Focus Metals Inc.
TSX VENTURE : FMS

Focus Metals Inc.

December 08, 2010 08:55 ET

Focus Metals and SOQUEM Report Surface Grades of up to 2.39% REE2O3 +Y2O3 Together With a New Copper-Zinc Zone at Kwyjibo, Quebec-REE Assays of Historical Drill Core Pending

OTTAWA, ONTARIO--(Marketwire - Dec. 8, 2010) - Focus Metals Inc. (TSX VENTURE:FMS) ("Focus" or the "Corporation") and partner SOQUEM Inc. ("SOQUEM") are pleased to report the preliminary findings from the fall 2010 exploration program at the Kwyjibo property, located in the Grenville Geological Province of Québec.

At the historical Gabriel Copper-REE showing located in the easternmost part of the Kwyjibo Property, new channel sampling returned assays of 1.12% TREO, 4.71% P2O5 and 68.3% Fe2O3 over 1 m and 2.39% TREO, 7.75% P2O5 and 61.2% Fe2O3 over 0.5 m of magnetite-rich iron formation. Value of TREO (total rare earth element oxides) is express as the sum of all rare earth oxides of the lanthanide series and yttrium oxide; strictly not a rare earth element, yttrium is included in the total amount of REE because of the chemical behaviour and uses that are similar to the lanthanides. The ratios of the most sought-after REE by the industry (Nd+Eu+Tb+Dy+Er+Y) over total REE content are 48% and 41% respectively. Neodynium, a critical alloy constituent of super-strength magnets used in hybrid and electric vehicle motors, represents about 20% of the total elemental REE content. The iron formation at Gabriel is weakly mineralized with 1 to 2% pyrite and traces of disseminated chalcopyrite. Previous assaying by SOQUEM (1993-1995) returned grades of up to 0.47% Cu, as well as 3074 ppm REE (only lanthanum, cerium, and samarium were analyzed) at Gabriel.

A new copper-zinc zone was also uncovered in the westernmost part of the Kwyjibo Property, in the vicinity of historical drill hole 1088-95-37. Preliminary chip sampling from a pit hole of this new zone, buried under 0.5 to 1 meter thick overburden, returned anomalous values of 0.32% Cu, 0.44% Zn and 0.25% Pb and 0.12% Cu, 0.19% Zn and 0.09% Pb. The host rock is a hornblende-bearing, magnetite-rich iron formation with copper and zinc sulphide minerals found disseminated or in veinlets.

Gary Economo, President and CEO of Focus Metals states "We are extremely pleased with the initial results from the fall 2010 exploration program at Kwyjibo, particularly for the value of TREO and related high Nd ratios in iron formation at the historical Gabriel showing and the discovery of a new copper-zinc zone in the westernmost part of the Property. Grades in TREO reported for the Gabriel showing and below are well comparable to other REE deposits in Quebec, in terms of total REE and in ratio of most sought-after REE by the industry (Nd+Eu+Tb+Dy+Er+Y) based on their prices and availability. The Kwyjibo property is considered as the best iron oxide copper-gold ("IOCG") exploration target in Quebec. IOCG type mineralization has been previously traced by SOQUEM over at least 4 km on the Property, with only limited testing done for base metals and for the full range of rare earth elements ("REE")".

2010 exploration program

The fall 2010 exploration program at the Kwyjibo property consisted of follow-up prospecting on geophysical anomalies outlined from the VTEM survey conducted over the Property in 2006; channel and chip sampling, mapping and GPS surveying of historical Cu-REE showings and of new magnetite-rich iron formation occurrences; and the re-logging and re-assaying of historical drill holes for the full range of REE. SOQUEM is the operator of the Kwyjibo project for the first two years of the exploration program.

All six main historical showings (from west to east: Josette, Malachite, Andradite, Fluorine, Grabuge, and Gabriel (formerly showing No. 505796)) were revisited during the fall exploration program. Apart the follow-up of VTEM anomalies, most of the field works were concentrated on Grabuge, Gabriel, and Andradite. Detailed prospecting and beep-mat survey were carried on between Josette and Andradite showings in order to track the Josette iron formation to the northeast toward the Andradite showing. Summary descriptions of the individual showings, as well as a location map of the Kwyjibo property are available on the Corporation's website at (www.focusmetals.ca).

Follow-up prospecting of VTEM targets from the 2006 geophysical survey explained five of the 19 strongest anomalies. In two cases, the VTEM anomalies are associated with copper-mineralized iron formation observed in previous drilling program (drill holes 1088-94-03 and 1088-95-29) in the vicinity of Josette showing. Another VTEM anomaly is correlated with a conductive iron formation unit observed in drill hole 1088-95-36 and on an outcrop in a stream, west of Josette showing. The fourth one is centered on the Fluorine showing and the fifth is located in the vicinity of drill hole 1088-95-37 and it is correlated with an anomalous copper and zinc mineralized outcrop of hornblende-bearing iron formation. Thirteen (13) VTEM anomalies were not explained due to the thick overburden and one was not reached due to its remote location. Further works with trenching will be performed in summer 2011 in order to explain this VTEM anomaly.

Other new findings from the Kwyjibo exploration program include:

  • Assays of 3.49% TREO and 2.03% P2O5; 1.62% TREO and 0.71% P2O5; and 1.21% TREO, 3.39% P2O5 and 63.5% Fe2O3 in a hematite-bearing iron formation and associated rocks. The samples are from an outcrop of banded magnetite-bearing calc-silicate rock and muscovite schist and hematite-rich iron formation (2010-SP-28) located on the shore of the Kwyjibo river, about 320 m southeast of the Fluorine showing. The three samples are more enriched in common REE and the ratio of the most demanding REE (Nd+Eu+Tb+Dy+Er+Y) over total the REE is 12, 23 and 32% respectively. 
  • A grab sample (DP-516; sample # 419271) of an iron formation outcrop taken in the vicinity of drill hole 1088-95-29 return at the assay 0.29% Cu, 5.08% TREO, 4.82% P2O5 and 50.9% Fe2O3. The ratio of the most demanding REE (Nd+Eu+Tb+Dy+Er+Y) by the industry over total the REE is 49%. These results are similar to the ones reported in previous sampling programs for the Josette showing.
  • At the historical Grabuge showing, an assay of 1.41% Cu, 3.8 g/t Ag and 0.12 g/t Au over 1 m from a brecciated shear zone filled with magnetite-quartz-pyrite-chalcopyrite veins. Grab samples taken by SOQUEM at Grabuge in 1993 returned grades of up to 15.6% Cu, 1.6 g/t Au, 27.7 g/t Ag and 0.07% Zn. The mineralization at Grabuge consists of a stockwork of magnetite and magnetite-quartz-pyrite-chalcopyrite veins that cut a leucogranite.
  • Assays of 0.68% Cu and 0.56% Cu over 1 m and 0.5 m, respectively, from an outcrop exhibiting a stockwork of magnetite veins with disseminated chalcopyrite located 75 m to the southwest of the Grabuge showing;
  • A grab sample assay of 0.42% Cu, 2.1 g/t Ag and 0.37 g/t Au from a grab sample taken from an outcrop located 100m north of Grabuge;

All assays were performed by ALS Laboratory Group in Val-d'Or and Vancouver laboratories for a complete characterization for major elements by lithium metaborate fusion and analyzed by ICP-AES method; REE and trace elements by lithium metaborate fusion and analyzed by ICP-MS method; base metals by four acid digestion and analyzed by ICP-AES; and gold by fire assay and analyzed by AAS method.

Re-sampling program of the best mineralized REE sections of drill cores

A re-sampling program of the best REE mineralized sections from 23 historical holes has been carried on in October. A total of 424 samples, consisting for the majority of quarter splits of drill cores, have been sent to ALS Laboratory Group for analysis for all rare earth elements, traces and major elements and in some cases for copper. The goal of the re-analysis of the best mineralized sections in REE of the drill cores of Kwyjibo Property is to bring the chemical analysis database up-to-date with a single method, using a lithium borate fusion of the sample prior to acid dissolution and analyze by ICP-MS (Induced-Couples Plasma Mass Spectrometry) in order to analyse the all range of REE and trace elements. This method is best suitable for minerals resistant to acids digestion, like some REE-bearing silicates. Previous analysis from 1994-1999 were mostly done by neutron activation, except for few holes were X-Ray Fluorescence (XRF) was used, and in many holes not all REE were analyzed. The results from the core re-assaying program are pending.

Terms of the Agreement

Under the terms of the Agreement, Focus Metals may acquire a 50% interest in SOQUEM's Kwyjibo REE-Cu property, by spending up to $3M in exploration work on the property over a period of five (5) years of which $1M must be spent during the first two (2) years.

SOQUEM will act as the operator for all exploration carried out on the property for the first two years of the option period or until the first $1M in exploration work expenditures have been spent. Focus will then have the option to become operator by paying $50,000 in cash or issuing a block of common shares valued at $50,000.

About Focus Metals Inc.

Focus Metals Inc. is an emerging mid-tier junior mining exploration company with excellent discovery stage base metals and industrial minerals opportunities in Quebec. The Corporation intends also to acquire advance stage industrial minerals exploration properties in its portfolio in the future. The Corporation is led by a determined management and technical team with extensive exploration and mine production experience.

About SOQUEM Inc.

SOQUEM is a wholly-owned subsidiary of Société générale de financement du Québec ("SGF"). SGF, is the Québec government's main industrial and financial development corporation. Its mission is to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Québec.

The technical information in this news release has been reviewed by Marc-André Bernier, M.Sc., P.Geo., Qualified Person as defined under the National Instrument 43-101.

This News Release may contain or refer to "forward-looking statements" which reflect Management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. These statements reflect Management's current beliefs at the time of this news release and are based on information currently available to Management. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. While the Company anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information.

Neither 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

  • Focus Metals Inc.
    Gary Economo
    President and Chief Executive Officer
    613-691-1091 Ext.101
    gary@focusmetals.ca