August 22, 2011
Vancouver, BC (August 22, 2011) - Foran Mining Corporation
(TSX.V: FOM) (“Foran” or the “Company”) is pleased to provide an update on its phase two program (“Phase Two” or the “Program”) at the Company’s 100% owned McIlvenna Bay Project (“McIlvenna Bay” or the “Project”), located in east central Saskatchewan, 60 kilometres west of Flin Flon, Manitoba.
As announced in the Foran news release dated July 20, 20011, an updated independent mineral resource estimate which will incorporate the results of the Company’s successful Phase One Program is currently underway, with anticipated completion in the fourth quarter of 2011.
Highlights of the $5.7M Program include:
- A planned 12,000 to 15,000 metres (“m”) of diamond drilling in approximately 35 holes. Due to the seasonality of access to some drill sites, drilling will be carried out in two campaigns, which will include an initial 8,000 to 10,000 m in 18 to 20 holes drilled in the summer/fall of 2011, and the balance of the holes drilled in early 2012;
- A first drill rig has been mobilized to the Project and three holes totaling 822 m have been completed to date; a second drill is anticipated to be mobilized to site in late August;
- Drilling will focus on step-out on potential areas of expansion of the Copper Stockwork Zone, infill of the known deposit area, and verification holes. Material from several of the holes will also be used for metallurgical testwork and geotechnical assessment;
- A Project Regulatory Framework for the permitting of future development at McIlvenna Bay, as discussed in the Foran news release dated July 19, 2011, is well underway and a final report is anticipated as planned in the fourth quarter of 2011;
- Preliminary engineering studies, consisting of geochemical and geotechnical testwork, as discussed in the Foran news release dated July 19, 2011, has commenced as planned;
- A 34 person camp has been permitted and built at McIlvenna Bay. The camp will serve as a permanent base for Foran’s planned exploration and development of the Project.
Patrick Soares, president and CEO of Foran commented: “I am pleased to provide today’s update on our second phase of work on the Project. The new management team at Foran continues to advance and hit our key milestones, as we move towards our ultimate goal of building a world-class mine at McIlvenna Bay.”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 a current NI 43-101 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 (see below for additional information). On July 20, 2011, the Company announced the commissioning of an updated independent mineral resource estimate for McIlvenna Bay.
The current NI 43-101 indicated mineral resource is based on copper and zinc prices of US$1.50/lb. and US$0.70/lb., respectively. 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 CSZ, 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 NI 43-101 technical report, dated November 27, 2006 and authored by Scott Wilson RPA. 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 & CEO
VP, Corporate Development
Foran Mining Corporation
409 Granville Street, Suite 904
Vancouver, BC, Canada, V6T 1T2
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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