November 23, 2011
Vancouver, BC (November 23, 2011) - Foran Mining Corporation
(TSX.V: FOM) (“Foran” or the “Company”) is pleased to provide an update on regional exploration and property ownership of its landholdings surrounding the Company’s McIlvenna Bay deposit, in east central Saskatchewan. On November 2, 2011, Foran announced a significant new resource at McIlvenna Bay, the results of which are summarized below.
The landholdings surrounding the McIlvenna Bay deposit, which together cover over 27,000 hectares in the western extent of the Flin Flon mining belt, include the McIlvenna Bay property, and the adjacent Balsam and Hanson properties. The properties form a contiguous land package underlain by the same belt of volcanic rocks that hosts the McIlvenna Bay volcanogenic massive sulphide (“VMS”) deposit. All three properties contain known zones of VMS mineralization (see attached figure).
Foran has now completed a 1,587.4 line kilometre helicopter-borne geophysical survey (versatile time domain electromagnetic (VTEMplus) and horizontal magnetic gradiometer) over the portions of these properties not surveyed by the Company in 2007. Data quality was excellent and preliminary results suggest a number of untested VTEM conductors which warrant follow-up diamond drill testing. The Company plans to complete its evaluation of the geophysical data and test several of these targets in a winter 2012 regional drill program.
Patrick Soares, President and CEO of Foran commented: “Together, our McIlvenna Bay, Balsam and Hanson properties cover a significant strike extent of highly prospective stratigraphy that hosts the McIlvenna Bay deposit. VMS deposits in the Flin Flon belt, and elsewhere, generally occur in clusters. We are already starting to see this clustering of VMS mineralization in our landholdings around the McIlvenna Bay deposit, where several historic VMS occurrences are known”. Mr. Soares continued “Our large McIlvenna Bay deposit was found under Paleozoic cover by drill testing geophysical targets; we plan to employ the same technique in the search for additional deposits in this area.”Balsam Agreement
The 4,066 hectare Balsam property is located immediately east of, and adjacent to Foran’s 100% owned McIlvenna Bay and Hanson properties. Under the terms of a previous joint venture agreement, the Balsam property was held 50% by Foran and 50% by Virginia Energy Resources Inc. (“VAE”). The Company has now signed an agreement with VAE to acquire 100% of the Balsam property (the “Balsam Agreement”). The purchase price of VAE’s 50% interest is 133,333 common shares of Foran (“Foran shares”) at a deemed value of $0.75/Foran share, for an aggregate value of $100,000. The Balsam Agreement is subject to approval by the TSX Venture Exchange; resale restrictions and hold periods may be placed on the Foran shares paid in this transaction by the TSX Venture Exchange.
The Balsam and Hanson properties are subject to back-ins and royalties, as outlined in the Foran Management Discussion and Analysis for the nine month period ended June 30, 2011 at www.sedar.com
Mr. Dave Fleming, P. Geo., Vice President Exploration for Foran is the Qualified Person for technical information contained in this news 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 contains the McIlvenna Bay deposit, 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. This is comprised of a 2011 Resource in the Copper Stockwork Zone 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 1.81% 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. For additional information see the Foran news release dated November 2, 2011 at www.sedar.com
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, V6T 1T2
VP, Corporate Development
120 Adelaide Street West, Suite 2500
Toronto, ON, Canada, M5H 1T1
email@example.comNeither 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.Figure 1. Total Magnetic Intensity (TMI) of 2011 and 2007 VTEM surveys for Foran’s McIlvenna Bay, Balsam and Hanson properties.
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