and interpretation Ongoing $40,0001 Project Geo plus 1 Senior Geologist 3 months $100,000Geological Model/Interpretation Ongoing $20,000Mineral Resource Estimation 2 month $40,000QP Reporting 4 months $50,000

$980,000

Metallurgical work $2,950,000Bulk sampling and transport $1,000,000

$3,950,000

Pre-feasibility Study 3 months

Sustainable Development Initiatives 3 months

Drill testing of identified targetsRC $350,000DD $240,000Mineralogy and Petrography 1 month $25,000Assay Cost (incl QAQC) $680,000Geological Support (Project Geologist) 8 months $125,000QP Reporting 1 month $25,000

$1,445,000

$8,310,000

TOTALS

Metallurgical Pilot Scale Testwork (SGS)

Zandkopsdrift satellite and Prospecting Right scale exploration

TOTALS

Phase 2 (12 months) Duration

2 months

Infill Drilling Programme

Cost Estimate

Phase 2 estimate (incl 20% contingency)

TOTALS

$500,000

$50,000

6 months

Table 20-2

Work Programme Cost Summary

Phase 1 Estimate $8,111,760

Phase 2 Estimate $8,310,000

Total (incl 20% contingency) $16,421,760

Phase 1 and 2 Budget Summary


21 ACKNOWLEDGEMENTS

This report is the combined work of the MSA “Zandkopsdrift Team” whose input is

gratefully acknowledged and are listed below:

Mike Venter - Project Manager and Regional Consulting Geologist

Pete Siegfried - Consulting Geologist

Mike Hall – Minerals Resource Consultant

Eugene Snyman - Database Manager

Brian Ruzvidzo - Project Geologist

Lazarus Nephembani - Project Geologist

Stuart Hill - Project Manager

22 REFERENCES

Cornell, D.H., Thomas, R.J., Moen, H.F.G., Reid, D.L., Moore, J.M. and Gibson, R.L.

(2006), The Namaqua-Natal Province. In Johnson, M.R., Anhaueusser, C.R. and

Thomas, R.J. (Eds) Geology of South Africa. Johannesburg: Geological Society of

South Africa, pp 319-373.

Cornelissen, J. (1959). Manganese in the Garies Area. Letter to D. de N. Wiid,

O’Okiep Copper Company, Nababeep, Cape Province, South Africa. 4p.

De Beer, C.H., Armstrong, R.A., Retief, E.A. and Eglington, B. (in press). Age and

tectonic setting of the anorogenic Koegel Fontein Complex west of Bitterfontein,

southwestern Namaqualand, South Africa. S.Afr.J.Geol.

De Beer, C.H., Gresse, P.G., Theron, J.N. and Almond, J.E. (2002). The geology of

the Calvinia area. Explanation to Sheet 3118 Calvinia, Scale 1:250 000. Council for

Geoscience, 92 pp.

De Villiers, J. (1955). Manganese on Zandkopsdrift, Namaqualand District.

Unpublished note. 3p

Dingle, R .V., and Hendey, Q, .B., (1984). Late Mesozoic and Tertiary sediment supply

to the eastern Cape basin (S.E. Atlantic) and palaeo-drainage systems in south-

western Africa Marine Geology. 56, pp13-26.


Hartnady, C.J. and Stowe, C.W. (1985). Proterozoic crustal evolution of southwestern

Africa, Episodes, 8, 236-244

Jenner-Clarke, H. (2008). Preliminary Report with particular reference to the

Zandkopsdrift Carbonatite. Internal Report, Frontier, 16p

Knoper, M., Armstrong, R.A., Andreoli, M.A.G. and Adhwal, L.D. (2000). The

Steenkampskraal monazite vein: a subhorizontal shear zone indicating extensional

collapse of Namaqualand at 1 033 Ma. Journal of African Earth Science, 31, 38 pp.

Moore, A.E., and Verwoerd, W.J. (1985). The olivine melilitite-“kimberlite”-carbonatite

suite of Namaqualand and Bushmanland, South Africa. Trans. Geol. Soc. S. Afr., 88,

pp281-294.

Palmer, G.L., (2008). Zandkopsdrift Project: Report on exploration data available at

Anglo American Corporation. Frontier Internal Report. 6p.

Pike, D.R. (1958). Thorium and rare earth-bearing minerals in the Union of South

Africa. Proceedings of 2nd

United Nations Conference on Peaceful Uses of Atomic

Energy, Geneva, 2, pp. 91–96.

Pike, D.R. (1959). The monazite deposits of the Vanrhynsdorp division, Cape

Province. M.Sc. thesis, University of Pretoria, pp. 7–43. (unpublished).

Siegfried, P.R. (2008). Mineralogical Study of the Zandkopsdrift Carbonatite hosted

REE Deposit, Garies, South Africa. Frontier Internal Report, 12 p

Siegfried, P.R. (2009). Review of mineralogy report by JOGMEC on the Zandkopsdrift

carbionatite-hosted Rare Earth Deposit. Frontier Internal Report, 5p.

Thomas, R.J., Buhmann, D., Bullen, W.D., Scogings, A.J. and De Bruin, D. (1994)

Unusual spodumene pegmatites from the Kibaran of Natal, South Africa. Ore Geology

Review, 9, 161-182

Verwoerd, W.J. (1986). Mineral deposits associated with carbonatites and alkaline

rocks. In Anhaeusser, C.R. and Maske, S.(E ds) Mineral Deposits of Southern Africa,

Volume ll. Johannesburg: Geological Society of South Aprica, pp 2173-2191.

Verwoerd, W.J. (1993). Update on carbonatites of South Africa and Namibia. S. Afr. J.

Geol, 96, p 75-95.

Watanabe, Y., Hoshino, M., Sanematsu, K., and Tsunematsu, M. (2009). Final Report

on the Laboratory Works on the Samples from the Zandkopsdrift Carbonatite Deposit

in the Republic of South Africa. Frontier Internal Report, 32p.


Wilson, J. (2008). Investigation into Open Pit potential of a rare earth element deposit

at an unknown location. Frontier Internal Report, 12p


23 DATE AND SIGNATURE PAGE

This report titled “Amended NI 43-101 Resource Estimate and Technical Report on the

Zandkopsdrift Rare Earth Element (REE) Project, located in the Republic of South

Africa” with an effective date of 29 October, 2010, prepared by MSA on behalf of

Frontier Rare Earths Limited dated 29 October, 2010, was prepared and signed by the

following authors:

Dated at Cape Town, South Africa Mike Venter

29 October, 2010 BSc (Hons); Pr.Sci.Nat

Regional Consulting Geologist

MSA

Dated at Johannesburg, South Africa Mike Hall

29 October, 2010 BSc (Hons); MBA; MAusIMM

Resource Consultant

MSA

Dated at Cape Town, South Africa Pete Siegfried

29 October, 2010 BSc (Hons); MSc; MAusIMM

Consulting Geologist

MSA

Dated at Lakefield, Canada James Brown

28 September, 2010 MASc; P.Eng

Senior Metallurgist

SGS

Project J1580Appendix 1, Frontier NI 43-101 Technical Report – 29 October, 2010

APPENDIX 1:

Glossary and Definitions ofTerms Used


Aeolian Formed or deposited by wind.

airborne magnetic surveys Surveys flown by helicopter or fixed wing aircraft to

measure the magnetic susceptibility of rocks at or near the

earth’s surface.

alkaline rocks Rocks containing an excess of sodium and or potassium.

amphibolite A metamorphic rock comprised mainly of amphibole,

generally with an orientated fabric.

apatite A mineral Ca5(F,Cl)(PO4)3 found in igneous rocks which is

the main source of phosphate.

Archaean The oldest rocks of the Precambrian era, older than about

2 500 million years.

basalt A dark, fine-grained volcanic rock of low silica (<55%) and

high iron and magnesium composition, composed primarily

of plagioclase and pyroxene.

basement The igneous and metamorphic crust of the earth,

underlying sedimentary deposits.

betafite A mineral in the pyrochlore group,

(Ca,U)2(Ti,Nb,Ta)2O6(OH) and typically occurs as a

primary mineral in granite pegmatites, and rarely in

carbonatites.

brecciated Condition applied to an intensely fractured body of rock.

Cambrian The oldest of the systems into which the Palaeozoic

stratified rocks are divided, 545 to 490 million years ago.

carbonate A rock, usually of sedimentary origin, composed primarily

of calcium, magnesium or iron and CO3. Essential

component of limestones and marbles.

carbonatite An alkaline, carbonate-rich magmatic rock.

Ce Cerium, a LREE

cheralite Cheralite is a variety of monazite which can contain up to

30% ThO2

chondrite Stony meteorites that have not been modified due to

melting or differentiation of the parent body, and are


considered to have very primitive compositions

churchite A rare REE-bearing mineral - (Y,Er)PO4-2H2O

CIM Canadian Institute of Mining, Metallurgy and Petroleum

colluvial Weathered material transported largely by gravity and

usually proximal to the source area.

conglomerate A rock type composed predominantly of rounded pebbles,

cobbles or boulders deposited by the action of water.

continental crust Thicker and less-dense crust underlying continents.

crandallite A secondary REE bearing phosphate mineral –

CaAl3(PO4)(PO3OH)(OH)6

craton Large, and usually ancient, stable mass of the earth’s

crust comprised of various crustal blocks amalgamated by

tectonic processes. A cratonic nucleus is an older, core

region embedded within a larger craton.

Cretaceous Applied to the third and final period of the Mesozoic era,

141 to 65 million years ago.

DD (Diamond Drilling) Method of obtaining cylindrical core of

rock by drilling with a diamond set or diamond

impregnated bit.

diatreme A volcanic vent or pipe created by gaseous magma

sourced from the mantle.

dipolar anomaly A magnetic dipole created by a magnetic source with a

roughly cylindrical shape and considerable depth extent.

dolomite A mineral composed of calcium and magnesium

carbonate; a rock predominantly comprised of this mineral

is also referred to as dolomite or dolostone.

Dy Dysprosium, a HREE

dyke A tabular body of intrusive igneous rock, crosscutting the

host strata at an oblique angle.

eluvium Incoherent material resulting from the chemical

decomposition or physical disintegration of rock in situ.

Er Erbium, a HREE

euhedral A term applied to mineral/s displaying a fully developed


crystal form

Eu Europium, a HREE

evaporite Sediment, including various salts, deposited from aqueous

solution as a result of evaporation.

fault A fracture or fracture zone, along which displacement of

opposing sides has occurred.

felsic Light coloured rocks containing an abundance of feldspars

and quartz.

fenitisation Metasomatic alteration of host rocks surrounding a

carbonatite intrusion

fluvial Pertaining to streams and rivers.

fold A planar sequence of rocks or a feature bent about an

axis.

Gd Gadolinium, a HREE

GIS Geographical Information System - any system that

captures, stores, analyses, manages, and presents data

that are linked to location. In the simplest terms, GIS is the

merging of cartography and database technology

g/t grams per tonne

glimmerite An ultrabasic rock consisting almost entirely of phlogopite

or biotite

gneiss A coarse grained, banded, high grade metamorphic rock.

gossan The leached and oxidised near surface parrt of a vein

containing sulphides, especially iron bearing ones.

granitoid A generic term for coarse grained felsic igneous rocks,

including granite.

granulite A metamorphic rock of regional metamorphic origin having

a granular texture

Ho Holmium, a HREE

HREE Heavy Rare Earth Elements – Eu, Gd, Tb, Dy, Ho, Er, Tm,

Yb, Y and Lu

hydrothermal The name given to any process/es associated with

igneous activity which involve heated or superheated water


hyperbyssal An igneous rock that originates at medium to shallow

depths within the crust and contains intermediate grain

size and often porphyritic texture.

ICP-OES Inductively Coupled Plasma Optical Emission

Spectroscopy – analytical method used for elemental

analyses.

imaging Computer processing of data to enhance particular

features.

joints Regular planar fractures or fracture sets in massive rocks,

usually created by unloading, along which no relative

displacement has occurred.

Kriging Kriging is a group of geostatistical techniques to

interpolate the value of a random field (e.g., the elevation,

z, of the landscape as a function of the geographic

location) at an unobserved location from observations of

its value at nearby locations.

La Lanthanum, a LREE

lamproite A highly alkaline volcanic or subvolcanic rock,

characterised by the presence of unusual potassium and

titanium minerals. Mafic and ultramafic lamproites may

host diamond.

lamprophyre A rare alkaline (usually potassic) igneous rock commonly

emplaced as dykes, and generated from shallower depths

in the earth’s mantle than lamproite or kimberlite. Not

known to contain diamond, but may be associated with

diamond-bearing rocks.

Landsat imagery Photographs of the earth’s surface, collected by satellite,

and taken at different wave-lengths of light, processed to

enhance particular features.

limestone A sedimentary rock containing at least 50% calcium or

calcium-magnesium carbonates.

limonite A group term for a range of mixtures of hydrated iron

oxides and iron hydroxides

lineament A significant linear feature of the earth’s crust.

LOI Loss on ignition. A test used to drive off volatile

substances and is reported as part of an elemental or


oxide analyses of a mineral.

loam sampling Sampling of the A horizon of a soil profile to recover

resistant minerals accumulated via the process of

deflation.

LREE Light Rare Earths – Ce, Pr, Nd, Pm, Sm and La

Lu Lutetium, a HREE

Ma Million years.

Magnetic susceptibility The degree of magnetisation of a material in response to

an applied magnetic field.

Mt Million tonnes

magnetite An important iron-bearing mineral Fe3O4

mamsl meters above mean sea level

mafic Descriptive of rocks composed dominantly of magnesium

and iron rock-forming silicates.

mantle The layer of the earth between the crust and the core.

The upper mantle, which lies between depths of 50 and

650km beneath continents, is the principal region where

diamonds are created and stored in the earth.

melilite A rare igneous mineral, usually associated with olivine.

melnoite Acronym for (melilite plus alnöite) as a stem name for all

ultramafic lamprophyres

Mesoproterozoic Middle Proterozoic era of geological time, 1,600 to

1,000 million years ago.

metamorphism Alteration of rock and changes in mineral composition,

most generally due to increase in pressure and/or

temperature.

metasomatic A metamorphic change in the rock which involves the

introduction of material from another source

mobile zone An elongate belt in the earth’s crust, usually occurring at the

collision zone between two crustal blocks, within which

major deformation, igneous activity and metamorphism has

occurred.


monazite A rare earth mineral found as an accessory mineral in acid

igneous rocks, pegmatite dykes and heavy mineral sands

Nd Neodymium, a LREE

olivine A common mineral found in mafic igneous rocks,

(Mg,Fe)2SiO4

orogeny A deformation and/or magmatic event in the earth’s crust,

usually caused by collision between tectonic plates.

pelloidal Ovoid particles composed of calcium carbonate

petrographic Systematic description of rocks in hand specimen and thin

section (utilising a microscope)

palaeo Prefix often used meaning “ancient, of past times”

Palaeozoic An era of geologic time between the Late Precambrian and

the Mesozoic era, 545 to 251 million years ago.

percussion A drilling method whereby the rock is broken up and

pulverised by action of a hammer and rotary action of a drill

bit.

phlogopite Phlogopite is a Mg end member of the mica family of

phyllosilicates

plug An intrusive near vertical circular feed channel of a volcano

Pm Promethium, a LREE

Pr Praseodymium, a LREE

Precambrian Pertaining to all rocks formed before Cambrian time (older

than 545 million years).

prospecting right A mineral right conferred to a 3rd

party by the South African

Department of Mineral Resources.

Proterozoic An era of geological time spanning the period from 2,500 to

545 million years before present.

pyrite Most widespread sulphide mineral, Fe2S

pyrrhotite An unusual iron sulphide mineral with a variable iron

content.

pyrochlore A mineral - (Na,Ca)2Nb2O6(OH,F) characteristically

associated with carbonatites


Quaternary The latest period of time in the stratigraphic column, 0 – 2

Ma.

radiometrics Radiometrics is a measure of the natural radiation in the

earth’s surface, and is often also known as Gamma-Ray

Spectrometry

REO Rare Earth Oxides

RC drilling (Reverse Circulation) A percussion drilling method in which

the fragmented sample is brought to the surface inside the

drill rods, thereby reducing contamination.

TREO Total Rare Earth Oxides

sandstone A sedimentary rock composed of cemented or compacted

detrital minerals, principally quartz grains.

schist A crystalline metamorphic rock having a foliated or parallel

structure due to the recrystallisation of the constituent

minerals.

scintillometer A scintillation counter measures ionizing radiation.

silicic Containing an abundance of silica; rocks which have been

extensively replaced by silica are referred to as silicified.

siltstone A rock intermediate in character between a shale and a

sandstone. Composed of silt sized grains.

Sm Samarium, a LREE

sövite The coarse-grained variety or facies of a carbonatite

intrusive. Sövite is often a medium to coarse grained

calcite carbonatite with variable accessory amphibole,

biotite, pyrite, pyrochlore and fluorite.

stream sediment

geochemistry

The analytical determination of relative or absolute

abundances of elements in samples collected from stream

sediment.

stream sediment sampling The collection of samples of stream sediment with the

intention of analysing them for trace elements.

supergene Meaning process involving circulation of surface waters

throughout an ore deposit, which can result in

remobilisation and enrichment of metals and minerals.


strike Horizontal direction or trend of a geological structure.

syenite An intrusive igneous rock composed essentially of alkali

feldspar, with little or no quartz and ferromagnesian

minerals.

Tb Terbium, a HREE

tectonic Pertaining to the forces involved in, or the resulting

structures of, movement in the earth’s crust.

terrane A fragment of crustal material that has been transported

laterally and may be accreted onto others.

Tm Thulium, a HREE

trough A large sediment-filled and fault-bounded depression

resulting from extension of the crust.

ultramafic Igneous rocks consisting essentially of ferromagnesian

minerals with trace quartz and feldspar.

vegetation anomaly An area of vegetative growth inconsistent with the

surrounding vegetation, usually caused by an unusual

drainage characteristic, soil type or trace element

chemistry.

volcaniclastic Pertaining to clastic rock containing volcanic material.

xenocryst A term applied to crystals/minerals that have been

introduced into a rock from another source

XRD X-Ray Diffraction – a non destructive mineralogical

method that provides detailed information about the

chemical composition and crystallographic structure of

minerals

XRF X-Ray Fluorescence – used a routine relatively non

destructive method to determine major and trace elements

in geological materials

Y Yttrium, a HREE

Yb Ytterbium, a HREE

Zircon A silicate of zirconium, (ZrSiO4), and a very common

detrital heavy mineral. Can be dated using uranium-lead

methods.

Project J1580Appendix 2, Frontier NI 43-101 Technical Report – 28 September, 2010

APPENDIX 2:

Certificates of Qualified Persons

Project J1580Appendix 2 – Frontier NI 43-101 Technical Report – 29 October, 2010

CERTIFICATE of QUALIFIED PERSON

I, Peter Roy Siegfried, MAusIMM do hereby certify that:

1. I am a Consultant of :

MSA,

20B Rothesay Avenue,

Craighall Park,

Johannesburg,

2196.

2. I graduated with a degree in Geology from the University of Cape Town in 1986. In addition, I obtaineda MSc from the University of Cape Town in 1989 in Economic Geology.

3. I am a member of the Australian Institute of Mining and Metallurgy (No. 221116), and have been amember in good standing since 2004.

4. I have worked as a geologist for a total of 25 years since my graduation from university.5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and

certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for thepurposes of NI 43-101.

6. I am responsible for the preparation of all sections of the technical report (excepting Section 16 and17) titled “Amended NI 43-101 Resource Estimate and Technical Report on the ZandkopsdriftRare Earth Element (REE) Project, located in the Republic of South Africa” and dated 29 October,2010 (the “Technical Report”) relating to the Zandkopsdrift Prospecting Right property. I visitedthe Zandkopsdrift Project between 1 December and 5 December 2009 for 4 days.

7. I have been an independent consultant to Frontier on the property that is the subject of the TechnicalReport during the period August 2008 to September 2009.

8. To the best of my knowledge, information and belief as of the amended date hereof, the TechnicalReport contains all the scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.

9. I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101.10. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been

prepared in compliance with that Instrument and Form.11. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority

and any publication by them for regulatory purposes, including electronic publication in the publiccompany files on their websites accessible by the public, of the Technical Report.

Dated this 29 October, 2010

Pete Siegfried



I, Michael Robert Hall; MAusIMM do hereby certify that:

1. I am a Consulting Resource Geologist of:

MSA,

20B Rothesay Avenue,

Craighall Park,

2196

Johannesburg

SOUTH AFRICA

2. I graduated with a degree in BSc Eng (Mining Geology) from the University of the Leicester, Englandin 1980. In addition, I obtained an MBA from the Business School at the University of theWitwatersrand in 2003.

3. I am a member in good standing of the Australian Institute of Mining and Metallurgy and theGeological Society of South Africa.

4. I have worked as a geologist for a total of 29 years since my graduation from university.5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and

certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a “qualified person” for thepurposes of NI 43-101.

6. I am responsible for the preparation of Chapter 17 “Mineral Resource and Mineral Reserve Estimates”of the technical report titled “Amended NI 43-101 Resource Estimate and Technical Report on theZandkopsdrift Rare Earth Project (REE) Project, located in the Republic of South Africa” and dated 29October, 2010 (the “Technical Report”) relating to the Zandkopsdrift Prospecting Right property.

7. I have not had prior involvement with the property that is the subject of this Technical Report.8. To the best of my knowledge, information and belief as of the amended date hereof, the Technical

Report contains all the scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.

9. I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101.10. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been

prepared in compliance with that Instrument and Form.11. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority

and any publication by them for regulatory purposes, including electronic publication in the publiccompany files on their websites accessible by the public, of the Technical Report.

Dated this 29 October, 2010

Mike Hall



I, James Brown, MASc., P.Eng do hereby certify that:

1. I am a Senior Metallurgist of:

SGS Canada Inc,

PO Box 4300, 185 Concession Street

Lakefield, ON K0L 2H0

Canada

2. I graduated with a degree in BASc (Mineral Engineering) from the University of Toronto in 2002. Inaddition, I obtained an MASc (Materials Science Engineering) from the University of Toronto in 2004.

3. I am a member in good standing of the Canadian Institute of Mining and Metallurgy and am a licensedProfessional Engineer in the province of Ontario (PEO).

4. I have worked as a metallurgist for a total of 6 years since my graduation from university.

5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) andcertify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a “qualified person” for thepurposes of NI 43-101.

6. I am responsible for the preparation of Chapter 16 “Mineral Processing and Metallurgical Testing” ofthe technical report titled “Amended NI 43-101 Resource Estimate and Technical Report on theZandkopsdrift Rare Earth Project (REE) Project, located in the Republic of South Africa” and dated 29October, 2010 (the “Technical Report”) relating to the Zandkopsdrift Prospecting Right property.

7. I have not had prior involvement with the property that is the subject of this Technical Report.

8. To the best of my knowledge, information and belief as of the date hereof, the Technical Reportcontains all the scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.

9. I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101.

10. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has beenprepared in compliance with that Instrument and Form.

11. I consent to the filing of the Technical Report with any stock exchange and other regulatory authorityand any publication by them for regulatory purposes, including electronic publication in the publiccompany files on their websites accessible by the public, of the Technical Report.

Dated this 29 October 2010

James Brown


APPENDIX 3:

Drillhole Statistics


Log Histogram for TREO_PPMZandkopsdrift

TREO_PPM

Freq

uen

cy(%

of

19

73

po

ints)

1000 10000 1000000

1

2

3

4

5

6

7

8

9

10

11

12

13

G L25 50 75

Points:Weights:

Mean:Std Dev:Variance:

CV:Skewness:

Kurtosis:GeomMean:

Log-Est Mean:

Maximum:75%:50%:25%:

Minimum:

1973197319515.20117091.197292109026.4230.8762.49311.31714060.87419847.189

19026325345.00015158.0007639.000395

Histogram for DENSITYZandkopsdrift

DENSITY

Freq

uen

cy(%

of

98

5p

oin

ts)

0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.00

1

2

3

4

5

6

7

8

9

10

11

12

13

GL25 50 75

Points:Weights:


CV:Skewness:Kurtosis:

GeomMean:Log-Est Mean:

Maximum:75%:50%:25%:

Minimum:

9859852.3360.3220.1030.138-1.0142.6722.3102.339

3.132.5802.3502.1400.53


Block Model Statistics

Indicated Resources (Weightings are Tonnages)

Log Histogram for TREO_PPMIndicated

TREO_PPM

Weig

hted

Freq

uen

cy(%

of

20

82

6.3

)

10000 1000000.00

0.75

1.50

2.25

3.00

3.75

4.50

5.25

6.00

6.75

7.50

8.25

G L25 50 75

Points:Weights:




Maximum:75%:50%:25%:

Minimum:

921320826.3 (weighted)18079.46712740.833162328829.8150.7051.5764.09014197.22518407.073

10657124070.30715038.1749337.5933087.09

Inferred Resources (weightings are Tonnages)

Log Histogram for TREO_PPMInferred

TREO_PPM

Weig

hted

Freq

uen

cy(%

of

22

13

4.7

)

10000 1000000.0

2.5

5.0

7.5

10.0

12.5

G L25 50 75

Points:Weights:




Maximum:75%:50%:25%:

Minimum:

3374822134.7 (weighted)14618.08210511.760110497095.8280.7192.3709.81711869.18814586.366

10347618388.86512098.9777674.6082844.94


Indicated Resources (weightings are Tonnages)

Histogram for DENSITYIndicated

DENSITYW

eigh

tedF

requ

ency

(%o

f2

08

26

.3)

1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.80

1

2

3

4

5

6

7

8

9

10

11

GL25 50 75

Points:Weights:




Maximum:75%:50%:25%:

Minimum:

921320826.3 (weighted)2.3660.2820.0790.119-0.4110.0412.3482.366

2.938862.5682.3952.1761.06687

Inferred Resources (weightings are Tonnages)

Histogram for DENSITYInferred

DENSITY

Weig

hted

Freq

uen

cy(%

of

22

13

4.7

)

1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.80.0

2.5

5.0

7.5

10.0

12.5

GL25 50 75

Points:Weights:




Maximum:75%:50%:25%:

Minimum:

3374822134.7 (weighted)2.3810.2690.0720.113-0.5540.5382.3652.382

2.93822.5482.4142.1851.07199


APPENDIX 4

QA/QC SUMMARY


PULP RE SAMPLING – ORIGINALS VS DUPLICATES

Dashed red lines represent 10% error margins

Historical holes - Original vs duplicates

y = 0.9992x + 3.3398

R2

= 0.9954

0

10000

20000

30000

40000

50000

60000

0 10000 20000 30000 40000 50000 60000

Original Ce (ppm) Assay

Du

pli

cate

Ce

(pp

m)

Ass

ay

n = 74

Historical holes - original vs duplicates

y = 0.9787x + 3.1518

R2 = 0.9964

0

100

200

300

400

500

600

700

0 100 200 300 400 500 600 700

Original Dy (ppm) Assay

Du

pli

cate

Dy

(pp

m)

Ass

ay

n = 74


y = 0.9893x + 0.7576

R2

= 0.9911

0

50

100

150

200

250

0 50 100 150 200 250

Original Er (ppm) Assay

Du

pli

cate

Er

(pp

m)

Ass

ay

n = 74

Historical holes - originals vs duplicates

y = 0.9693x + 3.1044

R2

= 0.9965

0

100

200

300

400

500

600

0 100 200 300 400 500 600

Original Eu (ppm) Assay

Du

pli

cate

Eu(p

pm

)A

ssa

y

n = 74


y = 0.9623x + 9.5465

R2

= 0.9948

0

200

400

600

800

1000

1200

1400

1600

1800

0 200 400 600 800 1000 1200 1400 1600 1800

Original Gd (ppm) Assay

Du

pli

cate

Gd

(pp

m)

Ass

ay

n = 74


y = 0.9893x + 0.3677

R2

= 0.9954

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

Original Ho (ppm) Assay

Du

pli

cate

Ho

(pp

m)

Ass

ay

n = 74



y = 0.9972x + 15.632

R2

= 0.998

0

5000

10000

15000

20000

25000

30000

0 5000 10000 15000 20000 25000 30000

Original La (ppm) Assay

Du

pli

cate

La(p

pm

)A

ssay

n = 74


y = 0.997x + 0.0478

R2

= 0.9965

0

5

10

15

20

25

30

0 5 10 15 20 25 30

Original Lu (ppm) Assay

Du

pli

cate

Lu(p

pm

)A

ssa

y

n = 74


y = 0.9778x + 68.061

R2

= 0.9969

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

0 3000 6000 9000 12000 15000 18000

Original Nd (ppm) Assay

Du

pli

cate

Nd

(pp

m)

Ass

ay

n = 74


y = 0.9763x + 19.859

R2

= 0.9965

0

1000

2000

3000

4000

5000

6000

0 1000 2000 3000 4000 5000 6000

Original Pr (ppm) Assay

Du

pli

cate

Pr

(pp

m)

Ass

ay

n = 74


y = 0.968x + 13.999

R2

= 0.9959

0

500

1000

1500

2000

2500

3000

0 500 1000 1500 2000 2500 3000

Original Sm (ppm) Assay

Du

pli

cate

Sm(p

pm

)A

ssa

y

n = 74


y = 0.973x + 0.8034

R2

= 0.9963

0

20

40

60

80

100

120

140

160

180

0 20 40 60 80 100 120 140 160 180

Original Tb (ppm) Assay

Du

plic

ate

Tb(p

pm

)A

ssay

n = 74



y = 0.9943x + 0.0883

R2

= 0.9951

0

5

10

15

20

25

30

0 5 10 15 20 25 30

Original Tm (ppm) Assay

Du

plic

ate

Tm(p

pm

)A

ssay

n = 74


y = 0.9969x + 0.9435

R2

= 0.9982

0

500

1000

1500

2000

2500

0 500 1000 1500 2000 2500

Original Y (ppm) AssayD

up

licat

eY

(pp

m)

Ass

ay

n = 74


y = 0.9918x + 0.5422

R2

= 0.9961

0

20

40

60

80

100

120

140

160

180

0 20 40 60 80 100 120 140 160 180

Original Yb (ppm) Assay

Du

plic

ate

Yb(p

pm

)A

ssay

n = 74


y = 1.0013x - 0.0122

R2

= 0.9933

0

2

4

6

8

10

12

14

0 2 4 6 8 10 12 14

Original P2O5 (%) Assay

Du

pli

cate

P2O

5(%

)A

ssa

y

n = 74


VALIDATION DRILLING SAMPLING – ORIGINAL VS DUPLICATES

All Duplicates - 2009 Drilling

y = 1.0188x - 98.5

R2

= 0.9909

0

10000

20000

30000

40000

50000

0 10000 20000 30000 40000 50000

Original Ce (ppm) Assay

Du

pli

cate

Ce

(pp

m)

Ass

ay

n = 92


y = 0.9862x + 2.0642

R2

= 0.9846

0

100

200

300

400

500

0 100 200 300 400 500

Original Dy (ppm) Assay

Du

plic

ate

Dy

(pp

m)

Ass

ay

n = 92


y = 0.9913x + 0.3824

R2

= 0.9828

0

20

40

60

80

100

120

140

160

180

200

0 20 40 60 80 100 120 140 160 180 200

Original Er (ppm) Assay

Du

pli

cate

Er

(pp

m)

Ass

ay

n = 92


y = 0.9973x + 0.997

R2

= 0.9897

0

50

100

150

200

250

300

350

400

450

0 50 100 150 200 250 300 350 400 450

Original Eu (ppm) Assay

Du

plic

ate

Eu(p

pm

)A

ssa

y

n = 92


y = 0.9839x + 4.9001

R2

= 0.9856

0

100

200

300

400

500

600

700

800

0 100 200 300 400 500 600 700 800

Original Gd (ppm) Assay

Du

pli

cate

Gd

(pp

m)

Ass

ay

n = 92


y = 0.9884x + 0.2552

R2

= 0.9825

0

10

20

30

40

50

60

70

80

90

0 10 20 30 40 50 60 70 80 90

Original Ho (ppm) Assay

Du

plic

ate

Ho

(pp

m)

Ass

ay

n = 92



y = 1.0229x - 64.173

R2

= 0.9919

0

5000

10000

15000

20000

25000

30000

0 5000 10000 15000 20000 25000 30000

Original La (ppm) Assay

Du

pli

cate

La(p

pm

)A

ssa

y

n = 92


y = 1.0027x - 0.0143

R2

= 0.9823

0

5

10

15

20

25

0 5 10 15 20 25

Original Lu (ppm) Assay

Du

plic

ate

Lu(p

pm

)A

ssay

n = 92


y = 1.0337x - 44.28

R2

= 0.9783

0

3000

6000

9000

12000

15000

0 3000 6000 9000 12000 15000

Original Nd (ppm) Assay

Du

pli

cate

Nd

(pp

m)

Ass

ay

n = 92


y = 1.0413x - 19.752

R2

= 0.9762

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

Original Pr (ppm) Assay

Du

pli

cate

Pr

(pp

m)

Ass

ay

n = 92


y = 1.0033x + 2.804

R2

= 0.9877

0

500

1000

1500

2000

0 500 1000 1500 2000

Original Sm (ppm) Assay

Du

pli

cate

Sm

(pp

m)

Ass

ay

n = 92


y = 0.9792x + 0.5764

R2

= 0.9847

0

20

40

60

80

100

0 20 40 60 80 100

Original Tb (ppm) Assay

Du

pli

cate

Tb(p

pm

)A

ssay

n = 92



y = 1.0035x - 0.172

R2

= 0.9831

0

50

100

150

200

0 50 100 150 200

Original Yb (ppm) Assay

Du

plic

ate

Yb

(pp

m)

Ass

ay

n = 92


y = 0.9788x + 0.0894

R2

= 0.9904

0

6

12

0 6 12

Original P2O5 (%) AssayD

up

lica

teP

2O

5(%

)A

ssay

n = 92


BLANKS – PULP RE-ASSAY

Y Values for blanks (ppm)

0

1

2

3

4

5

6

7

8

9

10

D25

37

D21

18

D28

28

D21

76

D22

35

D22

94

D23

51

D25

95

D26

52

D28

86

D24

81

D20

01

D20

61

D27

10

D27

69

D29

46

A00

19

A00

78

A01

16

A01

51

Sample numbers

Y(p

pm

)

Actlabs

La Values for blanks (ppm)

0

5

10

15

20

25

30

D2

537

D2

118

D2

828

D2

176

D2

235

D2

294

D2

351

D2

595

D2

652

D2

886

D2

481

D2

001

D2

061

D2

710

D2

769

D2

946

A001

9

A007

8

A011

6

A015

1

Sample numbers

La

(pp

m)

Actlabs

Ce Values for blanks (ppm)

0

5

10

15

20

25

30

35

40

45

50

D25

37

D21

18

D28

28

D21

76

D22

35

D22

94

D23

51

D25

95

D26

52

D28

86

D24

81

D20

01

D20

61

D27

10

D27

69

D29

46

A0019

A0078

A0116

A0151

Sample numbers

Ce

(pp

m)

Actlabs

Pr Values for blanks (ppm)

0

1

2

3

4

5

6

D253

7

D211

8

D282

8

D217

6

D223

5

D229

4

D235

1

D259

5

D265

2

D288

6

D248

1

D200

1

D206

1

D271

0

D276

9

D294

6

A0019

A0078

A0116

A0151

Sample numbers

Pr

(pp

m)

Actlabs

Nd Values for blanks (ppm)

0

2

4

6

8

10

12

14

16

18

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

Nd

(pp

m)

Actlabs

Sm Values for blanks (ppm)

0

0.5

1

1.5

2

2.5

3

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0

019

A0

078

A0

116

A0

151

Sample numbers

Sm

(pp

m)

Actlabs


Eu Values for blanks (ppm)

0

0.1

0.2

0.3

0.4

0.5

0.6

D25

37

D21

18

D28

28

D21

76

D22

35

D22

94

D23

51

D25

95

D26

52

D28

86

D24

81

D20

01

D20

61

D27

10

D27

69

D29

46

A0

01

9

A0

07

8

A0

11

6

A0

15

1

Sample numbers

Eu

(pp

m)

Actlabs

Gd Values for blanks (ppm)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0

019

A0

078

A0

116

A0

151

Sample numbers

Gd

(pp

m)

Actlabs

Tb Values for blanks (ppm)

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

Tb

(pp

m)

Actlabs

Dy Values for blanks (ppm)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

Dy

(pp

m)

Actlabs

Ho Values for blanks (ppm)

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

Ho

(pp

m)

Actlabs

Er Values for blanks (ppm)

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A001

9

A007

8

A011

6

A015

1

Sample numbers

Er

(pp

m)

Actlabs

Tm Values for blanks (ppm)

0

0.02

0.04

0.06

0.08

0.1

0.12

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

Tm

(pp

m)

Actlabs

Yb Values for blanks (ppm)

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

Yb

(pp

m)

Actlabs


Lu Values for blanks (ppm)

0

0.02

0.04

0.06

0.08

0.1

0.12

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

Lu

(pp

m)

Actlabs

P2O5 Values for blanks (%)

0

0.01

0.02

0.03

0.04

0.05

0.06

D2537

D2118

D2828

D2176

D2235

D2294

D2351

D2595

D2652

D2886

D2481

D2001

D2061

D2710

D2769

D2946

A0019

A0078

A0116

A0151

Sample numbers

P2O

5(%

)

Actlabs


BLANKS – VALIDATION DRILLING

Y values for Blank (ppm)

0

2

4

6

8

10

12

14

16

18

20

A02

40

G09

84

G09

28

G02

86

G02

35

A02

94

A03

52

G03

38

G03

90

G00

99

G01

75

G01

76

G07

57

G08

09

G08

66

G04

42

G04

93

G05

45

G05

97

G06

50

G07

02

A04

09

Sample Numbers (sorted by borehole)

Y(p

pm

)

2 std Dev (upper) Mean

La values for Blank (ppm)

0

10

20

30

40

50

60

70

80

90

100

A0240

G0984

G0928

G0286

G0235

A0294

A0352

G0338

G0390

G0099

G0175

G0176

G0757

G0809

G0866

G0442

G0493

G0545

G0597

G0650

G0702

A0409


La

(pp

m)


Ce values for Blank (ppm)

0102030405060708090

100110120130140150160170

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Ce

(pp

m)


Pr values for Blank (ppm)

0

10

20

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Pr

(pp

m)


Nd values for Blank (ppm)

0

10

20

30

40

50

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Nd

(pp

m)

2 std Dev (upper) MeanSm values for Blank (ppm)

0

5

10

A024

0

G098

4

G092

8

G028

6

G023

5

A029

4

A035

2

G033

8

G039

0

G009

9

G017

5

G017

6

G075

7

G080

9

G086

6

G044

2

G049

3

G054

5

G059

7

G065

0

G070

2

A040

9


Sm

(pp

m)



Eu values for Blank (ppm)

0

1

2

A02

40

G09

84

G09

28

G02

86

G02

35

A02

94

A03

52

G03

38

G03

90

G00

99

G01

75

G01

76

G07

57

G08

09

G08

66

G04

42

G04

93

G05

45

G05

97

G06

50

G07

02

A04

09


Eu

(pp

m)


Gd values for Blank (ppm)

0

1

2

3

4

5

6

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Gd

(pp

m)


Tb values for Blank (ppm)

0

0.5

1

A024

0

G098

4

G092

8

G028

6

G023

5

A029

4

A035

2

G033

8

G039

0

G009

9

G017

5

G017

6

G075

7

G080

9

G086

6

G044

2

G049

3

G054

5

G059

7

G065

0

G070

2

A040

9


Tb

(pp

m)


Dy values for Blank (ppm)

0

1

2

3

4A

02

40

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Dy

(pp

m)


Ho values for Blank (ppm)

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

A0

240

G0

984

G0

928

G0

286

G0

235

A0

294

A0

352

G0

338

G0

390

G0

099

G0

175

G0

176

G0

757

G0

809

G0

866

G0

442

G0

493

G0

545

G0

597

G0

650

G0

702

A0

409


Ho

(pp

m)


Er values for Blank (ppm)

0

0.5

1

1.5

2

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Er

(pp

m)



Tm values for Blank (ppm)

0

0.1

0.2

0.3

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9Sample Numbers (sorted by borehole)

Tm

(pp

m)


Yb values for Blank (ppm)

0

0.5

1

1.5

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Yb

(pp

m)


Lu values for Blank (ppm)

0

0.1

0.2

A0

24

0

G0

98

4

G0

92

8

G0

28

6

G0

23

5

A0

29

4

A0

35

2

G0

33

8

G0

39

0

G0

09

9

G0

17

5

G0

17

6

G0

75

7

G0

80

9

G0

86

6

G0

44

2

G0

49

3

G0

54

5

G0

59

7

G0

65

0

G0

70

2

A0

40

9


Lu

(pp

m)


P2O5 values for Blank (%)

0

0.02

0.04

0.06

0.08

0.1

0.12A

02

40

G09

84

G09

28

G02

86

G02

35

A0

29

4

A0

35

2

G03

38

G03

90

G00

99

G01

75

G01

76

G07

57

G08

09

G08

66

G04

42

G04

93

G05

45

G05

97

G06

50

G07

02

A0

40

9


P2O

5(%

)



CRM – SARM40 – RE-ASSAY RESULTS

Y Values (ppm) for SARM 40

15

20

25

30

35

40

45

50

D239

6

D242

4

D250

5

D253

8

D211

9

D214

7

D280

0

D282

9

D268

3

D217

7

D220

6

D223

6

D226

6

D229

5

D232

5

D235

2

D256

7

D259

6

D262

6

D265

3

D285

8

D288

7

D245

2

D248

2

D200

2

D203

1

D206

2

D209

0

D271

1

D274

1

D277

0

A00

20

A00

50

A00

79

A01

09

A01

17

A01

30

A01

52

D297

6

D291

7

D294

7Sample numbers

Y(p

pm

)

ActlabsSARM 40 mean

1 std dev

2 std dev

P2O5 Values (%) for SARM 40

1.5

1.6

1.7

1.8

1.9

2

2.1

2.2

2.3

2.4

2.5

D239

6

D242

4

D250

5

D253

8

D211

9

D214

7

D280

0

D282

9

D268

3

D217

7

D220

6

D223

6

D226

6

D229

5

D232

5

D235

2D

256

7

D259

6

D262

6

D265

3

D285

8

D288

7

D245

2

D248

2

D200

2

D203

1

D206

2

D209

0

D271

1

D274

1

D277

0

A0

020

A0

050

A0

079

A0

109

A0

117

A0

130

A0

152

D297

6

D291

7

D294

7

Sample numbers

P2O

5(%

)

Actlabs

SARM 40 mean

1 std dev

2 std dev

CRM – SARM 40 – VALIDATION DRILLING

Y values for SARM 40 (ppm)

0

5

10

15

20

25

30

35

40

45

50

A0

21

3

A0

24

1

G0

98

5

G0

92

9

G0

95

6

G0

26

1

G0

28

7

G0

31

2

G0

20

6

G0

23

6

A0

26

7

A0

29

5

A0

32

4

A0

35

3

G0

33

9

G0

36

5

G0

39

1

G0

10

0

G0

17

7

G0

75

8

G0

78

5

G0

81

0

G0

83

9

G0

86

7

G0

90

1

G0

41

6

G0

44

3

G0

45

5

G0

46

8

G0

49

4

G0

57

2

G0

59

8

G0

62

4

G0

65

1

G0

67

7

A0

38

2

A0

41

0

A0

43

9


Y(p

pm

)

SARM 40 mean 1 Std dev 2 Std devP2O5 values (%) for SARM 40

1.5

1.6

1.7

1.8

1.9

2

2.1

2.2

2.3

2.4

2.5

A0

21

3

A0

24

1

G0

98

5

G0

92

9

G0

95

6

G0

26

1

G0

28

7

G0

31

2

G0

20

6

G0

23

6

A0

26

7

A0

29

5

A0

32

4

A0

35

3

G0

33

9

G0

36

5

G0

39

1

G0

10

0

G0

17

7

G0

75

8

G0

78

5

G0

81

0

G0

83

9

G0

86

7

G0

90

1

G0

41

6

G0

44

3

G0

45

5

G0

46

8

G0

49

4

G0

57

2

G0

59

8

G0

62

4

G0

65

1

G0

67

7

A0

38

2

A0

41

0

A0

43

9


P2

O5

(%)

2 Std devSARM 40 mean 1 Std dev


UMPIRE LAB (GENALYSIS) VS ACTIVATION LAB

Total REE Wt %

y = 0.9343x

R2 = 0.9878

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

Genalysis

Act

Project J1580Appendix 5 – Frontier NI 43-101 Technical Report – 28 September, 2010

APPENDIX 5

SGS LAKEFIELDMETALLURGICAL REPORT

SGS Canada Inc. P.O. Box 4300, 185 Concession Street, Lakefield, Ontario, Canada K0L 2H0 Tel: (705) 652-2000 Fax: (705) 652-6365 www.met.sgs.com www.ca.sgs.com

Member of the SGS Group (SGS SA)

AA MMEETTAALLLLUURRGGIICCAALL RREEVVIIEEWW OOFF TTHHEE ZZAANNDDKKOOPPSSDDRRIIFFTT OORREEBBOODDYY

prepared for

FFRROONNTTIIEERR RRAARREE EEAARRTTHHSS Project 12314-001 – Final Report – Reissued September 22, 2010

NOTE: The practice of this Company in issuing reports of this nature is to require the recipient not to publish the report or any part thereof without the written consent of SGS Minerals Services. This document is issued by the Company under its General Conditions of Service accessible at http://www.sgs.com/terms_and_conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. WARNING: The sample(s) to which the findings recorded herein (the 'Findings') relate was (were) drawn and / or provided by the Client or by a third party acting at the Client’s direction. The Findings constitute no warranty of the sample’s representativity of the goods and strictly relate to the sample(s). The Company accepts no liability with regard to the origin or source from which the sample(s) is/are said to be extracted. The findings report on the samples provided by the client and are not intended for commercial or contractual settlement purposes. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law. Test method information available upon request.

Frontier rare earths – Project 12314-001

SGS Minerals Services

i

Table of Contents Introduction ............................................................................................................................................. ii Summary.................................................................................................................................................1 1. Previous Metallurgical Processing Testwork Review.....................................................................1

1.1. Ore Upgrading – Preconcentration........................................................................................1 1.2. Leaching Testwork.................................................................................................................2

1.2.1. Anglo American Testwork – Internal Reports (Refs 3 and 4).....................................2 2. REE-bearing Minerals – Primary Treatment - Acid Cracking/Caustic Cracking ............................6

3. Processes for Extraction and Separation of Individual Rare Earths ..............................................7

4. Test Programs and Schedule.........................................................................................................8

4.1. Phase 1. Prefeasability Programs ......................................................................................8 4.2. Phase 2. Feasibility Programs..............................................................................................9 4.3. Schedule................................................................................................................................9

References ............................................................................................................................................10

List of Tables Table 1 REE Extraction using Concentrated Sulphuric Acid ..................................................................3

Table 2 Acid Pug Leach Conditions and Results....................................................................................3

Table 3 Effect of Temperature on Treatment of ZKR7 (14-27 m) with 18M H2SO4...............................4

Table 4 Results of Acid and Alkaline Treatment of ZKR7 (14-27 m)......................................................4

Table 5 Leaching Test Conditions and Results from Different Samples from Hole ZKR7 using

18M H2SO4 ...............................................................................................................................5

Table 6 Zandkopsdrift Development Testwork Program.........................................................................9

List of Figures Figure 1 Rhone-Poulenc Solvent Extraction Process for the Separation of REE (Ref.7).......................7

Frontier rare earths – Project 12314-001


ii

Introduction

At the request of Frontier Minerals Limited, SGS was asked to provide an assessment of the

amenabil i ty of the Zandkopsdrift ore body to the recovery and treatment of rare earth mineral

compounds that are known to be present in the ore body. Included in this assessment are:

• A review of testwork carried out by Anglo American and Johnson Matthey in the 1970’s and 1980’s for the recovery of known rare earth minerals that had been identified in parallel mineralogical studies carried out by Anglo American.

• An opinion on the amenability of the ore to upgrading prior to further processing and recovery of rare earth oxide compounds based on recent mineralogical examinations of the Zandkopsdrift ore carried out by and on behalf of Frontier Minerals.

• A review of the acid and alkali cracking processes that could be applied to rare earth mineral concentrates produced from the Zandkopsdrift ore.

• A review of the likely metallurgical separation processes for production of individual rare earth compounds as applicable to the processing of Zandkopsdrift concentrates.

• A summary of SGS’s recommended metallurgical testwork program, with estimated costs and time to complete the program.

James Brown, MASc., P.Eng. Iain Todd, Ph.D. Project Manager Manager, Hydrometallurgical Group Report preparation by: James Brown, Su McKenzie Reviewed by: Iain Todd

Frontier rare earths - Project 12314-001


1

Summary

A review has been made of mineralogy and metallurgical testing reports for treatment of the

Zandkopsdrift REE containing orebody with a view to establishing if the deposit is amenable to application

of conventional REE extraction technologies.

While previous ore beneficiation studies focused on phosphates and not on REE minerals, a review of the

available mineralogy reports indicates that there appears to be considerable potential for upgrading by

flotation of a majority of the available REE containing minerals

A review of previous studies on the hydrometallurgical treatment of samples from the Zandkopsdrift

orebody indicates that a number of leaching options gave very good levels of recovery (>90%) of rare

earth elements to solution. This would indicate that the REE element bearing minerals are likely

amenable to conventional extractive processes.

Acid and caustic cracking of rare earth minerals for preliminary dissolution of rare earth elements have

been routinely applied in the historical development of processes for recovering rare earth compounds.

Preliminary test results indicate the amenability of the REE bearing minerals in the Zandkopsdrift orebody

to either technique. This being the case then development of a flowsheet for further recovery of either

mixed or single rare earth compounds would follow established industrial routes for rare earth recovery.

A development program to establish an operating flowsheet for recovery of rare earth compounds has

been outlined. Prefeasibility and feasibility studies are expected to take approximately 14 months to

complete at a cost of $3.97M CAN ±30%.

1. Previous Metallurgical Processing Testwork Review

1.1. Ore Upgrading – Preconcentration

To date no detailed studies for recovering rare earth compounds based on the known mineralogy of the

Zandkopsdrift deposit have been carried out, nor has there been an optimised approach to the

development of a flowsheet for the recovery of the contained rare earth compounds. Mineralogical

reports produced to date by Anglo American (Ref 11), JOGMEC (Ref 12) and Siegfried (Ref 13) generally

agree that the major rare earth bearing mineral phases are silico-phosphates in nature. The most

commonly identified rare earth bearing minerals identified (but not exclusively so) include monazite,

crandallite, fluorapatite and gorcexite. The host rock has four distinct horizons. They comprise a heavily

altered iron/manganese wad, a crandallite rich zone, an apatite rich zone and an unaltered carbonate

rock zone. The first three horizons comprise the target ore zone at Zandkopsdrift, where the bulk of the



2

rare earth content is considered to occur within supergene monazite with lesser amounts as gorceixite

and crandallite.

Anglo American carried out a number of concentration studies in 1975 (Ref 1) when evaluating the

phosphate potential of the Zandkopsdrift deposit. These studies centered on the concentration of

phosphate and titanium compounds by gravity separation, magnetic separation and flotation. No

significant concentration of either was achieved, but the studies did not attempt to concentrate rare earth

elements and so are not considered to be relevant to the work now being carried out by Frontier Minerals.

A review was undertaken by SBM Mineral Processing and Engineering Ltd. for Frontier Minerals (Ref 2)

on previous Anglo American testwork to assess the potential for upgrading the Zandkopsdrift ore by

conventional ore beneficiation prior to hydrometallurgical processing. This review stated that the only

valid methodology for concentrating the ore is flotation, which is a fundamental approach in the

concentration of monazite (Ref 8).

It should be noted that the Anglo American mineralogy reports often refer to the rare earth containing host

rocks as “finely disseminated”, but no empirical data was produced as to the liberation size of the rare

earth containing minerals themselves. The JOGMEC report (Ref 12) in identifying the rare earth bearing

mineral phases does note that of the two drill holes examined the rare earth bearing minerals monazite

had grain sizes up to 100 µm, pyrochlore 20-60 µm, crandallite 5-30 µm and fluorbritholite was finely

disseminated at <10µm.

Since the original work by Anglo American 20 years ago there has been considerable development in

oxide mineral flotation with the availability of new reagents to not only recover bulk REE concentrates but

potentially enhance the separation of individual REE containing oxide minerals (Ref 9). The SBM report

concluded that a new technology for beneficiation of REE ore from hard rock and refractory ores is now

available and should be examined on this ore type. Using this new technology it is possible to float fine

REE minerals, down to 10 micron size, and this has been achieved on several projects to date.

This would indicate that there is considerable potential for upgrading by flotation of a majority of the

available REE containing minerals and a comprehensive flotation test program is recommended. This

program would commence with a mineralogical liberation study of the REE containing minerals on

samples considered as likely to be typical of run of mine ore.

1.2. Leaching Testwork

1.2.1. Anglo American Testwork – Internal Reports (Refs 3 and 4)

Preliminary leaching studies by Anglo American in the 1980’s tested a number of drill core samples using

known leaching practices either presently or historically applied commercially to REE concentrates.



3

Initial tests were made on composite samples ZKP2 (1-15 m), ZKP2 (16-25 m), ZKP2 (26-50 m) by

leaching in concentrated H2SO4. No test details were reported as to the exact methodology except that

the REE extraction on all three composites was greater than 91%, with acid consumption ranging from

41.6 kg/t to 404 kg/t depending on composite hole depth.

Table 1 REE Extraction using Concentrated Sulphuric Acid

ZKP2 ZKP2 ZKP2

(1-15m) (16-25m) (26-50m)

Acid Consumption 41.6 kg/t 59.4 kg/t 404 kg/t

REE Extraction 92.5% 91.6% 99.2%

In a second series of tests on composite samples from holes ZKR7 (14-27 m) and ZKR12 (34-41 m) the

samples were treated by acid pug leaching at 200oC with concentrated sulphuric acid followed by water

washing to recover REE to solution.

Table 2 Acid Pug Leach Conditions and Results Sample mass 200 g Acid 98% H2SO4 200 g L:S ratio 1:1 m/m Pugging residence time 3 hours Temperature 200oC Head grade 42,327 g/t total REE

Water Wash* Extraction % Test No.

Time min.

L:S (m/m) 1st Wash 2nd Wash Total

1 60 10:1 77.4 6.0 83.3

2 15 5:1 67.2 5.4 72.6

3 30 5:1 57.2 4.8 62.0

4 60 5:1 57.1 5.5 62.6

5 15 1:1 19.1 2.5 21.6

6 30 1:1 15.1 2.9 18.0

7 60 1:1 12.1 3.6 15.7

* 2 water washes were conducted with the same residence time and L:S on 100 g samples, except in Test 1 where 200g was used for the wash.

The best REE extraction was 83.3%, obtained using 60 minutes acid pugging at 200oC followed by a 10:1

water wash ratio.

A third series of leaching tests were performed on samples of boreholes ZKR7 (14-27 m) and ZKR12 (34

-41 m) on which three leaching regimes were tested:



4

1. Pug leaching of sample ZKR12 (34-41 m) with 98% sulphuric acid at 200oC and 300oC with subsequent water washing gave recoveries of 83% and 71.8%, respectively.

2. Alkali pressure leaching of sample ZKR12 (34-41 m) at 200oC with 700 g/L NaOH followed by HCl leaching of the residue at 25oC gave a REE recovery of 56.9%.

3. Atmospheric leaching with 50% sulphuric acid of sample at (75% m/m) at 92oC for 24 hours gave a REE recovery of 21% for sample ZKR7 (14-27 m) and REE recovery of 46% for sample ZKR12 (34-41 m).

It is apparent that the best leaching regime for REE recovery was pugging with sulphuric acid at 200oC

followed by water leaching. A series of leach tests were performed in 1988 at JMT in South Africa (Ref 5)

on three separate drill hole composites obtained at various drill hole depths.

An initial series of tests were performed to further study acid pugging and water leaching Core ZKR7 (14-

27 m) with 18M H2SO4. The results are recorded below in Table 3. Again, higher reaction temperatures,

up to 200oC, gave significantly higher recoveries of Ce and La, the only REE elements measured.

Table 3 Effect of Temperature on Treatment of ZKR7 (14-27 m) with 18M H2SO4

Sample Weight (g)

Volume of Acid (mL)

Temperature (oC)

Duration (hours)

Weight of Residue (g)

% La & Ce Leached

101.4 101.1 101.2

500 500 500

100 150 200

7 7 4

43.8 41.2 33.1

51 69 77

A second series of tests was performed on the same core samples using a variety of different leaching

reagents. Results are given in Table 4.

Table 4 Results of Acid and Alkaline Treatment of ZKR7 (14-27 m)

Mass of Sample (g) Lixiviant Volume of

Lixiviant (mL) Temperature

(oC) Duration(hours)

Final Mass of Residue (a)

% Ce Leached

% La Leached

104.8 8M HNO3 235 50 6 73.2 88 74

101.0 6M HCl 500 112 6 27.9 92 88

102.8 9M H2SO4 500 118 6 42.9 76 61

102.9 10M NaOH 500 120 6 91.0 67 90

101.2 18M H2SO4 500 200 4 31.1 88 62

The best results for REE dissolution were by leaching directly using 6M HCl (Test 2) or by pretreating with

NaOH at 120oC followed by dissolution of the residue with 6M HCl at room temperature (Test 4). Using

diluted sulphuric acid (Test 3) gave poorer results than the concentrate acid used in the testwork reported

in Table 3.

A final series of leaching tests was performed using the initial conditions in Table 3 to observe how

varying ore samples responded to the 18M H2SO4 pug leach at 200oC. Results are given in Table 5.



5

Recoveries for the measured REE elements La & Ce ranged from 76% to 86% depending on core

sample and hole depth.

Table 5 Leaching Test Conditions and Results from Different Samples from Hole ZKR7 using 18M H2SO4

Sample Weight (g)

Volume of Acid (mL)

Temperature (oC)

Duration(h)

Weight of Residue (g)

% La & CeLeached

ZKR7 (14-27m) 101.2 500 200 4 33.1 77

ZKR7 (28-35m) 94.2 500 200 3 43.5 76

ZKR8 (25-34m) 101.3 500 200 3 30.0 87

ZKR12 (22-23m) 102.8 500 200 3 33.7 80

ZKR12 (34-46m) 101.7 500 200 3 37.6 76

The studies conducted to date on samples from the Zandkopsdrift orebody indicate that a number of

extractive leaching options gave encouraging levels of recovery (>90% in some cases) of rare earth

elements to solution. This would indicate that the REE element-bearing minerals are likely amenable to

conventional extractive processes. The limited leach testwork reported to date using a variety of lixiviants

reviewed above used whole ore samples as feed material. This is significant in that if ore concentrates

are to be used as feed for extractive leaching, significant improvements on reagent consumption would

be expected no matter which extraction route was chosen. The results indicate the potential for either

acid or caustic dissolution of the available rare earth minerals in the Zandkopsdrift deposit.

The approach to developing a flowsheet for recovering REE incorporates an understanding of the

mineralogy of the deposit, the likely run of mine ore chemistry and the potential for liberation of the REE

containing minerals and ultimate recovery of rare earth compounds. Parallel mineralogical studies at the

time of the above leaching programs indicate that the Zandkopsdrift mineralogy is complex across the

deposit with a number of REE bearing minerals being identified. The most recent study by JOGMEC

broadly confirms the previous mineralogy and the tendency for concentration of REE compounds in the

upper part of the deposit (<50 m) with four zones of REE containing host rocks (iron wad,

monazite/crandallite, apatite and carbonatite types). The distinctly different host rock and the types of

rare earth bearing minerals contained within the hosts will affect the approach taken to rare earth

recovery.

This is particularly relevant when considering the amount of gangue (or non REE containing phases)

which may be present in the projected REE concentrates and that may impact requirements in

subsequent leaching systems. For instance the increasing carbonate levels (due to the presence of

unweathered carbonatite) below the 50m horizon on sample ZKD38 (Ref 5) would indicate a potential for

increased reagent requirements in subsequent processing and that the decision to target mining to the

more altered upper level may be justified by potentially decreased processing costs. Some evidence of



6

this is shown in the original Anglo American reports of Boshoff and Feather (Table 1 above) on whole ore

leaching of samples from ZKP2 with concentrated sulphuric acid, which indicate that acid consumption in

the more altered upper levels was up to 90% lower than in the deeper unaltered material.

2. REE-bearing Minerals – Primary Treatment - Acid Cracking/Caustic Cracking

The primary commercial routes for treatment of rare earth bearing minerals containing phosphate type

compounds (as presently identified in the Zandkopsdrift deposit) are the use of strong acid or bases as

cracking agents in breaking down the host matrix to release the REE elements.

The more traditional route often applied in the early REE plants in the US (Ref 10) incorporated acid

treatments by addition of concentrated H2SO4 with ground concentrate, heating/digestion at 200oC and

(depending on the acid/ore ratio) water leaching to help solubilise the rare earth elements as sulphates or

phosphates. (This route was used as the initial approach in the historical testwork reviewed above).

Further processing of the pregnant leach liquor for recovery of individual rare earth compounds as

hydroxides was by selective precipitation and, where appropriate, redissolution and application of solvent

extraction. Numerous variations on the downstream rare earth recovery process have been investigated,

with final flowsheets dependant on individual ore characteristics. The initial acid cracking conditions

remain largely a constant, however.

In more recent years the use of caustic cracking as the initial treatment for release of REE bearing

compounds from ore concentrates has been applied as a commercial process. In large part the use of

caustic soda allowed the potential for recovery of phosphate early in the overall process. Monazite type

concentrates are finely ground and reacted with caustic soda at elevated temperatures (nominally 150oC).

The resulting breakdown of monazite releases the rare earth elements as solid hydroxide phases. Further

hot water slurrying removes recoverable phosphate. The impure mixed rare earth hydroxides are then

acid leached (either with hydrochloric or nitric acid) and separately recovered using ion exchange or

solvent extraction. Again numerous variations have been investigated for commercial application in

recovering the final pure rare earth oxide compounds, but the initial caustic cracking procedure in

monazite type processing has been applied commercially.

It should be noted that the above technologies have reportedly been applied to ore concentrates only,

which is the expected case for the Zandkopsdrift deposit, and that based on the known mineralogy of the

REE bearing minerals likely to be present in the proposed concentrates it is likely that one of the above

technologies will be applicable to the Zandkopsdrift deposit.



7

3. Processes for Extraction and Separation of Individual Rare Earths

Numerous methodologies have been developed for separation of rare earth elements from primary

solutions produced in the cracking and dissolution of rare earth bearing minerals. Some facilities

incorporated a version of the flowsheet developed by Rhone–Poulenc, (Refs 6 & 7) which incorporates

caustic dissolution of monazite type compounds followed by selective recovery of individual rare earths by

redissolution of recovered rare earth hydroxides in hydrochloric acid. The residue from this leach is further

treated with nitric acid to now produce two acid streams containing all available rare earth elements. The

streams are initially treated separately using solvent extraction to recover the individual rare earths and

final production as precipitated pure oxides compounds. Combinations of commercially available organic

extractants such as acidic and neutral organophosphorous compounds, amines and carboxylic acids are

used in the solvent extraction process.

Figure 1 Rhone-Poulenc Solvent Extraction Process for the Separation of REE (Ref.7)

As with the Rhone-Poulenc flowsheet, the primary rare earth elements most abundant in the

Zandkopsdrift deposit are cerium, lanthanum, neodymium and praseodymium although the heavy rare

earth elements terbium, dysprosium and europium, while less abundant in the deposit, are important

contributors to the overall value of rare earths contained, due to their significantly higher prices.

Depending on the successful application of a caustic leach to Zandkopsdrift concentrate, then it would



8

appear that development of a process to recover either intermediate mixed oxide compounds or further

develop the process for individual rare earth compounds should be feasible using the above flowsheet as

a starting point.

4. Test Programs and Schedule

Testwork programs for ore upgrading and final rare earth compound recovery have each been split into

two separate phases. Each program will undergo a prefeasibility study followed by a full feasibility

program incorporating piloting of the developed process.

4.1. Phase 1 - Prefeasibility Programs

The program scope includes:

• Flowsheet Development - Ore Beneficiation Laboratory Program

o Ore characterisation, REO mineral liberation studies, assessment of amenability of REO bearing minerals to physical upgrading

o Flotation scoping tests o Grinding and desliming tests o Reagent scheme development o Flotation flowsheet development o Locked cycle testing o Ore variability tests o Management and reporting

• Flowsheet Development - REE Compound Recovery Laboratory Program

o Concentrate mineralogy o Acid/caustic leaching o Bulk leaching for downstream testing o Leach residue thickening and rheology studies o Impurity removal (as required) o Bulk rare earth compound recovery o Rare earth element separation – solvent extraction studies o Management and reporting

The costs of the prefeasibility test program required to investigate the potential for ore upgrading by

flotation and developing a flowsheet for recovery of rare earth compounds by a hydrometallurgical route

are estimated at $1.02M Can (+/-30%)



9

4.2. Phase 2 - Feasibility Programs

The program scope includes: • Ore Beneficiation – Pilot Plant Program

o Pilot plant design, construction o Operation of 2 x 150 hr campaigns o Data management and review o Management and reporting

• REE Compound Recovery - Pilot Plant Program

o Pilot plant design and construction o 1 x 300hr campaign o Data management and review o Management and reporting

The costs of the test program to pilot both ore upgrading by flotation and recovery of rare earth

compounds by a hydrometallurgical route are estimated at $2.95M Can (+/-30%)

4.3. Schedule

A provisional timeline for completing the major phases of the test work program is given in Table 6.

Overall program length for both studies is approximately 14 months.

Table 6 Zandkopsdrift Development Testwork Program

Frontier Minerals - Zandkopsdrift Development Testwork Program

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14

1. Laboratory Prefeasibility Programs

Ore BeneficiationREE Compound Recovery

2. Pilot Plant Feasibility Programs

Ore Beneficiation PilotingREE Compound Recovery Piloting



10

References

1. Barnes, J.W. et al., AARL report, CS/294 Report 1, 1975. 2. SBM Mineral Processing and Engineer ing Services Ltd. Report SBM-90. “Review of

Previous Development work on Zandkopsdrift Deposit and Recommendations for Further Development Work”, 2009.

3. Boshoff, F., Feather, C.F., AARL report, 9B 87/1047, 1988. 4. Rawhani, S., AARL project NCS/88/391 reports, May, July, August 1988. 5. Barnard, C.F.J., Rooke, J., Johnson Matthey Technology Centre, Final report SRJ801/1, Oct. 1988. 6. Bautista, R.G., Separation Chemistry. In Gschneider Jr., K.A., and Eyering, L., (eds), Handbook

on the Physics and Chemistry of Rare Earths, Vol. 21, pp1-28, North Holland, Amsterdam, 1995. 7. McGill, I., Rare Earth Elements, In Elvers , B., Hawkins, S., Russy., and Schultz, G., (eds),

Ullmanns Encyclopaedia of Industrial Chemistry, Vol A22, 1993. 8. Gupta, C.K.., Krishnamurthy, N. (eds), Extraction Metallurgy of Rare Earths, CRC Press, 2004. 9. S. Bulatovic, Handbook of Flotation Reagents, Elsevier Press, 2007. 10. Parker, J.G. and Baroch, C.T. (eds), USBM Information Circular 8476, 1971. 11. Boshoff, F., Mineralogical Composition of 52 Bore Hole samples from Zandkopsdrift, AARL ref

GB88/092, 1988. 12. Watanabe, Y., Hoshino, M., Sanematsu, K., Tsunematsu, M., “Final Report of the Laboratory Work

on the Samples from Zandkopsdrift Carbonatite Deposit in the Republic of South Africa”, Geological Survey of Japan, Mineral F2009-005, 2009.

13. Siegfried, P.R., Consulting Geologist, “Mineralogical Study of the Zandkopsdrift Carbonatite Hosted

REE Deposit”, Garies, South Africa, October 2008.


APPENDIX 6

Borehole Strip Logs

Investor Relations

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