(Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long FOM.V)
Foran Provides Drilling Update
Foran Mining (FOM.V on the TSX Venture) released assay results from drilling in the Thunder Zone at its McIlvenna Bay / Hanson Lake project. The results and press release are self-explanatory and reinforce my view of the project as being a real contender for broader market attention in the copper-zinc space. Management continues to use the word "camp" when describing the potential scale of the project and further assay results are due in the coming weeks from a separate area. My initial note on the project can be found here:
The full press release is copied and pasted below, as is a link to the press release for viewing properly formatted tables of the drill results.
Foran Mining Corporation
TSX VENTURE : FOM
March 25, 2015 07:00 ET
Foran Confirms and Expands Thunder Zone Copper-Zinc Discovery: Building a New Canadian VMS Camp
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 25, 2015) - Foran Mining Corporation (TSX VENTURE:FOM) -
- Follow-up drilling intersects additional massive sulphide mineralization, including 5.0% Cu, 2.1% Zn, 0.84g/t Au and 41g/t Ag over 2.62m in an ~12m thick sulphide-rich interval in BA-15-80 & 2.0% Cu, 3.5% Zn, 0.37g/t Au and 12g/t Ag over 3.46m, followed downhole by 0.7% Cu, 7.2% Zn, 0.29g/t Au and 43 g/t Ag over 3.70m within an ~15m thick sulphide-rich interval in BA-15-831
- Thunder Zone open - only a portion of the anomaly has been tested
- With three deposits, Hanson Lake shows potential to develop into a new VMS camp
- Drilling at Bigstone underway - results in the coming weeks
In 2013, a single hole drilled by Foran into a newly identified geophysical anomaly hit high-grade volcanogenic massive sulphide ("VMS") mineralization in the Thunder Zone, with 4.1% Cu and 0.43 g/t Au over 3.66m, including 10.6% Cu and 0.70 g/t Au over 1.1m in BA-13-77.Drilling in the current program stepped out from BA-13-77 and cut thick intercepts of copper- and zinc-rich VMS mineralization in four of the five holes drilled, confirming a significant new blind discovery close to McIlvenna Bay. The Thunder Zone is open along strike, where drilling to date has only begun to test the extent of this deposit.
Patrick Soares, President and CEO of Foran commented "Based on Foran's exploration and discoveries of VMS mineralization around McIlvenna Bay, we believe the Hanson Lake Camp will develop into a long-lived mining camp similar to Flin Flon and Snow Lake." Soares continued "Our 2015 winter exploration program has successfully achieved its goal of expanding the Thunder Zone massive sulphide mineralization on the Balsam property. The Thunder Zone is thickening down plunge to the northwest and is open, both to the northwest and to the southeast. Drilling is underway on the historic Bigstone Deposit, 25 km to the west, with results expected in the coming weeks."
1 Cu = copper, Zn = zinc, Au = gold, Ag = silver, m = metres.
The 2015 Thunder Zone drilling followed-up 2013 drill hole BA-13-77 and continued to test a conductor plate modeled from a 2013 deep-penetrating time-domain electromagnetic geophysical ("DEEP-EM") survey.
Mineralization in holes BA-15-80 to -83 is comprised of massive to semi-massive and stringer to disseminated sulphide mineralization with various combinations of pyrite-pyrrhotite-spalerite-chalcopyrite-arsenopyrite-galena-magnetite. Alteration intensity and mineral assemblages of the host volcanic strata are similar to those at McIlvenna Bay. Significant assay intervals are summarized in Table 1 and drill hole data is presented in Table 2.
Table 1. Thunder Zone Drill Hole Result Summary.Hole IDFrom
(g/t)Type5BA-15-79NSV1-BA-15-80311.57323.3011.732.437.111.630.810.4919.6MS, SMS, DSSIncl.315.94318.562.626.6319.385.012.100.8441.3MS, SMSBA-15-81337.70341.744.043.028.840.457.290.034.4MS, SMSIncl.339.63341.321.694.0611.870.2810.910.032.2MS, SMSBA-15-82263.20266.343.140.692.000.041.670.071.9DSSIncl.265.00265.530.531.722.214.171.124.264.4DSS282.89286.243.351.363.970.731.410.096.2SMSBA-15-83370.04373.503.463.6010.522.043.470.3711.6MS, SMS377.40385.798.392.427.080.623.410.3627.2MS, SMS, DSSIncl.381.80385.503.704.0011.680.677.160.2942.8MS, SMS
1 NSV = no significant values;2 downhole distance ( true thickness approx. 85% of downhole distance);3 CuEq = copper equivalent, ZnEq = zinc equivalent, CuEq and ZnEq calculations based on Cu= $2.63/lb., Zn =-$0.90/lb., Pb = $0.78/lb.,Au = $1164/oz., Ag = $16.00/oz.;4 Cu = copper, Zn = zinc, Au = gold, Ag = silver;5 MS = massive sulphide, SMS = semi-massive sulphide, DSS = disseminated and stringer sulphides.
Table 2. Thunder Zone Drill Hole Data.Hole IDUTM Zone 13
NAD 83 EastUTM Zone 13
NAD 83 NorthElevation
(° North UTM)Dip
Drilling to date indicates the Thunder Zone massive sulphides strike northwest, dip approximately 35-45° to the southwest and plunge gently (approximately 7°) to the northwest. Drill indicated thicknesses of mineralization at the Thunder Zone range from approximately 4 to 15m. True thickness is interpreted to be approximately 85% of drill indicated. Mineralized intercepts start at depths of 265 to 350m below surface.
Thunder Zone massive sulphides appear to be thickening down plunge to the northwest and the zone is open in this direction. A fence of three holes drilled by Cameco in 1990 intersected strong VMS alteration and massive to disseminated and stringer-style mineralization 65m to the southeast of BA-15-80 and -82. Drill hole BA-03 intersected 10.9% Cu, 1.2% Zn, 0.75 g/t Au and 44.6 g/t Ag over 0.2m and 1.2% Cu over 1.9m. Up- and down-dip from BA-03, holes BA-05 and -06 intersected strong alteration, and intervals of disseminated to massive sulphide mineralization with low grades. The Thunder Zone remains open to the southeast beyond this fence of holes. Historic drill hole BA-07 intersected up to 2.60% Zn, 0.47% Cu, 0.82 g/t Au and 17.5 g/t Ag over 1.1m down dip from BA-13-77. Collar locations of these historic holes have been surveyed; however downhole surveys have not yet been attempted.
Program Update & Looking Ahead
Foran's winter 2015 exploration program commenced in January and includes drilling of both the Thunder Zone and the Bigstone deposit ("Bigstone"), an historic mineral resource on the Bigstone property1.
Following the completion of drilling, Foran plans to conduct borehole electromagnetic surveys on select drillholes from each of the areas drilled. A 50 line km large loop DEEP-EM survey (the same survey type that identified the Thunder Zone conductor) is scheduled for late March-early April 2015 to explore prospective stratigraphy 4 to 8 km north of McIlvenna Bay.
Drilling of the Thunder Zone is now complete, with 1,914.2m in five diamond drill holes; all assays from the Thunder Zone have now been received. Further drilling of the Thunder Zone is required to determine the extent of this deposit and management are currently evaluating next steps for follow-up work.
Drilling at Bigstone is currently ongoing, with four of six planned drill holes complete; assay results will be released once received. Bigstone drilling is being conducted with HQ diameter drill core to obtain sufficient material for initial metallurgical testwork.
Bigstone drilling is targeting an historic mineral resource located 25 km west of McIlvenna Bay. The historic mineral resource includes a copper zone with an estimated 3.75Mt grading 2.03% Cu and 0.33 g/t Au at a 1% Cu cutoff, and an adjacent zinc zone with an estimated 0.53Mt grading 9.62% Zn and 15.9 g/t Ag at a 5% Zn cutoff.
1 The historic resource at Bigstone was estimated by Cameco in 1990; Foran is not treating the historic estimate as current; a Qualified Person within the meaning of National Instrument 43-101 has not completed sufficient work to classify the historic estimate as current; additional work, including re-surveying, re-logging and drill core QA/QC would be required to verify and upgrade the historic estimate to current.
To view Figures 1 and 2 visit the following link: http://media3.marketwire.com/docs/FOM_NR032515_Fig1and2.pdf
About Foran Mining
Foran is a copper-zinc exploration and development company with projects in the Flin Flon Mining 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 for McIlvenna Bay.
Dave 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.
As at September 30, 2014, the Company had a treasury of $3.36 million in cash and cash equivalents. On December 22, 2014 Foran announced the closing of a $1.6 million flow-through financing.
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.
Foran Mining Corporation
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Foran Mining Corporation
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Foran Mining Corporation