VANCOUVER, British Columbia, Dec. 04, 2017 (GLOBE NEWSWIRE) -- Foran Mining Corporation (TSX.V:FOM) (“Foran” or the “Company”) is pleased to announce that it has executed a Technical Services Agreement (“Agreement”) with Glencore Canada Corporation (“Glencore”). The Agreement contemplates Glencore contributing its professional and technical services, assistance, guidance, and advice in connection with the objective of completing a Feasibility Study on Foran’s McIlvenna Bay Project (the “Project”).
Patrick Soares, President and CEO of Foran stated, “We are delighted to have Glencore, a world leader in the mining, smelting and marketing of zinc and copper, involved in the McIlvenna Bay Project. Their technical knowledge and expertise, gained from operating a broad spectrum of zinc and copper mines the world over, will be invaluable as we advance McIlvenna Bay towards a production decision. If an affirmative production decision is made, Foran will then have access to the most effective and safest mining methods for the Project. Foran will also continue exploration efforts on its other highly prospective targets in proximity to McIlvenna Bay.”
Consideration for this Agreement is an exclusive off-take contract for Glencore to purchase or toll process all of the concentrates and/or other mineral products produced from the Project at prevailing market rates.
Within 60 days of execution of this Agreement, Glencore will finalise a comprehensive review of the Project which will serve as a basis for its approach to the Feasibility Study (the “Preliminary Work”). In order to assess the need for and complete a Feasibility Study, an infill drilling program is required. Glencore and Foran will jointly design the program which would then be conducted by Foran’s geological team. If the Preliminary Work suggests an economically viable project, the parties will continue with the Feasibility Study.
Foran’s responsibilities include upgrading the current resources to reserves and all environmental and socioeconomic elements of the Feasibility Study. Foran maintains full ownership of the Project and intends to concurrently advance exploration on its other high priority targets: Target A, Thunder Zone and Bigstone.
Glencore would be responsible for all engineering and technical aspects of the Feasibility Study which is to be delivered nine months from the date of receiving the final assays from the infill drilling program. Glencore has agreed to assist Foran with the procurement of project financing in order to complete the development and placing of the Project into commercial production. They may also provide technical services while the mine is in construction and ramping up to commercial production.
Glencore makes no statement or representation as to the economic viability of the Project.
About Foran Mining
Foran is a copper-zinc exploration and development company with projects in the Flin Flon Greenstone Belt. McIlvenna Bay, Foran’s flagship deposit, is located in east-central Saskatchewan, 65 kilometres west of Flin Flon, Manitoba and is one of the largest undeveloped VMS deposits in Canada.
On November 12, 2014, Foran announced a positive preliminary economic assessment (“PEA”) for McIlvenna Bay, with an estimated pre-tax NPV7% of $382M ($263M after-tax) & 22% IRR (19% after-tax) at a US$ Zinc price of 1.06/lb. Spot Zinc price today is US$1.48/lb. See below and Foran’s news releases from November 12 and December 22, 2014 for important disclosures with respect to the McIlvenna Bay PEA.
The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized.
Roger March, P.Geo., VP Project Exploration for Foran and a Qualified Person within the meaning of National Instrument 43-101, has reviewed and approved the technical information in this release.
