Forsys Metals Corp
TSX : FSY
FRANKFURT : F2T

Forsys Metals Corp

August 10, 2011 07:30 ET

Forsys Announces Up to 92% Recoveries from Heap Leach Laboratory Tests and Commencement of Optimization Study

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) - Forsys Metals Corp. (TSX:FSY)(FRANKFURT:F2T)(NSX:FSY) ("Forsys" or the "Company") is pleased to announce positive uranium leaching results from laboratory tests to determine whether ore from its fully licensed Valencia Uranium Project could be economically recovered by heap leaching. The test program focused on the uranium recovery and reagent consumptions that are commercially achievable, and generating data to guide future development work by a heap leach process route.

Mintek of Johannesburg, South Africa, which was appointed as the laboratory facility to conduct the initial column leach test program, concluded that:

  • Ore from the Valencia Uranium Project is amenable to heap leaching.
  • Good uranium extractions can be achieved under trickle-bed conditions.
  • Sufficient uranium liberation is attainable from conventional crushing.

Up to 92% uranium dissolution was obtained in the column leach tests at a pH of about 0.7. Concurrently, 2 atmospheric batch leach tests were carried out to provide comparative leach results to the heap leach tests and determine any possible anomalies should they exist. The atmospheric batch leach test results supported the findings of the column leach results and no anomalies were found. Simulus, a leading Perth based engineering group, has been appointed to complete the recommended Phase 2 optimization study.

Marcel Hilmer, Chief Executive Officer of Forsys, commented, "Phase 1 results have confirmed our view of the benefits of heap leaching and that it appears viable as the primary mineral extraction method and may ultimately lead to reduced capital and operating expenditures and overall improved economics at our Namibian projects. We have commenced Phase 2 of laboratory testing and hope to provide further positive results before year end."

Laboratory Testing and Results Summary

Two tonnes of ore sample were shipped to Mintek as part of the first phase of test work. Comminution tests were carried out on the samples received to determine crushing parameters to be used in the production of sample material for the subsequent column leach tests. Two different crushing methods were applied, namely high pressure grinding row ("HPGR") and conventional jaw crushing. A specific pressure of 4.5N/mm2 was applied in HPGR crushing to produce a suitable size distribution. The tests were conducted in columns with an internal diameter of 200mm and a height of 2.0 metres. Four column leach tests (two tests in duplicate) were conducted on samples crushed to 100% -12.5mm by two different methods, HPGR and jaw crushing.

The column leach tests from the jaw crush sample yielded a maximum uranium extraction of 92%, while the HPGR test yielded 81% uranium extraction. The final acid consumption ranged from 10 to 20kg/t for the 4 columns.

To view the "Uranium Extraction, 2m leach columns" graph, please visit the following link: http://media3.marketwire.com/docs/fsy_gr1_810.jpg

The figure above shows the uranium extraction versus time curves for the jaw crush (conv crush A and B) and HPGR (HPGR A and B) column leach tests.

The HPGR and jaw crush columns showed a maximum compaction of 7.2% and 3.4% respectively at 2.0 metres lift height, both falling well within a safe range for heap leaching practice.

As a comparison with previous test methods, two atmospheric batch leach tests were executed on fine-milled ore (P80 = 850μm) under oxidative leaching conditions within an acidified, iron sulphate solution at 25°C. The acidity was controlled manually at pH 1.8 by addition of 98% sulphuric acid and the solution potential was controlled by addition of MnO2. The two tests show excellent repeatability with 80% of the uranium rapidly dissolving after only 30 minutes, achieving greater than 92% after 24 hours of leaching.

About Forsys Metals Corp.

Forsys Metals Corp. is an emerging uranium producer with 100% ownership in the fully permitted Valencia Uranium Project and 70% ownership in the Namibplaas 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 U3O8 supporting a 17-year mine life and current Measured and Indicated resources are 75.5 Mlbs U3O8 with a further 8.4 Mlbs of Inferred U3O8.

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 29, 2011, 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: 80,130,231

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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