Foran tables construction update for Sask. VMS mine
Foran Mining Corp. [FOM-TSX, FMCXF-OTCQX] has released a construction update for its McIlvenna Bay VMS (volcanogenic massive sulphide) project in east-central Saskatchewan.
Foran said the project remains on schedule to start hot commissioning in the second half of 2025 and commercial production in the first half of 2026. Meanwhile, the project’s main critical path activities include installation of the primary structural steel and cladding for the mill, installation of the SAG mill and ball mill, installation of the paste plant, installation of the copper and zinc flotation circuits, and commissioning and ramp-up to commercial production.
Detailed engineering is approximately 90% complete, with full completion expected by the end of the first quarter of 2025, in line with the integrated project management team’s schedule.
The McIlvenna Bay deposit is a copper-zinc-gold-silver-rich volcanic-hosted massive sulphide deposit intended to be the centre of a new mining camp in a prolific district that has been producing for 100 years. The McIlvenna Bay property sits just 65 kilometres west of 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.
The McIlvenna Bay deposit is the largest undeveloped VHMS deposit in the region.
A feasibility study envisions a state-of-the art, and re-designed mine plan to accommodate a larger production base at 4,200 tonnes per day, which will serve as a starter-plant and is designed to accommodate future expansions.
The study outlines an 18.4-year mine life and is based on probable mineral reserves of 25.7 million tonnes of grade 2.51% CuEq (copper equivalent) or 65 million pounds of CuEq annually. The initial capital cost is forecast at $368 million.
Foran has said assay results continue to demonstrate the sizeable near-mine opportunity at the Tesla zone, with recent results including some of the highest zinc intersections encountered to date across thick intercepts.
Meanwhile the company expects to complete approximately 7,000 metres of decline development in 2025, including significant advances on the 150-metre and 180-metre levels. The underground crews are still on track to build a 272,000-tonne ore stockpile prior to mill production ramp-up.
During the fourth quarter of 2024, the construction team started to erect structural steel for the plant and progressed earthworks sequencing. Enclosure of the process plant will be completed by zonc (grinding, copper, flotation, and zinc flotation). Enclosure around the grinding mills is scheduled to be completed by March, 2025, with the balance of structural steel expected to be completed by the end of the first quarter of 2025.
On November 21, 2024, Foran exercised its right to repurchase the 1.0% net smelter royalty applicable to a portion of the McIlvanna Bay property held by Cameco Corp. [CCO-TSX, CCJ-NYSE] and South32 Royalty Investments Pty. For $1.0 million cash.
Foran Mining shares rose 1.48% or $0.06 to $4.11 and trader in a 52-week range of $4.69 and $3.43.