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.
Market cap: $21 million
Cash estimate: $3.4 million
Country: Saskatchewan, Canada
Ownership: 100 percent
Resources: 3.75 MT @ 2.03% Cu, 0.33 g/t Au and 0.53 MT @ 9.26% Zn, 15.9 g/t Ag (historical)
Project status: Resource confirmation
Foran Mining announced results from the final three infill holes on its 100% owned Bigstone VMS 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 two intervals of 58.0 metres grading 2.49% Cu, 0.14% Zn, 0.17 g/t Au and 7.9 g/t Ag starting at a depth of 331 metres and 53.57 metres of 2.54% Cu, 0.11% Zn, 0.21 g/t Au and 14.7 g/t Ag . Drilling also intersected the high-grade zinc zone situated above the copper zone returning 4.84 metres grading 15.1% Zn, 777 g/t Ag and 0.32 g/t Au. Based on the previous wide spaced exploration drilling outside of the main zone, the Company believes there is room to add additional mineralization along the boundaries of the current model.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 Company believes there may be synergies that would see early high-grade production from Bigstone trucked to their nearby McIlvenna Bay project for processing 25 kilometres to the east.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 hole: 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: 58 metres @ 2.49% Cu, 0.14% Zn, 0.017 g/t Au, 7.9 g/t Ag; 4.84 metres @ 15.1% Zn, 0.32 g/t Au, 777 g/t Ag
Risks AnalysisData 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 The research analyst or a member of the research analyst's household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies: Roxgold Inc (TSX:ROG).Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell.In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d'Or, Québec. Travel to and from the site in Val d'Or were paid by Integra Gold Corp. Foran Mining Corp. (FOM) 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 CertificationI, 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. Drill Tracker Weekly: Foran Completes Confirmation Infill Drilling at Bigstone from Copper Investing News