March 30, 2012
Vancouver, BC (March 30, 2012) - Foran Mining Corporation
(TSX.V: FOM) (“Foran” or the “Company”) is pleased to provide an update on its 100% owned McIlvenna Bay project in Saskatchewan, including an update on drilling, engineering studies and environmental work.McIlvenna Bay Deposit Drilling
Infill and exploration drilling on the McIlvenna Bay deposit (“the “Deposit”) recommenced in early February, 2012, with a total of 13 holes (3,252 metres) completed to date. This work, which is focused on drilling low lying areas most readily accessed under frozen winter conditions, is anticipated to be complete by early April. Assay results will be released once they have been received and compiled by the Company. The results of this program, along with the results from the 18 drill holes (8,158 metres) completed during the summer and fall of 2011, will be included in an updated global resource estimate for the Deposit in the coming months.
The additional drilling is being conducted to continue to increase the confidence in the resource base of the Deposit, as well as to obtain additional mineralized material for ongoing metallurgical testwork. In conjunction with the drilling, initial hydrogeological data for the deposit is being collected through packer testing of several drill holes, and additional detailed geotechnical core logging is being completed to build a geotechnical database at a level which will be suitable for the upcoming Preliminary Economic Assessment and future prefeasibility and feasibility level studies.Regional Drilling
Foran has received a permit from the Saskatchewan Ministry of Environment to begin to drill test regional targets defined by a versatile time domain electromagnetic (“VTEMplus “) geophysical survey that was completed in late 2011 (see Foran news release dated November 23, 2011). VTEMplus is an exploration technique which has proven to be highly effective in the discovery of volcanogenic massive sulphide (“VMS”) mineralization in the Flin Flon Greenstone Belt.
As an initial test of regional targets on the 20,382 hectare McIlvenna Bay project, the Company plans to drill test up to five separate electromagnetic (“EM”) conductors located in two target areas within 7 kilometres (“km”) of the Deposit. These targets are located within the same or similar felsic stratigraphy that hosts VMS mineralization at the Deposit. This work is planned to commence in early April, once winter drilling on the Deposit has been completed. As a result of the milder than average temperatures this winter, this drilling will be a helicopter-supported program, rather than ground-based, as originally planned.Environmental Studies
An agreement has been signed with Canada North Environmental Services (“CanNorth”) to conduct environmental baseline studies at the McIlvenna Bay project. CanNorth completed aerial and ground-based wildlife surveys through January and February as the first stage of the work and will continue with aquatic, hydrological, vegetation, and wildlife studies once spring break-up commences. The baseline studies will cover all aspects that will eventually be required for the completion of an Environmental Impact Assessment for potential future development of the Deposit. These initial studies are anticipated to take approximately 12 to 18 months to complete.
CanNorth is a 100% aboriginal-owned, multi-disciplinary environmental consulting firm based in Saskatoon, Saskatchewan. CanNorth is both ISO 9001:2008 and ISO 14001:2004 registered and was recently awarded the 2011 Achievement in Business Excellence Award for the category of Environment
from the Saskatchewan Chamber of Commerce. CanNorth’s clients include gold, diamond, copper, graphite, and uranium mines, provincial and federal governments, First Nations governments, crown corporations, and municipalities.
As announced in the Foran news release of July 19, 2011, ASKI Resource Management and Environmental Services Inc. (“ASKI”) is providing project management services for the environmental program at the McIlvenna Bay project, and as such is working directly with CanNorth as they complete the environmental baseline studies. ASKI is a Saskatchewan-based environmental consulting group owned and operated by the Peter Ballantyne Cree Nation. ASKI’s consultants have successfully implemented environmental studies for a number of commodities, including base metals, throughout Saskatchewan.
In conjunction with ASKI, the Company is continuing to engage and involve First Nations and other stakeholders with respect to the Company’s ongoing activities in the region.
Patrick Soares, President and CEO of Foran commented: “We are pleased to have CanNorth working with ASKI and ourselves on the environmental studies now underway.” Mr. Soares continued, “Drilling and related activities continue to progress well as we move forward in advancing and de-risking the McIlvenna Bay project. We are nearing completion of our current phase of drilling on the Deposit and are looking forward to the first step in beginning to drill test regional targets in our extensive and highly prospective landholdings in east-central Saskatchewan.”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, which contains the McIlvenna Bay deposit, is located in east-central Saskatchewan, 65 kilometres west of Flin Flon, Manitoba.
The McIlvenna Bay deposit 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 atwww.sedar.com
. Roger March, VP Project 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.
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 laws.
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