Forsys Metals Corp
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Forsys Metals Corp

October 31, 2006 12:38 ET

Clarifying Press Release-Valencia Uranium Project

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2006) - The Corporate Finance Branch of the Ontario Securities Commission recently selected Forsys Metals Corp. ("Forsys" or the "Company")(TSX:FSY) for an issue oriented review of its continuous disclosure record. The Company's reply to a series of questions resulted in a call for a "clarifying press release" to "ensure a full public announcement" to resolve any unclear disclosure issues.

The Company is pleased to provide the information concerning various components of the current work program at Valencia which has the advantage of advancing the project to the pre feasibility stage. This press release reports on specific components of the current work program selected for disclosure clarification. The selected components are as follows:

a. Drilling - Diamond core drilling for verification, exploration, and infilling of 16 holes is now complete. This work component was designed and supervised by Forsys' Qualified Person. Final assays are pending. Snowden Mining Industry Consultants (Pty) Ltd. ("Snowden") has been retained to update the program, provide a resource estimate and a financial evaluation.

b. Deposit Mineralogy - work is underway at SGS Labs in South Africa to examine the radioactive mineralogy and mineralogy of the alaskite. Samples provided to SGS comprise representative drill core for optical observation and comminuted, semi-bulk samples collected during the now concluded reverse circulation drill program. This work component will determine modal abundance of minerals present, mineralization style, any associated alteration, the uranium-thorium deportment including the valency state of the uranium, mineral liberation characteristics, and the presence of any deleterious properties of the alaskite.

c. Uranium Recovery - work is underway at SGS Labs in South Africa. This work component will examine up to three size fractions to determine optimal grinding conditions for leaching parameters.

d. Deposit Crushing - work has stopped due to a sample loss during shipping. A new set of samples has being acquired to replace the previously lost samples.

e. Geological Model - Snowden completed a geological model for Forsys several months ago. This model will be updated using the results of the now complete diamond drilling program ("a" above).

f. Geotechnical investigation - Snowden supervised the logging of three drill holes specifically drilled for geotechnical investigation several months ago.

g. Geohydrological investigation - Water Services CC of Namibia is presently completing a regional survey of all water boreholes to characterize the ground water. To date, the field data are collected and samples are submitted for analysis. Further detailed work in the vicinity of the pit is underway. This will involve a pumping test to determine the ground water flow characteristics for mining purposes.

h. Infrastructure (Water) - Initially water was transported to Valencia for drilling from a farm approximately 10 km to the south. This proved to be inefficient. Subsequently two water boreholes were drilled by Forsys to provide water for the drilling campaigns within the licence area. Distance from the drill area to these boreholes is 250 m and 1.75 km respectively. Volumes pumped where in the order of 0.5 to 1.0 cubic meters per hour and this proved to be sufficient for the drilling program. Potable water is transported to the Valencia camp for human consumption from a nearby village.

Forsys is presently considering a request to extract water from existing or new Khan River boreholes approximately 3-6 km to the north. The volume requested will be in the order of 1000 cubic meters per day. This application is not yet submitted. This water will be used for human consumption and limited exploration and development but only once the application is approved. This will not be a sufficient supply for mining purposes.

To address the water needs for mining purposes, Forsys has entered into discussions with NamWater, a parastatel company responsible for water supply within Namibia. NamWater has indicated to Forsys, in writing, that it will be able to supply Valencia. This supply will undoubtedly be resourced from the sea using a process of de-salinization.

Infrastructure (Power) - Discussions are underway with NamPower to provide power for mining purposes.

Infrastructure (Access) - A new road will be required to the Valencia site but a route is not yet selected.

i. Environmental - EcoPlan Namibia completed the "Environmental Management Plan for Exploration" in November 2005. It was submitted to and received the approval of the Ministry of Environment and Tourism that same month. This document is required for the exploration stage.

Furthermore, EcoPlan Namibia completed a "Preliminary Environmental Study for Mining" at Valencia February 2006. The objective of this report was to identify any significant environmental concerns in the vicinity of Valencia. No significant environmental concerns were found.

Forsys will be required to complete a full Environmental Impact Assessment Study prior to any application for a mining licence.

j. Social/Community - An initial review of the Social/Community aspects in the Valencia area was completed as a work component of the Preliminary Study for Mining.

k. Marketing Study - A Uranium Marketing Study is not yet started.

l. Financial Evaluation - Financial evaluations and project risk analysis are not yet started.

Rick Bonner, P. Geol., Exploration Manager of Forsys, is the designated Qualified Person responsible for all of Forsys' exploration programs as well as the person responsible for the contents of this news release.

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Contact Information

  • Forsys Metals Corp.
    Duane Parnham
    Chairman
    (416) 601-1286 in Toronto
    or
    Forsys Metals Corp.
    Rick Bonner
    Exploration Manager in Namibia
    Email: wrn@forsysmetals.com