Forsys Metals Corp
TSX : FSY
FRANKFURT : F2T

Forsys Metals Corp

November 08, 2010 16:44 ET

Forsys Announces Initial Results From Its 2010 Namibplaas Drilling Program

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2010) - Forsys Metals Corp ("Forsys" or the "Company") (TSX:FSY)(FRANKFURT:F2T)(NSX:FSY) is pleased to announce initial results from its 2010 Namibplaas drilling program from the first 17 percussion drill and 13 (9 complete and 4 in progress) diamond drill holes. The Company's Namibplaas licence, Exclusive Prospecting Licence (EPL) 3638, is located 6 km northeast of the Company's wholly-owned and fully permitted Valencia Mining Licence (ML 149) in Namibia, Africa. Eleven of these holes encountered significant intersections of greater than 200 ppm U3O8 with the best intersection being 13.3 meters of 583 ppm U3O8.

This 2010 Namibplaas drilling program was initiated based on the target-defining radiometric survey conducted in 2008 and the results of an initial 17 vertical hole percussion drilling program completed in two stages, in late 2008 and late 2009, as well as historic logs with assays in early 2010.

Highlights of 2010 Diamond Drilling at Namibplaas in Area B
 
Hole From To Interval Grade
  (m) (m) (m) (ppm U308)
NA24-008 46.7 54.2 7.5 230
  65.4 94.0 27.3 204
NA24-009 73.3 79.3 6.0 262
NA24-011 47.3 58.3 11.0 202
NA24-012 166.4 174.9 8.5 229
NA24-013 87.0 90.3 3.3 224
 
 
Highlights of 2010 Percussion Drilling at Namibplaas in Area B
 
Hole From To Interval Grade
  (m) (m) (m) (ppm eU308)
NAPD-019 32.9 35.7 2.8 259
  57.9 63.4 5.5 199
NAPD-020 120.6 128.6 8.0 217
NAPD-021 55.5 63.5 8.0 469
NAPD-022 55.1 59.0 3.9 229
NAPD-025 107.4 122.0 14.6 238
NAPD-028 124.7 134.5 9.8 275
  147.7 151.4 3.7 255
NAPD-030 73.0 83.1 10.1 222
  101.9 106.5 4.6 226
NAPD-031 110.0 152.6 42.6 356
Including 136.8 150.1 13.3 583
NAPD-032 55.6 66.1 10.5 161
  106.8 125.5 18.7 228
  163.5 158.2 4.7 295

A comprehensive list of significant assay results is contained in Table 1, appended to this news release. Diamond holes NA24-010 and NA24-014 had to be abandoned before mineralization depth (46 m and 100 m deep only).

The surface geology in Area B (see Figure 1) is very similar to that of the Valencia deposit with uranium mineralization associated post D3 deformation anatectic alaskite intruding the Chuos and Rössing Formations. The alaskite is moderately to highly radioactive on surface with yellow minerals observed throughout the area.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/fsy1108fig.pdf.

Based on the radiometric signature, Area B is comparable in size to the Valencia deposit. As the intensity of scintillometer readings was similar, the Company drilled 17 vertical percussion drill holes in the most readily accessible southern part of the anomaly at the end of 2008 and end of 2009. These holes were drilled around historic drill holes NA24-001 to NA24-003 (please see Figure 2). Significant assay results from this earlier program are contained in Table 2 appended to this news release.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/fsy1108fig2.pdf.

Early in 2010, the Company also located logs and assays from the 7 inclined diamond drill holes drilled in Area B by Goldfields Mining and Development Limited ("Goldfields") in the late 1970's. Some highlights from these assays and a radiometric figure are shown in Table 3 appended to this news release.

These historical Goldfields diamond drilling results are very encouraging in that the best results so far are from NA24-005, NA24-006 and NA24-007, which are remote from the 2008-2009 percussion drilling program. The mineralization encountered in NA24-007, which is approximately 1,000 m north of the area covered by the 2008-2009 percussion drilling program, confirmed the validity of the ground radiometric prospecting.

The 2010 Namibplaas Drilling Program is scheduled for completion by December 20, 2010 and includes 6,000 m of diamond drilling (up to 22 holes) to a depth of 350 m (inclined at 45 degrees) and 10,000 m to 15,000 m of percussion drilling (40 to 60 holes) to a depth of 250 m (inclined at 60 degrees). The Company remains within its US$1.5million budget to complete this phase of drilling.

Of particular note, interpretation of the geology on cross-section striking NW-SE through drill hole NA24-008, shows several leucogranite sheets (LGS) intruding the metamorphic series (Schists and Meta-arkose) in the form of sills with cross-cutting relationships. Other sections not as advanced in the drilling show similar interpretation: 3 to 4 LGS varying in thickness from a few meters up to 45 m plus. The mineralized LGS are open to the east, getting deeper under the schist and the deposit appears to be open to the north and south of the current drilling.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/fsy1108fig3.pdf.

About the Namibplaas Uranium Project

Forsys owns 70% of Dunefield Mining Company (Pty) Limited which holds the Namibplaas Uranium Project, (EPL 3638), which covers a total surface area of 1,742ha on the farm "Namibplaas 93". Situated 6 km northeast of the Valencia Uranium Project, the Namibplaas Uranium Project is accessible by way of a newly constructed industrial grade road from the B2 highway to the Valencia project site and from there by a trail suitable for 4x4 vehicles.

EPL 3638 is in good standing with all reporting and environmental requirements up to date. No encumbrances exist on the licence, no royalties are payable and there is no liability for any environmental taxes or royalties at this stage of exploration. A baseline Environmental Impact Assessment ("EIA") and Environmental Management Plan ("EMP") was carried out by Colin Christian, Independent Consultant, during October 2008 and approved by the Ministry of Environment and Tourism on December 11, 2008.

For more information of the Namibplaas Uranium Project, please refer to the Company's Annual Information Form, dated March 23, 2010, filed on the Company's profile at www.sedar.com.

NI 43-101 and Qualified Persons

Dr. Roger Laine, Ph.D., P.Geo., Chief Geologist for Forsys Metals Corp., is the designated Qualified Person ("QP") responsible for the Company's exploration programs. Dr. Laine has verified the geological database which included review of geological description and interpretation, assays, and acquisition of radiometric data. Dr. Laine is familiar with the methods for Quality Assurance and Quality Control specifically applicable to uranium. Dr. Laine has sufficient experience which 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 Dr. Laine at Valencia, which is considered a best fit until the Company has completed its own diamond drilling at Namibplaas.

About Forsys Metals Corp.

Forsys Metals Corp. is an emerging uranium producer with 100% ownership in the fully permitted Valencia Uranium Project in Namibia, Africa, a politically stable and mining friendly jurisdiction. Current NI 43-101 compliant reserves at Valencia are 60.5 Mlbs of U308 supporting a 17 year mine life and current Measured and Indicated resources are 75.5 Mlbs U308 with a further 8.4 Mlbs of Inferred U308.

On behalf of the Board of Directors of Forsys Metals Corp.

Marcel Hilmer, Chief Executive Officer

For further information visit our website at www.forsysmetals.com.

Sedar Profile #00008536

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 23, 2010, 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.

Table 1: Significant Drilling Results 2010 – Namibplaas
 
Drill Hole From To Length (m) U308ppm
NA24-008 46.7 54.2 7.5 230
  65.4 94.0 28.6 204
NA24-009 73.3 79.3 6.0 262
NA24-011 47.3 58.3 11.0 202
  95.1 104.2 9.1 126
  302.9 318.2 15.3 135
NA24-012 166.4 174.9 8.5 229
  181.3 185.6 4.3 124
  321.0 326.2 5.2 135
NA24-013 87.0 90.3 3.3 224
  137.3 149.3 12.0 136
  321.0 326.2 5.2 135
NA24-015 133.6 141.1 7.5 136
NA24-016 156.2 169.7 13.5 128
 
Drill Hole From To Length (m) eU308ppm
NAPD24-018 67.5 80.3 12.8 181
NAPD24-019 22.9 26.8 3.9 169
  32.9 35.7 2.8 259
  57.9 63.4 5.5 199
  67.6 73.0 5.4 138
  200.1 209.9 9.8 131
NAPD24-020 186.0 195.6 9.6 127
  214.4 222.0 7.6 188
NAPD24-021 40.2 51.5 11.3 144
  55.5 63.5 8.0 469
  63.7 71.1 7.4 174
  72.6 85.4 12.8 189
  97.1 104.3 7.2 145
  161.1 166.3 5.2 146
NAPD24-022 55.1 59.0 3.9 229
  90.1 99.9 9.8 142
  174.0 181.1 7.1 132
NAPD24-023 109.2 114.3 5.1 160
  134.4 141.7 7.3 149
  150.2 159.3 9.1 181
NAPD24-024 186.0 195.6 9.6 127
NAPD24-025 59.7 70.2 10.5 140
  85.7 100.1 14.4 184
  107.4 122.0 14.6 238
NAPD24-026 44.8 98.5 53.7 160
  156.0 171.2 15.2 134
NAPD24-028 80.8 98.5 17.7 125
  124.7 134.5 9.8 275
  147.7 151.4 3.7 255
NAPD24-029 107.3 115.0 7.7 129
  130.1 160.6 30.5 139
  150.2 159.3 9.1 181
NAPD24-030 19.9 25.3 5.4 148
  52.9 58.2 5.3 136
  110.0 152.6 42.6 356
includes 136.8 150.1 13.3 583
  233.1 241.0 7.9 149
NAPD24-031 46.4 76.4 30.0 125
  99.8 137.5 37.7 170
  159.5 179.2 19.7 163
NAPD24-032 55.6 66.1 10.5 161
  106.8 125.5 18.7 228
  163.5 158.2 4.7 295

Note 1: Drill holes in the series NA24-008 to NA24-016 are diamond drill holes and drill holes in the series NAPD-18 to NA24-032 are percussion drill holes

Percussion drilling results are expressed in equivalent U3O8 using the correlation between assays and counts per second calculated with the diamond drill holes of Valencia; the technique was used extensively at Valencia to calculate the resources and reserves.

Equivalent U3O8 is an industry standard for those companies familiar with the use of radiometric probing and correlation with chemical assays: diamond drill holes are sampled and assayed by recognized/accredited laboratory and the assays are compared to counts per seconds from down the hole probe results.

Table 2: Significant 2008-2009 Percussion Drilling Results – Namibplaas
 
Drill Hole From To Length (m) eU308ppm
NAPD-001 36.7 42.3 5.6 218
  106.9 135.7 28.8 143
  114.1 133.3 19.2 136
NAPD-003 65.0 74.7 9.7 144
  84.9 99.3 14.4 119
  161.3 166.2 4.9 174
NAPD-004 65.0 73.2 8.2 160
  154.8 160.2 5.4 151
NAPD-005 38.6 57.8 19.2 179
  146.2 150.9 4.7 209
NAPD-007 2.7 24.2 21.5 166
including 3.5 11.6 8.1 193
  142.0 145.7 3.7 130
NAPD-008 0.0 37.0 37.0 177
including 3.3 15.4 12.1 275
NAPD-009 0.0 6.5 6.5 142
NAPD-010 0.0 9.7 9.7 209
NAPD-011 0.0 27.0 27.0 154
NAPD-012 96.7 130.6 33.9 161
including 115.9 127.8 11.9 204
NAPD-013 8.2 30.4 22.2 148
including 9.5 24.2 14.7 159
NAPD-015 0.0 6.9 6.9 179
NAPD-016 31.5 44.2 12.7 184
Table 3: Significant Historic 1970's Goldfields Diamond Drilling Assay Results - Namibplaas
 
(All inclined at 45 degrees)
 
Drill Hole From To Length (m) U308 ppm
NA24-001 33.6 50.0 16.4 135
NA24-004 33.9 72.7 38.8 213
NA24-005 196.0 226.0 30.0 138
  258.5 276.0 17.5 217
NA24-006 43.6 49.7 6.1 273
  99.4 148.8 49.4 132
NA24-007 32.0 42.0 10.0 235
  51.0 66.7 15.7 208
  69.4 178.0 108.6 129
including     10.7 467
including     11.0 206
  194.0 205.3 11.3 186

Shares Outstanding: 79,600,231

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