October 31, 2013
Vancouver, BC (October 31, 2013) - Foran Mining Corporation
(TSX.V: FOM) (“Foran” or the “Company”) is pleased to announce the Company has received the results of a deep-penetrating time-domain electromagnetic geophysical survey (the “DEEP-EM Survey”) on its McIlvenna Bay, Balsam, and Hanson properties. The DEEP-EM Survey outlined numerous conductors, including two high-priority targets:
- Target A: A group of conductors southeast of Foran’s McIlvenna Bay deposit (“McIlvenna Bay” or the “Deposit”) on the McIlvenna Bay Property. The main conductor within this target is similar in size, orientation and character to McIlvenna Bay and has never been drill tested.
- Target B: A conductor coincident with the recently discovered Thunder Zone on the Balsam Property. Foran’s winter 2013 drill program intersected 4.1% Cu over 3.7m in the initial drill test of this target.
Patrick Soares, President and CEO of Foran commented “DEEP-EM surveying has proven to be highly effective in the discovery of buried base metal deposits. Technical advancements and optimization have contributed to significant new discoveries in the region, including the large Lalor deposit near Snow Lake.” Mr. Soares continued, “Foran’s DEEP-EM Survey has identified two previously unrecognized high-priority targets. Target A is particularly exciting, as it has never been drill tested and has similarities to our large McIlvenna Bay Deposit.”McIlvenna Bay Grid - Target A
Target A is located approximately 1.5 km southeast of the Deposit (Figure. 1). The main electromagnetic (“EM”) response within this target has a 1.2 km long strike extent; however, Maxwell modelling suggests a potential strike length of up to 1.6 km.
The main conductor within Target A appears to occur at the same stratigraphic horizon as the Deposit, with a similar orientation (strike, dip and plunge). Geophysical modelling suggests the target is a series of sub-parallel plates that define multiple conductor trends. The upper edges of these plates are estimated to lie approximately 300 to 800m below surface, with the down-dip extent of individual plates exceeding 600m.
The source of Target A conductors cannot be definitively established without drill testing; however the modeled plates are consistent with multiple sulphide lenses, a feature common in volcanogenic massive sulphide (“VMS”) deposits, including those in the Flin Flon and Snow Lake areas.
Late-time EM decay constant (Tau) calculations provide a measure of the strength of the conductors. Maximum values of 26 to 36 milliseconds (“ms”) for Target A are significantly higher than the Deposit maximum of 14.6 ms.
Despite a long history of exploration on the McIlvenna Bay property, no drilling has previously been conducted on Target A. Past ground-based EM surveys with relatively shallow depth penetration failed to detect this target. Foran is currently evaluating plans and budgets for follow-up on Target A, which could include a further DEEP-EM Survey for target definition prior to drill testing.Balsam Grid - Target B (Thunder Zone)
Target B is located approximately 300m northwest of the Balsam deposit1 (“Balsam”), where an historic mineral resource was outlined by past operators (Figure 1). Following the preliminary identification of Target B, near the completion of Foran’s winter 2013 drill program, the final hole in the program was re-oriented to test this target. The resultant drill hole (BA-13-77) intersected copper-rich massive and semi-massive sulphide mineralization in the Thunder Zone, grading 4.1% Cu over 3.7m, including 10.6% Cu over 1.1m at a vertical depth of approximately 300m (see the Foran news release dated April 8, 2013).
The Target B (Thunder Zone) EM response has a strike extent of approximately 0.5 km. Calculated late-time EM decay constants (Tau) of up to 13.3 ms were generated from the target. This is comparable in intensity to McIlvenna Bay and significantly higher than at Balsam (4.0 ms). Preliminary geophysical modeling suggests a simple northwest striking, southwest dipping plate consistent with local stratigraphy. The top of the conductor is interpreted to lie at a depth of approximately 200m.
Foran is currently evaluating plans and budgets for follow-up on the Balsam property, which could include step-out drilling at the Thunder Zone, around drill hole BA-13-77.1 Balsam is the site of the majority of past drilling on this property, which largely targeted the results of EM surveys conducted in the 1980s that had limited depth penetration below 200m. The Balsam mineral resource estimate is historic in nature; Foran has not completed sufficient work to classify it as a current resource estimate. Further drilling, sampling and geological interpretation would be required to upgrade the historic resource.Survey Parameters & Qualified Person
During the period from February 11 to March 20, 2013, a large, fixed-loop, ground-based DEEP-EM Survey was conducted on two grids on Foran’s McIlvenna Bay, Balsam and Hanson properties (Figure. 1). A total of approximately 98 line kilometres (“line km”) was surveyed; this included 60.65 line km on the McIlvenna Bay Grid and 37.45 line km on the Balsam Grid. The DEEP-EM Survey was completed at 200m line spacing with 50m station intervals and provided continuous coverage over the 11 km trend of prospective stratigraphy from McIlvenna Bay to Balsam.
The DEEP-EM Survey and preliminary interpretation was conducted by Koop Geotechnical Services Inc. (“KGSI”). Previously, KGSI was involved in the identification of the geophysical target associated with the Lalor VMS deposit of HudBay Minerals Inc. in the Snow Lake area. Technical guidance of the DEEP-EM Survey was provided by Foran’s geophysical consultant, in3D Geoscience Inc. (“in3D”). The Qualified Person within the meaning of National Instrument 43-101 with respect to the results of the DEEP-EM Survey is Todd Ballantyne, P.Geo., Chief Geophysicist of in3D. KGSI, Mr. Ballantyne and in3D are independent of Foran.
Dave Fleming, VP Exploration for Foran and a Qualified Person within the meaning of National Instrument 43-101, has reviewed and approved the technical information in this release.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, 65 kilometres west of Flin Flon, Manitoba and contains McIlvenna Bay, one of the largest undeveloped VMS deposits in Canada.
On March 27, 2013, Foran announced an increased mineral resource estimate for McIlvenna Bay, with indicated resources of 13.9 million tonnes grading 1.96% copper equivalent (1.28% Cu, 2.67% Zn, 0.49 g/t Au, 17 g/t Ag) and an inferred resource of 11.3 million tonnes grading 2.01% copper equivalent (1.32% Cu, 2.97% Zn, 0.43 g/t Au, 17 g/t Ag). For additional information on McIlvenna Bay, see the Foran news release dated March 27, 2013 and the report entitled “Technical Report on the McIlvenna Bay Project, Saskatchewan, Canada” dated December 9, 2011 at www.sedar.com
As at June 30, 2013, the Company had a total of $5.2 million in cash, cash equivalents and short-term investments.
Foran trades on the TSX.V under the symbol “FOM”. For Additional Information Please Contact Foran Mining Corporation:
President & CEO
409 Granville Street, Suite 904
Vancouver, BC, Canada, V6C 1T2
VP, Corporate Development
120 Adelaide Street West, Suite 2500
Toronto, ON, Canada, M5H 1T1
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 StatementsThis 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 law.
Figure 1. DEEP-EM survey location map for McIlvenna Bay and Balsam Grids. Inset of McIlvenna Bay is gridded mid- to late-time EM channel 20 — X component data using a linear and compressed colour scale. Inset of Balsam is gridded mid- to late-time EM channel 20-XYZ component data using a linear and compressed colour scale.
DEEP-EM conductor response relief map for McIlvenna Bay and Balsam Grids, looking east. Data is gridded mid- to late-time EM channel 20 - component X utilizing a compressed linear colour scale.; drill hole traces shown in black.
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