Forsys Announces Additional High Grade Zones from Namibplaas Phase 2 Drilling Program
TORONTO, ONTARIO -- (Marketwire) -- 01/26/12 -- Forsys Metals Corp. (TSX: FSY)(FRANKFURT: F2T)(NSX: FSY) ('Forsys' or the 'Company') is pleased to announce further positive drilling results from its Namibplaas drilling program at Exclusive Prospecting Licence No 3638 ('EPL 3638'), located 7 kilometres northeast of the Company's fully permitted Valencia Mining Licence No 149 in Namibia, Africa. As part of the Phase 2 drilling program the Company has completed 53 additional percussion holes. From commencement of the exploration program in 2008, the Company has completed a total of 33 diamond drill holes and 341 percussion drill holes; for a total of 81,499 meters (8,527 meters of diamond drilling and 72,972 meters of percussion drilling).
Marcel Hilmer, Chief Executive Officer, commented, 'We are very pleased that the Phase 2 drilling program at Namibplaas which began in October 2011 has proven extensive mineralization with significant intersections of 200 ppm eU3O8 or higher in 30 of the 53 drill holes. It is our expectation that this drill program will increase the overall project resource, as well as upgrade the category, and overall grade at Namibplaas. The continued positive results received from the Namibplaas drilling program have reinforced our confidence that ultimately we will be able to consolidate the Namibplaas Project with our 100% owned Valencia Project into an expanded combined uranium project'.
Highlights of recent assay results from Phase 2 Percussion
Drilling at Namibplaas
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Hole From (m) To (m) Interval (m) Grade (ppm eU3O8)
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NAPD-289 33.5 40.7 7.2 192
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NAPD-291 66.8 70.6 3.8 441
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NAPD-294 85.4 97.4 12.0 237
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NAPD-295 72.3 76.9 4.6 257
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NAPD-296 88.0 93.6 5.6 216
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NAPD-299 63.7 68.5 4.8 725
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NAPD-300 42.6 51.6 9.0 202
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NAPD-301 46.6 55.8 9.2 245
63.5 68.6 5.1 191
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NAPD-302 135.5 141.5 6.0 218
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NAPD-303 75.5 82.1 6.6 200
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NAPD-304 63.9 69.1 5.2 507
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NAPD-305 152.3 163.0 10.7 203
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NAPD-306 118.7 125.7 7.0 224
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NAPD-308 166.9 185.1 18.2 225
NAPD-308 240.3 256.2 15.9 205
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NAPD-309 44.4 48.0 3.6 211
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NAPD-311 30.3 35.7 5.4 254
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NAPD-312 56.2 66.2 10.0 300
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NAPD-313 110.1 113.1 3.0 248
224.0 226.3 2.3 346
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NAPD-314 93.8 112.2 18.4 218
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NAPD-315 69.7 74.1 4.4 212
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NAPD-317 51.8 62.5 10.7 242
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NAPD-318 63.5 68.3 4.8 203
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NAPD-319 79.0 81.6 2.6 918
95.5 98.7 3.2 203
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NAPD-321 213.3 216.9 3.6 220
248.8 251.8 3.0 878
261.2 264.2 3.0 192
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NAPD-325 147.9 150.1 2.2 393
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NAPD-326 56.6 59.9 3.3 558
127.6 132.9 5.3 203
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NAPD-331 65.1 67.4 2.3 546
76.0 82.1 6.1 255
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NAPD-332 66.1 76.3 10.2 226
105.0 112.9 7.9 220
124.4 137.3 12.9 198
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NAPD-335 62.2 77.0 14.8 199
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NAPD-336 108.1 117.2 9.1 231
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The Phase 2 program is on schedule and within budget. There are four (4) drilling rigs currently operating on site with approximately 10,000 meters completed in 53 holes, or 25% of the budgeted 40,000 meter program. Geological sections are used to determine the anticipated stopping depth of each hole as determined by the interpreted geological cross sections in order to avoid drilling in unproductive, barren lithological units. Lithological and mineralization continuity between boreholes and created sections are encouraging and consistent as depicted below in the newly created schematic NW - SE Cross section through boreholes NAPD-010 and NAPD-264.
To view 'Figure 1 - Namibplaas Schematic NW-SE Cross Section,' please visit the following link: http://media3.marketwire.com/docs/FSY0126figure1.pdf.
Figure 2 below details all percussion drill hole locations. The current drilling program is on a 40 x 40 meter grid on the surface magnetic anomaly as depicted on the figure. Higher-grade eU3O8 values tend to correspond with the high magnetic values shown in the violet area, trending northeast to southwest. This 40 x 40 meter grid was calculated from the maiden Inferred Resource Estimate that was released on September 15, 2011, after the data was geo- statistically analysed and semi-variograms calculated from the data. The continuity of the lithological units and mineralization will fall within this 40 x 40 meter grid and thus enable upgrading of the resource from Inferred to Indicated. The ore-bodies at Namibplaas and Valencia consist of Leuco Granite Sheets (LGS), locally known as alaskites, which have intruded the surrounding country rock and have formed lenses that open and close depending on the characteristics of the host country rocks.
The higher grade areas correspond to the magnetic high shown in the violet area, trending northeast to southwest.
To view 'Figure 2 - Namibplaas Drill Hole Location Map,' please visit the following link: http://media3.marketwire.com/docs/FSY0126figure2.pdf.
2012 Namibplaas Drilling Program and Consolidation Strategy
The Company has completed 25% of the total budgeted Phase 2 drilling program and is on schedule to complete the current drilling program by June 2012 and deliver an updated compliant NI 43-101 Technical Report by the third quarter of 2012. The Company has already published a NI 43-101 compliant maiden resource report on September 15, 2011 for the Namibplaas Project, as well as a NI 43-101 compliant technical reserve report for its Valencia property. Both reports can be found on the Company website.
The Company continues to develop the preliminary design of an expanded consolidated project (based on an internally generated resource estimate) that could produce annually up to 6.0M lbs of U3O8 from the consolidated Valencia and Namibplaas deposits. Preliminary pit designs and mining schedules are expected to confirm the potential of a consolidated operation. It should be noted that the potential quantities and grades and other technical parameters in reference to the consolidation of the Valencia and Namibplaas deposits are at this stage conceptual in nature only.
About the Namibplaas Uranium Project
Forsys owns 70% of Dunefield Mining Company (Pty) Limited ('Dunefield') which holds the Namibplaas EPL 3638 which covers a total surface area of 1,742ha on the farm 'Namibplaas 93'. The Company is in the process of satisfying the final condition to closing the agreement to acquire the remaining 30% of Dunefield, in order to give it 100% ownership of Namibplaas and anticipates this will occur within the first quarter of 2012 (see news release dated October 24, 2011). Situated 7 kilometres northeast of the Valencia Uranium Project, the Namibplaas uranium project is accessible by way of a newly constructed industrial grade road from the B2 highway to the Valencia project site and from there by a trail suitable for 4x4 vehicles.
EPL 3638 is in good standing, with all reporting and environmental requirements up to date. The EPL 3638 was recently renewed by the Namibian Ministry of Mines and Energy for a further two years to November 2013. No encumbrances exist on the licence, no royalties are payable and there is no liability for any environmental taxes at this stage of exploration. A baseline Environmental Impact Assessment and Environmental Management Plan was carried out by Colin Christian, Independent Consultant, during October 2008 and approved by the Ministry of Environment and Tourism on December 11, 2008.
Additional information, including a comprehensive list of all significant assay results and individual detailed drill hole location maps for each of the diamond and percussion drill holes can be found on the Company website at www.forsysmetals.com. The detailed Namibplaas project history together with previous news releases detailing drill results, are also available for download from the Company's website. For further information please refer to the Company's Annual Information Form, dated March 29, 2011, filed on the Company's profile at www.sedar.com.
NI 43-101 and Qualified Person
Mr Johan de Bruin, MEng, Pr. Sci. Nat., Chief Geologist for Forsys Metals Corp., is the designated Qualified Person responsible for the Company's exploration programs. Mr de Bruin has verified the geological database that included review of geological description and interpretation, assays, and acquisition of radiometric data. Mr de Bruin is familiar with the methods for Quality Assurance and Quality Control specifically applicable to uranium. Mr de Bruin has sufficient experience that is relevant to the style and mineralization, type of deposit and the use of radiometrics in resource estimates as well as to the activity he is undertaking to qualify as a qualified person under NI 43-101. Equivalent U3O8 at Namibplaas has been calculated using the correlation established by Mr de Bruin at Namibplaas; that correlation is almost identical to the one already calculated at Valencia.
About Forsys Metals Corp.
Forsys Metals Corp. is an emerging uranium producer with 100% ownership of the fully permitted Valencia Uranium Project and currently a 70% ownership in the Namibplaas Uranium Project in Namibia, Africa, a politically stable and mining friendly jurisdiction. Information regarding current National Instrument 43-101 compliant resource and or reserves at the Valencia and Namibplaas Uranium Project's is available on our website.
On behalf of the Board of Directors of Forsys Metals Corp.
Marcel Hilmer, Chief Executive Officer
Sedar Profile #00008536
Forward-Looking Information
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. The following are important factors that could cause Forsys actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in uranium prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology; continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full description of these risks can be found in Forsys Annual Information Form, dated March 29, 2011, available on the Company's profile on the SEDAR website at www.sedar.com.
These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Shares Outstanding: 96,875,422
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Forsys Metals Corp.
Marcel Hilmer
Chief Executive Officer
+61 417 177 942
mhilmer@forsysmetals.com
www.forsysmetals.com
TMX Equicom
Nisha Hasan
+1 416-815-0700 Ext 258
nhasan@equicomgroup.com