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| | Wed Sep 6, 2006
Franconia Receives Updated 43-101 Resource Estimate On Birch Lake & Maturi Copper-Nickel-Pgm Resources
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| | For immediate distribution
Combined Inferred Resource Increases 140% from 90 to 220 Million Tonnes
September 6, 2006, Spokane, Washington: Franconia Minerals Corporation ("Franconia") is pleased to announce it has received updated resource estimates for both the Birch Lake and Maturi copper-nickel-platinum group metal (PGM) targets on the Franconia's Birch Lake Project in Minnesota. The two resources are located approximately three miles apart. The resource estimates were prepared as part of an ongoing Preliminary Economic Assessment of the potential economic viability of mining concurrently the Birch Lake and Maturi resources and feeding one central processing facility - all controlled by Franconia. This latest estimate takes into account additional drill holes at the Birch Lake resource, lower processing costs and applies higher long-term metals prices to both resources than the prices used in previous resource estimates. The metal prices used, however, are well below current prices. A supporting Technical Report, including an economic analysis of the project and prepared by Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) to NI 43-101 standards, will be filed and made available on SEDAR within 45 days.
Scott Wilson RPA, using what it describes in its report as appropriate cut-off values of US$25 per tonne at Birch Lake and US$30 per tonne at Maturi, now estimates Inferred Resources of 100.4 million tonnes for Birch Lake (previously 39 million tonnes) and 119.9 million tones for Maturi (previously 51.2 million tonnes).
Brian Gavin, president of Franconia, said, "The combined 220 million tonne Birch Lake and Maturi Inferred Resources represents a marked 140 per cent increase in the project resource base, primarily due to using generally accepted higher metal price forecasts that effectively reduce the cut-off grade and thereby dramatically increasing the size of the resource. The increased resource base may also lead to additional economies of scale and, since neither Maturi nor Birch Lake has been fully drilled out, there is still more "blue-sky" potential at this project." Added Gavin, "Finally, if the completed Preliminary Assessment supports the viability of conceptually splitting the capital cost of one central processing facility between two mines, Franconia's 'bottom line' would gain a still bigger boost."
Birch Lake
The new estimate at Birch Lake incorporates the results from four holes and six associated wedge offsets, totaling 4,022 meters (13,197 ft), drilled in 2005 and shows an Inferred Resource of 100.4 million tonnes. This estimate also uses higher metal prices and lower processing costs than the previous estimate completed in 2005, which yielded an Inferred Resource of 39 million tonnes. Additional drilling is currently underway at Birch Lake.
Inferred Resource Estimate
Birch Lake Zone, Birch Lake Project, Minnesota
Cut Off Tonnes Copper Nickel Cobalt Palladium Platinum Gold
NSR (millions) (%) (%) (%) (g/t) (g/t) (g/t)
$25.00 100.4 0.59 0.19 0.01 0.65 0.32 0.14
Metal price assumptions: copper $1.50/lb; nickel $6.00/lb; cobalt
$10.00/lb; palladium $300/oz; platinum $800/oz; gold $450/oz.
The November 2005 Technical Report on Birch Lake, authored by Roscoe Postle Associates Inc. (now Scott Wilson RPA) and entitled "Preliminary Assessment of Mineral Resources of the Birch Lake Property, Minnesota, U.S.A. Prepared For Franconia Minerals Corporation" is available at www.sedar.com.
Maturi
The application of higher long term metal prices and lower processing costs than those used in Maturi resource estimate completed in July of this year increases the Maturi resource from 51.2 to 119.9 million tonnes.
Inferred Resource Estimate
Maturi Zone, Birch Lake Project, Minnesota
Cut Off Tonnes Copper Nickel Cobalt Palladium Platinum Gold
NSR (millions) (%) (%) (%) (g/t) (g/t) (g/t)
$30.00 119.9 0.67 0.25 0.02 0.25 0.09 0.04
Metal price assumptions: copper $1.50/lb; nickel $6.00/lb; cobalt
$10.00/lb; palladium $300/oz; platinum $800/oz; gold $450/oz.
The July 2006 Technical Report on the Maturi resource, authored by Roscoe Postle Associates Inc. (now Scott Wilson RPA) and entitled "Technical Report on the Resource Estimate for the Maturi Property, USA, Prepared For Franconia Minerals Corporation", is available at www.sedar.com.
The new estimates were prepared by Richard Routledge, of Scott Wilson RPA, an appropriately qualified person according to NI 43-101.
Franconia Minerals Corporation trades on both the TSX-V in Canada and OFEX in the UK under the symbol FRA. (For additional information see www.franconiaminerals.com.) The directors of Franconia Minerals Corporation accept responsibility for this announcement. Franconia presently has 38,756,138 shares issued and outstanding.
Brian Gavin, President
Franconia Minerals Corporation
For more information contact:
Brian Gavin
Franconia Minerals Corporation
111 East Magnesium Road, Suite A
Spokane, WA 99208,USA
Tel: +1 509 340-1328
E-mail: franconia@franconiaminerals.com
www.franconiaminerals.com
Colin Bird
Lion Capital Corporation Ltd.
4th Floor, 2 Cromwell Place
London SW7 2JE, UK
Tel: +44 (0)207 581 4477
E-mail: cbird@lionmining.com
This document, which has been issued by Franconia Minerals Corporation (Franconia), has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000, by Lion Capital Corporation Limited (Lion), 4th Floor, 2 Cromwell Place, London SW7 2JE, who is authorised to carry on Investment Business by the Financial Services Authority. Lion, is acting as advisers for Franconia and to no-one else and will not be responsible to anyone other than Franconia for providing protections afforded to customers of Lion for providing advice in relation to any investment made pursuant to this announcement and makes no recommendation for the suitability of any investment, which is the subject of this announcement. FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential, its properties are in the early stages of exploration. 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. Incorporated in Alberta Canada No. 207953670THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |
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