SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 10/28/10 -- Franconia Minerals Corporation (TSX: FRA) ("Franconia") announces it has received an updated resource estimate for the Birch Lake copper-nickel-platinum group metal (PGM) deposit, one of three NI 43-101 verified resources identified so far at its Duluth Complex project in Northern Minnesota. Based on a Net Smelter/processing Return (NSR) cut-off of US$30/tonne, Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) estimates an Indicated Resource(i) of 176.8 million tonnes. This represents a 35% increase in the amount of Indicated Resources from the previous 2009 estimate (see news release of September 23, 2009) of 131.2 million tonnes. In addition, Scott Wilson RPA also estimated an Inferred Resource of 39.9 million tonnes. The increase in resources is a result of 2010 drilling, which expanded the width of the deposit, and the re-interpretation of Main Zone (deposit) thickness.
The increase in the size of the Indicated Resource represents a significant increase in the amount of contained metal delineated in the deposit (see table below).
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August 2010 May 2009
Indicated Indicated Incremental
Metal Resource Resource Change Percent Increase
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2.06 billion 1.62 billion 0.44 billion
Copper pounds pounds pounds +27%
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0.66 billion 0.51 billion 0.15 billion
Nickel pounds pounds pounds +30%
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2.93 million 2.40 million 0.53 million
Palladium ounces ounces ounces +22%
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1.36 million 1.11 million 0.25 million
Platinum ounces ounces ounces +22%
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0.67 million 0.54 million 0.13 million
Gold ounces ounces ounces +24%
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Brian Gavin, President and CEO of Franconia, said, "With this significant increase of the Indicated Resource at Birch Lake, we have reached an important benchmark. The results of the latest drilling and the resource update can now be used in the preparation of a pre-feasibility program for an underground project at Birch Lake, which also includes ongoing metallurgical, geologic, environmental and waste characterization studies."
The latest estimate takes into account all drilling conducted to date at Birch Lake, which comprises 86 holes and 137 associated wedge offsets, totaling 80,790 meters (265,058 ft.). This includes the 11 holes for 29,237.5 feet drilled in 2010 (see news release dated August 25, 2010). Drilling to date has not fully defined the limits of the deposit, which lies approximately 2,000 ft beneath the surface, and measures approximately 9,100 ft by 3,300 ft at an average thickness of 138 ft (maximum thickness is 320ft).
Mr. Gavin added, "Given that, the drill results also suggest that a significant mineralized trend in the central portion of the deposit has not been closed off at either end. Two additional similar trends in the southern portion of the deposit have also been identified. Another zone in the northern portion of the deposit, underlying Birch Lake, also remains open. Potential for continued expansion of the Birch Lake deposit is excellent."
The new estimate was prepared by Richard Routledge, of Scott Wilson RPA, an appropriately qualified person according to National Instrument 43-101. A Technical Report supporting this estimate, prepared to NI 43-101 standards, will be filed and made available on SEDAR.
((i)The Birch Lake deposit currently contains both Indicated and Inferred resources. An Indicated Resource is a portion of a mineral resource for which quantity, grade, and other characteristics can be estimated with a level of confidence sufficient to support mine planning and additional economic evaluation of the project. An Inferred Resource is that part of a mineral resource for which certain characteristics can be estimated based on geological evidence and limited sampling and which can be reasonably assumed, but not verified, to have geologic and mineralization grade continuity.)
Franconia Minerals Corporation (TSX: FRA): Franconia is currently focused on the development of the Duluth Complex copper-nickel-platinum-palladium project - consisting of the Birch Lake, Maturi and Spruce Road deposits - in this highly prospective region of northeastern Minnesota. Underground mining at Birch Lake will minimize the surface impact of the operation. Also, storage of mine wastes underground would further minimize the surface impact. Additional resources at the Birch Lake project include Inferred Resources at the Maturi deposit (see news release of September 6, 2006) and at the Spruce Road deposit (see news release of December 3, 2007). Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at www.SEDAR.com and www.franconiaminerals.com.
Caution Concerning Forward-Looking Statements: This news release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic and competitive uncertainties and contingencies and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, our lack of operating cash flow and dependence on external financing; availability of financing, as and when required to increase our interest in the mineral properties held in the Duluth Complex Project, and to finance our day-to-day operations and planned growth and development; any decline in the prices of platinum group metals, copper, and nickel; discrepancies between actual and estimated mineral resources; operational and development risk; the speculative nature of mineral exploration; regulatory risks, environmental risks and hazards, uncertainty as to calculation of mineral resources and other risks. Although Franconia Minerals Corporation believes many of its properties have promising potential, these properties are in the early stages of exploration and none have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted.
Readers should not place undue reliance on forward-looking statements or information. The Corporation undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See the Corporation's annual information form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.
MINERAL RESOURCES ESTIMATED AT VARIOUS NSR CUT-OFF GRADES
Franconia Minerals Corporation, Birch Lake Property, Minnesota
(As of August 30, 2010)
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Indicated Resources(1)(3)(6)(7)
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Cut-off Tonnes(5) Cu Ni Co Pt Pd Au CuEq(4) NSR
NSR(8) (000's) % % % g/t g/t g/t % US$
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$30(10) 176,813 0.528 0.169 0.010 0.239 0.515 0.117 1.177 74
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$40 167,704 0.543 0.173 0.010 0.247 0.531 0.121 1.211 76
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$50 150,620 0.568 0.181 0.010 0.259 0.558 0.127 1.266 80
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$60 127,982 0.597 0.190 0.010 0.277 0.594 0.135 1.335 84
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$70 97,062 0.636 0.203 0.011 0.305 0.652 0.148 1.433 90
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$80 65,477 0.677 0.218 0.011 0.343 0.733 0.164 1.548 98
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$90 39,444 0.726 0.236 0.011 0.386 0.822 0.184 1.683 106
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$100 22,681 0.770 0.252 0.011 0.438 0.927 0.205 1.819 115
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Inferred Resources(1)(3)(6)(7)
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Cut-off Tonnes(5) Cu Ni Co Pt Pd Au CuEq(4) NSR
NSR(8) (000's) % % % g/t g/t g/t % US$
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$30(10) 39,997 0.496 0.157 0.009 0.210 0.431 0.103 1.083 68
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$40 37,317 0.513 0.162 0.009 0.218 0.447 0.107 1.120 71
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$50 30,986 0.545 0.174 0.010 0.239 0.490 0.118 1.200 76
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$60 24,793 0.574 0.186 0.010 0.262 0.537 0.129 1.283 81
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$70 16,034 0.622 0.205 0.010 0.301 0.619 0.147 1.415 89
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$80 10,293 0.658 0.230 0.011 0.335 0.682 0.162 1.540 97
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$90 5,822 0.719 0.265 0.011 0.337 0.707 0.165 1.683 106
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$100 4,239 0.740 0.285 0.011 0.338 0.716 0.169 1.750 110
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1. CIM definitions were followed for Mineral Resource estimation and
classification.
2. Mineral Resources are estimated for the deposit as defined and
wireframed based on Cu:Pd, Ni:Pt ratios, mineral occurrence and other
lithologic and stratigraphic factors.
3. Mineral Resources were estimated using average long-term metal US$
prices of $10.00/lb nickel, $3.25/lb copper, $20/lb cobalt, $1,700/oz
platinum, $500/oz palladium and $1,125/oz gold.
4. Copper equivalent (CuEq%) = Cu% + 2.16 x Ni% + 2.03 x Co% + 0.21 x Au
g/t + 0.64 x Pt g/t + 0.17 x Pd g/t based on metal prices and expected
process recovery.
5. Bulk density is 3.07 t/m(3) as averaged from specific gravity testing.
6. Co, Au, Pt, Pd grades, that are lacking in historic drill holes, have
been entered in the resource database based on regression of assay
grades from Franconia drill hole assays.
7. Resources are estimated from approximately 325 m depth to approximately
879 m depth.
8. NSR=$63.12 x Cu% + $136.15 x Ni% + $127.92 x Co%+ $12.96 x Au g/t +
$40.27 x Pt g/t +$10.92 x Pd g/t
9. Scott Wilson RPA recommends reporting resources for the $30 NSR cut-off.
10. The NSR for 2010 excludes Platsol® costs. The September 2009 NSR
included Platsol® costs. The $30 NSR resource cut-off for 2010 is
therefore comparable to the $20 NSR cut-off used in 2009.
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To view the map associated with this Press Release, please visit the following link: http://media3.marketwire.com/docs/Franconia.pdf.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Contacts:
In Toronto:
Franconia Minerals Corporation
Greg Taylor
O: (905) 337-7673 / M: (416) 605-5120
gtaylor@franconiaminerals.com
In the US:
Douglas Sherk
(415) 896-6820
dsherk@evcgroup.com
In Vancouver:
Franconia Minerals Corporation
Farah Alibhai
(604) 731-7340
info@franconiaminerals.com
www.franconiaminerals.com
