Foran Mining Corporation (TSX VENTURE:FOM) ("Foran" or the "Company") is pleased
to announce an increased mineral resource estimate (the "2013 Resource") for the
Company's 100%-owned McIlvenna Bay Deposit ("McIlvenna Bay" or the "Deposit").
Highlights include:
-- An indicated resource of 13.9 million tonnes ("Mt") grading 1.96% copper
equivalent ("CuEq") and an inferred resource of 11.3Mt grading 2.01%
CuEq at a base case NSR cut-off of US$60/t,
-- A 15% increase in the indicated tonnage and an 18% increase in the
inferred tonnage of the Deposit at the base case, including increases in
the Copper Stockwork Zone ("CSZ") of 37% and 53% in the indicated and
inferred categories, respectively,
-- At a US$45/t NSR cut-off, the resource estimate totals 16.3Mt grading
1.82% CuEq in the indicated category and a further 13.1Mt grading 1.87%
CuEq in the inferred category, highlighting the very large resource base
for the Deposit,
-- An average combined horizontal thickness of 18 to 20m in the main
massive sulphide lens ("Main Lens") and adjacent CSZ. Recognition of
thicker and higher grade CSZ adjacent to the higher-grade Upper West
Zone ("UWZ") along the up-dip portion of the Deposit,
-- Delineation of the Deposit over a down-plunge extent of approximately
2km, starting at a depth of 35m below surface, and
-- The Deposit is open, with potential to further increase the size of the
resource.
Patrick Soares, President and CEO of Foran commented: "The increased mineral
resource announced today demonstrates the impressive size and continued growth
of McIlvenna Bay, one of the major VMS deposits in the district. The broad
widths outlined in the massive sulphides and adjacent stockwork indicate
excellent potential for low-cost underground bulk mining, which we will
investigate in future engineering work." Mr. Soares continued, "We have achieved
a great deal in the two years since Foran's new management team recommenced work
at McIlvenna Bay. Today's announcement is another significant step in de-risking
the Deposit, as we move forward on the path to production at McIlvenna Bay."
The 2013 Resource presented herein was prepared by Roscoe Postle Associates Inc.
("RPA") and is summarized in Table 1. See below for additional information with
respect to Qualified Person, Estimation Methodology and Parameters.
Table 1. McIlvenna Bay Mineral Resource (US$60/t NSR cut-off) (1-5)
----------------------------------------------------------------------------
Tonnage Copper Zinc Gold Silver CuEq ZnEq
Zone (kt) (%) (%) (g/t) (g/t) (%) (%)
----------------------------------------------------------------------------
Indicated
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 2,148 1.66 4.10 0.88 31 2.79 18.75
----------------------------------------------------------------------------
Main Lens - Zone 2 3,386 0.31 7.15 0.24 24 1.51 10.19
----------------------------------------------------------------------------
Lens 3 756 1.23 2.55 0.30 15 1.79 12.03
----------------------------------------------------------------------------
Copper Stockwork
Zone 7,610 1.60 0.30 0.50 11 1.90 13.10
----------------------------------------------------------------------------
Total Indicated 13,900 1.28 2.67 0.49 17 1.96 13.19
----------------------------------------------------------------------------
Inferred
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 2,913 1.63 3.68 0.51 19 2.47 16.62
----------------------------------------------------------------------------
Main Lens - Zone 2 2,796 0.51 7.13 0.38 26 1.79 12.04
----------------------------------------------------------------------------
Lens 3 124 1.61 2.67 0.51 18 2.31 15.52
----------------------------------------------------------------------------
Copper Stockwork
Zone 5,478 1.56 0.47 0.42 12 1.87 12.59
----------------------------------------------------------------------------
Total Inferred 11,311 1.32 2.97 0.43 17 2.01 13.52
----------------------------------------------------------------------------
(1) Effective date January 1, 2013; 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 178 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$3.25/lb. Cu, US$1.10/lb. Zn, US$1,400/oz. Au, and US$25/oz. Ag.
Specific gravity was interpolated for each block based on measurements
taken from core specimens.
(3) Mr. David Rennie, P.Eng., of RPA, prepared this mineral resource
estimate. Mr. Rennie 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 estimated based on $53.94 per% Cu, $8.11 per%
Zn, $31.16 per g/t Au and $0.03 per g/t Ag.
The 2013 Resource includes several distinct zones of Volcanogenic Massive
Sulphide ("VMS") mineralization, including massive to semi-massive sulphide
mineralization in the Main Lens and Lens 3, as well as footwall stockwork-style
sulphide mineralization in the underlying CSZ (Figure 1). The Main Lens is
comprised of the UWZ and Zone 2 (previously termed Lens 2). The 2013 Resource
builds on and supersedes the first comprehensive National Instrument 43-101 ("NI
43-101") mineral resource estimate for the CSZ, announced by the Company on
November 11, 2011 (the "2011 Resource") and a previous NI-43-101 mineral
resource focused on the massive sulphide zones announced by the Company on
December 5, 2006 (the "2006 Resource").
The 2013 Resource was estimated using long-term metal price projections of
US$3.25/lb. for Cu, US$1.10/lb. for Zn, US$1,400/oz. for Au and US$25/oz. for
Ag. The base case uses a US$60/t NSR cut-off using provisions for metallurgical
recoveries, smelter payables, refining costs, freight, and applicable royalties.
Roger March, VP Project Exploration of Foran commented "The new drilling we have
completed over the last two years, the shoulder and additional sampling of core
from previous campaigns, the database validation, and our extensive program of
re-surveying of the majority of the drill holes in the 178 diamond drill hole
database have all contributed to the high-quality mineral resource estimate
announced today." Mr. March continued, "The US$60/t NSR cutoff we have selected
as the base case for the Deposit is approximately equivalent to the 1.10% CuEq
cutoff used in the 2011 Resource on the CSZ. However, we have seen a large
increase in the CSZ in the 2013 Resource as a result of additional drilling
along a portion of the up-dip extent of the CSZ and the inclusion of deeper,
previously unclassified portions of this zone. In contrast, the US$60/t NSR is
higher than that of the 2006 Resource for the massive sulphide zones. This new
resource for the massive sulphide zones reflects this change in cutoff, combined
with variation due to new drill results, shoulder sampling and database
verification."
The Main Lens is a large massive to semi-massive sulphide lens comprised of two
distinct zones, the Cu-Au-rich UWZ and the Zn-Ag-dominant Zone 2. The UWZ varies
from 1.6 to 13.3m in true thickness and averages 4.8m true thickness (6.0m
horizontal thickness), with a strike length of 150 to 300m. The UWZ extends from
35 to 1,230m below surface and has a strike length of approximately 400m. Zone 2
ranges in true thickness in the wireframe model from 1.6m to over 20m, averaging
6.5m (approximately 8.1m horizontal thickness). Zone 2 extends between 35 and
1,200m below surface, along an overall plunge distance of approximately 1,880m.
Spatially, the UWZ comprises the up-dip portion of the Main Lens and Zone 2
comprises the down-dip (Figure 1).
The Main Lens is underlain by the Cu-Au-rich CSZ; this zone typically occurs in
direct contact with the footwall of either the UWZ or Zone 2, although minor
gaps between these zones do exist locally. The CSZ has a strike length of
approximately 850m, has been traced for a horizontal distance of 1,750m and a
down-plunge distance of 1,950m, from 35m below surface to an approximate depth
of 1,150m below surface. The CSZ measures approximately 500m at its widest
point, ranges up to 34.6m in true thickness, and averages 9.7m in true thickness
(12.1m horizontal thickness). Highest grades and thickness define a linear trend
down-plunge near the up-dip portion of the CSZ.
Lens 3 sits in the hangingwall to the Main Lens and demonstrates the presence of
stacked sulphide lenses in the Deposit (Figure 1). This lens has been traced
intermittently along a strike length of 560m or a horizontal distance of 1,370m
and plunges parallel to the underlying Main Lens and CSZ. The true thickness of
Lens 3 ranges from 1.6 to 7.9m and averages 3.4m (4.3m horizontal thickness).
Table 2 presents sensitivity analyses for indicated and inferred resources for
the 2013 Resource and demonstrates the variation in grade and tonnage as a
result of different NSR cut-offs. The base case presented in this release is
estimated using a US$60/t NSR cut-off and was selected by the Company as being
representative of the mining, processing and general and administrative ("G and
A") costs of mining operations in the region. The US$45/t cut-off was derived by
RPA based on comparable projects in North America, taking into account
provisions for milling, G&A, and direct mining costs (i.e. no development). The
US$75/t cut-off represents a cohesive, higher-grade core to the deposit with a
good correlation to increased thickness. Future mine planning studies will
assess the potential for this central shoot to form a focus for early mining in
the Deposit.
The spatial distribution of mineralization at each of the NSR cut-offs in Table
2, along with the location of portions of the mineralization with greater than
average thicknesses, are shown in Figures 2 and 3.
Table 2. Mineral Resource Estimate Sensitivity Analysis(1)
----------------------------------------------------------------------------
Tonnage Copper Zinc Gold Silver CuEq ZnEq
Zone (kt) (%) (%) (g/t) (g/t) (%) (%)
----------------------------------------------------------------------------
US$75/t NSR cut-off - indicated
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 2,022 1.71 4.24 0.92 32 2.88 19.39
----------------------------------------------------------------------------
Main Lens - Zone 2 2,143 0.35 7.73 0.26 24 1.66 11.15
----------------------------------------------------------------------------
Zone 3 431 1.65 2.36 0.34 17 2.21 14.84
----------------------------------------------------------------------------
Copper Stockwork
Zone 5,645 1.79 0.27 0.62 12 2.19 14.71
----------------------------------------------------------------------------
Total Indicated 10,242 1.47 2.70 0.59 19 2.21 14.89
----------------------------------------------------------------------------
US$75/t NSR cut-off - inferred
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 2,888 1.63 3.70 0.51 19 2.48 16.69
----------------------------------------------------------------------------
Main Lens - Zone 2 2,356 0.56 7.30 0.41 26 1.89 12.72
----------------------------------------------------------------------------
Zone 3 86 1.92 3.52 0.62 23 2.81 18.90
----------------------------------------------------------------------------
Copper Stockwork
Zone 4,127 1.73 0.50 0.48 14 2.08 13.99
----------------------------------------------------------------------------
Total Inferred 9,457 1.41 3.20 0.47 19 2.16 14.54
----------------------------------------------------------------------------
----------------------------------------------------------------------------
US$60/t NSR cut-off - indicated (base case)
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 2,148 1.66 4.10 0.88 31 2.79 18.75
----------------------------------------------------------------------------
Main Lens - Zone 2 3,386 0.31 7.15 0.24 24 1.51 10.19
----------------------------------------------------------------------------
Zone 3 756 1.23 2.55 0.30 15 1.79 12.03
----------------------------------------------------------------------------
Copper Stockwork
Zone 7,610 1.60 0.30 0.50 11 1.90 13.10
----------------------------------------------------------------------------
Total Indicated 13,900 1.28 2.67 0.49 17 1.96 13.19
----------------------------------------------------------------------------
US$60/t NSR cut-off - inferred (base case)
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 2,913 1.63 3.68 0.51 19 2.47 16.62
----------------------------------------------------------------------------
Main Lens - Zone 2 2,796 0.51 7.13 0.38 26 1.79 12.04
----------------------------------------------------------------------------
Zone 3 124 1.61 2.67 0.51 18 2.31 15.52
----------------------------------------------------------------------------
Copper Stockwork
Zone 5,478 1.56 0.47 0.42 12 1.87 12.59
----------------------------------------------------------------------------
Total Inferred 11,311 1.32 2.97 0.43 17 2.01 13.52
----------------------------------------------------------------------------
----------------------------------------------------------------------------
US$45/t NSR cut-off - indicated
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 2,191 1.64 4.02 0.87 30 2.75 18.51
----------------------------------------------------------------------------
Main Lens - Zone 2 3,911 0.30 6.78 0.23 24 1.45 9.74
----------------------------------------------------------------------------
Zone 3 1,150 1.02 2.25 0.27 13 1.52 10.21
----------------------------------------------------------------------------
Copper Stockwork
Zone 9,086 1.48 0.27 0.46 10 1.79 12.03
----------------------------------------------------------------------------
Total Indicated 16,337 1.19 2.47 0.45 16 1.82 12.22
----------------------------------------------------------------------------
US$45/t NSR cut-off - inferred
----------------------------------------------------------------------------
Main Lens - Upper
West Zone 3,061 1.58 3.53 0.50 18 2.40 16.14
----------------------------------------------------------------------------
Main Lens - Zone 2 3,076 0.48 6.91 0.36 26 1.72 11.56
----------------------------------------------------------------------------
Zone 3 234 1.13 1.60 0.54 13 1.67 11.27
----------------------------------------------------------------------------
Copper Stockwork
Zone 6,716 1.42 0.47 0.36 11 1.71 11.48
----------------------------------------------------------------------------
Total Inferred 13,087 1.23 2.72 0.40 16 1.87 12.59
----------------------------------------------------------------------------
(1) See footnotes 1-5 for Table 1.
Figure 2 shows a broad, coherent zone of higher NSR mineralization through the
central core of the CSZ, with a strong positive correlation with greater than
average widths. This shoot of higher NSR, greater thickness CSZ mineralization
is open down-plunge.
Figure 3 shows the spatial distribution of the UWZ and Zone 2 in the Main Lens,
with higher NSR values concentrated in the up-dip portions of the lens,
corresponding to the UWZ. These higher NSR value portions of the Main Lens lie
immediately adjacent and in contact with the thicker and higher NSR portions of
the CSZ.
Table 3. Contained Metal (US$60/t NSR cut-off) (1), (2)
----------------------------------------------------------------------------
Copper Zinc Gold Silver
Category Zone(s) (M lbs.) (M lbs.) (k oz.) (k oz.)
----------------------------------------------------------------------------
Indicated Main Zone Massive to semi-
massive sulphides (Upper West
Zone, Zone 2, Lens 3) 122 770 94 5,054
-----------------------------------------------------------------
Copper Stockwork Zone 269 47 126 2,598
-----------------------------------------------------------------
Total Indicated 391 817 220 7,651
----------------------------------------------------------------------------
Inferred Main Zone Massive to semi-
massive sulphides (Upper West
Zone, Zone 2, Lens 3) 140 683 83 4,191
-----------------------------------------------------------------
Copper Stockwork Zone 188 57 73 2,136
-----------------------------------------------------------------
Total Inferred 328 740 157 6,327
----------------------------------------------------------------------------
(1) Totals may not add due to rounding
(2) See footnotes 1-5 for Table 1
Qualified Persons
The 2013 Resource meets the guidelines as set out in NI 43-101 and was prepared
by RPA, a global geological and mining consultancy. The 2013 Resource was
prepared by Mr. David Rennie, P.Eng., Principal Geologist with RPA. Mr. Rennie
is a Qualified Person as defined in NI 43-101 and has consented to applicable
disclosure contained herein regarding the 2013 Resource. Both RPA and Mr. Rennie
are independent of Foran.
Mr. Roger March, P. Geo., Vice President Project Exploration for Foran, is the
Qualified Person for all technical information in this news release, excluding
the 2013 Resource. Mr. March has reviewed and approved the technical information
in this release.
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/fom0327fig1.pdf.
To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/fom0327fig2.pdf.
To view Figure 3, please visit the following link:
http://media3.marketwire.com/docs/fom0327fig3.pdf.
Estimation Methodology and Parameters
The 2013 Resource includes re-interpretation of the mineralized envelopes and
incorporation of diamond drilling on the Deposit up to the effective date of the
estimate of January 1, 2013. The 2013 Resource was carried out using a block
model constrained by 3D wireframes of the mineralized zones. Values for Cu, Zn,
Au, Ag, and Pb were interpolated into the blocks using Ordinary Kriging. Block
size was 10m wide (east-west) x 10m across (north-south) x 10m high. The model
was oriented parallel to the drilling survey grid. The models were constructed
using GEMS (Gemcom) software.
The 2013 Resource is based entirely on diamond drilling data. The database
contained records for 178 diamond drillholes, with a total of 6,220 assay
intervals. This includes a total of 581 samples encompassing 612m collected and
assayed in 2012 from previously unsampled intervals of core from 65 holes
drilled between 1989 and 2007. Of the total 6,220 assay intervals in the Deposit
database, 2,833 were eventually captured within the wireframe models used to
constrain the estimate. Top cuts were applied to the samples prior to
compositing. Samples were composited to 1.5m downhole intervals across the zones
subtended by the wireframe models. Remnant composites with a length of less than
0.75m were discarded from the database.
Wireframe models for each of the mineralized zones were constructed from
geological interpretations on 50m cross sections. In constructing these models,
a nominal $45/t NSR cut-off was used along with a minimum horizontal width of
2.0m to construct the wire-frames to constrain the resource. The $45/t cut-off
was derived by RPA based on comparable projects in North America, taking into
account provisions for milling, G&A, and direct mining costs (i.e. no
development). Due to the dip of the zones, the 2.0m horizontal width resulted in
a minimum true width of approximately 1.6m. All thicknesses quoted in this
release are derived from the US$45/t cut-off. Density was estimated for each
block using a linear regression formula derived from a scatter plot of Zn grades
versus measured specific gravity.
The Mineral Resources were classified using the following criteria:
-- Indicated was applied in the core of the deposit, where the nominal
drill hole spacing is 65m or less, and/or where the average distance to
the nearest three drill holes is 45m or less.
-- All other blocks, estimated to a maximum distance of 250m in the massive
and semi-massive sulphide bodies, and 190m in the stockwork bodies have
been classified as Inferred Mineral Resources, with the exception of
some of the stockwork mineralization in the lowermost extremity of the
deposit.
In RPA's opinion, the Mineral Resources are classified in a manner that is
consistent with NI 43-101 regulations and guidelines. Mineral resources do not
have demonstrated economic viability. The estimate of mineral resources may also
be affected by other relevant factors or issues. There is no guarantee that the
Deposit will be placed into production.
Quality Assurance and Quality Control
For drilling conducted by Foran and its consultants in 2011 and 2012, an
independent QA/QC protocol, consisting of blanks, standards, and duplicates
introduced into the sample stream at a nominal rate of one sample of each type
per 20 samples was implemented. Duplicates consisted of both field (core) and
preparatory (pulp) duplicates. Sample analysis was performed by TSL Laboratories
Ltd. ("TLS") in Saskatoon, Saskatchewan. TLS is a CAN-P-1579, CAN-P-4E (ISO/IEC
17025:2005) accredited laboratory and independent of Foran. For a full
description of the QA/QC program see the Foran news release dated June 15, 2011.
RPA reviewed the QA/QC reports from these programs and noted that there were no
issues that arose which would affect confidence with the assay data. RPA
considers the sampling method appropriate for the deposit type, adequate
security measures were maintained, and samples should be representative of the
mineralization.
Prior to RPA initiating the revised resource estimation work, Foran completed a
program of validation and verification of the historic drill hole database which
was used as a basis for the resource estimate. This work included: re-surveying
the locations of historic drill hole collars on the ground, downhole directional
surveys of as many historic drill holes as possible utilizing a Gyro tool to
verify downhole survey data, re-building of the historic assay database from
original assay certificates, additional sampling of gaps in mineralized zones
(shouldering) where required to better represent the mineralizing system and a
re-interpretation of the geology and ore zones in the deposit.
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 property is located
in east central Saskatchewan, 65km west of Flin Flon, Manitoba and contains
McIlvenna Bay, one of the largest undeveloped VMS deposits in Canada.
For additional information on McIlvenna Bay, see the report entitled "Technical
Report on the McIlvenna Bay Project, Saskatchewan, Canada" dated December 9,
2011 at www.sedar.com or www.foranmining.com.
Foran trades on the TSX.V under the symbol "FOM".
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 law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Foran Mining Corporation
Patrick Soares
President & CEO
416-847-7310
Foran Mining Corporation
Fiona Childe
VP, Corporate Development
416-847-7310
ir@foranmining.com
www.foranmining.com
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