30,000 metre drill program designed to upgrade
and expand McIlvenna Bay
VANCOUVER, BC, Feb. 4, 2021 /CNW/ - Foran Mining
Corporation ("Foran" or the "Company", TSX.V: FOM), which
is planning to build the first mine in Canada designed to be carbon neutral from day
one, announces that it has commenced its largest drill program to
date at its 100% owned McIlvenna Bay deposit ("McIlvenna Bay" or
the "Deposit"), in Saskatchewan,
Canada – one of the world's premier mining
jurisdictions.
Foran's 30,000 metre ("m") winter 2021 diamond drilling campaign
will be the Company's largest to date. Three drills are currently
turning to expand and infill the Deposit to support the upcoming
definitive feasibility study ("DFS") and notably enhance the
economic value of the asset, the camp and the Company. The infill
drilling program is focused on increasing the drill density and
upgrading the classification of the deeper parts of the McIlvenna
Bay deposit. The expansion program is focused on growing the
size of the overall deposit through substantial step-outs both up
and down dip and along plunge.
Dan Myerson, Executive
Chairman of Foran commented,
"This drill program represents one of the most exciting times
in Foran's history and with plans for our spring/ summer program
still to be announced, it marks the start of a very active year for
our company. McIlvenna Bay is already one of the largest
undeveloped VMS deposits in Canada
and this program has been designed to both reinforce and
significantly enhance the existing value at McIlvenna Bay. We look
forward to sharing the results, as they become available.
"We believe that we are on the cusp of a commodities
super-cycle which will dramatically increase demand for metals such
as copper and zinc, as we rightfully move towards a greener
future. McIlvenna Bay is the first of what could be several
outstanding deposits developed within the Hanson Lake district. The
time has now come for our vision to develop the world's first
zero-carbon copper mine to be realized. We intend to develop a
central mill at McIlvenna Bay, fed by nearby satellite deposits and
fully powered by renewable energy, culminating in clean zero-carbon
copper, zinc, gold and silver production for generations to
come."
Photos from the field program:
Technical Background
The McIlvenna Bay deposit is currently the second largest
deposit defined in the Flin Flon Greenstone Belt and one of the
largest undeveloped volcanogenic massive sulphide ("VMS") deposits
in Canada. A revised resource
estimate for the Deposit was completed in 2019 as detailed in Table
1 below (see Foran news release May 28,
2019).
Table 1. McIlvenna Bay 2019 Mineral Resource Estimate
(US$60/t NSR cut-off)
1-6
Zone
|
Tonnage
(MT)
|
NSR
($US)
|
Cu
(%)
|
Zn
(%)
|
Pb
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
CuEq
(%)
|
ZnEq
(%)
|
Indicated
|
|
|
Main Lens – Massive
Sulphide
|
9.25
|
154.70
|
0.90
|
6.43
|
0.40
|
0.52
|
25.97
|
3.31
|
10.25
|
Lens 3
|
1.99
|
97.50
|
0.85
|
3.29
|
0.14
|
0.27
|
14.71
|
2.09
|
6.45
|
Stringer
Zone
|
0.70
|
81.00
|
1.38
|
0.62
|
0.04
|
0.35
|
13.34
|
1.73
|
5.36
|
Copper Stockwork
Zone
|
10.30
|
96.40
|
1.43
|
0.28
|
0.02
|
0.40
|
9.30
|
1.73
|
-
|
Copper Stockwork
Footwall Zone
|
0.71
|
102.80
|
1.60
|
1.04
|
0.04
|
0.54
|
11.47
|
2.20
|
6.81
|
Total
Indicated
|
22.95
|
119.70
|
1.17
|
3.05
|
0.19
|
0.44
|
16.68
|
|
|
|
|
|
Inferred
|
|
|
Main Lens – Massive
Sulphide
|
2.97
|
146.50
|
1.29
|
4.79
|
0.29
|
0.47
|
23.58
|
3.14
|
9.70
|
Copper Stockwork
Zone
|
8.18
|
98.70
|
1.42
|
0.76
|
0.03
|
0.47
|
11.63
|
1.77
|
-
|
Total
Inferred
|
11.15
|
111.40
|
1.38
|
1.83
|
0.10
|
0.47
|
14.81
|
|
|
|
|
1
|
Effective date May 7,
2019; CIM definitions were followed for Mineral Resources; CuEq =
copper equivalent; ZnEq = zinc equivalent; NSR = Net Smelter
Return.
|
2
|
The base case mineral
resource is estimated based on 239 diamond drill holes and a NSR
cut-off grade of US$60/t. NSR grades were calculated and high-grade
caps were applied as per the discussion in Estimation Methodology
and Parameters below and include provisions for metallurgical
recovery and estimates of current shipping terms and smelter rates
for similar concentrates. Metal prices used are US$3.30/lb. Cu,
US$1.25/lb. Zn, US$1.00/lb. Pb, US$1,310/oz. Au, and US$16.20/oz.
Ag. Specific gravity was interpolated for each block based on
measurements taken from core specimens.
|
3
|
Mr. William Lewis,
P.Geo., of Micon, has reviewed and verified this mineral resource
estimate. Mr. Lewis is independent of Foran and is a "Qualified
Person" within the meaning of NI 43-101.
|
4
|
Mineral resources
which are not mineral reserves do not have demonstrated economic
viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, marketing or other
issues.
|
5
|
CuEq and ZnEq values
were calculated from the NSR values for the zones using a factor of
$55.71 per % Cu for the CSZ and a factor of $46.69 per % Cu and
$15.10 per % Zn for all other zones.
|
6
|
A sensitivity table
is provided in Table 3 below which demonstrates the variation in
tonnage and grade for the deposit at different NSR
cut-offs.
|
The drill program currently underway will focus on increasing
the drilling density in the deeper parts of the deposit to upgrade
as much of the current inferred resources to indicated as possible,
while continuing with step-out drilling to grow the overall
resource. The deposit remains open for expansion both up and down
dip and along plunge to the northwest (Figure 1).
The massive sulphide lens remains open for expansion in the
downdip direction for at least 400m
along strike. One of the deepest holes drilled in this sector of
the deposit in 2018 (MB-18-206w1) intersected an 8.12m thick massive sulphide horizon, grading
10.10% Zn, 0.24% Cu and 29.89 g/t Ag. The thickness of this
intersection near the periphery of the resource shell indicates
that there is room to grow the deposit in this direction. The
deeper part of the deposit is also open in the updip direction for
at least 300m along strike for
expansion. As can be seen in Figure 1, all along the currently
defined plunge length of the deposit the Copper Stockwork Zone
("CSZ") extends updip approximately 200m beyond the edge of the massive sulphide
lens. Drilling during 2021 will be completed on several phases
focused on extending the CSZ above the limit of current drilling.
Finally, the deposit remains open for expansion down plunge beyond
the limit of current drilling. This area will be the focus of
several large step-out holes designed to extend the current limits
of the known deposit in that direction.
Overall, Foran is undertaking approximately 30,000m of drilling for McIlvenna Bay through a
program that is envisioned to extend into the fall. Results from
the drill program will be released as they become
available.
Resource Update and Feasibility Study
Following the completion of the infill drill program, a revised
resource estimate will be completed for the Deposit. This resource
estimate will form the basis for a revised reserve estimate that
will be defined as part of the DFS. Work towards the Study is
currently underway on a number of fronts and it is currently
anticipated that the FS should be completed during Q4 of
2021.
About Foran Mining
Foran Mining is a copper-zinc-gold-silver exploration
and development company, and we are committed to supporting a
greener future and creating maximum value for all stakeholders –
creating safe jobs, supporting local communities as well as both
preserving and enhancing the environment. Our goal is to build the
first mine in Canada designed to
be carbon neutral from day one. We are in the feasibility
stage of development for our flagship McIlvenna Bay project in
eastern Saskatchewan. McIlvenna Bay is a
copper-zinc-gold-silver rich VMS deposit intended to be the center
of a new mining camp in a prolific district that has already been
producing for 100 years. McIlvenna Bay sits just 65km from
Flin Flon, Manitoba and is part of
the world class Flin Flon Greenstone Belt that extends from
Snow Lake, Manitoba, through
Flin Flon to Foran's ground in
eastern Saskatchewan, a distance
of over 225km.
McIlvenna Bay is the largest undeveloped VMS deposit in
the region. The Company filed a NI 43-101 Technical Report for the
PFS on the McIlvenna Bay Deposit on SEDAR on April 28, 2020. Foran's copper-zinc VMS
Bigstone Deposit is expected to serve as additional feed for the
mill at McIlvenna Bay. The Company filed a NI 43-101
Technical Report for the Bigstone Deposit's first resource estimate
on January 21, 2021.
Foran trades on the TSX.V under the symbol "FOM".
Neither the TSX-V nor its Regulation Services Provider (as that
term is defined in the policies of the TSX- V) accepts
responsibility for the adequacy of this release. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
Forward Looking Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release contains "forward-looking information" (also
referred to as "forward looking statements"), which relate to
future events or future performance and reflect management's
current expectations and assumptions. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "hopes", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Such forward-looking statements reflect management's
current beliefs and are based on assumptions made by and
information currently available to the Company. All statements,
other than statements of historical fact, are forward-looking
statements or information. Forward-looking statements or
information in this news release relate to, among other things: our
ability to complete the drill program, our ability to upgrade the
existing resource on McIlvenna Bay, complete the feasibility study
in a timely manner, and the anticipated capital and operating
costs, sustaining costs, net present value, internal rate of
return, payback period, process capacity, average annual metal
production, average process recoveries, anticipated mining and
processing methods, proposed PFS production schedule and metal
production profile, anticipated construction period, anticipated
mine life, expected recoveries and grades, anticipated production
rates, infrastructure, social and environmental impact studies,
future financial or operating performance of the Company,
subsidiaries and its projects, estimation of mineral resources,
exploration results, opportunities for exploration, development and
expansion of the McIlvenna Bay Project, its potential
mineralization, the future price of metals, the realization of
mineral reserve estimates, costs and timing of future exploration,
the timing of the development of new deposits, requirements for
additional capital, foreign exchange risk, government regulation of
mining and exploration operations, environmental risks, reclamation
expenses, title disputes or claims, insurance coverage and
regulatory matters. In addition, these statements involve
assumptions made with regard to the Company's ability to develop
the McIlvenna Bay Project and to achieve the results outlined in
the PFS, and the ability to raise capital to fund construction and
development of the McIlvenna Bay Project.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: our
mineral reserve and resource estimates and the assumptions upon
which they are based, including geotechnical and metallurgical
characteristics of rock confirming to sampled results and
metallurgical performance; tonnage of ore to be mined and
processed; ore grades and recoveries; assumptions and discount
rates being appropriately applied to the technical studies; success
of the Company's projects, including the McIlvenna Bay Project;
prices for zinc, copper, gold and silver remaining as estimated;
currency exchange rates remaining as estimated; availability of
funds for the Company's projects; capital decommissioning and
reclamation estimates; mineral reserve and resource estimates and
the assumptions upon which they are based; prices for energy
inputs, labour, materials, supplies and services (including
transportation); no labour-related disruptions; no unplanned delays
or interruptions in scheduled construction and production; all
necessary permits, licenses and regulatory approvals are received
in a timely manner; and the ability to comply with environmental,
health and safety laws. The foregoing list of assumptions is not
exhaustive.
The Company cautions the reader that forward-looking statements
and information include known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and the Company has made assumptions and estimates based on
or related to many of these factors. Such factors include, without
limitation: the projected and actual effects of the COVID-19
coronavirus on the factors relevant to the business of the
Corporation, including the effect on supply chains, labour market,
currency and commodity prices and global and Canadian capital
markets, fluctuations in zinc, copper, gold and silver prices;
fluctuations in prices for energy inputs, labour, materials,
supplies and services (including transportation); fluctuations in
currency markets (such as the Canadian dollar versus the U.S.
dollar); operational risks and hazards inherent with the business
of mining (including environmental accidents and hazards,
industrial accidents, equipment breakdown, unusual or unexpected
geological or structure formations, cave-ins, flooding and severe
weather); inadequate insurance, or the inability to obtain
insurance, to cover these risks and hazards; our ability to obtain
all necessary permits, licenses and regulatory approvals in a
timely manner; changes in laws, regulations and government
practices in Canada, including
environmental, export and import laws and regulations; legal
restrictions relating to mining; risks relating to expropriation;
increased competition in the mining industry for equipment and
qualified personnel; the availability of additional capital; title
matters and the additional risks identified in our filings with
Canadian securities regulators on SEDAR in Canada (available at www.sedar.com). Although
the Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated,
described or intended. Investors are cautioned against undue
reliance on forward-looking statements or information.
These forward-looking statements are made as of the date hereof
and, except as required by applicable securities regulations, the
Company does not intend, and does not assume any obligation, to
update the forward-looking information.
SOURCE Foran Mining Corporation