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Foran Engages Micon to Conduct a Technical Review of McIlvenna Bay

Foran Mining Corporation ("Foran" or the "Company") is pleased to announce that it has engaged Micon International Limited ("Micon"), an international independent mining consultancy firm, to conduct a detailed technical review of the Preliminary Economic Assessment ("PEA") completed on Foran's 100% owned McIlvenna Bay Project.

Micon will conduct a technical review of:

  • the resource model,
  • the mine plan,
  • metallurgical recoveries,
  • options to improve on capital and operating cost efficiencies,
  • evaluate potential changes to the project that could improve the economics of development

Since the completion of the PEA at the end of 2014, there have been changes in:

  • certain commodity prices,
  • treatment charges and
  • the exchange rate of the Canadian dollar versus its U.S. counterpart.

Micon's review will consider all of these impacts.

Following the review, Micon will prepare a list of potential trade-off studies and development options. These trade-off studies may include such items as mining the high grade massive sulphides only, lower throughput rates and/or the potential for toll or contract processing.

The review will lay out budgetary options for development in terms of timing and costs, putting the Company in a better position to choose the most appropriate path forward to completing Preliminary Feasibility and/or subsequent Feasibility Studies on McIlvenna Bay.

McIlvenna Bay is a large zinc-copper-gold-silver deposit with an indicated resource of 13.9 million tonnes grading 13.2% Zn Equivalent and an inferred resource of 11.3 million tonnes grading 13.5% Zn Equivalent.1 The deposit is located in east-central Saskatchewan, 65 kilometres west of the mining centre of Flin Flon, Manitoba.

The McIlvenna Bay PEA report was completed by JDS Energy and Mining Inc. in January of 2015, and envisioned a 5,000 tonne per day conventional underground mining operation, utilizing longhole stoping and cemented paste backfill. The mine was expected to have a 14 year life with a stand-alone concentrator constructed adjacent to the McIlvenna Bay mine. Pre-production capital costs ("CapEx") were estimated at $207.3M, with a $41.5M contingency, for a total of $248.8M and sustaining capital was estimated at $125.2M, with a $25.0M contingency, for a total of $150.3M. The estimated pre-tax NPV7% for the project was $381.7M, with a 21.9% IRR and 4.1 year payback or a post-tax NPV7% of $262.6M, with an 18.9% IRR and 4.1 year payback. Total payable life of mine ("LOM") production was expected to be 804.7 million pounds ("Mlbs.") of zinc, 513.7 Mlbs. of copper, 15.8 Mlbs. of lead, 218,000 ounces of gold and 5.44 million ounces of silver.

The base case metal price deck and exchange rate in the PEA were based on spot prices as at October 15, 2014 and are US$3.08/lb for copper, US$1.06/lb for zinc, US$0.93/lb for lead, US$1,238/oz. for gold, and US$17.00/oz. for silver, with a CDN$/US$ exchange rate of 0.89.

1On March 27, 2013, Foran announced a mineral resource estimate for McIlvenna Bay, with indicated resources of 13.9 million tonnes grading 1.96% copper equivalent or 13.2% zinc equivalent (1.28% Cu, 2.67% Zn, 0.49 g/t Au, 17 g/t Ag) and an inferred resource of 11.3 million tonnes grading 2.01% copper equivalent or 13.5% zinc equivalent (1.32% Cu, 2.97% Zn, 0.43 g/t Au, 17 g/t Ag). For additional information on McIlvenna Bay, see the Foran news release dated March 27, 2013 or the report entitled "Technical Report on the McIlvenna Bay Project, Saskatchewan, Canada" dated December 9, 2011 at www.sedar.com or www.foranmining.com.

Roger March, P.Geo., Vice President, 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.

Source: https://www.midasgoldcorp.com/

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