TORONTO, ONTARIO--(Marketwire - June 12, 2012) - Forsys Metals Corp. ("Forsys" or the "Company") (TSX:FSY)(FRANKFURT:F2T)(NAMIBIAN:FSY) is pleased to announce further positive drilling results from its 100% owned Namibplaas Exclusive Prospecting Licence No 3638 ("EPL 3638"), located 7 kilometres northeast of the Company's fully permitted and 100% owned Valencia Mining Licence No 149 ("Valencia") in Namibia, Africa.
As part of the second phase drilling program the Company has completed 214 additional percussion holes. From commencement of the exploration program in 2008, the Company has completed a total of 33 diamond drill holes and 502 percussion drill holes; for a total of 113,576 metres (8,527 metres of diamond drilling and 105,049 metres of percussion drilling). An additional 4,000 metres across 20 drill holes is scheduled to be completed during June 2012 and will bring the Phase 2 drill program to a close. The Company remains on schedule to release an updated compliant NI 43-101 Technical Report for Namibplaas in the third quarter of 2012.
Marcel Hilmer, CEO and Director, commented, "We are very pleased that the Phase 2 drilling program at Namibplaas which began in October 2011 has again proven extensive mineralization with significant intersections of 200 ppm eU3O8 or higher in many of the recently drilled holes. We anticipate that this drill program will increase the overall project resource, as well as upgrade the category, and overall grade at Namibplaas. The continued positive results received from the Namibplaas drilling program have reinforced our confidence that ultimately we will be able to consolidate Namibplaas with Valencia into an expanded combined project."
| Highlights of recent assay results from Phase 2 Percussion Drilling at Namibplaas | |||||
| Hole | From (m) | To (m) | Interval (m) | Grade (ppm eU3O8) | |
| NAPD-337 | 167.4 | 172.4 | 5.0 | 230 | |
| 226.6 | 235.6 | 9.0 | 215 | ||
| NAPD-339 | 190.6 | 194.7 | 4.1 | 230 | |
| NAPD-340 | 188.0 | 194.6 | 6.6 | 236 | |
| NAPD-342 | 83.1 | 86.4 | 3.3 | 677 | |
| NAPD-345 | 30.5 | 44.9 | 14.4 | 346 | |
| 76.8 | 83.3 | 6.5 | 213 | ||
| 90.9 | 111.2 | 20.3 | 263 | ||
| 114.0 | 125.6 | 11.6 | 264 | ||
| 293.0 | 297.2 | 4.2 | 235 | ||
| NAPD-347 | 45.0 | 50.4 | 5.4 | 236 | |
| NAPD-348 | 48.2 | 54.1 | 5.9 | 260 | |
| NAPD-350 | 106.1 | 111.5 | 5.4 | 305 | |
| NAPD-353 | 35.0 | 40.0 | 5.0 | 229 | |
| NAPD-355 | 110.9 | 113.3 | 2.4 | 743 | |
| 180.5 | 184.7 | 4.2 | 225 | ||
| NAPD-356 | 126.3 | 129.9 | 3.6 | 232 | |
| 159.4 | 167.1 | 7.7 | 267 | ||
| NAPD-358 | 55.0 | 58.0 | 3.0 | 249 | |
| NAPD-360 | 29.7 | 37.8 | 8.1 | 232 | |
| 48.6 | 52.8 | 4.2 | 341 | ||
| NAPD-363 | 44.9 | 52.6 | 7.7 | 346 | |
| 226.9 | 231.8 | 4.9 | 245 | ||
| 237.7 | 244.2 | 6.5 | 224 | ||
| 245.7 | 248.3 | 2.6 | 267 | ||
| NAPD-364 | 98.1 | 110.4 | 12.3 | 308 | |
| NAPD-366 | 79.4 | 84.1 | 4.7 | 259 | |
| 117.3 | 123.1 | 5.8 | 226 | ||
| NAPD-367 | 37.2 | 39.7 | 2.5 | 315 | |
| 347.1 | 355.4 | 8.3 | 232 | ||
| NAPD-369 | 107.2 | 117.6 | 10.4 | 292 | |
| 119.5 | 124.4 | 4.9 | 296 | ||
| NAPD-373 | 8.9 | 13.4 | 4.5 | 312 | |
| NAPD-373 | 152.0 | 155.2 | 3.2 | 248 | |
| NAPD-374 | 79.4 | 88.3 | 8.9 | 598 | |
| NAPD-375 | 73.9 | 77.8 | 3.9 | 252 | |
| 247.0 | 253.7 | 6.7 | 222 | ||
| NAPD-376 | 90.4 | 108.4 | 17.9 | 332 |
| NAPD-381 | 89.4 | 96.2 | 6.8 | 284 | |
| NAPD-385 | 183.7 | 186.7 | 3.0 | 232 | |
| 188.2 | 191.8 | 3.6 | 224 | ||
| NAPD-386 | 154.8 | 169.3 | 14.5 | 209 | |
| NAPD-387 | 91.1 | 99.4 | 8.3 | 224 | |
| 106.7 | 111.8 | 5.1 | 223 | ||
| 129.4 | 134.7 | 5.3 | 291 | ||
| 152.2 | 161.9 | 9.7 | 251 | ||
| NAPD-389 | 51.6 | 59.9 | 8.3 | 451 | |
| 76.7 | 80.8 | 4.1 | 240 | ||
| NAPD-391 | 71.5 | 79.5 | 8.0 | 242 | |
| NAPD-394 | 60.0 | 69.8 | 9.8 | 242 | |
| 79.7 | 85.5 | 5.8 | 327 | ||
| 88.5 | 97.7 | 9.2 | 215 | ||
| 102.5 | 115.4 | 12.9 | 252 | ||
| 136.1 | 140.3 | 4.2 | 482 | ||
| 166.1 | 173.2 | 7.1 | 299 | ||
| NAPD-398 | 156.6 | 161.6 | 5.0 | 239 | |
| NAPD-399 | 76.4 | 82.0 | 5.6 | 275 | |
| NAPD-401 | 62.7 | 68.8 | 6.1 | 246 | |
| NAPD-404 | 99.3 | 103.3 | 4.0 | 487 | |
| NAPD-405 | 72.8 | 82.0 | 9.2 | 330 | |
| NAPD-415 | 45.3 | 49.2 | 3.9 | 217 | |
| NAPD-416 | 145.4 | 151.3 | 5.9 | 236 | |
| NAPD-421 | 165.1 | 174.8 | 9.7 | 262 | |
| 204.8 | 212.9 | 8.1 | 221 | ||
| 284.3 | 289.0 | 4.7 | 285 | ||
| NAPD-426 | 41.2 | 46.1 | 4.9 | 201 | |
| 78.0 | 82.7 | 4.7 | 527 | ||
| NAPD-429 | 150.8 | 156.0 | 5.2 | 249 | |
| NAPD-433 | 43.1 | 49.5 | 6.4 | 246 | |
| 56.1 | 69.7 | 13.6 | 305 | ||
| NAPD-434 | 99.5 | 111.6 | 12.1 | 284 | |
| 115.9 | 122.7 | 6.8 | 328 | ||
| NAPD-437 | 72.4 | 94.3 | 21.9 | 254 | |
| 102.8 | 117.0 | 14.2 | 252 | ||
| 120.4 | 127.8 | 7.4 | 311 | ||
| NAPD-438 | 36.9 | 49.9 | 13.0 | 276 | |
| NAPD-441 | 18.1 | 24.9 | 6.8 | 303 |
All reported grades are determined from downhole gamma probing with calibrated probes, which are checked on a daily basis from an internal reference gamma source. As a further QAQC measure, the probes' performances are confirmed on a weekly basis with a complete survey of a historical deep reference borehole with chemical assay results as a cross-reference. As a result, grades are reported as equivalent U3O8 grades (eU3O8).
There are four (4) drill rigs currently operating on site with approximately 42,000 meters completed in 214 holes, or 93% of the planned 45,000 metre program. The drill program is on schedule and within forecast. Geological sections are used to determine the anticipated stopeing depth of each hole as determined by the interpreted geological cross sections in order to avoid drilling in unproductive, barren lithological units. Lithological units and mineralization continuity between boreholes and created sections are encouraging and consistent as determined from created geological sections across boreholes.
Figure 1 below details all percussion drill hole locations. The current drilling program is on a 40 x 40 metre grid on the surface magnetic anomaly as depicted on the figure. Higher-grade eU3O8 values tend to correspond with the high magnetic values shown in the violet area, trending northeast to southwest. This 40 x 40 metre grid was calculated from the maiden Namibplaas Inferred Resource Estimate that was published on September 15, 2011, after the data was geo-statistically analysed and semi-variograms calculated. The continuity of the lithological units and mineralization will fall within this 40 x 40 metre grid and thus enable upgrading of the resource from inferred to indicated. The deposits at Namibplaas and Valencia consist of leuco granite sheets, locally known as alaskites, which have intruded the surrounded country rock and have formed lenses that open and close depending on the characteristics of the host country rocks.
To view Figure 1 - Namibplaas Drill Hole Location Map - please visit the following link: http://media3.marketwire.com/docs/forsysmap0612.pdf.
2012 Namibplaas Drilling Program and Consolidation Strategy
The Company is on schedule to complete the current drilling program by the end of June 2012 and deliver an updated compliant NI 43-101 Technical Report for Namibplaas in the third quarter of 2012. The Company has already published a NI 43-101 compliant maiden resource report on September 15, 2011 for Namibplaas, as well as a NI 43-101 compliant technical reserve report for Valencia. Both reports can be found on the Company's website.
The Company continues to develop the preliminary design of an expanded consolidated project (based on an internally generated resource estimate) that could produce annually up to 6.0M lbs of U3O8 from the consolidated Valencia and Namibplaas deposits. Preliminary pit designs and mining schedules are expected to confirm the potential of a consolidated operation. It should be noted that the potential quantities, grades and other technical parameters in reference to the consolidation of the Valencia and Namibplaas deposits are at this stage conceptual in nature only.
About the Namibplaas Uranium Project
Forsys owns 100% of Dunefield Mining Company (Pty) Limited which holds the Namibplaas EPL 3638 and covers a total surface area of 1,742ha on the farm "Namibplaas 93". Situated 7 kilometres northeast of Valencia, Namibplaas is accessible by way of a newly constructed industrial grade road from the B2 highway to Valencia and from there by a trail suitable for 4x4 vehicles.
EPL 3638 is in good standing and all reporting and environmental requirements are up to date. There are no encumbrances existing on the licence and no royalties are payable. There are also no liabilities for any environmental taxes at this stage of exploration. A baseline Environmental Impact Assessment and Environmental Management Plan was carried out by Colin Christian, Independent Consultant, during October 2008 and approved by the Ministry of Environment and Tourism on December 11, 2008. Metallurgical work has been intensified to ensure that process parameters are consistent with Valencia extraction conditions and pit slope design work has begun.
Additional information, including a comprehensive list of all significant assay results and individual detailed drill hole location maps for each of the diamond and percussion drill holes can be found on the Company website at www.forsysmetals.com. The detailed Namibplaas project history together with previous news releases detailing drill results, are also available for download from the Company's website. For further information please refer to the Company's Annual Information Form, dated March 29, 2012, filed on the Company's profile at www.sedar.com.
NI 43-101 and Qualified Person
Mr. Johan de Bruin, MEng, Pr. Sci. Nat., Chief Geologist for Forsys Metals Corp., is the designated Qualified Person responsible for the Company's exploration programs. Mr. de Bruin has verified the geological database that included review of geological description and interpretation, assays, and acquisition of radiometric data. Mr. de Bruin is familiar with the methods for quality assurance and quality control specifically applicable to uranium. Mr. de Bruin has sufficient experience that is relevant to the style and mineralization, type of deposit and the use of radiometrics in resource estimates as well as to the activity he is undertaking to qualify as a qualified person under NI 43-101. Equivalent U3O8 at Namibplaas has been calculated using the correlation established by Mr. de Bruin at Namibplaas; that correlation is almost identical to the one already calculated at Valencia.
About Forsys Metals Corp.
Forsys Metals Corp. is an emerging uranium producer with 100% ownership of the fully permitted Valencia uranium project and the Namibplaas uranium project in Namibia, Africa a politically stable and mining friendly jurisdiction. Information regarding current National Instrument 43-101 compliant resource and or reserves at Valencia and Namibplaas are available on our website.
On behalf of the Board of Directors of Forsys Metals Corp.
Marcel Hilmer, Chief Executive Officer
Sedar Profile #00008536
12-4
Forward-Looking Information
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. The following are important factors that could cause Forsys actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in uranium prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology; continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full description of these risks can be found in Forsys Annual Information Form, dated March 29, 2012, available on the Company's profile on the SEDAR website at www.sedar.com. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Shares Outstanding: 109,875,422
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact Information:
Marcel Hilmer
Chief Executive Officer
+61 417 177 942
mhilmer@forsysmetals.com
www.forsysmetals.com
TMX Equicom
Nisha Hasan
+1 416-815-0700 Ext 258
nhasan@equicomgroup.com