Franconia Minerals Corporation
TSX VENTURE : FRA

Franconia Minerals Corporation

October 16, 2007 09:00 ET

Franconia Receives 43-101 Resource Estimate on Spruce Road Copper-Nickel Deposit at Birch Lake Project, Minnesota

Increases Total Birch Lake Project Underground Resource by 68% to 307 Million Tonnes

SPOKANE, WASHINGTON--(Marketwire - Oct. 16, 2007) - Franconia Minerals Corporation ("Franconia") (TSX VENTURE:FRA) is pleased to announce it has received resource estimates for both underground and open pit scenarios for the Spruce Road copper-nickel deposit, part of the Birch Lake Project in Minnesota. The estimates were prepared by Scott Wilson Roscoe Postle Associates (Scott Wilson RPA), which estimated an underground Inferred Resource at Spruce Road of 124.4 million tonnes grading 0.59% copper and 0.21% nickel. The Spruce Road resource is in addition to Franconia's 100 million tonne Birch Lake copper-nickel-PGM inferred resource (located six miles to the south) and to Franconia's 83 million tonne Maturi copper-nickel-PGM inferred resource (three miles to the southwest) (see map below), bringing the total underground resource at Franconia's Birch Lake Project to 307.9 million tonnes. Scott Wilson RPA's supporting Technical Report, prepared to NI 43-101 standards, will be available on SEDAR within 45 days.

The Spruce Road deposit was part of a package of mineral rights Franconia acquired in 2005 from American Copper & Nickel Company, Inc. (ACNC), the US subsidiary of Inco Limited. Spruce Road is not part of the Company's ongoing pre-feasibility program, which is currently limited to the Birch Lake and Maturi deposits. Also, importantly, these latest estimates were made using data generated by ACNC several decades ago, work that did not include assays for platinum group metals (PGMs). Subsequent work on other deposits in the district has shown PGMs to be almost ubiquitously associated with the copper-nickel mineralization. However, for this Spruce Road estimate and in the absence of specific data, it was considered prudent to ignore the potential presence of PGMs in the deposit.

"Although, Spruce Road is not part of the Company's ongoing pre-feasibility program, it dramatically expands the long-term potential for Franconia's already substantial Birch Lake Project and thus, the value of the Company", said Brian Gavin, President and CEO of Franconia. "And while we have a lot more work ahead of us, it is gratifying to be able to provide further independent evidence of the long term value of Franconia's world-class base-metal and PGM project."



--------------------------------------------------
Underground Resource Estimate (October 2007)
Spruce Road Deposit, Birch Lake Project, Minnesota
--------------------------------------------------
Inferred Resource
--------------------------------------------------
Cut Off Tonnes Copper Nickel
Grade (%) (millions) (%) (%)
--------------------------------------------------
0.4% Cu(2) 180.1 0.55 0.20
--------------------------------------------------
0.5% Cu 124.4 0.59 0.21
--------------------------------------------------
0.6% Cu 40.7 0.68 0.24
--------------------------------------------------
Notes:
1. CIM definitions were followed for Mineral Resource estimation and
classification.
2. The mineral resource envelope is wireframed at a cut-off grade of 0.4%
copper.
3. Inferred Mineral Resources are reported for an incremental cut-off grade
of 0.5% copper based on average long-term metal prices of US$1.50/lb
copper and US$6.00/lb nickel.
4. The inverse distance squared (ID2) method was used for grade
interpolation.
5. Copper assay grades were capped at 2% and nickel assay grades were
capped at 1%.
6. Bulk density is 3.02 t/m3.
7. Resources are estimated below a 50 m crown pillar to a maximum depth of
approximately 513 m.


Discovered by a prospector in 1948, ACNC and its parent company, Inco Limited, conducted extensive drilling at Spruce Road between 1950 and 1974. Spruce Road was the subject of an engineering study by Bechtel Corporation in 1967. The current estimate is based on 220 surface drill holes. No further exploration or evaluation has been done since that time. The mineralized zone outcrops at the surface, is between 270 and 1,000 feet thick and dips at approximately 35 to 65 degrees to the southeast.

Scott Wilson RPA also prepared a near surface resource estimate at Spruce Road providing an alternative scenario for evaluating the deposit. These estimates were prepared by Richard Routledge M.Sc., P.Geo., and Jason Cox, P. Eng., of Scott Wilson RPA, both appropriately qualified persons according to NI 43-101.



------------------------------------------------------------------------
Open Pit Resource Estimate (October 2007),
Spruce Road Deposit, Birch Lake Project, Minnesota
------------------------------------------------------------------------
Indicated Resource Inferred Resource
------------------------------------------------------------------------
Cut Off Tonnes Copper Nickel Tonnes Copper Nickel
Grade (%) (millions) (%) (%) (millions) (%) (%)
------------------------------------------------------------------------
0.26 CuEq (2,7) 376.7 0.39 0.14 28.4 0.23 0.09
------------------------------------------------------------------------
0.30 Cu 290.8 0.44 0.15 12.0 0.46 0.19
------------------------------------------------------------------------
0.40 Cu 170.5 0.50 0.17 8.3 0.50 0.17
------------------------------------------------------------------------
0.50 Cu 67.2 0.57 0.20 4.3 0.58 0.23
------------------------------------------------------------------------
Notes:
1. CIM definitions were followed for Mineral Resource estimation and
classification.
2. Mineral Resources are estimated at a zone definition (wireframe) cut-off
grade of 0.26% copper equivalent.
3. Mineral Resources were estimated using average long-term metal US$
prices of $1.50/lb copper and $6.00/lb nickel.
4. Bulk density is estimated at 3.02 t/m3.
5. Resources are estimated from surface to a maximum depth of approximately
450 m.
6. The 0.26% copper equivalent cut-off grade includes all material in the
wireframed zones. Incremental cut-offs are for block cut-off grades.
7. Copper equivalent grade CuEq%=Cu% + (2.59 x Ni%) and is based on
respective metal prices and estimated payable metals.
8. Copper assay grades were capped at 2% and nickel assay grades capped at
1%.
9. Open pit is constrained to within the Federal Lease property boundaries.
Pit slopes are 45 degrees; no provision is made for a ramp or operating
widths at the pit floor.
10. Waste to ore ratio for the 0.26% CuEq cut-off is 0.88:1.


As noted above, Spruce Road is three miles from the 83 million tonne Inferred Resource at Maturi and six miles from the 100 million tonne Inferred Resource at Birch Lake.



---------------------------------------------------------------------------
Inferred Resource Estimate (October 2006)
Birch Lake Zone, Birch Lake Project, Minnesota
---------------------------------------------------------------------------
Cut Off Tonnes Copper Nickel Cobalt Palladium Platinum Gold
NSR (millions) (%) (%) (%) (g/t) (g/t) (g/t)
---------------------------------------------------------------------------
$25.00 100.4 0.59 0.19 0.01 0.65 0.32 0.14
---------------------------------------------------------------------------
Metal price assumptions: copper $1.50/lb; nickel $6.00/lb (Note: Same
assumptions used for Spruce Road); cobalt $10.00/lb; palladium $300/oz;
platinum $800/oz; gold $450/oz.
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Inferred Resource Estimate (October 2006)
Maturi Zone, Birch Lake Project, Minnesota
---------------------------------------------------------------------------
Cut Off Tonnes Copper Nickel Cobalt Palladium Platinum Gold
NSR (millions) (%) (%) (%) (g/t) (g/t) (g/t)
---------------------------------------------------------------------------
$34.00 83.1 M 0.70 0.26 0.02 0.26 0.05 0.10
---------------------------------------------------------------------------
Metal price assumptions: copper $1.50/lb; nickel $6.00/lb (Note: Same
assumptions used for Spruce Road); cobalt $10.00/lb; palladium $300/oz;
platinum $800/oz; gold $450/oz.
---------------------------------------------------------------------------


Birch Lake and the nearby Maturi deposit are the subjects of an independent preliminary economic assessment (see Franconia news release of October 3, 2006) prepared by Scott Wilson RPA to NI 43-101 standards (available at www.SEDAR.com). The preliminary economic assessment contemplates that a combined Birch Lake-Maturi operation would have, over a 26-year mine life, an average annual production of 74 million pounds (lbs) of copper, 19 million lbs of nickel, 2.9 million lbs of cobalt, 68,000 ounces (oz) of palladium, 33,000 oz of platinum and 7,300 oz of gold.

Franconia Minerals Corporation trades on the TSX-V under the symbol FRA. (For additional information see www.franconiaminerals.com.) Franconia currently has 58,024,744 shares issued and outstanding.

Brian Gavin, President and CEO

FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential. These properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted.

To view map, please visit the link below: http://www.ccnmatthews.com/docs/fra1016.pdf

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information