June 15, 2011
Saskatoon, SK (June 15, 2011) - Foran Mining Corporation
(TSX.V: FOM) (“Foran” or the “Company”) is pleased to announce the results of the final drill hole and provide a summary of the Company’s 2011 spring drill program (the “Phase One Program”) at its McIlvenna Bay Project (“McIlvenna Bay” or the “Project”), located in north central Saskatchewan, 60 kilometres west of Flin Flon, Manitoba.
The primary objective of the Phase One Program was to test the Copper Stockwork Zone (the “Copper Zone”). However, the final hole in the program (MB-11-145) was designed to test the potential of the main massive sulphide horizon (Lens 2) by targeting an interpreted thickening of the lens down plunge. Lens 2 represents the largest of the zinc-silver-rich massive sulphide zones discovered to date at McIlvenna Bay. This hole intersected 13.33 m of massive sulphide grading 5.32% zinc and 54.1 g/t silver.
Key findings from the Phase One Program include:
- Drilling on 50 m centers demonstrates excellent continuity, grade and width of copper-gold mineralization in the Copper Zone,
- The Copper Zone remains open updip, towards surface,
- Potential for the Copper Zone to widen at shallower depths, and
- Confirmation of thick intervals of high-grade zinc-sliver massive sulphides overlying the Copper Zone.
Patrick Soares, President and CEO of Foran commented: “We have successfully completed our first drill program at McIlvenna Bay since the consolidation of 100% Foran ownership of the Project, refinancing of the Company, strengthening of our Board of Directors and appointment of a new management team. In this program, we have systematically intercepted broad, continuous intervals of copper-gold mineralization. This is the first step in bringing the large Copper Zone into the NI 43-101 mineral resource. In our final hole of the program, we drilled deeper to further test the massive sulphides and were rewarded with the wide intercept of high-grade zinc-silver mineralization we reported today”. Mr. Soares continued “McIlvenna Bay is a robust project in an advantageous location. Foran will continue to advance the Project through further drilling, resource definition and engineering studies, as we move towards our goal of building and operating a world-class mine at McIlvenna Bay.”Phase One Program Summary
McIlvenna Bay is a Volcanogenic Massive Sulphide (“VMS”) deposit with lenses of zinc-sliver+/-coppergold (“Zn”, “Ag”, “Cu, “Au”) massive sulphide mineralization overlying a large copper-gold stockwork in the Copper Zone. The deposit is overlain by a thin cap of younger sedimentary rocks. Mineralization begins immediately below these sediments, at depths of 15-25 m below surface, extends down plunge for at least 1,500 m and remains open to depth.
The current independent, National Instrument 43-101 compliant mineral resource estimate for the Project, which was completed in 2006, includes an indicated mineral resource of 6.7 million tonnes grading 6.51% Zn, 0.87% Cu, and 26.0 g/t Ag and a further 6.0 million tonnes grading 5.89% Zn, 0.83% Cu, and 24.8 g/t Ag in the inferred category (see below for additional information). This mineral resource is contained almost exclusively within the massive sulphides, whereas historic resources also included significant tonnage within the Copper Zone.
The primary objective of the ten drill hole (5,081 m) Phase One Program was to test the grade, width and continuity of the Copper Zone on three 50 m spaced lines (Sections 9400E to 9500E) and to establish geological controls on mineralization for resource modelling. Nine holes targeted the Copper Zone (MB- 11-136 to MB-11-144), some of these holes also cut the overlying zinc-silver+/-copper-gold massive sulphides (see attached summary table for significant intercepts). Overall, the results of the Phase One Program demonstrated excellent continuity over the portion of the Copper Zone tested.
Similar to the massive sulphides, the Copper Zone starts at a depth of 15-25 m below surface and plunges to the north. The Copper Zone is known to be open down plunge and locally down dip, however, Foran’s technical team has concluded that the upper boundary of the Copper Zone is poorly defined by past work, with only very limited drilling along a 1,500 m extent. Phase One Program drilling on Sections 9400E, 9450E and 9500E show the Zone widening updip, indicating the zone is open towards surface. Drilling of this target holds the potential to add near-surface tonnes to the mineral resource outside historic estimates.
The mineralized intercept in Phase One Program hole MB-11-144 was drilled within approximately 10 m of historic hole MB-99-118 and provides an initial verification of old versus new results. The two holes compared well, with the intercept from the current program being slightly longer and higher grade (22.85 m of 1.52% Cu, 0.25 g/t Au, 9.38 g/t Ag in MB-11-144 versus 21.00 m of 1.17% Cu, 0.09 g/t Au, 5.66 g/t Ag in MB-99-118).
A secondary objective of the Phase One Program was to drill a deeper hole to test an interpreted thickening of the Lens 2 massive sulphide lens along the plunge of the horizon. This was achieved in the final hole of the program, MB-11-145. This hole returned 13.33 m of massive sulphide grading 5.32% Zn and 54.1 g/t Ag, including 1.87 m of 10.80% Zn and 20.33 g/t Ag, directly overlying the Copper Zone, which returned 4.10 m of 1.51% Cu and 0.51 g/t Au.
Overall, the Phase One Program exceeded the objectives as set out at the beginning of the program. Most significantly: (1) the test drilling on 50 m spaced lines will serve as a basis to begin NI 43-101 compliant resource estimation of the Copper Zone, and (2) the widening of the Copper Zone along its upper margin, where it was previously considered to be closed off, represents a new area for potential expansion.
A table of significant intercepts from the Phase One Program is provided below:
1 True thickness is estimated to be approximately 80-85% of drill indicated length.Quality Assurance, Quality Control, and Qualified Person
Drilling is completed using NQ size diamond drill core. The core was logged by representatives of Equity Exploration Consultants Ltd., a geological consulting firm independent of the Company. During the logging process mineralized intersections were marked for sampling and given unique sample numbers. Sampled intervals were sawn in half by a diamond blade saw. 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. Sample analysis is 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.
The technical content of this new release has been verified and approved by Roger March, P.Geo. Mr. March is the Manager, Advanced Projects 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 project is McIlvenna Bay, a 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 an indicated mineral resource of 6.7 million tonnes grading 0.87% copper, 6.51% zinc and 26.0 g/t silver and a further 6.0 million tonnes grading 0.83% copper, 5.89% zinc and 24.8 g/t silver in the inferred category, based on copper and zinc prices of US$1.50/lb. and US$0.70/lb., respectively, and recoveries of 81% for copper and 72% for zinc. The resource estimate calculated NSR values based on projected mining and milling costs and used an NSR cut-off of $50/tonne. Cut-off grades of 1.5% copper and 4.0% zinc were used for the massive and semi-massive sulphide zones. For the Copper Zone, the cut-off was based on geological boundaries, entire intersections, and a minimum width of three metres, rather than on a specific cut-off grade. This resource estimate is presented in an independent National Instrument 43-101 technical report, dated November 27, 2006 and authored by Scott Wilson Roscoe Postle and Associates Inc. The report is available on SEDAR at www.sedar.com
or on the Company’s website at www.foranmining.com.
Foran trades on the TSX.V under the symbol “FOM”.For Additional Information Please Contact
President and CEO
Foran Mining Corporation
VP, Corporate Development
Foran Mining Corporation
P. O. Box 26028, RPO Lawson Heights
Saskatoon, SK, S7K 8C1www.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
Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include, without limitation, statements regarding the company’s plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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