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

J1580

Amended NI 43-101 Resource Estimate and Technical
Report 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 Venter Regional Consulting Geologist Pr.Sci.Nat
Mike Hall Consulting Geologist Resources MAusIMM
Pete Siegfried Consulting Geologist MAusIMM
James Brown Senior Metallurgist MASc P.Eng

Date: 28 September, 2010
Amended Date: 29 October, 2010

Project Code: J1580

Author Qualified Person Qualified Person Qualified Person
Mike Venter James Brown Mike Hall Pete Siegfried

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provided by Frontier, along with other relevant published and unpublished data.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: ii
Frontier 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: iii

Yours faithfully

Pete Siegfried Consulting Geologist
MSA

Project J1580 Page: iv

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 AND
PHYSIOGRAPHY............................................................................................................ 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

Project J1580 Page: 5

6.4.3 Reverse Circulation and Diamond drilling 1988 .......................................... 30
6.4.4 Mineralogy and Metallurgy .......................................................................... 37
6.4.4.1 Mineralogy .................................................................................................. 37
6.4.4.2 Metallurgy ................................................................................................... 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*
Contained
Cut Off TREO
Mt TREO
(%TREO) grade (%)
(‘000t)
1.0 22.92 2.32 532
Table 1-2
Inferred Mineral Resources at Zandkopsdrift*
Contained
Cut Off TREO
Mt TREO
(%TREO) grade (%)
(‘000t)
1.0 20.81 1.99 415

* The mineral resource classifications that have been applied are in accordance with CIM Definition Standards.
The mineral resource estimates reflect 100% of the estimated resources at Zandkopsdrift. Frontier’s 74%
owned subsidiary, Sedex, has complied with the BEE equity ownership requirements as laid down by the
Mining Charter, and MPRDA, through shareholder agreements with historically disadvantaged South African
individuals and entities that together hold the remaining 26% of the issued share capital of Sedex. In addition
to Frontier’s direct interest in the Zandkopsdrift Project through its 74% shareholding in Sedex, Frontier shall
also be entitled to, in consideration for Frontier’s funding of the BEE Shareholders’ share of Sedex’s
expenditure on the Zandkopsdrift Project up to bankable feasibility stage, a payment from certain of the BEE
Shareholders following the completion of the bankable feasibility study equal to 21% of the then valuation of
the Zandkopsdrift Project. This gives Frontier an effective 95% interest in the Zandkopsdrift Project until such
payment has been received.

A cut off grade of 1% has been selected on the basis of initial capital and
operating cost studies commissioned by Frontier, and this forms the basis for the
current Zandkopsdrift resource estimate. Detailed breakdowns of the above
resource estimates by individual REO are provided in Tables 17-10 and 17-11.

However, there are a series of higher grade zones within this resource that are
considered to be of sufficient size to be exploited as discrete units within the
Zandkopsdrift deposit. Three such zones have been identified and are referred
to as A Zone, B Zone and C Zone in Tables 1-3 and 1-4 below and are defined
by cut off grades of 1.5%, 2.5% and 3.5% TREO, respectively. The B Zone 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
Contained
TREO
Zone TREO Mt TREO
grade (%)
(‘000t)
Cut Off %
A 1.5 16.55 2.74 453
B 2.5 7.83 3.67 287
C 3.5 3.23 4.57 148

Table 1-4
Inferred Mineral Resources – Zones A, B and C*
Contained
TREO
Zone TREO Mt TREO
grade (%)
(‘000t)
Cut Off %
A 1.5 12.89 2.48 319
B 2.5 4.52 3.61 163
C 3.5 1.54 4.72 73

Detailed breakdowns of the above resource estimates by individual REO are
provided in Tables 17-10 and 17-11.

1.7 Metallurgical Review
A review carried out by SGS Minerals Services of Lakefield, Ontario (SGS) of
metallurgical and mineralogical studies at Zandkopsdrift indicates that there
appears to be considerable potential for upgrading by flotation of a majority of
the REE containing minerals and that hydrometallurgical treatment of the
Zandkopsdrift REE deposit has a number of leaching options that give
encouraging levels (>90%) of recovery of rare earth elements to solution.
This suggests that the REE element bearing minerals are likely amenable to
conventional extractive processes. However, additional metallurgical test work
and characterisation studies are critical to obtaining a better understanding of
the REE mineralogy and the optimal beneficiation routes to use.

1.8 Conclusions and Recommendations
Frontier has successfully completed a data validation and drilling exercise over
the ZRP that has culminated in the declaration of NI 43-101 compliant 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
rd
up to and including 23 April 2010. MSA has provided consent for the inclusion
of the Independent Technical Report in the Prospectus for the Initial Public
Offering, and has not withdrawn that consent prior to lodgement.

2.3 Qualifications, Experience and Independence
MSA is an exploration and resource consulting and contracting firm, which has
been providing services and advice to the international mineral industry and
financial institutions since 1983. This ITR has been compiled by Mr Pete
Siegfried, who is a professional geologist with 25 years experience, the majority
of which has involved the exploration and evaluation of industrial, precious and
base metal mineral properties, throughout the world.

Mr Siegfried is a Consultant to MSA, a Member of the Australian Institute of
Mining and Metallurgy (AusIMM). Mr Siegfried has the appropriate relevant
qualifications, experience, competence and independence to act as a “Qualified
Person” as that term is defined in National Instrument 43-101 (Standards of
Disclosure for Mineral Projects).

The ITR was co-authored by Mr Mike Venter, who is a professional geologist with
17 years experience in exploration of mineral properties throughout Southern
Africa. Mr Venter is a Professional Natural Scientist (Pr.Sci.Nat) registered with
the South African Council for Natural Scientific Professions and is a Member of
the Geological Society of South Africa and Society for Economic Geologists. Mr
Venter is a Regional Consulting Geologist with MSA and is based in MSA’s Cape
Town office. Resource estimation and reporting was carried out by Mr Mike Hall,
who is a professional geologist with nearly 30 years experience in resource
estimation and Datamine modelling, as well as underground and surface
exploration for a variety of commodities. Mr Hall is Consulting Geologist - Mineral
Resources with MSA. The metallurgical review was carried out by Mr James
Brown, a professional metallurgist with 6 years experience. Mr Brown is Senior
Metallurgist at SGS Minerals Services Canada as well as a member of the
Canadian Institute of Mining and Metallurgy and a licensed Professional
Engineer in the province of Ontario, Canada. Mr Brown has the appropriate
relevant qualifications, experience, competence and independence to act as a
“Qualified Person” as that term is defined in National Instrument 43-101
(Standards of Disclosure for Mineral Projects).


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

Holes drilled in Zandkopsdrift Carbonatite
Hole Type Date Depth (m) Angle Comment
Anglo American
220W/0 Percussion 1973-1974 46 -90° stopped in sand
220W/40S Percussion 1973-1974 50 -90°
180W/0 Percussion 1973-1974 50 -90°
180W/40S Percussion 1973-1974 18 -90° stopped by water
180W/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°
100W/0 Percussion 1973-1974 22 -90° stopped by water
150W/40S Percussion 1973-1974 50 -90°
220W/50S Percussion 1973-1974 41 -90°
Total 549
Phelps Dodge
1 hole ZDD2 Diamond 1977 245 -45° East hole ZDD1 collapsed

Anglo American
ZKP-1 Percussion Jul-86 66 -90° chips, pulp
ZKP-2 Percussion Jul-86 50 -90° no material
ZKR-7 RC Percussion Dec-87 50 -90° chips, pulp
92 holes Wagon drill Mar-88 487 -90° each 5-6 m deep, no material available
ZKR-13 RC Percussion Aug-Sept-88 52 -60° South chips, pulp
ZKR-14 RC Percussion Aug-Sept-88 63 -60° South chips, pulp
ZKR-15 RC Percussion Aug-Sept-88 100 -90° chips, pulp
ZKD-38 Diamond Sep-88 100 -90° core, chips, pulp
ZKD-39 Diamond Oct-88 176 -70° North core, chips, pulp
Total 2839


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
2
area of some 60 000 km and are represented by a series of 2000 Ma granitic
gneisses, 1600 to 1200 Ma amphibolite to granulite grade supracrustal rocks
and 1200 to 1000 Ma granitoids (Cornell et al., 2006 and Moore 1998). The
Namaqua - Natal Province forms an arcuate belt along the southern and western
margins of the Archaean age Kaapvaal craton (Hartnady et al., 1985; Thomas et
al., 1994). To the west, the Bushmanland Terrane rocks are overprinted by
thermal deformation effects related to the Pan African age (500 Ma) Gariep
Orogeny and overlain by younger Vanrhynsdorp and Karoo Group sediments to
the south (Figure 7-1). In the extreme southern parts, the Bushmanland Terrane
is intruded by the Cretaceous age Koegel Fontein Complex, of which the
Zandkopsdrift carbonatite is thought to be part.

The tectonic model for the evolution of the Namaqua-Natal Province is still being
investigated and has been compounded by numerous structural, metamorphic
and intrusive complexities.

7.1.1 The Koegel Fontein Complex
The Project area is located on the northern margins of the Koegel Fontein
Complex, a Cretaceous age alkaline complex that was intruded during the rifting
phase preceding the opening of the South Atlantic Ocean some 130 Ma ago (De
Beer et al., 1998, 2002). The complex comprises of a variety of alkali granites,
syenites, as well as intrusives of a carbonatitic affinity, such as at Zandkopsdrift
(Figure 7-2). The Koegel Fontein Complex can be considered as an equivalent
to other similar Cretaceous alkaline complexes of Damaraland in Namibia (e.g.
Brandberg, Messum, Okonjeje and Grosse Spitzkoppe) (De Beer et al., 1998,
2002).


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.


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

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