Lundin refreshes Fronteer buy

2008-11-28 20:31 ET - In the News

Brien Lundin, in the November, 2008, edition of the Gold Newsletter, refreshes his buy of Fronteer Development Group Inc., recently $2.20. Mr. Lundin said buy Fronteer in July, 2003, at 60 cents, in October, 2003, at 90 cents, and in April, 2004, at $1.05. The editor said take some profits -- sell half, perhaps -- in January, 2006, at $3.97. Assuming a $1,000 investment for each of the three buys, selling half at $3.97 would have yielded a net profit of $5,717. Mr. Lundin said buy four more times between March, 2006, and September, 2008, at prices ranging from $3.39 to $12.86. Assuming a $1,000 investment for each of the four buys, and taking into account the remaining $1,500 after the previous half sale, the total $5,500 investment would now be worth $5,486. Fronteer has extended its high-grade gold mineralization at Long Canyon in Nevada to 1,600 metres. The latest drill results returned 33.5 metres of 2.53 g/t gold, including a 4.6-metre interval of 13.18 g/t gold. The goldbug says Fronteer is well financed and has about $86-million in its treasury, and its current exploration budget is $5.6-million. Since the stock bounced from its recent bottom of $1.55, Mr. Lundin says he is not alone in saying Fronteer is a buy.