Dow Jones Utilities 262.47 -0.92 1:30 pm PST, May 11, 2004 Dow Jones Spot 193.94 + 0.00 For info, visit access.smallcapnetwork.com Philadelphia Gold & Silver 81.45 +1.51 VOLUME 01: ISSUE 05 Amex Oil 599.81 +10.66 To be removed, please click here.   Trading Alert: Fronteer - Lowering Gold's risk. In our continuing mandate of bringing unique resource companies to your attention, we are excited to profile Vancouver--based Fronteer Development Group (FRG.TO), listed on the Toronto Stock Exchange and the Frankfurt Stock Exchange. Fronteer explores for gold/copper/uranium within properties that have world-class potential, while mitigating exploration risk by optioning the funding to partners who can then earn a significant interest. Couple that with an exciting portfolio of Canadian properties, a pending deal in Turkey, first class management and investors will find Fronteer a very compelling--as well as a lesser risk-- way of participating in the gold market.  Given the pullback in gold prices, the time is likely right to begin accumulating shares in Fronteer for investors looking for superior exploration exposure with a lower risk profile. With Fronteer shares at 85 Canadian cents, the result of a 50 percent pullback from a 52-week high of C$1.45, current levels represent what we believe is a decent entry point for accumulation of the shares. A stop-loss at 80 cents would likely be prudent for traders. The Amex Gold Bug's chart, whose constituents number among the world's leading gold companies, has also contracted nicely from a level in the 230-250 area in the first quarter, to around 170 currently. The decline occurred for a myriad of reasons; a stronger US dollar, a looming interest rate rise, and a normal pullback of both stocks and other asset classes that had simply run too far too fast.  Nothing moves in a straight line, be it stocks, gold or classic cars. Markets are volatile and, as we believe that the US dollar will resume its weakness, golds and other precious metals shares will improve and should always be a part of any diversified portfolio.  Ultimately, a good company is a good company, even if the sector tends to have wild sentiment and value swings. Which brings us to Fronteer Group...and, our world famous salient points for investors: 30 million shares outstanding with a float of 22 million 40 million shares fully diluted Significant funding with C$11 million-plus in cash. No debt Placer Dome (NYSE: PDG) owns 1 million shares of FRG Five high profile exploration projects in Canada Pending binding option agreement for five high potential properties in western Turkey with Teck Cominco. Exploration results due over the next few months should solidify the position of Fronteer as a significant global exploration concern. Canada gets the Gold Details of all of Fronteer's projects can be viewed at the company's website--where else than www.fronteergroup.com. A couple of examples do, however, bear discussion. (We will devote an entire issue to the Turkey properties once that deal consummates, hopefully soon.) Red Lake Belt-Ontario, Canada This area boasts the Red Lake Mine, which is one of the highest-grade gold mines in the world. For more than two years, Fronteer--which controls approximately 65,000 acres in the region-- has optioned out all exploration funding to partners. Fronteer President Dr. Mark O'Dea has led the company into this area with his extensive understanding of the region and as a result the company has become the premier landholder in the eastern extension of the prolific Red Lake Greenstone belt. Having this type of quality exposure in an extremely exciting and proven area with Placer Dome, Alberta Star and Red Lake Resources as partners enhance the prospects of Fronteer finding significant resources and reserves. Within this area is Fronteer's most advanced property, Dixie Lake--25 km south of the Campbell with an historic inferred gold resource of 110,000 ounces. Drilling to date and future targets will likely increase that historic resource number significantly. Below is a chart of results to date at Dixie Lake: Dr. O'Dea states: "I believe we are on the verge of a new gold discovery at Dixie Lake and have tagged into a large system that is just beginning to unfold at depth. Experience has demonstrated that gold shoots rarely occur in isolation in this type of system."  Partner Alberta Star is earning a 50% interest in the Dixie Lake Project by spending $2.0 million on exploration, paying $135,000 in cash, and issuing 150,000 shares to Fronteer by September 1 2006. It's good to have friends... As well, here are some other names with which Fronteer has diversified its risk across its exploration portfolio: 1. Placer Dome is earning a 65% interest in Fronteer's Portage Property by spending $2.5 million on exploration over 5 years. Drilling has recently been completed and Fronteer is the operator 2. Alberta Star is earning a 50% interest in Fronteer's Dixie Lake Gold Project by spending $2.0 million on exploration over 3 years. Drilling results have been excellent and drilling will be resuming this summer.  Fronteer is the operator. 3. Red Lake Resources and Fronteer recently completed a jointly funded (50-50) 2,000-metre drill program.  Fronteer is the manager. 4. Northwestern Mineral Ventures is earning a 50% interest in Fronteer's copper-gold-silver-uranium properties in the NWT by spending $5.0 million over 5 years. Fronteer is the operator. 5. Altius Minerals and Fronteer are jointly funding (50-50) ongoing exploration for world-class uranium-copper-gold-silver (Olympic Dam) deposits in Labrador. Fronteer and Altius are sharing operatorship. Gold with a Uranium chaser... Let's talk Uranium. In the Central Mineral belt of Labrador, Fronteer and its partner Altius have staked over 150,000 acres in this area in which are found significant occurrences of copper, gold, uranium, silver and molybdenum-- further diversifying Fronteer's risk and portfolio away from a gold-only play.  Anecdotally, it is felt that there is enough uranium in this region of Labrador to provide power to 1,000,000 homes for a period of 45 years. And Fronteer, through its holdings there, has the rights to all of it. SmallCap Natural Resource is excited for the prospects of Fronteer. Analogously, the company is structured almost as a kind of precious metals/commodities mutual fund--diversifying its exploration risk through funding partnerships as well as having a wide range of metals and properties to take the sting out of the volatility enjoyed by peers and larger companies who hang their prospects on only one. The pullback of the metals' price and the unique lower risk approach of Fronteer should make this company as interesting to the diehard gold bug as to those who have perhaps eschewed metals stocks in the past. And, as interesting as Fronteer is currently, once the details on the Teck Cominco Turkish deal are finalized, it will allow the company to expand its already successful business plan onto the world stage. We'll bring it all to you as it happens.   We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 3525 Del Mar Heights Rd #334 San Diego, CA 92130 Unsubscribe Here   D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest is not a registered investment advisor or broker-dealer. 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