Foran Mining Corp. [FOM-TSXV] said Tuesday June 1 that the latest infill drill hole has delivered one of the widest intercepts of continuous high-grade copper mineralization at its McIlvenna Bay VMS (volcanogenic massive sulphide) deposit in Saskatchewan.
The infill hole was drilled as part of a continuing 30,000-metre program, which continues to define a band of thick, copper-rich mineralization in both the massive sulphide lens (MS) and the underlying copper stockwork zone (CSZ) at the McIlvenna deposit.
Drilling highlights include hole MB-21-216w1, which intersected multiple zones of mineralization, including 28.79 metres grading 2.05% copper equivalent (CuEq) in the MS and CSZ.
In total, the hole intercepted all four zones of the deposit, representing over 40 metres of mineralization (non-contiguous) over 45 metres.
Together with the previously announced results, Foran believes this impressive intercept supports its view that it is possible to upgrade and expand the indicated resource and underpin future reserve conversions in both the MS and CSZ.
It said further expansion drilling is planned along this trend of thicker CSZ intersections, which remains open up-dip and down plunge.
The company said it intends to incorporate results from the program into a resource update planned for the summer and will follow with the release of a bankable feasibility study in the fourth quarter of 2021.
Foran Mining shares eased 4.9% or 12 cents to $2.30 on volume of 440,740. The shares trade in a 52-week range of $2.63 and 10 cents.
In light of the recently announced $100 million strategic investment from insurance holding company Fairfax Financial Holdings Ltd., Foran is considering a potential expansion to its exploration program at McILvenna Bay and the broader Hanson Lake District in order to test the many exciting targets on the property.
As result the company is planning to scale up the program and will advise the market of its plans in due course.
The company is currently in the feasibility stage at McIlvenna Bay. McIlvenna Bay is a copper-zinc-gold-silver-rich VMS deposit that is intended to be the centre of a new mining camp in a prolific district that is already been producing for 100 years.
McIlvenna Bay ist 65 km from Flin Flon, Manitoba, and is part of the world-class Flin Flon greenstone belt that extends from Snow Lake, Manitoba, through Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of over 225 km.
Foran owns a 100% interest in the McIlvenna Bay property, subject to a 1% NSR held by Cameco Corp. [CCO-TSX, CCJ-NYSE] and BHP Billiton Ltd. [BHP-NYSE; BHPLF-OTC]. The NSR has a buy-out provision in favour of Foran for $1 million at any time. Some of the claims that make up the McIlvenna Bay property are subject to a $0.75 per tonne of ore extracted net tonnage royalty, with the right of first refusal in favour of Foran.
According to a positive pre-feasibility study released in April, 2020, the project can support life of mine concentrate production containing over 800 million pounds of zinc, over 250 million pounds of copper, over 155,000 ounces of gold and approximately 4.4 million ounces of silver.