Foran Mining Corporation
TSX VENTURE : FOM

Foran Mining Corporation

June 20, 2012 09:13 ET

Foran Announces Positive Metallurgical Results at McIlvenna Bay

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2012) - Foran Mining Corporation (TSX VENTURE:FOM) ("Foran" or the "Company") is pleased to announce positive results from initial metallurgical testwork ( the "Testwork") commissioned by the Company on samples from its 100%-owned McIlvenna Bay Deposit ("McIlvenna Bay" or the "Deposit"), located in east central Saskatchewan.

Testwork was conducted on composite drill core samples from each of the three main styles of mineralization in the Deposit, namely the copper-rich Copper Stockwork Zone ("CSZ"), the zinc-rich Lens 2 massive sulphide zone ("Lens 2") and the zinc- and copper-rich massive to semi-massive sulphide Upper West Zone ("UWZ").

Highlights of the Testwork include:

  • Recoveries of 94% Cu, 85% Au and 77% Ag in a Cu concentrate grading 29% Cu, 6.4 g/t Au and 126 g/t Ag for the CSZ in locked cycle testing,
  • Cu and Zn concentrates for the UWZ in locked cycle testing, with recoveries of 84% Cu, 60% Au and 50% Ag in the Cu concentrate (grading 24% Cu, 6.5 g/t Au and 216 g/t Ag) and recovery of 76% Zn in the Zn concentrate (grading 54% Zn),
  • Recovery of 85% Zn in a Zn concentrate (grading 55% Zn) for Lens 2, along with a bulk Cu-Pb concentrate in locked cycle testing (Table 1), and
  • Bond ball mill work indices of between 11.6 and 16.1 kWh/tonne, indicating the three styles of mineralization are of moderate hardness (Table 2)1.

Patrick Soares, President and CEO of Foran commented: "The results of our first round of metallurgical testwork at McIlvenna Bay are extremely promising; in particular, the results from the Copper Stockwork Zone, with 94% copper recovery, combined with high precious metal recoveries. Today's results, along with those of the approximately 17,000 metres of drilling completed by Foran since the spring of 2011 and our recent resource estimate for the Copper Stockwork Zone, continue to confirm the robust nature of McIlvenna Bay as we move forward in de-risking this large, well-located base metal deposit." Mr. Soares continued "As we advance toward a planned Preliminary Economic Assessment and then into Feasibility Studies, we will continue to refine the metallurgical testwork."

1 Cu = copper, Zn = zinc, Au = gold, Ag = silver, Pb = lead, g/t = grams per tonne, kWh = kilowatt hours

Table 1. Overall Metallurgical Response
Copper Stockwork Zone
Assay Distribution
Product Mass
(%)
Cu (%) Zn (%) Ag (g/t) Au (g/t) Cu
(%)
Zn
(%)
Ag
(%)
Au (%)
Feed 100 1.57 0.16 8 0.38 100 100 100 100
Cu Concentrate 5.1 29.2 1.05 126 6.38 94.4 33.8 76.9 84.6
Cu First Cleaner Tail 3.9 0.79 0.57 14 0.81 2.0 14.1 6.8 8.3
Cu Rougher Tail 91.0 0.06 0.09 2 0.03 3.7 52.1 16.4 7.1
Upper West Zone
Assay Distribution
Product Mass
(%)
Cu (%) Pb (%) Zn (%) Ag (g/t) Au (g/t) Cu
(%)
Pb
(%)
Zn
(%)
Ag
(%)
Au
(%)
Feed 100 1.75 0.18 4.02 26 0.66 100 100 100 100 100
Prefloat 2.8 0.86 0.13 1.44 23 1.16 1.4 2.1 1.0 2.5 4.9
Cu Concentrate 6.0 24.2 1.3 6.40 216 6.50 83.4 43.4 9.6 50.3 59.7
Zn Concentrate 5.6 1.87 0.24 54.3 63 0.81 6.0 7.5 76.3 13.6 6.9
Zn First Cleaner Tail 7.7 0.69 0.14 2.39 22 0.53 3.0 6.0 4.6 6.6 6.2
Zn Rougher Tail 77.8 0.14 0.10 0.44 9 0.19 6.2 41.0 8.5 27.0 22.2
Lens 2
Assay Distribution
Product Mass
(%)
Cu (%) Pb (%) Zn (%) Ag (g/t) Au (g/t) Cu
(%)
Pb
(%)
Zn
(%)
Ag
(%)
Au
(%)
Feed 100 0.33 0.41 6.96 15 0.21 100 100 100 100 100
Prefloat 3.5 0.20 0.32 5.89 11 0.11 2.1 2.8 3.0 2.6 1.9
Bulk Concentrate 1.6 11.9 15.4 9.18 332 5.27 56.0 59.1 2.1 34.4 38.5
Zn Concentrate 10.8 0.63 0.46 55.0 38 0.29 20.5 12.2 85.4 27.3 14.6
Zn First Cleaner Tail 17.8 0.16 0.15 0.96 10 0.15 8.4 6.5 2.5 11.6 12.7
Zn Rougher Tail 66.3 0.07 0.12 0.74 5 0.10 13.1 19.5 7.0 24.1 32.3
Table 2. Bond Work Indices
Composite Bond Ball Mill Grindability Test1 Bond Rod Mill Grindability Test1
Work Index
(kWh/tonne)
microns P80 Work Index
(kWh/tonne)
microns P80
CSZ 16.1 80 17.0 882
Lens 2 11.6 83 12.7 869
UWZ 14.0 81 15.6 852
1 kWh = kilowatt hours

Discussion of Results

Three composite samples were collected from halved HQ diameter core from 2011 drilling on the Deposit. The samples represent each of the three main styles of mineralization in the Deposit, namely the CSZ, Lens 2 and UWZ, and together totaled approximately 516 kilograms. The test program consisted of batch flotation testing followed by locked cycle tests for all three composites. The results of the locked cycle tests are shown in Table 1 and are further described below.

CSZ composite:

Over 94% of the Cu was recovered into a Cu concentrate grading 29% Cu. Silver and Au recoveries were also high, at 77% and 85%, respectively. Precious metal grades in this concentrate were 216 g/t Ag and 6.5 g/t Au. At a primary grind size of 100 microns K80 and regrind size of 35 microns K80copper sulphide minerals were well liberated resulting in very good concentrate grades and recoveries.

The Cu, Zn, Au and Ag head grades of the CSZ composite, as shown in Table 1, are comparable to the grades of the indicated and inferred mineral resources estimated for the CSZ in the McIlvenna Bay mineral resource estimate of October 28, 2011, which is summarized in the Foran news release dated November 9, 2011 and detailed in the Company's Technical Report dated December 9, 2011 (the "2011 Resource"). As such, the composite used in the Testwork appears to be a reasonable representation of the overall grade of the CSZ.

UWZ composite:

About 83% of the Cu was recovered into a Cu concentrate grading greater than 24% Cu. Silver and Au recoveries to the Cu concentrate were 50% and 60%, respectively, with the Cu concentrate assaying 216 g/t Ag and 6.5 g/t Au. A separate Zn concentrate grading 54% Zn had Zn recovery of 76%. The primary grind size for the locked cycle test for the UWZ composite was 100 microns K80; the regrind size was 12 microns K80 for the Cu circuit and 14 microns K80 for the Zn circuit.

The Cu and Ag head grades of the UWZ composite, as shown in Table 1, are comparable to the grades of the inferred portion of the 2011 Resource for the UWZ, but lower than the indicated portion of the 2011 Resource. The Zn head grade of the composite is slightly lower (approximately 15% lower) than the grades of the indicated and inferred 2011 Resource.

Lens 2 composite:

In the second of two locked cycle tests on the Lens 2 composite, a Zn recovery of over 85% was achieved to a Zn concentrate grading 55%. Copper and Pb were recovered 56% and 59%, respectively, to a bulk Cu-Pb concentrate grading 12% Cu and 15% Pb. Approximately 34% of the Ag and 39% of the Au was recovered to the bulk concentrate, which assayed 332 g/t Ag and 5.3 g/t Au. The primary grind size for the second locked cycle test for the Lens 2 composite was 73 microns K80 and the regrind size was 16 microns K80.

The Cu and Zn head grades of the Lens 2 composite, as shown in Table 1, are comparable to the grades of the indicated and inferred 2011 Resource for Lens 2, whereas the Ag grade is lower (approximately 40% lower). Neither Au, nor Pb, were estimated in the 2011 Resource, so no direct comparisons can be made between the Au or Pb head grades in the Lens 2 composite and the grades in the 2011 Resource.

Bond Work Indices

Bond ball mill work indices for the composite samples ranged from 11.6 kWh/tonne for Lens 2 to 16.1 kWh/tonne for the CSZ. Bond rod mill work indices for the composite samples ranged from 12.7 kWh/tonne for Lens 2 to 17.0 kWh/tonne for the CSZ. This data suggests mineralization is of moderate hardness from a rod and ball milling perspective.

Looking Ahead

Further Testwork is anticipated to focus on optimization of these initial results, as well as encompass a greater degree of variability in sampling and testing. In addition, Foran plans to engage a concentrate marketing consultant to review all results and provide initial economic parameters for concentrate sale and tariffs for the Company's planned Preliminary Economic Assessment at McIlvenna Bay.

Laboratory & Qualified Person

The Testwork was conducted by G&T Metallurgical Services Ltd. ("G&T") of Kamloops, BC, Canada. G& T, an ISO 9001:2008 certified laboratory, is wholly owned by ALS Canada Ltd. and independent of Foran.

The Qualified Person within the meaning of National Instrument 43-101 for the Testwork is Mr. Ken Major, P.Eng. Mr. Major is a Consulting Metallurgist and is independent of Foran. Mr. Major has read and approved the technical disclosure relating to the Testwork in this release.

The in-house qualified person for drilling on the Deposit and the selection of samples for Testwork is Mr. Roger March, Vice President Project Exploration for Foran.

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 Project is located in east central Saskatchewan, 65 kilometres west of Flin Flon, Manitoba and contains the McIlvenna Bay deposit, one of the largest undeveloped volcanogenic massive sulphide ("VMS") deposits in Canada.

For additional information 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 laws.

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 Corporation
    Patrick Soares, President & CEO
    409 Granville Street, Suite 904
    Vancouver, BC, Canada, V6C 1T2
    416-847-7310

    Foran Mining Corporation
    Fiona Childe, VP, Corporate Development
    120 Adelaide Street West, Suite 2500
    Toronto, ON, Canada, M5H 1T1
    416-847-7310
    ir@foranmining.com