Foran Mining Corporation
TSX VENTURE : FOM

Foran Mining Corporation

July 09, 2012 09:00 ET

Foran Completes Regional Drill Program at McIlvenna Bay and Bigstone Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2012) - Foran Mining Corporation (TSX VENTURE:FOM) ("Foran" or the "Company") is pleased to announce the results of a spring 2012 regional drill program (the "Regional Program") on its 100% owned McIlvenna Bay and Bigstone properties.

The Regional Program consisted of a total of eight diamond drill holes (2,387 metres), with four holes drilled on each of the two properties. The Regional Program was designed as an initial test of the numerous electromagnetic conductors identified from the interpretation of a helicopter-borne, versatile time domain magnetic and electromagnetic ("VTEM") survey completed by Foran in fall 2011 (see Foran news release dated November 23, 2011).

Results for the Regional Program were positive, with sulphide conductors intersected on both properties. Pyrrhotite-dominant volcanogenic massive sulphide ("VMS") style mineralization and associated alteration was encountered, with minor amounts of base metal sulphides and locally elevated concentrations of zinc, copper, and gold (Tables 1 to 4).

Patrick Soares, President and CEO of Foran commented: "Encountering VMS-style mineralization and alteration in this limited initial test of conductors is very encouraging. The Regional Program was both a technical success and an endorsement of these methods towards the discovery of new zones of VMS mineralization in Foran's large and highly prospective landholdings surrounding our 100% owned McIlvenna Bay VMS deposit."

The McIlvenna Bay and Bigstone properties are located in east central Saskatchewan. The 20,382 hectare ("ha") McIlvenna Bay property, which hosts Foran's McIlvenna Bay deposit, is located 65 kilometres ("km") west of Flin Flon, Manitoba. The 11,126 ha Bigstone property is located a further 25 km to the west. Past exploration by previous operators on the Bigstone property has outlined zones of both copper- and zinc-rich VMS mineralization, including a 2002 historic mineral resource at the Bigstone deposit.

The Regional Program was conducted between April 9, and May 5, 2012, following the successful completion of a winter 2012 drill program on the McIlvenna Bay deposit (see Foran news release dated June 4, 2012). The Regional Program was helicopter-supported due to unseasonably warm weather though the winter and spring.

Drill Results

McIlvenna Bay Property

Four holes (1,211 metres) were drilled to test VTEM conductors on the McIlvenna Bay property; the holes were collared 1 to 7 km away from Foran's McIlvenna Bay deposit (Figure 1).

To view Figure 1: Location of Regional Program drill holes, please visit the following link: http://media3.marketwire.com/docs/FOMF1.pdf.

Drill holes MR-12-01 and -02 targeted stratigraphically discordant VTEM conductors up to 2 km east and southeast of the McIlvenna Bay deposit, within interpreted hangingwall stratigraphy. Both holes intersected iron sulphide-bearing iron formation and felsic tuffs with trace amounts of sphalerite and chalcopyrite. No significant assay results were obtained (Table 1).

Drill holes MR-12-03 and -04 targeted north-trending conductors with coincident magnetic highs. The holes were collared 830 metres apart and approximately 7 km southwest of the McIlvenna Bay deposit. Volcanic stratigraphy intersected in both holes appears to be upright, west facing and bimodal-pyroclastic in character. Intervals of iron sulphide-mineralized carbonaceous mudstone, siliceous exhalite and attendant silica-carbonate-amphibole+/-magnetite alteration were intersected in both drill holes. Sulphide mineralization consists principally of banded and brecciated pyrrhotite with local semi-massive (up to 35%) sulphide. These intervals contained lesser amounts of pyrite, with trace amounts of sphalerite and chalcopyrite. Locally elevated gold concentrations in the sulphide zones ranged up to 870 ppb Au (0.87 g/t Au) over 0.73 metres in MR-12-03, within a broader interval averaging 236 ppb Au (0.24 g/t Au) over 8.17 metres (Table 1).

Table 1. Regional Program Drill Results - McIlvenna Bay Property Assay Results
Hole ID From
(m)
To
(m)
Interval1
(m)
Zn1
(%)
Cu1
(%)
Ag1
(g/t)
Au1
(ppb)
MR-12-01 No Significant Assays
MR-12-02 No Significant Assays
MR-12-03 175.00 178.47 3.47 0.30 0.14 2.0 92
& 202.88 211.05 8.17 0.13 0.07 1.5 236
Incl. 202.88 203.81 0.73 0.19 0.06 3.2 870
& 212.67 215.71 3.04 0.23 0.09 1.2 43
MR-12-04 151.04 153.04 2.00 0.20 0.10 1.7 60
1 downhole distance, true thickness unknown, Zn = zinc, Cu = copper, Ag = silver, Au = gold
Table 2. Regional Program Drill Results - McIlvenna Bay Property Drill Hole Data
Hole ID UTM Zone 13 NAD 83
East
UTM Zone 13 NAD 83
North
Azimuth
(True North)
Dip
(°)
Length
(m)
MR-12-01 643679 6055355 273 -75 441
MR-12-02 641934 6056431 265 -60 267
MR-12-03 634851 6051824 77 -60 269
MR-12-04 635684 6051785 86 -60 234
Total 1,211

Bigstone Property

Drilling on the Bigstone property consisted of four holes (1,176 metres) targeting three north-south oriented VTEM conductor trends in the northern part of the property. This target area was previously tested in the 1970's and 1980's by predecessor companies and referred to historically as the Freeport Zone.

Regional Program drilling intersected iron sulphide-rich mineralized horizons in three of the four holes drilled, all of which contained traces amounts of sphalerite and chalcopyrite. Sulphide host rocks are felsic volcanic, within intermediate to mafic dominated volcanic stratigraphy.

Drill hole BG-12-01 tested the westernmost conductor trend. No significant base metal sulphide mineralization was noted in this hole, which ended in granite at a downhole depth of 324 metres.

Approximately 170 metres northeast of BG-12-01, drill holes BG-12-02 and BG-12-03 were drilled from a common collar location. These holes intersected several massive pyrrhotite-dominant sulphide horizons, each approximately 1 metre in downhole thickness, within an overall iron sulphide-mineralized felsic volcanic package ranging from 12 to 23 metres true thickness. In holes BG-12-02 and BG-12-03, iron sulphide mineralization began at downhole depths of 158.82 metres and 216.79 metres, respectively, and contained trace to 1% sphalerite-chalcopyrite within massive, semi-massive and finely laminated to disseminated pyrrhotite and lesser pyrite. Massive sulphides occur as a fine- to medium-grained matrix to rounded and sub-rounded felsic volcanic clasts. Footwall alteration to this zone is moderate intensity fracture- and foliation-controlled black chlorite.

Drill hole BG-12-04 intersected approximately 2 metres of semi-massive to massive iron sulphide starting at a downhole depth of 198.9 metres. Rounded felsic volcanic clasts occur in massive pyrrhotite with lesser pyrite and trace to 1% sphalerite-chalcopyrite.

Past exploration by previous operators on the Bigstone property has outlined zones of both copper- and zinc-rich VMS mineralization. In 2002, Aur Resources Inc. outlined a mineral resource at the Bigstone deposit in the southern part of the property, with 1.45 million tonnes grading 2.90% Cu in a copper-rich zone and 308,000 tonnes grading 11.2% Zn in a separate zinc-rich zone. The Bigstone deposit mineral resource is historic and the Company is not treating it as current; Foran has not done sufficient work to classify it as a current resource estimate. A program of drill hole re-surveying, re-logging and drill core QAQC is required to qualify the historic resource and identify areas for expansion through exploration drilling. The Bigstone property is subject to a back-in held by Teck Resources Ltd.

Table 3. Regional Program Drill Results - Bigstone Property Assay Results
Hole ID From
(m)
To
(m)
Interval1
(m)
Zn1
(%)
Cu1
(%)
Ag1
(g/t)
Au1
(ppb)
BG-12-01 No Significant Assays
BG-12-02 158.82 159.49 0.67 0.40 0.09 2.9 130
BG-12-02 185.44 186.50 1.06 0.24 0.05 1.9 20
BG-12-03 216.79 220.08 3.29 0.17 0.05 1.7 19
BG-12-03 238.81 240.06 1.25 0.15 0.06 1.8 40
BG-12-04 198.90 199.67 0.77 0.12 0.09 1.2 20
BG-12-04 200.55 201.53 0.98 0.23 0.09 1.9 10
1 downhole distance, true thickness unknown, Zn = zinc, Cu = copper, Ag = silver, Au = gold
Table 4. Regional Program Drill Results - Bigstone Property Drill Hole Data
Hole ID UTM Zone 13 NAD 83
East
UTM Zone 13 NAD 83
North
Azimuth
(True North)
Dip
(°)
Length
(m)
BG-12-01 614025 6058665 292 -60 324
BG-12-02 614073 6058824 69 -60 279
BG-12-03 614073 6058824 68 -69 315
BG-12-04 614363 6058073 269 -61 258
Total 1,176

Quality Assurance and Quality Control

Drilling was completed using NQ size diamond drill core. Core was logged by employees of the Company. During the logging process mineralized intersections were marked for sampling and given unique sample numbers. Sampled intervals were sawn in half using a diamond blade saw. One half of the sawn core was placed in a plastic bag with the sample tag and sealed, while the second half was returned to the core box for storage on site. Sample assays are performed by TSL Laboratories Ltd. ("TSL") in Saskatoon, Saskatchewan. TSL is a CAN-P-1579, CAN-P-4E (ISO/IEC 17025:2005) accredited laboratory and independent of Foran. Analysis for Ag, Cu, and Zn is performed using atomic absorption spectrometry ("AA") after multi-acid digestion. Au analysis is completed by fire assay with AA finish. A complete suite of QA/QC reference materials (standards, blanks and pulp and/or field duplicates) are included in each batch of samples processed by the laboratory. The results of the assaying of the QA/QC material included in each batch are tracked to ensure the integrity of the assay data.

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, 65 kilometres west of Flin Flon, Manitoba and contains the McIlvenna Bay deposit, one of the largest undeveloped volcanogenic massive sulphide deposits in Canada.

For additional information on the McIlvenna Bay deposit, 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.

Dave Fleming, P.Geo., VP Exploration for Foran and a Qualified Person within the meaning of National Instrument 43-101 supervised the Regional Program and has approved the technical information in this release.

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.

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