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Press release from Marketwire

Foran Announces New McIlvenna Bay Resource

Wednesday, March 27, 2013

Foran Announces New McIlvenna Bay Resource08:30 EDT Wednesday, March 27, 2013VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 27, 2013) -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, andThe 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)ZoneTonnage (kt)Copper (%)Zinc (%)Gold (g/t)Silver (g/t)CuEq (%)ZnEq (%)IndicatedMain Lens - Upper West Zone2,1481.664.100.88312.7918.75Main Lens - Zone 23,3860.317.150.24241.5110.19Lens 37561.232.550.30151.7912.03Copper Stockwork Zone7,6101.600.300.50111.9013.10Total Indicated13,9001.282.670.49171.9613.19InferredMain Lens - Upper West Zone2,9131.633.680.51192.4716.62Main Lens - Zone 22,7960.517.130.38261.7912.04Lens 31241.612.670.51182.3115.52Copper Stockwork Zone5,4781.560.470.42121.8712.59Total Inferred11,3111.322.970.43172.0113.52(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)ZoneTonnage (kt)Copper (%)Zinc (%)Gold (g/t)Silver (g/t)CuEq (%)ZnEq (%)US$75/t NSR cut-off - indicatedMain Lens - Upper West Zone2,0221.714.240.92322.8819.39Main Lens - Zone 22,1430.357.730.26241.6611.15Zone 34311.652.360.34172.2114.84Copper Stockwork Zone5,6451.790.270.62122.1914.71Total Indicated10,2421.472.700.59192.2114.89US$75/t NSR cut-off - inferredMain Lens - Upper West Zone2,8881.633.700.51192.4816.69Main Lens - Zone 22,3560.567.300.41261.8912.72Zone 3861.923.520.62232.8118.90Copper Stockwork Zone4,1271.730.500.48142.0813.99Total Inferred9,4571.413.200.47192.1614.54US$60/t NSR cut-off - indicated (base case)Main Lens - Upper West Zone2,1481.664.100.88312.7918.75Main Lens - Zone 23,3860.317.150.24241.5110.19Zone 37561.232.550.30151.7912.03Copper Stockwork Zone7,6101.600.300.50111.9013.10Total Indicated13,9001.282.670.49171.9613.19US$60/t NSR cut-off - inferred (base case)Main Lens - Upper West Zone2,9131.633.680.51192.4716.62Main Lens - Zone 22,7960.517.130.38261.7912.04Zone 31241.612.670.51182.3115.52Copper Stockwork Zone5,4781.560.470.42121.8712.59Total Inferred11,3111.322.970.43172.0113.52US$45/t NSR cut-off - indicatedMain Lens - Upper West Zone2,1911.644.020.87302.7518.51Main Lens - Zone 23,9110.306.780.23241.459.74Zone 31,1501.022.250.27131.5210.21Copper Stockwork Zone9,0861.480.270.46101.7912.03Total Indicated16,3371.192.470.45161.8212.22US$45/t NSR cut-off - inferredMain Lens - Upper West Zone3,0611.583.530.50182.4016.14Main Lens - Zone 23,0760.486.910.36261.7211.56Zone 32341.131.600.54131.6711.27Copper Stockwork Zone6,7161.420.470.36111.7111.48Total Inferred13,0871.232.720.40161.8712.59(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)CategoryZone(s)Copper (M lbs.)Zinc (M lbs.)Gold (k oz.)Silver (k oz.)IndicatedMain Zone Massive to semi-massive sulphides (Upper West Zone, Zone 2, Lens 3)122770945,054Copper Stockwork Zone269471262,598Total Indicated3918172207,651InferredMain Zone Massive to semi-massive sulphides (Upper West Zone, Zone 2, Lens 3)140683834,191Copper Stockwork Zone18857732,136Total Inferred3287401576,327(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: view Figure 2, please visit the following link: view Figure 3, please visit the following link: 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 or 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: 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. Contact Information: Foran Mining CorporationPatrick SoaresPresident & CEO416-847-7310Foran Mining CorporationFiona ChildeVP, Corporate