Forsys Metals Corp

Forsys Metals Corp

November 02, 2005 09:00 ET

Forsys Announces Completion of National Instrument 43-101 Report on the Valencia Uranium Property

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2005) - Forsys Metals Corp (the "Company") (TSX VENTURE:FSY) is pleased to announce that Snowden Mining Industry Consultants ("Snowden") has completed a National Instrument 43-101 compliant technical report (the "Report") on the Valencia Uranium Property located in central Namibia, Africa and the TSX Venture Exchange has accepted the Report for filing. The Report has been filed on the SEDAR website ( on November 1, 2005 and is available for viewing.

The Valencia Uranium Property ("Valencia Property") is located approximately 35 km east of Rio Tinto Group's large open pit Rossing Uranium Mine which currently accounts for 6% of world uranium production. The report prepared by Mr. Graham Greenway of Snowden, updates the 1981 Valencia resource previously estimated by Gold Fields of South Africa Limited.
The Report concludes that "Snowden considers that the Valencia Property represents an advanced stage project which has potential for development as a profitable open-pit mining operation."

The Report has estimated an Inferred Mineral Resource of 32 million tonnes at an average grade of 0.22 kg/t U3O8 using a cut-off grade of 0.17 kg/t U3O8. The cut-off grade used is believed to be comparable with that used at the Rossing Uranium Mine, whose geological setting and alaskitic host to mineralisation is essentially the same as the Valencia Property. The Report's estimate compares with the historical resource estimate of 42.7 million tonnes at 0.214 kg/t U3O8 using a cut-off grade of 0.10 kg/t U3O8 as calculated by the Gold Fields of South Africa feasibility study at Valencia Property (after Bassett/Gregson, 1989) announced in the Company's news release dated July 6, 2005.

The tonnage in the Report's estimate is the result of the application of a higher cut-off grade, which has had the effect of excluding portions of the deposit from the resource estimate. In this context the table below illustrates the potential of the overall mineral resource at various U3O8 cut-off grades:

Cut-off Tonnes Grade Calculated Pounds
(U3O8 kg/t) (millions) (kg/t) (%) U3O8
--------------- ---------- ------------------- --------- ------------
0.10 117 0.16 0.016 41.1 million
0.15 49 0.20 0.020 21.6 million
0.17 32 0.22 0.022 15.5 million
0.20 18 0.25 0.025 9.9 million

In the Company's view, the range in tonnage/grade estimates illustrates the significant upside potential of the resource. This is echoed by Mr. Greenway who notes in the Report that the tendered drilling program "may also prove capable of adding to the existing resource estimate."

The resource estimate involved statistical and geostatistical analyses of the data and an ordinary kriged interpolation of 5-meter composited drillhole uranium sample intervals into a three-dimensional block model. Snowden considers this estimation technique to be more reliable than the polygonal and indicator kriging techniques used for the historical resource estimates at Valencia.

The Company's news release dated October 3, 2005 stated that Greenway had, for purposes of assay verification, submitted 116 drill core samples to ALS-Chemex in Johannesburg, South Africa for fusion analysis. In the report, Greenway states that "the bias of the check samples requires investigation by further check sampling, use of different analytical techniques, or use of an alternative laboratory, and twin drilling so that fresh samples can be obtained." Greenway further states that "once satisfactory results are received, it will prove possible to categorise a substantial proportion of the resource as Indicated. Any remaining portion of the resource should subsequently prove capable of addition to the Indicated Resource on completion of a limited infill drilling program, which has already been put out to tender."

Duane Parnham, the Chairman & CEO of the Company states that "Given the positive outcome of the Snowden technical report, strong uranium market fundamentals and the fact that Valencia represents one of the more advanced staged uranium projects located in a country with a long history of uranium mining, management will immediately proceed with pre-feasibility studies including infill drilling, bulk sampling and metallurgical test work upon the completion of the acquisition of the Valencia Uranium Property." Additionally several proximal exploration targets have been identified of which management believes have potential to add further resources to the project. These targets will be evaluated during the pre-feasibility study.

The Company's Exploration Manager, Rick Bonner, P.Geol, is the designated qualified person as defined by National Instrument 43-101.

Further to the Company's news release dated July 6, 2005, the Company has received TSX Venture Exchange approval for the acquisition of the all of the issued and outstanding shares of Namibian Metals Ltd. from Vestment Securities Ltd. ("Vestment") pursuant to a share exchange agreement dated August 9, 2005 (the "Share Exchange Agreement"). The Company and Vestment have agreed to amend the terms of the letter of intent dated July 5, 2005 and the Share Exchange Agreement whereby the Company will issue to Vestment an aggregate of 5,000,000 common shares and 3,000,000 common share purchase warrants on closing. For complete details of the acquisition please refer to the Company's press release dated July 6, 2005.

Forsys Metals Corp. is an innovative exploration company in the business of advancing high value advanced stage projects in Namibia, Africa.

Shares Outstanding: 36,322,788

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

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