Foran Announces New Copper Resource at McIlvenna Bay

November 2, 2011

Vancouver, BC (November 2, 2011) - Foran Mining Corporation (TSX.V: FOM) (“Foran” or the “Company”) is pleased to announce an 85% increase in the global tonnage of mineral resources in the indicated category and a 60%increase in the inferred category at the McIlvenna Bay Deposit (the “Deposit”). This increase represents the first comprehensive, independent, National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate (the “2011 Resource”) for the Copper Stockwork Zone (the “CSZ”) at the Deposit. The copper-rich 2011 Resource is located immediately adjacent to and is in addition to NI 43-101 compliant resources previously estimated for zinc-silver-rich massive and semi-massive sulphides in 2006 (the “2006 Resource”). The Deposit has an average width of over 15 metres when both the massive sulphide and CSZ are taken into account.

Table 1. McIlvenna Bay Mineral Resources - October 28, 20111
2011 Resource, Copper Stockwork Zone (1.10% Copper Equivalent (“CuEq”) cut-off)

Category

Tonnage
(kt)

CuEq
(%)

Copper
(%)

Gold
(g/t)

Zinc
(%)

Silver
(g/t)

Indicated

5,560

1.91

1.55

0.53

0.27

11

Inferred

3,570

1.81

1.48

0.35

0.43

10

2006 Resource, Massive to Semi-Massive Sulphides (Lens 2, Upper West, Lens 3; US$50/tonne NSR cut-off)

Category

Tonnage
(kt)

NSR
(US$)

Copper
(%)

Gold
(g/t)

Zinc
(%)

Silver
(g/t)

Indicated

6,510

75.48

0.82

NR

6.60

26

Inferred

6,000

68.59

0.83

NR

5.89

25

1 This Table is reproduced in its entirety with footnotes as Table 2 below.

Patrick Soares, President and CEO of Foran commented: “Based on the results of our successful Phase One drill program at McIlvenna Bay, we have confirmed the excellent continuity and wide widths of the CSZ, allowing this large, copper-rich stockwork to be added to the adjacent existing mineral resources of the Deposit. Today, we have added a significant copper resource, with the overall tonnage at McIlvenna Bay almost doubling. The Deposit now stands at over 12 million tonnes indicated and almost 10 million tonnes inferred, with potential to further grow the resource, confirming McIlvenna Bay as a major deposit within Canada’s prolific Flin Flon Mining Belt.” Mr. Soares continued, “Exploration work in our Phase Two program is advancing well. The outcome of Phase Two will form the basis for a Preliminary Economic Assessment in 2012, as we continue to advance towards our ultimate goal of building a world-class mine at McIlvenna Bay.”
The 2011 Resource was prepared by Roscoe Postle Associates Inc. (“RPA”). See below for additional information with respect to Qualified Person, Technical Report, Estimation Methodology and Parameters.

Highlights of the 2011 Resource and the Deposit include:

  • The 2011 Resource for the CSZ includes an indicated resource of 5.56 million tonnes (“Mt”) at a grade of 1.55% Copper (“Cu”), 11 grams of silver per tonne (“g/t Ag”), 0.53 grams of gold per tonne (“g/t Au”) and 0.27% Zinc (“Zn”) (or 1.91% CuEq) and a further inferred resource of 3.57 Mt at a grade of 1.48% Cu, 10 g/t Ag, 0.35 g/t Au and 0.43% Zn (or 1.87% CuEq), using a 1.1% CuEq cutoff. (see below and Table 2 for additional information); additional mineralized material of the CSZ lies outside the 2011 Resource,
  • The 2006 Resource, as announced in a Foran news release dated December 5, 2006, lies immediately adjacent to the 2011 Resource. The 2006 Resource, estimated for the massive to semi-massive sulphides lenses of the deposit consists of 6.51 Mt at a grade of 6.60% Zn , 26 g/t Ag , and 0.82% Cu in the indicated category and a further 6.00 Mt grading 5.89% Zn, 25 g/t Ag and 0.83% Cu in the inferred category, using a $50/tonne Net Smelter Return (“NSR”) cutoff. (see below and Table 2 for additional information),
  • Total contained metal for the Deposit now totals 308 M lbs. copper, 981 M lbs. zinc, 95,420 ounces of gold and 7.46 M ounces of silver in indicated resources and 227 M lbs. copper, 813 M lbs. zinc, 39,800 ounces of gold and 5.89 M ounces of silver in inferred resources (Note: contained Au was not estimated for the 2006 Resource),
  • the CSZ ranges up to 52.8 metres (“m”) in apparent thickness, averaging approximately 9.5m in true thickness; Lens 2, the largest massive sulphide lens in the Deposit, has an average true thickness of 5.6m, for a combined average true thickness of more than 15m,
  • The 2011 Resource is cumulative with the 2006 Resource and both are summarized in Table 1; the two resources represent different styles and discrete zones of mineralization in sharp contact with each other. The combination of the CSZ and the adjacent massive and semi-massive sulphide lenses represents a thick, usually continuous, steeply dipping sequence of mineralization with potential to be amenable to bulk underground mining methods,
  • The 2011 Resource is classified primarily in the indicated category from the top of the deposit (25-35m vertically below surface) to a depth of approximately 580m vertically below surface and in the inferred category from the base of the indicated resource to a depth of approximately 750m vertically below surface (See attached figure) . Due to wide spacing of drill holes below 750m vertical depth, the 2011 Resource does not include additional CSZ mineralized material intersected in historic drilling below the currently defined inferred resource. This material has the potential to add to NI 43-101 compliant resources with additional, more closely spaced drilling.


The CSZ begins at a depth of 25-35m below surface, immediately below a younger, unmineralized dolomitic cap rock, and strikes approximately 295o, with a dip of 68o to the north-northeast and a plunge of -45o to the west-northwest. The CSZ has been traced for a horizontal distance of 1,750m and down-plunge for a distance of 1,950m; the first 1,250m of this 1,950m of down plunge extent is included in the 2011 Resource. The CSZ stratigraphically underlies the massive to semi-massive sulphide mineralization. The interpreted wireframe of the main body of the CSZ ranges up to 52.8m in apparent thickness and averages 9.5m in true thickness. For most of its length, the CSZ extends upwards in elevation above the upper limit of the massive to semi-massive sulphides and is open to depth and along the upper edge of the resource area towards surface.

RPA has recommended that Foran continue with diamond drilling with the objective of confirming and expanding the current resource base and to upgrade mineral resource categories. RPA has also recommended that the entire resource for the Deposit be updated. Foran is in agreement with these recommendations; further drilling, in the form of a Phase Two program, as described in a Foran news release dated August 22, 2011, is currently underway. An updated resource estimate for all zones and styles of mineralization at the Deposit is planned once the full results of the Phase Two program are available.

The 2011 Resource and the 2006 Resource are outlined in the following tables. Tables 1 and 2 contain a summary of mineral resource for the Deposit. Tables 3 and 4 below show a sensitivity analysis for indicated and inferred resources for the 2011 Resource, which demonstrate the variation in grade and tonnage as a result of different CuEq cut-offs. Table 5 presents the contained metal represented by each category of the Deposit.

Table 2. McIlvenna Bay Mineral Resources 1-6
2011 Resource, Copper Stockwork Zone (1.10% CuEq cut-off)

Category

Tonnage
(kt)

CuEq
(%)

Copper
(%)

Gold
(g/t)

Zinc
(%)

Silver
(g/t)

Indicated

5,560

1.91

1.55

0.53

0.27

11

Inferred

3,570

1.87

1.48

0.35

0.43

10

2006 Resource, Massive to Semi-Massive Sulphides (Lens 2, Upper West, Lens 3; US$50/tonne NSR cut-off)

Category

Tonnage
(kt)

NSR
(US$)

Copper
(%)

Gold
(g/t)

Zinc
(%)

Silver
(g/t)

Indicated

6,510

75.48

0.82

NR

6.60

26

Inferred

6,000

68.59

0.83

NR

5.89

25

1 Effective date October 28, 2011; CIM definitions were followed for Mineral Resources; The 2011 and 2006 Resources are cumulative and in adjacent zones of mineralization; CuEq = copper equivalent; NSR = Net Smelter Return; NR = Not Reported.
2 The 2011 Resource is estimated based on 143 drill holes and a cut-off grade 1.10% CuEq. CuEq grades were calculated and high grade caps were applied as per the discussion in Estimation Methodology and Parameters below and include provisions for metallurgical recovery (95% for Cu, 90% for Zn, 65% for Au and 60% for Ag) and smelter payable metal. Metal prices used for the 2011 Resource are US$2.75/lb. Cu, US$1.00/lb. Zn, US$1,300/oz. Au, and US$21/oz. Ag. Specific gravity was interpolated into each block based on measurements taken from core specimens.
3 The 2006 Resource is estimated based on 126 drill holes and an NSR cut-off of US$50/tonne; NSRs were calculated using average long-term prices of US$1.50/lb. Cu and US$0.70/lb. Zn; the NSR calculation included provisions for mill recovery, concentrate transport and smelter treatment. Additional information on the methodology and parameters can be found in the Company’s Technical Report dated November 27, 2006.
4 Mr. David Rennie, P.Eng., of RPA, prepared the 2011 Resource and has reviewed and verified the above mineral resource figures and the underlying sampling and analytical data. Mr. Rennie is independent of Foran and is a “Qualified Person” within the meaning of NI 43-101; Messrs. R. Barry Cook, P.Eng. and Chester M. Moore, P.Eng., prepared the 2006 Resource; Messrs. Cook and Moore are independent of Foran and are “Qualified Persons as defined in NI 43-101; Table estimates are rounded by the Qualified Person.
5 Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, marketing or other issues.
6 For the CuEq estimation in the 2011 Resource, 81% of the value was attributed to Cu, 11% to Au, 4% to Ag and 4% to Zn.


Table 3. 2011 Resource Sensitivity Analysis - Indicated Resource1

Cutoff
(CuEq %)

Tonnage
(kt)

CuEq
(%)

Copper
(%)

Gold
(g/t)

Zinc
(%)

Silver
(g/t)

1.50

3,260

2.35

1.88

0.71

0.35

14

1.25

4,530

2.08

1.67

0.61

0.30

12

1.10

5,560

1.91

1.55

0.53

0.27

11

1.00

6,160

1.83

1.48

0.50

0.27

11

0.90

6,620

1.77

1.43

0.48

0.26

10

1 See footnotes 1-2 and 4-6 for Table 2; tonnage and grade is shown by cut-off grade from 0.90% to 1.50% CuEq.

Table 4. 2011 Resource Sensitivity Analysis - Inferred Resource1

Cutoff
(CuEq %)

Tonnage
(kt)

CuEq
(%)

Copper
(%)

Gold
(g/t)

Zinc
(%)

Silver
(g/t)

1.50

2,360

2.07

1.68

0.41

0.49

11

1.25

3,110

1.90

1.55

0.37

0.45

10

1.10

3,570

1.81

1.48

0.35

0.43

10

1.00

3,900

1.74

1.43

0.33

0.42

9

0.90

4,300

1.67

1.37

0.31

0.42

9

1 See footnotes 1-2 and 4-6 for Table 2; tonnage and grade is shown by cut-off grade from 1.00% to 1.50% CuEq.

Table 5. McIlvenna Bay Contained Metal Summary, 2011 Resource & 2006 Resource1,2

Category

Resource

Copper
(M lbs.)

Zinc
(M lbs.)

Gold
(k oz.)

Silver
(k oz.)

Indicated

2011 Resource
(Copper Stockwork Zone)

190

33.6

95.4

1,980

2006 Resource
(massive to semi-massive sulphides)

118

947

NR

5,470

Total Indicated

308

981

95.4

7,460

Inferred

2011 Resource (Copper Stockwork Zone)

116

33.9

39.8

1,100

2006 Resource (massive to semi-massive sulphides)

110

780

NR

4,790

Total Inferred

227

814

39.8

5,890

1 Totals may not add due to rounding; NR = Not Reported. 2 See footnotes 1-6 for Table 2

Qualified Persons & Technical Report

The 2011 Resource announced in this release, with an effective date of October 28, 2011, meets the guidelines as set out in NI 43-101 and was prepared by RPA, a global geological and mining consultancy. The 2011 Resource was prepared by Mr. David Rennie, P.Eng., Principal Geologist with RPA. Mr. Rennie is a Qualified Person as defined in NI 43-101 and has consented to applicable disclosure contained herein regarding the 2011 Resource and the 2006 Resource. Both RPA and Mr. Rennie are independent of Foran.

RPA is preparing a NI 43-101 Technical Report in support of the 2011 Resource; this report will be filed by the Company in its entirety on SEDAR (www.sedar.com) within 45 days of the date of this news release.

The 2006 Resource, originally disclosed in a Foran news release dated December 5, 2006, with an effective date of November 27, 2006, meets the guidelines as set out in NI 43-101 and was prepared by Scott Wilson RPA. The 2006 Resource was prepared by Messrs R. Barry Cook, P.Eng. and Mr. Chester M. Moore, P.Eng., both of whom are independent of the Company and Qualified Persons as defined in NI 43-101. A discussion of the parameters used in the 2006 Resource are contained in a Technical Report entitled “Technical Report on the McIlvenna Bay Project, Saskatchewan, Canada”, with a date of November 27, 2006, and authored by Messers Cook and Moore. This technical report can be found at www.foranmining.com or on the Company’s SEDAR profile at www.sedar.com.

Mr. Roger March, P. Geo., Vice President Project Exploration for Foran is the Qualified Person for all technical information in this news release, excluding the mineral resources.

Estimation Methodology and Parameters

The 2011 Resource presented herein is based on the results of 143 diamond drill holes (4,070 assay intervals) collected from discovery in 1988 to the end of the Phase One program conducted by Foran in spring, 2011. Of these assay intervals, 1,494 were eventually captured within the wireframe model for the CSZ. An existing Gemcom (“GEMS”) project database used for the 2006 resource estimate was retrieved from RPA’s data archive. Drillhole data from programs conducted in 2007-2008 and the spring of 2011 were provided to RPA in ASCII format. RPA imported the new data and validated it by running the GEMS validation utility, and by comparing the assay table with the lab.

The 2011 Resource used a block model constrained by 3D wireframes of the mineralized zones, drawn at a nominal 0.5% Cu cut-off and minimum width of three metres. Values for Cu, Zn, Au, Ag, Pb, and density were interpolated into the blocks using Inverse Distance to the Third Power (ID3) weighting. The models were constructed using GEMS software. Block size was 10 m wide (east-west) x 5 m across (north-south) x 10 m high. The model was oriented parallel to the drilling survey grid.

Top cuts of 6% Cu, 3.5% Zn, 5 g/t Au, and 90 g/t Ag were applied prior to compositing. RPA carried out a geostatistical analysis for Cu, Au, and Ag to assist in deriving search and kriging parameters for block grade interpolations. The analysis was conducted using Sage, GEMS, and GSLIB software.

Search radii of 65m x 32.5m x 20m for the first pass and 400m x 200m x 40m for the second were used for the interpolation. The search distances for the first pass were derived from geostatistical analyses, while the second pass search radii were carried over from the 2006 estimate to provide a consistent basis for comparison with the last estimate. The indicated class was assigned to blocks within an area of the deposit that has been drilled at nominal 65m spacing. Inferred mineral resources were assigned to blocks outside of the indicated material, encompassing material drilled up to a nominal spacing of 250m.

Estimated mill recoveries used in the copper equivalence calculation were 95% for copper, 90% for zinc, 65% for gold, and 60% for silver. Estimated smelter payable was 96.2% for copper, 85.0% for zinc, 90.0% for gold and 79.6% for silver.

In RPA’s opinion, the Mineral Resources are classified in a manner that is consistent with NI 43-101 regulations and guidelines. Mineral resources do not have demonstrated economic viability. The estimate of mineral resources may also be affected by other relevant factors or issues. There is no guarantee that the Project will be placed into production.

Quality Assurance and Quality Control

For the 2011 drilling an independent QA/QC protocol, consisting of blanks, standards, and duplicates introduced into the sample stream at a nominal rate of one per 20 samples was implemented. Duplicates consisted of both field (core) and pulp re-splits. Sample analysis was performed by TSL Laboratories Ltd. (“TLS”) in Saskatoon, Saskatchewan. TLS is a CAN-P-1579, CAN-P-4E (ISO/IEC 17025:2005) accredited laboratory and independent of Foran. For a full description of the QA/QC program see the Foran news release dated June 15, 2011.

RPA reviewed the QA/QC reports from this program and noted that there were no issues that arose which would affect confidence with the assay data. RPA considers the sampling method appropriate for the deposit type, adequate security measures were maintained, and samples should be representative of the mineralization.

About Foran Mining

Foran is a diversified exploration and development company with projects in the Flin Flon Mining Belt. The Company’s flagship McIlvenna Bay Project is a volcanogenic massive sulphide (VMS) deposit located in east central Saskatchewan, 60 kilometres west of Flin Flon, Manitoba.

McIlvenna Bay is one of the largest undeveloped VMS deposits in Canada, with a 2011 Resource in the CSZ of 5.56 million tonnes (“Mt”) at a grade of 1.55% Copper (“Cu”), 11 grams of silver per tonne (“g/t Ag”), 0.53 grams of gold per tonne (“g/t Au”) and 0.27% Zinc (“Zn”) (or 1.91% CuEq) in the indicated category and a further inferred resource of 3.57 Mt at a grade of 1.48% Cu, 10 g/t Ag, 0.35 g/t Au and 0.43% Zn (or 1.87% CuEq), using a 1.1% CuEq cutoff. An additional 2006 Resource for the massive and semi-massive sulphides includes 6.51 Mt at a grade of 6.60% Zn, 26 g/t Ag, and 0.82% Cu in the indicated category and a further inferred resource of 6.00 Mt at a grade of 5.89% Zn, 25 g/t Ag and 0.83% Cu, using a $50/t NSR cutoff.

Foran trades on the TSX.V under the symbol “FOM”.

For Additional Information Please Contact Foran Mining Corporation:

Patrick Soares
President & CEO
409 Granville Street, Suite 904
Vancouver, BC, Canada, V6T 1T2
Fiona Childe
VP, Corporate Development
120 Adelaide Street West, Suite 2500
Toronto, ON, Canada, M5H 1T1


416-847-7310
ir@foranmining.com



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.


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