Foran Commences Metallurgical Studies at McIlvenna Bay; Drilling Continues to Intersect Good Grades & Widths

January 23, 2012

Vancouver, BC (January 23, 2012) - Foran Mining Corporation (TSX.V: FOM) (“Foran” or the “Company”) is pleased to announce the commencement of metallurgical testwork and new assay results from drilling at the Company’s 100% owned McIlvenna Bay deposit (“McIlvenna Bay” or the “Deposit). Drilling at McIlvenna Bay between August and December, 2011 was designed to collect material for metallurgical testwork, complete infill holes to upgrade the existing resource and to begin to test the updip extent of copper stockwork zone (“CSZ”) mineralization.

Drill highlights include1:
  • 28.92 m of 1.47% Cu and 0.50 g/t Au through the Upper West Zone (“UWZ”) and underlying CSZ in MB-11-159,
  • 18.70 m of 1.56% Cu and 0.38 g/t Au through the UWZ and adjacent CSZ, including 2.87 m of 2.45% Cu, 5.29% Zn, 0.44 g/t Au, and 26.47 g/t Ag in the UWZ in MB-11-163,
  • 18.46 m of 1.55% Cu and 0.39 g/t Au through the UWZ and adjacent CSZ, including 0.90m of 3.13% Cu, 1.11 g/ Au and 21.48 g/t Ag in MB-11-162
  • 9.99 m of 6.12% Zn and 14.19 g/t Ag in Lens 2 in MB-11-160, and
  • 5.69 m of 7.90% Zn and 22.91 g/t Ag in Lens 2, including 2.54 of 9.11% Zn and 29.20 g/t Ag in MB-11-161

1 Cu = copper, Zn = zinc, Au = gold, Ag = sliver, g/t = grams per tonne, m= metres

Patrick Soares, President and CEO of Foran commented: “This recent drilling continues to return broad intervals of base and precious metal mineralization at McIlvenna Bay, further demonstrating the robust nature of the Deposit. The results announced today will provide additional information on the grade, thickness and continuity of the Deposit when we update the mineral resource later this year. With the material from this program we are now moving forward with a metallurgical testwork program for the Deposit. This will be a key milestone for McIlvenna Bay and we anticipate receiving the results of this work in the coming months.”

Metallurgical Studies

A total of 8,158 m was drilled in 18 diamond drill holes between August and December 2011. Ten of these holes were drilled with larger diameter HQ core to provide additional fresh material for metallurgical testwork (see Quality Assurance, Quality Control, and Qualified Person below for information on sampling).

The HQ cored holes include intercepts from the three main zones of the Deposit, namely the large zinc-rich Lens 2 massive to semi-massive sulphide zone, the UWZ, which is also comprised of massive to semi-massive sulphides but tends to be both copper and zinc-rich, and the underlying copper and gold enriched CSZ. In conjunction with the metallurgical testwork, petrographic analysis is underway on representative samples from the three main zones. This work will focus on determining mineral associations and grain sizes to assist the metallurgical testwork and provide information on grinding and other parameters. The metallurgical testwork is anticipated to take three to four months to complete.

Drill Results

Drill holes MB-11-155, -157, -159, -162, and -163 targeted the UWZ massive to semi-massive sulphides, and also intersected the underlying CSZ (Table 1). All holes returned good Cu-Zn-Au-Ag intercepts characteristic of the UWZ, underlain by broad intervals of CSZ. Holes MB-11-162 and -163 also returned intervals of CSZ style mineralization in the hanging wall immediately above the UWZ massive sulphides. These stockwork zones in the hanging wall to the massive sulphides may represent local structural repetition, or may indicate the potential for “stacked” VMS lenses within the deposit area.

Drill holes MB-11-154, -156, -158, -160, and -161 targeted the large Lens 2 massive to semi-massive sulphides, underlain by the CSZ. All holes returned good Zn-Ag grades, characteristic of Lens 2 (Table 2).

Drill holes MB-11-146 to -153 targeted 150 m of strike extent along the updip extent of the CSZ resource at depths of approximately 75 to 300 m below surface. Highlights from these holes include 8.00 m of 1.47% Cu and 0.12 g/t Au and 4.00 m of 1.59% Cu and 0.18 g/t Au in MB-11-147 and 17.00 m of 0.78% Cu in MB-11-150, including 3.70 m of 1.20% Cu (Table 3). Overall the intensity of the CSZ mineralization in this area is decreasing relative to the deeper holes that lie within the current resource area. Several additional holes aimed at testing the updip extent of the CSZ were not able to be drilled in 2011 due to logistical constraints and are planned for subsequent phases of drilling.

Table 1: Significant intercepts from the UWZ/CSZ:
Zone Hole From
(m)
To
(m)
Interval1
(m)
Cu
(%)
Zn
(%)
Au
(g/t)
Ag
(g/t)
UW MB-11-155 574.00 583.18 9.18 0.87 2.82 0.46 30.30
UW incl. 575.50 577.44 1.94 1.79 2.62 0.33 34.19
UW & 581.44 583.18 1.74 0.31 8.27 0.32 12.51
CSZ MB-11-155 585.00 602.00 17.00 1.30 0.16 0.24 5.72
UW MB-11-157 601.60 614.10 12.50 1.01 1.83 0.31 18.19
UW incl. 610.50 613.50 3.00 0.40 4.03 0.32 16.63
CSZ MB-11-157 614.10 631.00 16.90 1.39 0.14 0.22 7.00
CSZ incl. 615.00 625.00 10.00 1.81 0.16 0.29 8.55
All MB-11-159 647.56 676.48 28.92 1.47 0.65 0.50 9.79
UW MB-11-159 647.56 650.00 2.44 1.56 3.16 0.48 17.26
CSZ MB-11-159 650.00 676.48 26.48 1.46 0.41 0.50 9.10
CSZ incl. 662.35 669.55 7.20 2.19 0.72 0.83 12.46
All MB-11-162 237.04 255.50 18.46 1.55 0.22 0.39 11.49
CSZ MB-11-162 237.04 239.04 2.00 1.46 0.38 0.29 18.00
UW MB-11-162 239.04 239.94 0.90 3.13 0.46 1.11 21.48
CSZ MB-11-162. 239.94 255.50 15.56 1.47 0.19 0.36 10.07
CSZ incl. 242.70 245.30 2.60 2.22 0.23 1.09 19.35
CSZ incl. 247.30 252.00 4.70 2.27 0.38 0.32 13.08
All MB-11-163 212.30 231.00 18.70 1.56 0.94 0.38 11.86
CSZ MB-11-163 212.30 213.77 1.47 1.27 0.31 0.88 17.80
UW MB-11-163 213.77 216.64 2.87 2.45 5.29 0.44 26.47
CSZ MB-11-163 216.64 231.00 14.36 1.41 0.13 0.31 8.33
CSZ incl. 216.64 219.64 3.00 3.16 0.58 0.90 25.13
1 True thickness is estimated to be approximately 80-85% of drill indicated length.

Table 2: Significant intercepts from Lens 2/CSZ:
Zone Hole From
(m)
To
(m)
Interval1
(m)
Cu
(%)
Zn
(%)
Au
(g/t)
Ag
(g/t)
Lens 2 MB-11-154 524.40 528.63 4.23 0.49 5.15 0.45 11.31
Lens 2 incl. 524.40 525.90 1.50 0.87 8.97 0.27 20.15
CSZ MB-11-154 528.63 541.63 13.00 1.34 0.11 0.16 6.35
Lens 2 MB-11-156 491.81 497.88 6.07 0.80 4.97 0.51 33.48
CSZ MB-11-156 497.88 504.88 7.00 1.17 0.15 0.36 9.90
Lens 2 MB-11-158 408.77 414.68 5.91 0.67 5.02 0.21 8.38
CSZ MB-11-158 414.68 430.00 15.32 1.39 0.28 0.18 4.66
CSZ incl. 418.00 426.00 8.00 1.65 0.15 0.25 4.91
Lens 2 MB-11-160 638.67 648.66 9.99 0.13 6.12 0.08 14.19
CSZ MB-11-160 650.19 655.22 5.03 0.70 0.20 0.09 9.53
Lens 2 MB-11-161 548.72 554.41 5.69 0.34 7.90 0.20 22.91
Lens 2 incl. 548.72 551.26 2.54 0.21 9.11 0.24 29.20
CSZ MB-11-161 554.41 560.62 6.21 0.88 0.07 0.17 6.71
CSZ incl. 557.00 560.00 3.00 1.42 0.08 0.24 8.57
1 True thickness is estimated to be approximately 80-85% of drill indicated length.

Table 3: Significant intercepts from the CSZ:
Zone Hole From
(m)
To
(m)
Interval1
(m)
Cu
(%)
Zn
(%)
Au
(g/t)
Ag
(g/t)
CSZ MB-11-146 177.90 185.00 7.10 0.61 0.21 0.06 3.42
CSZ incl. 183.00 185.00 2.00 0.94 0.12 0.08 4.95
CSZ MB-11-146 189.00 196.00 7.00 0.81 0.17 0.07 3.63
CSZ incl. 190.00 192.00 2.00 1.11 0.46 0.11 5.00
CSZ MB-11-147 183.00 187.00 4.00 1.59 0.26 0.18 7.10
CSZ MB-11-147 194.00 202.00 8.00 1.47 0.31 0.12 6.69
CSZ incl. 199.00 202.00 3.00 2.33 0.06 0.12 8.43
CSZ MB-11-148 164.25 165.25 1.00 1.29 0.03 0.40 11.10
CSZ MB-11-148 175.00 177.75 2.75 0.66 0.17 0.04 3.88
CSZ MB-11-148 194.00 196.00 2.00 0.91 0.17 0.08 7.05
CSZ MB-11-149 218.00 223.00 5.00 0.83 0.25 0.09 5.80
CSZ incl. 218.00 221.00 3.00 1.18 0.33 0.14 7.27
CSZ MB-11-149 237.00 241.00 4.00 0.82 0.30 0.07 7.95
CSZ MB-11-150 294.00 311.00 17.00 0.78 0.17 0.09 4.61
CSZ incl. 302.00 305.70 3.70 1.20 0.32 0.16 6.91
CSZ MB-11-151 112.00 115.00 3.00 0.53 0.15 0.04 2.73
CSZ MB-11-151 127.00 129.00 2.00 1.86 0.32 0.28 14.90
CSZ MB-11-152 64.00 65.00 1.00 0.47 0.07 0.08 5.60
CSZ MB-11-153 160.00 161.00 1.00 0.38 0.08 0.07 4.00
CSZ MB-11-153 167.00 168.00 1.00 0.22 0.01 0.04 2.90
1 True thickness is estimated to be approximately 80-85% of drill indicated length.

Quality Assurance, Quality Control, and Qualified Person

Drilling was completed using NQ or HQ size diamond drill core and core was logged by employees of the Company. During the logging process mineralized intersections were marked for sampling and given unique sample numbers. Sampled intervals were sawn in half using a diamond blade saw. For the NQ holes, one half of the sawn core was placed in a plastic bag with the sample tag and sealed, while the second half was returned to the core box for storage on site. For the HQ holes, one quarter of the sawn core was placed in a plastic bag with the sample tag and sealed, while the remaining three-quarters of the core was returned to the core box for storage on site. The larger diameter core was drilled to provide sample material for metallurgical test work, and for select samples, one-half of the original HQ core was collected for pending metallurgical studies. In these instances, one quarter of the core will remain in the box as a permanent reference. Sample assays are 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. Analysis for Ag, Cu, and Zn is performed using atomic absorption spectrometry (“AA”) after multi-acid digestion. Au analysis is completed by fire assay with AA finish. Any samples which return results greater than 3.0 g/t Au are re-run using gravimetric finish. A complete suite of QA/QC reference materials (standards, blanks and pulp and field duplicates) are included in each batch of samples processed by the laboratory. The results of the assaying of the QA/QC material included in each batch are tracked to ensure the integrity of the assay data. Metallurgical testwork is being performed by G & T Metallurgical Services Limited (“G & T”) in Kamloops, British Columbia. G & T is independent of Foran.

The technical content of this new release has been verified and approved by Roger March, P.Geo. Mr. March is the VP Project Exploration for Foran, a Qualified Person within the meaning of National Instrument 43-101 and has visited the Project.

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 located in east central Saskatchewan, 60 kilometres west of Flin Flon, Manitoba and contains a large volcanogenic massive sulphide (“VMS”) deposit.

McIlvenna Bay is one of the largest undeveloped VMS deposits in Canada, with total indicated resources of over 12 million tonnes (“Mt”) and total inferred resources of almost 10 Mt (12.07Mt of 1.16% Cu, 3.69% Zn and 19 g/t Ag (or 2.50% CuEq) indicated and 9.57 Mt of 1.07% Cu, 3.86% Zn, and 19 g/t Ag (or 2.42% CuEq inferred), where provisions for metallurgical recovery and smelter returns are included in the copper equivalence estimation). For additional information see the report entitled “Technical Report on the McIlvenna Bay Project, Saskatchewan, Canada” dated December 9, 2011 at www.sedar.comor www.foranmining.com.

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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