VANCOUVER, BC--(Marketwired - February 21, 2017) - Foran Mining Corporation (TSX VENTURE: FOM) ("Foran" or the "Company") announces the first of its 2017 budgeted field programs designed to advance exploration targets and deposits on its Saskatchewan properties.
"Extensive modelling of geophysical data in combination with revised geology and detailed lithogeochemistry at Target A continues to present a compelling exploration opportunity for the discovery of a new massive sulphide body proximal to the McIlvenna Bay deposit", said Patrick Soares President and CEO of Foran Mining. "Management and the Board have weighed the risks of drilling against the possible missed opportunity of making another new discovery on the property and have decided it is worth the risk," Mr. Soares concluded.
Deep penetrating pulse electromagnetic (DPEM) geophysics has led to the discovery of many "blind" massive sulphide deposits, most notably Hudbay Minerals Lalor deposit in the Flin Flon-Snow Lake belt. A 2013 DPEM surface survey on Foran's Hanson Lake project has resulted in the discovery of high-grade copper-zinc massive sulphide at Balsam (Thunder Zone) and identified a significant EM conductor target at depth near Foran's large McIlvenna Bay deposit with similar size and strength as at McIlvenna Bay.
Summary and Update: Exploration at Hanson Lake Properties
- A DPEM surface survey was completed in 2013 covering the 10 kilometre trend from the McIlvenna Bay deposit southeast to the Balsam deposit.
- Survey identifies three high priority sub-surface EM conductors, one associated with the McIlvenna Bay deposit, one at Target A and immediately northwest of Balsam (Figure 1).
- 2013 drilling at Balsam leads to a new massive sulfide discovery: 4.1% Cu and 0.43g/t gold over 3.7 metres. Drilling in 2015 extends this initial discovery, now termed the Thunder Zone. The Thunder zone remains open down-plunge to the northwest for further expansion.
- The 2013 DPEM survey also outlines a large EM conductor at depth located 1.5 kilometres southeast of McIlvenna Bay at Target A. This anomaly is similar in size and strength to the EM conductor associated with the McIlvenna Bay deposit.
- 2014 drilling tested the axial trace of the 1.2 kilometre long Target A conductor with a single deep hole collared central to the anomaly. Drill hole MR-14-08 is interpreted to have passed over the top of the source conductor.
- A 2014 borehole EM survey completed on MR-14-08 detects a strong late-time EM conductor response below the hole at 1200 metres. A felsic intrusive intersected from 1185-1233 metres downhole suggests the EM conductor horizon was "dyked out".
- 2016 EM modelling and reinterpretation of geology place the Target A conductor stratigraphically higher than the McIlvenna Bay deposit within a chemically similar sequence of basin fill volcaniclastics.
- For 2017 a second hole is planned to test the Target A EM conductor. The 2017 drill hole will be collared approximately 200 metres behind and 200 metres southeast of MR-14-08.
- Drilling to commence in early March 2017
Borehole EM Geophysics
Borehole EM surveying will be conducted upon completion of 2017 Target A drilling. In addition, hole MR-14-08 and all proximal exploration drill holes will be re-surveyed with borehole EM.
About Foran Mining
Foran is a copper-zinc exploration and development company with projects in the Flin Flon Greenstone Belt. McIlvenna Bay, Foran's flagship deposit, is located in east-central Saskatchewan, 65 kilometres west of Flin Flon, Manitoba and is one of the largest undeveloped VMS deposits in Canada.
On November 12, 2014, Foran announced a positive preliminary economic assessment ("PEA") for McIlvenna Bay, with an estimated pre-tax NPV7% of $382M ($263M after-tax) & 22% IRR (19% after-tax). See below and Foran's news releases from November 12 and December 22, 2014 for important disclosures with respect to the McIlvenna Bay PEA.
The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized.
As of February 13, 2017 Foran had a treasury of $1.6 million in cash and cash equivalents.
David Fleming, VP Exploration for Foran and a Qualified Person within the meaning of National Instrument 43-101, has reviewed and approved the technical information in this release.
Foran trades on the TSX.V under the symbol "FOM".
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward Looking Statements
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Foran's objectives, goals or future plans, statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Foran's public documents filed on SEDAR. Although Foran believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Foran disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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