Consolidated projects to be called "Norasa"
Shares Outstanding: 109,875,422
TORONTO, Jan. 23, 2013 /CNW/ - Forsys Metals Corp ("Forsys" or the "Company") is pleased to announce positive drilling results from an extension exploration program on the Company's fully permitted Valencia Mining Licence 149 in Namibia, Africa. The new discovery, "Valencia East" is located 500 metres northeast from the planned Valencia production pit (see Figure 1). Since November 20, 2012 the Company has completed a total of 15 percussion drill holes for a total of 2,250 metres.
The Company is also pleased to announce that as a result of the continued exploration success at Valencia, comprising Valencia Main, Valencia East and Valencia North and at Namibplaas (EPL 3638), combined with the high likelihood of common infrastructure (a NI 43-101 technical reporting requirement); these projects will now be consolidated and considered as a single project. The Company has designated that the newly consolidated property be named, Norasa uranium Project. Norasa is an everyday term used by the rich and diverse culture of the Damara people and means united or putting things together.
Marcel Hilmer, Chief Executive Officer, commented, "The initial drilling results at Valencia East have confirmed considerable mineralization in 11 of the 15 percussion drill holes, encountering significant intersections of greater than 200 ppm u3O8 including many greater than 400 ppm as highlighted in Table 1 below. The results from this drilling program are very encouraging and indicate the potential for a significant high-grade area located in close proximity to the main Valencia deposit and proposed processing plant. We are very pleased that this program continues to increase both the potential resources and the overall grade of the consolidated Valencia and Namibplaas projects, now known as Norasa. The consolidation of the projects confirms our strategy to build a world class, large capacity process plant that can be supplied with ore from both the Valencia and Namibplaas deposits".
Table 1: Highlights of recent assay results from Valencia East Percussion Drilling
(Minimum of 200 ppm U3O8 and an interval of 1.0 metre or greater)
Valencia East is located within the existing fully permitted Valencia Mining Licence, ML 149.
The geology in Valencia East is very similar to that of the Valencia Main deposit with uranium mineralization associated to post D3 deformation anatectic alaskite intruding in stock-like bodies into Meta-sediments of Nosib and Swakop Group (see Figure 2). The preferred intrusion path is along Khan Rossing Fm boundary and the structural weakness zones created by complex folding.
The structure strikes NE/SW and is dipping steep to the SE.
Valencia East is the structural extention of Valencia Main and forms a tightly packed sequence of upper Nosib and lower Swakop Group lithologies dipping steeply to the SE. The sequence is trending NE/SW and alaskites are intruding in stock work like bodies subparrallel to the main contacts (Figure 3).
The alkaline leukogranite, also known as alaskite is moderately to highly radioactive on surface (see Figure 4) and continues to depth beyond current drill cover. It is characterized by a coarse grain texture, frequent smoky quartz clusters and the occurrence of secondaries in the form of yellowish uranophane-group minerals along micro-cracks and/or mineral boundaries.
Phase 2 Drilling Program
The 2013 Valencia East drilling program is now underway. The program is being scheduled for completion by mid 2013. The Company has an approved budget of US$0.5 million to complete this phase of drilling which will include a total of 31 percussion drill holes.
NORASA - CONSOLIDATED NAMIBIAN PROJECTS
The Company has consolidated its various projects in the Erongo region and collectively they will be known as, Norasa. The location of each project and details of the stage of development and or resources are detailed in Figure 5 and below:
- Valencia Main: Mineral Resources of 143.80 Mt, grade ppm eU3O8 191 for 60.5 Mlbs U3O8 including Reserves of 148.0 Mt, grade ppm U3O8 172 for 56.0 Mlbs.
- Valencia East: Highly prospective ongoing exploration site.
- Valencia North (previously "Joly Zone"): A prospective exploration target with 825.5m drilled from 5 diamond drill holes and 451m drilled from 3 percussion holes. Renewed drilling activity is expected to commence in H2 2013.
- Namibplaas Main: Mineral Resources of 99.5 Mt, grade ppm eU3O8 152 for 33.4 Mlbs U3O8.
NI43-101 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. He 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.
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.
Chief Executive Officer
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.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: Forsys Metals Corp.
For further information:
Marcel Hilmer, Chief Executive Officer
Telephone: +61 417 177 942
Email: [email protected]
Patrick Piette, TMX Equicom
Telephone: +1 416-815-0700 Ext 267
Email: [email protected]