Drill Tracker Weekly: Foran Drills Best Hole to Date 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: $0.40

Market cap: $43 million

Cash estimate: $3.4 million

Project: Bigstone

Country: Saskatchewan, Canada

Ownership: 100 percent

Resources: historical — 3.75 MT at 2.03 percent copper, 0.33 g/t gold and 0.53 MT at 9.26 percent zinc, 15.9 g/t silver

Project status: resource confirmation

• Foran Mining announced the second hole 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 an interval of 104.94 metres grading 2.3% Cu, 0.12% Zn, 0.10 g/t Au and 6.4 g/t Ag starting at a depth of 327 metres. The interval includes two higher-grade intervals separated by 9 metres of 20.35 metres of 4.11% Cu and 19.00 metres grading 3.16% Cu. True thickness is estimated by the Company to be approximately 60% of core length. Four additional holes have been completed and are pending assays. A previously announced hole (April 1, 2015) into a separate zinc zone on Bigstone returned 11.78 metres grading 18.4% Zn and 32.4 g/t Ag from a depth of 339 metres.

• In 1990, Cameco( TSX:CCO,NYSE:CCJ) 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 discovered in the 1950s by Saskatchewan Mineral Development Corporation (later became Cameco). Cameco completed historical resource in 1990; Foran acquired option in 1998.

Current drilling: 104.94 meters at 2.03 percent copper, 0.12 percent zinc, 0.1 g/t gold, 6.4 g/t silver; 11.78 meters at 18.4 percent zinc, 0.26 percent copper, 0.38 g/t gold, 45.3 g/t silver (April 1, 2015).

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. Trevali Mining Corp. is covered at Mackie Research Capital Corporation by analyst Peter Campbell

• Within the last 3 years, Mackie Research Capital Corporation has managed or co-managed an offering of securities by the subject issuer.
• Within the last 3 years, Mackie Research Capital Corporation has received compensation for investment banking and related services from the subject issuer.
• In September 2014, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
• In October 2013, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
• In September 2012, an analyst from Mackie Research Capital Corporation visited Trevali’s New Brunswick assets. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

3. Foran Mining Corp. is covered at Mackie Research 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.

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.