Foran Mining (TSXV:FOM) has announced additional results from ongoing drilling at its recently discovered Tesla Zone on the McIlvenna Bay Project in Saskatchewan. The results include the remaining intercepts from the initial discovery hole and initial assays from a wedge hole testing up-dip potential.
Dan Myerson, Foran Mining Executive Chairman & CEO, commented in a press release: “To achieve these success rates and intercept these robust zones, at such an early stage in a new discovery, is truly remarkable. These results demonstrate the growing potential at the near-mine newly discovered Tesla Zone, and further illustrates the rarity of this tremendous scalable discovery. Additionally, and what is even more exciting, is that we have encountered high-temperature alterations at Tesla, which could correlate with higher-grade gold and copper values, similar to other base and precious metal deposits within the Flin Flon Terrane. Our exploration team and strategy are working, and we are successfully unlocking this prolific district on our path towards building Canada’s next great mining camp, we look forward to sharing more exciting exploration results later this year, throughout 2023, and beyond.”
The complete assay results for the Tesla Zone discovery hole (TS-22-03) have been received, and the company has created a significant expansion of the mineralized intervals. Foran also received results for the first wedge hole (TS-22-03w2) which were completed as follow-up on the discovery. This wedge hole intersected the Tesla mineralization to the north of the original drill hole.
Highlights from the results are as follows:
The full assay results from TS-22-03 indicate that the Tesla Zone consists of continuous disseminated and fracture filling sulphide mineralization containing significant copper and zinc over approximately 100m of core length with several high-grade intervals of semi-massive to massive sulphide mineralization (Figure 2). Results from TS-21-01 have also been received, which contained a narrow zone of anomalous zinc mineralization near the bottom of the hole (Table 1) which appears to be located stratigraphically below the Tesla zone mineralization in TS-22-03. Additional drilling will be required to determine the significance of this mineralization.
Since the initial discovery of mineralization in the Tesla Zone, the Company has continued with follow up drilling to better understand the controls on the mineralization and the potential geometry of the zone. To date, one wedge (TS-21-03w2) has been completed from the original discovery hole and a second hole (TS-22-04) has been drilled from surface from the same drill pad, oriented to obtain a larger spacing of the intersections along the mineralized horizon. Both holes appear to have intersected the Tesla Zone.
TS-22-03w2 intersected the Tesla Zone approximately 30m northwest of TS-22-03, further validating the proposed geophysical model (Figure 3). Mineralization is of the same style as TS-22-03 with significant copper and zinc over approximately 80m before terminating at the boundary of the geophysical model.
TS-22-04 was completed from surface from the same drill pad at a shallower angle than the original hole in an attempt to obtain a spread of the intersections along the mineralized horizon. The hole intersected the mineralized horizon approximately 100m up-dip from the discovery hole and approximately 200m away from TS-22-03w2, where it encountered a zone of significant alteration and several zones of disseminated and fracture fill sulphide mineralization, indicating that the intersection lies on the periphery of the mineralization. Assays are pending from the laboratory, but it is currently interpreted that this drill hole intersected the upper margin of the Tesla Zone which is consistent with the geophysics model and helps to confirm the northeast dipping geometry of the mineralization.
Geophysical surveys outline a conductor with potential dimensions of ~900m (strike) by 300m (depth) associated with the Tesla Zone (Figure 1). The results herein confirm that this conductor is, in part at least, a well mineralized zone of copper and zinc sulphides. In order to properly test the conductor, given its geometry and location adjacent to the shoreline, future drill holes will need to be completed from Hanson Lake. An application is being finalized for a winter exploration permit that will allow for a large winter drill program to be completed targeting expansion of the Tesla zone.
Table 1 – Updated Tesla Assay Results1 (* Denotes previously released values)
|Hole||From_m||To_m||Interval_m||Cu %||Zn %||Ag g/t||Au g/t||CuEq %|
Note: Intersections are not true width. Intervals generally composited using a 0.5% Cu cut-off grade. 1Copper Equivalent values calculated using metal prices of $4.00/lb Cu, $1.50/lb Zn, $20.00/ounce Ag and $1,800/ounce Au.
Summer Drill Program Underway
Additional follow-up drilling at Tesla is planned for later in the year after the winter freeze. Foran’s helicopter-supported 7,000m summer drill program is currently underway at the Marconi Prospect located on the Bigstone Property, 25km west of McIlvenna Bay. It is currently anticipated that the summer program will continue into the fall and also include further testing of the Flinty Prospect, located 7km to the southeast of McIlvenna Bay, and other regional target areas in the Hanson Lake District as the Company continues to build on its exploration pipeline to support the potential development of a central milling facility envisioned for the McIlvenna Bay deposit.
Foran Mining Corp. (TSXV:FOM) (OTCQX:FMCXF) has announced that Fairfax Financial Holdings Limited has entered into a letter agreement for a CA$100 million investment in Foran Mining Corp. (TSXV:FOM) (OTCQX:FMCXF) in exchange for common shares, non-voting common shares, and warrants. Divided into multiple tranches, the deal will allow Foran Mining Corp. (TSXV:FOM) (OTCQX:FMCXF) to rapidly advance its McIlvenna Bay project and centralized mill for the Hanson Lake district.
The company has been eyeing exploration in the district as it continues to expand operations in the region. The letter highlights that the funding will also enable investment in key technological and operational research and equipment and general corporate purposes.
The significant private placement is a decisive vote of confidence in the company and its business model and will be subscribed in two tranches:
Foran shareholders know that the advantages the company holds are numerous including its 100% owned McIlvenna Bay deposits and the broader Hanson Lake district. Foran Mining Corp. (TSXV:FOM) (OTCQX:FMCXF) plans to build the world’s first carbon-neutral copper mine. The company has stiff competition, though, with companies like Solaris Resources (TSX:SLS.TO) and Rio Tinto (NYSE:RIO) setting carbon-neutral goals for their projects as well.
For now, the expansion of its exploration efforts and current projects could continue to deliver substantial shareholder value, and efforts should be significantly strengthened by Fairfax’s global network of business partners. Foran Mining Corp. (TSXV:FOM) (OTCQX:FMCXF) has strong established ties with banking partners to support the exploration of potential ESG products; the goal of these initiatives is to enhance the overall investment return for all stakeholders, from shareholders to the communities in which the company operates.
The financing is still subject to TSX Venture Exchange approval and Foran Mining Corp. (TSXV:FOM) (OTCQX:FMCXF) shareholder approvals, plus some other standard closing procedures. For now, Fairfax will not be granted any Foran Mining Corp. (TSXV:FOM) (OTCQX:FMCXF) board seats as part of the deal.
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