(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)
After market close today, Foran reported assay results from the first of its infill holes at the historic Bigstone deposit, located about 25km southwest of its McIlvenna Bay deposit. The highlighted interval ran 18.4% zinc over 11.78 metres (including 27% zinc over 7.6 metres) and was followed by about 19 metres of ~1.5% copper over two zones a little deeper in the hole. Granted, the drilling is within an area of known historic resources, so the results are unlikely surprise those familiar with the deposit. However, for the uninitiated, the results released today should underscore that Foran is not dealing with a dinky little project, as these are merely results from one of McIlvenna Bay's "satellite deposits".
You see, as a function of their geologic history/formation, VMS deposits often occur in clusters, so where you find one, you may find many. This is what has made Flin Flon such a successful and prolific mining camp and for the dreamers (myself included) this is what makes Foran's Hanson Lake / McIlvenna Bay project so interesting. As the project stands right now it's a fairly attractive piece of ground in my view and yet there remains substantial future exploration running room on known and unknown resources. Indeed, I've always viewed Pierre Lassonde's >10% ownership in the name as a great vote of confidence from someone who certainly knows his stuff when it comes to what it takes to have a mineable deposit, or maybe even a camp.
The Bigstone holes are large diameter cores needed to complete metallurgical work that is critical to establishing any future mining and processing plan. More holes are in the lab and I would expect them to carry decent grades as well. At the end of the day, none of the Bigstone results are likely to change my already optimistic view of the long-term potential of the project, but they may turn few more eyeballs in Foran's direction in a market that generally recognizes that zinc is one of the "less hated" commodities out there at the moment.
I've copied and pasted the results below, but given that the tables never paste properly, it's far easier for readers to just link to full company release here, with a map included as well.
Foran Intersects High-Grade Zinc in First Drill Hole at Bigstone: 18.4% Zinc over 11.78m
- Highlights from the first of six drill holes completed at Bigstone include 18.4% Zn over 11.78m (including 27.0% Zn over 7.62m) from the zinc zone, followed further downhole by 1.4% Cu over 10.59m and 1.3% Cu over 8.47m from the underlying copper zone in BS-15-240; the first two of these intercepts are within an approximately 95m intersection of massive to semi-massive, stringer, and disseminated sulphides1
- Intervals within the zinc zone grade up to 41.7% Zn over 0.98m
- Drilling at Bigstone is now complete – results from the remaining five holes will be released in the coming weeks
Vancouver, BC (April 1, 2015) - Foran Mining Corporation (TSX.V: FOM) (“Foran” or the “Company”) is pleased to announce results for the first hole completed in the winter 2015 exploration program at the Bigstone deposit, on its 100% owned Bigstone property. The Bigstone deposit is located 25 km southwest of Foran’s McIlvenna Bay deposit (“McIlvenna Bay”) in east-central Saskatchewan, where the Company announced the results of a positive preliminary economic assessment in late 2014 (see the Foran news release dated Nov. 12, 2014).
Patrick Soares, President and CEO of Foran commented “In our first drill hole into the historic mineral resource at Bigstone, Foran intersected a broad zone of mineralization which included a very high-grade zone of zinc mineralization. The recent positive results from the Thunder Zone, combined with these first results from Bigstone, demonstrate that our exploration surrounding the McIlvenna Bay Deposit continues to be successful, providing us the opportunity to add to our existing large resource base. We look forward to receiving the results from the remaining holes drilled into this satellite deposit near McIlvenna Bay.”
The Bigstone deposit has an historic mineral resource which includes a copper zone with an estimated 3.75Mt grading 2.03% Cu and 0.33 g/t Au (1% Cu cutoff), and an adjacent zinc zone with an estimated 0.53Mt grading 9.62% Zn and 15.9 g/t Ag (5% Zn cutoff)2. The historic mineral resource outlines a vertically oriented, flattened, cylindrical shaped body, in part drill tested between 100 and 700m below surface.
1 Zn = zinc, Cu = copper, m = metres.
2 The Bigstone historic resource was estimated 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.
In the winter 2015 program a total of six large diameter (HQ) drill holes tested the Bigstone deposit at vertical depths of between 200 and 400m. True thickness of 2015 intercepts are estimated at 60-65% of downhole distance. Objectives for this program include infill drilling of the Bigstone deposit, validation of historic assay results and collection of sufficient material for preliminary metallurgical testwork.
Mineralization in drill hole BS-15-240 starts at a depth of approximately 295m vertically below surface. Drill hole BS-15-240 intersected 10m of massive to semi-massive zinc-rich sulphide and 85m of underlying, disseminated and stringer sulphide mineralization within moderately to intensely iron and silica-altered volcanics. Highlights from this interval include 18.4% Zn over 11.78m and 1.4% Cu over 10.59m. Sulphide minerals include pyrrhotite, pyrite, arsenopyrite, sphalerite, chalcopyrite and galena. Starting at a downhole depth of approximately 435m, disseminated chalcopyrite and quartz-chalcopyrite veining, with up to 1.28% Cu over 8.47m, occurs in weakly altered chlorite schist in the footwall to strong alteration and sulphide mineralization.
Significant assay intervals for BS-15-240 are summarized in Table 1, drill hole data for all six holes drilled at Bigstone is presented in Table 2, and a drill plan is shown in Figure 1.
Table 1. Bigstone Drill Hole BS-15-240 Result Summary.
(table missing due to formatting, please link to full press release above)
Program Update & Looking Ahead
Foran’s winter 2015 exploration program commenced in January and includes drilling of both the Thunder Zone on the Balsam property and the Bigstone deposit. Drilling is now complete in both areas, with 1,914m in five drill holes at the Thunder Zone and 2,545m in six drill holes at the Bigstone deposit.
Drill results confirming and expanding the Thunder Zone massive sulphide discovery are summarized in the Foran news release dated March 25, 2015. Further drilling of the Thunder Zone is required to determine the extent of this deposit and Management is currently evaluating next steps for follow-up.
The remaining five holes drilled into the Bigstone deposit are currently being logged and sampled; assay results will be released in the coming weeks.
Foran is currently conducting borehole electromagnetic surveys on select drillholes from each of the two areas drilled. A 50 line-km large loop DEEP-EM survey (the same survey type that identified the Thunder Zone conductor) is currently underway. The objective of this survey is to explore prospective stratigraphy 4 to 8km north of McIlvenna Bay and identify targets for future drill programs.
Table 2. Bigstone Drill Hole Data.
(table missing due to formatting, please link to full press release above)
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”.
For Additional Information Please Contact Foran Mining Corporation:
President & CEO
409 Granville Street, Suite 904 Vancouver, BC, Canada, V6C 1T2
VP, Corporate Development
36 Toronto St, Suite 1000 Toronto, ON, Canada, M5C 2C5
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.