Forsys Announces: Updated Namibplaas Resource
- Consolidation of Valencia and Namibplaas Projects- Commencement of Updated Consolidated NI 43-101 Technical Report
TORONTO, ONTARIO -- (Marketwire) -- 09/28/12 -- Forsys Metals Corp. ("Forsys" or the "Company") (TSX: FSY) (FRANKFURT: F2T) (NAMIBIAN: FSY) is pleased to announce that the Company has completed an updated resource estimate, reported in accordance with National Instrument 43-101, for its wholly-owned Namibplaas Uranium Project ("Namibplaas") in Namibia. Forsys is also pleased to announce commencement of an updated Technical Report ("TR") that will consolidate the 100% owned Valencia Uranium Project ("Valencia") with Namibplaas.
HIGHLIGHTS
-- At a 100ppm cut-off a Consolidated Measured and Indicated Resource of
93.9 million lbs. of U3O8 grading 175ppm, inclusive of an updated
Namibplaas Indicated Resource of 33.4 million lbs. of U3O8 grading
152ppm.
-- From commencement of the Namibplaas exploration program in 2008, the
Company has completed a total of 33 diamond drill holes and 529
percussion drill holes; for a total of 120,124 metres (8,220 metres of
diamond drilling and 111,904 metres of percussion drilling).
-- Confirmation of two significant Namibplaas high-grade zones that will be
the focus of pit design optimization.
-- Confirmation of the suitability to combine the Namibplaas and Valencia
deposits, located only 7 km apart as a single feed to an optimized
process plant located at Valencia.
-- Commencement of an updated TR to consolidate the Valencia and Namibplaas
projects combining the Mineral Resources estimated in Snowden's Valencia
Uranium (Pty) Ltd: Addendum to June 2009 Technical Report ("Snowden 2010
TR") with the Namibplaas Mineral Resources. Completion of the TR is
expected in the second quarter of 2013.
-- Additional drilling is scheduled to test the extension of the Valencia
and Namibplaas resource.
-- The key initiatives outlined in this release for Valencia and Namibplaas
are fully funded.
Marcel Hilmer, CEO and Director, commented, "We are very pleased that the updated resource statement at Namibplaas has proven extensive mineralization with a materially increased overall project resource, an upgraded category, and overall grade. The positive results received from the Namibplaas drilling program have encouraged the Company to commence an updated TR that consolidates Namibplaas with Valencia into an expanded combined project. Forsys is able to build upon and optimize the existing process plant from the compliant Snowden Technical Report prepared for the Valencia Project in 2010. We remain confident that the outcome will be a consolidated project with better economics, reduced timeframes to achieve a feasibility study and consequently, a shortened timeframe to commence construction and ultimately reach production."
UPDATED NAMIBPLAAS RESOURCE
The Mineral Resource is reported for a range of cut-off grades. The deposit has a strike length of 1,700 metres and a depth extent of at least 250 metres. The deposit is open to the north, south and east and at depth, providing significant opportunities to further expand the resource with additional drilling.
The Namibplaas project's Selective Mining Unit ("SMU") model Indicated and Inferred Resource estimate as at September 2012 reported at a range of eU3O8 cut-offs is as follows:
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TABLE 1. Namibplaas Mineral Resource Estimate (Sept 2012)
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Cut-off Tonnes Grade MLbs
ppm U3O8 Mt ppm eU3O8 eU3O8
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Indicated 60 225.6 111 55.0
Inferred 60 80.6 107 19.0
Indicated 80 149.9 131 43.4
Inferred 80 52.0 127 14.6
Indicated 100 99.5 152 33.4
Inferred 100 33.6 148 11.0
Indicated 120 72.8 169 27.1
Inferred 120 24.1 164 8.7
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A categorical model was developed, in which the proportion of leucogranite within a block (20m x 20m x 10m) was estimated, following which the eU3O8 was then estimated into the categorical model. Using a Localised Uniform Conditioning (LUC) change of support technique, an SMU scale block model was developed (10m x 10m x 5m) to more adequately reflect the quality of material that can be extracted at the selectivity of the proposed mining operation. The current drill spacing of 40x40 metres over the area drilled in the Phase 1 and Phase 2 campaigns was able to bring the resources to the Indicated category, suitable for Reserve estimation and proper pit planning. The Inferred material reported exists on the periphery of the drilled area and exhibits significant potential for further expansion of the resource.
The current drilling has identified two substantial high grade zones; one to the south and the other along the eastern edge of the drilled area. Both these areas are open-ended geologically with the shallower, eastern area providing the likely target for a next phase of exploration. The mineralised alaskite continues beyond the current ore-envelope.
Figure 1 below details all drillhole locations. Additional information, including a comprehensive list of all significant assay and probe results and individual detailed drillhole location maps for each of the diamond and percussion drillholes can be found on the Company's website at www.forsysmetals.com. The area of higher grades corresponds to the magnetic high shown in the violet coloured area, trending northeast to southwest.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/FSY2809_Figure1.pdf.
The resource estimate was completed by Michael Andrew, Principal of Optiro, a Perth-based mining consultancy firm. Mr. Andrew has previously consulted for Forsys in preparing NI 43 -101 resource estimates for Valencia and Namibplaas. The information in this report that relates to Mineral Resources is based on information compiled recently by Forsys geological staff in Namibia including the Company's Chief Geologist and by Mr. Michael Andrew who is a member of the AusIMM and the AIG and a full time employee of Optiro.
CONSOLIDATED VALENCIA AND NAMIBPLAAS RESOURCE STATEMENT
The Company has completed an assessment of the suitability of combining the Valencia and Namibplaas deposits to achieve a consolidated feed to a single process plant. The results of this analysis were positive and confirmed previous work that the two deposits could be combined as a single feed to a process plant. The consolidated project's Measured, Indicated and Inferred Resource estimate as at September 2012 reported at 60 ppm and 100 ppm eU3O8 cut-offs is as follows:
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TABLE 2. Valencia Namibplaas Combined Mineral Resource
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Cut-off Tonnes Grade MLbs
ppm U3O8 Mt ppm eU3O8 eU3O8
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Measured 60 21.0 161 7.4
Indicated 60 445.2 127 124.8
Total M&I 60 466.2 129 132.2
Inferred 60 110.6 117 28.5
Measured 100 13.8 205 6.2
Indicated 100 229.5 173 87.7
Total M&I 100 243.3 175 93.9
Inferred 100 51.2 163 18.4
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Table 2 combines the estimated Mineral Resources at Valencia and Namibplaas. The Namibplaas contribution to the above combined Mineral Resource table has been extracted from Table 1 above. The Valencia project's SMU model Measured, Indicated and Inferred Resource estimate, as released in January 2010 is as follows:
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TABLE 3. Valencia Mineral Resource
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Cut-off Tonnes Grade MLbs
ppm U3O8 Mt ppm eU3O8 eU3O8
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Measured 60 21.0 161 7.4
Indicated 60 219.6 144 69.8
Total M&I 60 240.7 146 77.2
Inferred 60 30.0 144 9.5
Measured 100 13.8 203 6.2
Indicated 100 130.0 190 54.3
Total M&I 100 143.8 191 60.5
Inferred 100 17.6 190 7.4
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COMMENCEMENT OF UPDATED TECHNICAL REPORT
The Company has contracted with the Snowden Group in Perth, Australia to conduct the updated TR study for the Valencia and Namibplaas projects in Namibia. This work follows the recent significant expansion of the resource base at Namibplaas (Table 1) which, when consolidated with the previously reported Valencia's Mineral Resources, resulted in an 65% increase in Measured, Indicated and Inferred resources to 112.3Mlbs of uranium (cut-off of 100ppm).
The work will utilize the existing Snowden 2010 TR as the underpinning study to prepare the updated TR. The designed and fully permitted process plant and supporting infrastructure at Valencia will remain as the foundation of a combined mining operation with this process plant. The Company anticipates that the outcome should confirm the technical and financial viability of the consolidated project and reflect improved economics to those stated in the Snowden 2010 Snowden TR.
The study has commenced and the scope includes:
-- a detailed review of the Valencia process plant including an evaluation
of the flow-sheet and all inputs;
-- review of available metallurgical test work;
-- comment on various aspects of the design that will assist with
optimization;
-- detailed pilot plant testing to confirm ability to pre-concentrate ore
by radiometric or X-ray fluorescence (XRF) sorting;
-- a detailed review of the plant water balance and scope for improvement;
-- new optimized mine plans for Valencia and Namibplaas attaining high
grade ore feed for the first 5 to 7 years of production; and
-- a review and update of all capital and operating expenditures.
The TR is expected to be completed in the second quarter of 2013.
About the Namibplaas Uranium Project
Forsys owns 100% of Dunefield Mining Company (Pty) Limited which holds the Namibplaas EPL 3638 and covers a total surface area of 1,742ha on the farm "Namibplaas 93". Situated 7 kilometres northeast of Valencia, Namibplaas is accessible by way of a newly constructed industrial grade road from the B2 highway to Valencia and from there on a gravel track.
EPL 3638 is in good standing and all reporting and environmental requirements are up to date. There are no encumbrances existing on the licence and no royalties are payable. There are also no liabilities 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. Metallurgical work has been intensified to ensure that process parameters are consistent with Valencia extraction conditions. Pit slope design investigations have also been initiated.
Additional information, including a comprehensive list of all significant assay results and individual detailed drillhole location maps for each of the diamond and percussion drillholes 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, 2012, filed on the Company's profile at www.sedar.com.
About the Valencia Uranium Project
The Valencia property is situated on the farm Valencia 122, which is located approximately 80 km NE of the coastal town of Swakopmund. The Valencia property is situated 25 km northeast along strike of the world class Rossing uranium mine and 50 km north of the Langer Heinrich uranium mine.
The Company, through its wholly owned subsidiary Valencia Uranium (Pty) Ltd., was granted a 25-year renewable Mining Licence (ML149) by the Ministry of Mines and Energy of the Republic of Namibia on June 23, 2008 allowing full development of the Valencia uranium deposit and production to proceed. "ML 149" covers an area of 735.6 ha.
In February 2010, the Company updated its initial feasibility studies, pit optimization, metallurgical environmental and economic studies for the development of Valencia and released an Addendum to the June 2009 Valencia Project Technical Report, which incorporates 2009 Valencia drilling results and reports an 18% increase in reserves to 60.5 million pounds U3O8 grading 156 ppm, with a cut-off of 67 ppm. The project supports a 17-year mine life. For further information please refer to the Company's Annual Information Form, dated March 29, 2012, filed on the Company's profile at www.sedar.com.
NI 43-101 and Qualified Persons
Mr Martin Hirsch, M.Sc in Geology and a member of the British IMMM, Chief Geologist for Forsys Metals Corp., is the designated Qualified Person responsible for the Company's exploration programs. Mr Hirsch, although only recently with the Company has assisted with the verification of the geological database that included review of geological description and interpretation, assays, and acquisition of radiometric data. Mr Hirsch is familiar with the methods for Quality Assurance and Quality Control specifically applicable to uranium. Mr Hirsch 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 previously by Dr. Laine (now retired) at Namibplaas; that correlation is almost identical to the one already calculated at Valencia.
Mr Andrew is a member of the AusIMM and the AIG and a full time employee of Optiro. Mr Andrew has sufficient experience that is relevant to the style of mineralization and type of deposit and to the activity he is undertaking to qualify as a QP under NI 43-101. Michael Andrew holds no interests in Forsys or its associated companies. As part of the data verification used in the estimate, Mr Andrew visited the Namibplaas uranium deposit in July 2011. Mr Andrew has read and consents to the relevant content of this news release.
About Forsys Metals Corp.
Forsys Metals Corp. is an emerging uranium producer with 100% ownership of the fully permitted Valencia uranium project and the Namibplaas uranium project in Namibia, Africa a politically stable and mining friendly jurisdiction. Information regarding current National Instrument 43-101 compliant Resource and Reserves at Valencia and Namibplaas are available on our website.
On behalf of the Board of Directors of Forsys Metals Corp.
Marcel Hilmer, Chief Executive Officer
For further information visit our website at www.forsysmetals.com.
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, 2012, 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: 109,875,422
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 8 9322 3549
mhilmer@forsysmetals.com
www.forsysmetals.com
TMX Equicom
Patrick Piette
+1 416-815-0700 Ext 267
ppiette@equicomgroup.com