Drill Tracker Weekly: Foran Confirms Historical Drill Results at Bigstone Project

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Foran Mining (TSXV:FOM)

Price: $0.285

Market cap: $26 million

Cash estimate: $3.4 million

Project: Bigstone

Country: Saskatchewan, Canada

Ownership: 100 percent

Historical resources: 3.75 MT @ 2.03% Cu, 0.33 g/t Au; 0.53 MT @ 9.26% Zn, 15.9 g/t Ag

Project status: Resource confirmation

• Foran Mining announced the third of six infill holes from its 2015 drilling program on the 100% owned Bigstone project in east central Saskatchewan. The project is located 80 kilometres west of Flin Flon Manitoba and 25 kilometres west of Foran’s McIlvenna Bay deposit. The Bigstone project is subject to a 2% NSR.

• Resource confirmation drilling returned three closely spaced intervals of 31.0 metres, grading 2.59% Cu, 0.14% Zn, 0.67 g/t Au and 10.8 g/t Ag, starting at an estimated vertical depth of 170 metres. A second confirmed interval 3.5 metres further down the hole of 31.50 metres of 1.17% Cu, 0.09% Zn, 0.12 g/t Au and 6.2 g/t Ag and a third interval of 23.50 metres grading 1.54% Cu, 0.51% Zn, 0.36 g/t Au and 13.9 g/t Ag. The true thickness of the zone is estimated by the Company to be approximately 60% of core length.

• In 1990, Cameco outlined a historical resource (not considered current) on Bigstone of 3.75 million tonnes, grading 2.03% Cu and 0.33 g/t Au using a 1% Cu cut-off. There is also a separate zinc resource of 0.53 million tonnes of 9.62% Zn and 15.9 g/t Ag using a 5% Zn cut-off. The area was initially discovered by Saskatchewan Mining and Development Company (SMDC) which later became Cameco.

• In November 2014, the Company announced the results of a PEA on the nearby McIlvenna Bay project. The PEA estimates an after-tax NPV (7%) of $263 million, with an IRR of 19%. The project is projected to have cash costs (net of by-products) of negative $0.37 per pound Zn or $0.84 per pound Cu. The economic evaluation was based on $3.08/lb Cu, Cu, $1.06/lb Zn, $1,238/oz. Au and $17/oz. Ag. Total pre-production capital at McIlvenna Bay is projected at $249 million.

Discovery history: Mineralization in the belt discovered in the 1950’s by Saskatchewan Mineral Development Corporation (later became Cameco). Cameco completed historical resource in 1990. Foran acquired option in 1998.

Current drilling (3 closely spaced intervals in one hole): 31.0 metres @ 2.59% Cu, 0.14% Zn, 0.67 g/t Au, 10.8 g/t Ag from 234 metres and 31.50 metres @ 1.17% Cu, 0.09% Zn, 0.12 g/t Au, 6.2 g/t Ag from 268 metres and 23.5 metres @ 1.54% Cu, 0.51% Zn, 0.36 g/t Au, 13.9 g/t Ag.

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release, Wayne Hewgill, owns no shares in any companies in this report.

2. Foran Mining Corp. (FOM) is covered at Mackie Research Capital Corporation by analyst Peter Campbell.

• In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran’s McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

3. Lake Shore Gold Corp. (LSG) is covered at Mackie Research Capital Corporation by analyst Barry Allan.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Editorial Disclosure: Foran Mining is a client of the Investing News Network. This article is not paid-for content.