Mr. Patrick Soares reports
FORAN FILES TECHNICAL REPORT FOR MCILVENNA BAY RESOURCE
Foran Mining Corp. has filed a National Instrument 43-101 technical report for the recent revised resource estimate for the company's 100-per-cent-owned McIlvenna Bay deposit located in east-central Saskatchewan. McIlvenna Bay is one of the largest, undeveloped volcanogenic massive sulphide (VMS) deposits in Canada.
The report entitled "Technical Report for the 2019 Mineral Resource Estimate on the McIlvenna Bay Project, Saskatchewan, Canada" has been filed on SEDAR and is also available on the company's website.
The 2019 McIlvenna Bay resource estimate represents a significant milestone for the company as it progresses with a feasibility study for potential development of the deposit. The 2019 resource estimate was released on May 28, 2019, and the reader is referred to the company's news release and/or the report for detailed information on the deposit and latest resource estimate.
Highlights of the 2019 resource estimate include:
Indicated resources increase by 65 per cent, to 22.95 million tonnes;
- Additional inferred resources of 11.15 million tonnes;
- Contained metals (indicated): 1.5 billion pounds zinc/590 million lb Cu;
- Contained metals (inferred): 450 million lb Zn/340 million lb Cu.
- Indicated resources have increased 65 per cent from 13.9 million tonnes (Mt) to 22.95 Mt (compared with previous 2013 resource) (see attached table):
Grading 1.17 per cent copper, 3.05 per cent zinc, 0.19 per cent lead and 0.44 gram per tonne (g/t) gold and 16.68 g/t silver;
Contains 1.5 billion pounds Zn and 590 million pounds Cu (see attached table);
- Inferred resources are now 11.15 Mt:
Grading 1.38 per cent copper, 1.83 per cent zinc, 0.10 per cent lead, 0.47 g/t gold and 14.81 g/t silver;
Contains 450 million pounds Zn and 340 million pounds Cu;
- Significant increase of contained metals within the deposit compared with previous 2013 resource;
89-per-cent increase in zinc, 52-per-cent increase in copper, 48-per-cent increase in gold and 61-per-cent increase in silver in the indicated category;
- The deposit resources are defined by:
Over 115,000 metres of drilling in 239 holes;
- Includes over 27,000 m of infill and expansion drilling completed in 64 drill holes since the last resource update in 2013;
Main Lens massive sulphide and adjacent Copper Stockwork zone (CSZ) together have an average combined thickness of 17.6 m through the deposit;
Deposit starts at the paleosurface (about 25 m below surface) and extends down plunge approximately two kilometres;
The deposit is open, with potential to further increase the size of the resource with additional drilling.
The 2019 resource estimate will be used to support the upcoming feasibility study, expected in Q4 2019. The mineral resource estimate was audited and verified by William Lewis, PGeo, of Micon International Ltd., independent of Foran and a qualified person as defined within NI 43-101. The 2019 resource estimate is summarized in the attached table.
MCILVENNA BAY 2019 MINERAL RESOURCE ESTIMATE (US$60/T NSR CUT-OFF) (1) (2) (3) (4) (5) (6)
Tonnage Cu Zn Pb Au Ag CuEq ZnEq
Zone (Mt) (%) (%) (%) (g/t) (g/t) (%) (%)
Main Lens -- massive sulphide 9.25 0.90 6.43 0.40 0.52 25.97 - 10.25
Lens 3 1.99 0.85 3.29 0.14 0.27 14.71 - 6.45
Stringer zone 0.70 1.38 0.62 0.04 0.35 13.34 1.73 -
Copper Stockwork zone 10.30 1.43 0.28 0.02 0.40 9.30 1.73 -
Copper Stockwork Footwall zone 0.71 1.60 1.04 0.04 0.54 11.47 2.20 -
Total indicated 22.95 1.17 3.05 0.19 0.44 16.68
Main Lens -- massive sulphide 2.97 1.29 4.79 0.29 0.47 23.58 - 9.70
Copper Stockwork zone 8.18 1.42 0.76 0.03 0.47 11.63 1.77 -
Total inferred 11.15 1.38 1.83 0.10 0.47 14.81
(1) Effective date May 7, 2019; CIM definitions were followed for mineral resources; CuEq is
copper equivalent; ZnEq is zinc equivalent; NSR: net smelter return.
(2) The base case mineral resource is estimated based on 239 diamond drill holes and an NSR
cut-off grade of $60 (U.S.)/t. NSR grades were calculated and high-grade caps were applied
as per the discussion in estimation methodology and parameters below and include provisions
for metallurgical recovery and estimates of current shipping terms and smelter rates for
similar concentrates. Metal prices used are $3.30 (U.S.)/pound Cu, $1.25 (U.S.)/lb Zn,
$1 (U.S.)/lb Pb, $1,310 (U.S.)/oz Au and $16.20 (U.S.)/oz Ag. Specific gravity was
interpolated for each block based on measurements taken from core specimens.
(3) William Lewis, PGeo, of Micon, has reviewed and verified this mineral resource estimate.
Mr. Lewis is independent of Foran and is a qualified person within the meaning of NI
(4) Mineral resources which are not mineral reserves do not have demonstrated economic
viability. The estimate of mineral resources may be materially affected by environmental,
permitting, legal, marketing or other issues.
(5) CuEq and ZnEq values were calculated from the NSR values for the zones using a factor of
$55.71 per per cent Cu for the CSZ and a factor of $46.69 per per cent Cu and $15.10 per
per cent Zn for all other zones.
(6) A sensitivity table is provided which demonstrates the variation in tonnage and grade for
the deposit at different NSR cut-offs.
The 2019 resource estimate builds on and supersedes the previous comprehensive NI 43-101 mineral resource estimate for the deposit which was announced by the company on March 27, 2013. The 2019 resource estimate is estimated using long-term metal price projections of $3.30 (U.S.)/lb for copper, $1.25 (U.S.)/lb for zinc, $1 (U.S.)/lb for lead, $1,310 (U.S.)/oz for gold and $16.20 (U.S.)/oz for silver. The base case uses a $60 (U.S.)/t NSR cut-off using provisions for metallurgical recoveries, smelter payables, refining costs, freight and applicable royalties, consistent with the cut-off used for the 2013 resource.
There has been substantial growth in the deposit since the 2013 resource was issued. This is demonstrated by the large increase in contained metal in the deposit, including an 89-per-cent increase in contained Zn, a 52-per-cent increase in contained Cu, a 61-per-cent increase in contained Ag and a 48-per-cent increase in contained Au in the indicated category which equates to over 1.5 billion pounds of zinc, almost 600 million pounds of copper, over 12 million ounces of silver and over 300,000 ounces of gold. See the attached table outlining the contained metal in the 2019 resource estimate.
CONTAINED METAL (US$60/T NSR CUT-OFF) (1) (2)
Zone Resource Zn Cu Ag Au Pb
classification Mlb Mlb Koz Koz Mlb
CSZ Indicated 63.6 325.2 3,077.1 132.5 5.1
Inferred 136.3 255.7 3,059.3 124.2 5.6
FW Indicated 16.3 25.1 262.4 12.4 0.7
Lens 3 Indicated 144.5 37.6 943.0 17.4 6.0
MS Indicated 1,310.7 183.8 7,724.9 153.5 81.6
Inferred 314.0 84.3 2,253.0 44.9 19.3
Stringer Indicated 9.5 21.2 299.7 7.8 0.6
Total Indicated 1,544.7 592.9 12,307.1 323.7 93.8
Inferred 450.3 339.9 5,312.3 169.1 24.9
(1) Totals may not add due to rounding
(2) See footnotes (1) (2) (3) (4) (5) for the "McIlvenna
Bay 2019 mineral resource estimate (US$60/t NSR
Quality assurance and quality control
For drilling conducted by Foran and its consultants since 2011, an independent QA/QC protocol, consisting of blanks, standards and duplicates introduced into the sample stream for each batch of samples processed by the laboratory and the results of the assaying of the QA/QC material included in each batch are tracked to ensure the integrity of the assay data. Sample analysis was performed by TSL Laboratories Ltd. in Saskatoon, Sask. TSL is a CAN-P-1579, CAN-P-4E (ISO/IEC 17025:2005) accredited laboratory and independent of Foran.
Micon reviewed the QA/QC reports from these programs and noted that there were no issues that arose which would affect confidence with the assay data. Micon considers the sampling method appropriate for the deposit type, adequate security measures were maintained, and samples should be representative of the mineralization.
Prior to Micon initiating its audit of resource estimation, Foran completed a program of validation and verification of the historic drill hole database which was included in this resource estimate. This work included: resurveying the locations of historic drill hole collars on the ground, downhole directional surveys of as many historic drill holes as possible utilizing a Gyro tool to verify downhole survey data, rebuilding of the historic assay database from original assay certificates, additional sampling of gaps in mineralized zones (shouldering) where required to better represent the mineralizing system, and a reinterpretation of the geology and ore zones in the deposit.
About Foran Mining Corp.
Foran is a copper-zinc exploration and development company with projects located along the Flin Flon greenstone belt. The McIlvenna Bay project, Foran's flagship asset located within the Hanson Lake district, sits just 65 kilometres from Flin Flon, Man., and is part of the world-class Flin Flon greenstone belt that extends from Snow Lake, Man., through Flin Flon to Foran's ground in eastern Saskatchewan, a distance of over 225 kilometres.
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