Monday, May 24, 2010

Fronteer Gold (AMEX:FRG) Ready to Break Out?

Fronteer Gold (AMEX:FRG) has made a nice move this year, with a 52-week range of 2.85 - 6.37, and as of today standing at $5.57 a share, a gain of 26 cents, or 4.90 percent. That was as of 1:05 p.m. EST.

A number of analysts and investors think Fronteer has a lot of upside to it, and that could be the case.

Fronteer reported a new resource estimate for its Long Canyon Gold project last week:

-- A Measured and Indicated (M&I) resource of 672,000 ounces at an averagegrade of 1.71 g/t gold (12,240,000 tons); and,-- An additional Inferred resource of 552,000 ounces at an average grade of1.65 g/t gold (10,394,000 tons).

A couple of good things Fronteer has going for them is their projects are primarily located in stable regions, including Turkey, and in the U.S. - California and Nevada.

They're also in a strong cash position, where they won't have to incur any more debt, with cash and Short-term deposits coming to $147. million, as of December 2009.

According to Fronteer, this should provide the majority of, if not all, cash they need for operations, exploration and acquisitions for a least a year, and probably longer.

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