Fri Oct 3, 2008 Franconia Minerals Completes Lake Drilling & Bulk Sample Collection At Birch Lake Copper-Nickel-Pgm Project
Best Intercepts: 47.9ft of 0.85% Cu and 0.30% Ni
October 3, 2008 Spokane, Washington: Franconia Minerals Corporation ("Franconia") (TSX: FRA) is pleased to note the recent completion of its barge drilling program at the Birch Lake deposit in northern Minnesota. A total of nine holes and associated wedged offsets for 19,566 feet were drilled between May and late September of 2008. Results have been received for the first two holes. Hole BL08-1W1 intercepted 235.4 feet of 0.52% Cu, 0.18% Ni and 0.34 g/t Total Precious Metals (TPM = palladium [Pd] + platinum [Pt] + gold [Au]) and hole BL08-2W1 intercepted 47.9 feet of 0.85% Cu, 0.30% Ni and 0.85 g/t TPM (see table and map).
This drill program is part of a program initiated in June 2006. The goal of the program was to continue the conversion of Inferred Resources to Indicated Resources and to collect representative material for bulk metallurgical testing. All holes and wedged offsets were drilled using wide diameter (PQ) core. Wedges were drilled on the first two holes of the current program. Wedging was discontinued for the remainder of the holes as a sufficient sample for bulk testing (approximately 60 tonnes) has now been collected.
A Preliminary Economic Assessment to examine the viability of a stand-alone, 20,000 tonnes-per-day, 20 year-plus mine life Birch Lake "starter" underground operation is expected to be completed shortly. A pre-feasibility study has also been initiated and is expected to be completed in the first half of 2009.
October 2008 Drill Results, Birch Lake, Minnesota
Drill Hole
From (ft)
To (ft)
Down Hole Interval* (ft)
Copper (%)
Nickel (%)
Platinum (g/t)
Palladium (g/t)
Gold (g/t)
TPM (g/t)
BL08-1
1345.7
1601.3
255.6
0.427
0.161
0.07
0.17
0.05
0.29
BL08-1W1
1360.3
1595.7
235.4
0.522
0.180
0.08
0.21
0.05
0.34
BL08-1W2
1318.8
1591.7
272.9
0.432
0.174
0.08
0.20
0.05
0.33
BL08-1W3
1338
1583.1
245.1
0.474
0.174
0.09
0.20
0.05
0.34
BL08-1W4
1350.3
1613.9
263.6
0.476
0.170
0.08
0.19
0.05
0.32
BL08-2
1366.5
1414
47.5
0.721
0.228
0.17
0.39
0.1
0.66
BL08-2W1
1366
1413.9
47.9
0.852
0.296
0.22
0.51
0.12
0.85
* True thickness is approximately 90% of the down hole interval
This latest drilling builds on Franconia's announcement in July (see news release of July 9, 2008) of an updated resource estimate for the Main Zone at the Birch Lake deposit, one of three underground resource areas identified thus far at Franconia's Birch Lake Project in Minnesota. Scott Wilson Roscoe Postle Associates (Scott Wilson RPA), which provided the technical report according to NI 43-101 standards, estimated an Indicated Resource* of 108.2 million tonnes plus an Inferred Resource of 87.3 million tonnes for the Birch Lake deposit. This represented a substantial increase from the previous Birch Lake property resource completed in 2006, which included only an Inferred Resource of 100.4 million tonnes and no Indicated Resource (see tables below). Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at www.SEDAR.com and www.franconiaminerals.com.
Birch Lake Deposit Mineral Resources Estimated at Various Copper Cut-off Grades
Franconia Minerals Corporation, Birch Lake Property, Minnesota
Indicated Resources1,3,7,8
Cut-off
Tonnes6
Cu
Ni
Co
Pt
Pd
Au
TPM5
CuEq4
Grade
(000's)
%
%
%
g/t
g/t
g/t
g/t
%
Main Zone2
108,206
0.528
0.163
0.009
0.279
0.599
0.132
1.010
1.241
0.3% Cu
98,336
0.557
0.170
0.010
0.292
0.631
0.140
1.062
1.303
0.4% Cu
83,958
0.592
0.178
0.010
0.302
0.657
0.146
1.105
1.371
0.5% Cu
63,137
0.638
0.191
0.010
0.318
0.695
0.155
1.167
1.466
0.6% Cu
35,559
0.706
0.209
0.011
0.346
0.763
0.171
1.280
1.612
0.7% Cu
16,400
0.779
0.231
0.012
0.383
0.852
0.191
1.425
1.780
Inferred Resources1,3,7,8
Cut-off
Tonnes6
Cu
Ni
Co
Pt
Pd
Au
TPM5
CuEq4
Grade
(000's)
%
%
%
g/t
g/t
g/t
g/t
%
Main Zone2
87,298
0.541
0.167
0.009
0.226
0.493
0.111
0.830
1.213
0.3% Cu
78,668
0.573
0.176
0.010
0.237
0.520
0.118
0.875
1.280
0.4% Cu
66,984
0.612
0.186
0.010
0.251
0.553
0.125
0.930
1.360
0.5% Cu
53,141
0.653
0.198
0.011
0.265
0.580
0.133
0.978
1.445
0.6% Cu
31,757
0.718
0.218
0.011
0.286
0.624
0.146
1.056
1.585
0.7% Cu
17,162
0.778
0.237
0.012
0.299
0.656
0.157
1.113
1.708
1. CIM definitions were followed for Mineral Resource estimation and classification.
2. Mineral Resources are estimated for the Main Zone of the deposit as defined and wireframed based on mineral occurrence, grades, Cu:Pd, Ni:Pt ratios and other lithologic and stratigraphic factors.
3. Mineral Resources were estimated using average long-term metal US$ prices of $8.50/lb nickel, $2.50/lb copper, $20/lb Co, $1,200/oz platinum, $350/oz palladium and $800/oz gold.
4. Copper equivalent (CuEq%) = Cu% + 2.47 x Ni% + 2.78 x Co% + 0.19 x Au g/t + 0.59 x Pt g/t + 0.16 x Pd g/t based on metal prices and expected process recovery.
5. TPM is Au g/t + Pt g/t + Pd g/t.
6. Bulk density is 3.07 t/m3 as averaged from specific gravity testing.
7. 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.
8. Resources are estimated from approximately 345 m depth to approximately 840 m depth.
9. Scott Wilson RPA recommends reporting resources for the wireframed zone.
(*An indicated mineral 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. The Birch Lake deposit is currently classified as an inferred resource, which 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 to have a consistent grade of mineralization.)
Core samples were prepared at the ALS Chemex Ltd. Laboratories in Thunder Bay and then shipped to its analytical facilities in Vancouver. Samples were analyzed for gold, platinum and palladium using a standard fire assay with an ICP finish, as well as for 34 base metals and trace elements using a four-acid (near-total) digestion and a combination of ICPMS and ICPAES. ICP over-limits were reanalyzed using sodium peroxide fusion and acid dissolution followed by ICPAES.
Franconia Minerals Corporation trades on the TSX under the symbol FRA. (For additional information see www.franconiaminerals.com.) Franconia currently has 59,017,572 shares issued and outstanding.
In the US: Matthew Selinger: 415 896 6820
In Vancouver: Farah Alibhai: 604 731 7340
In Toronto: Greg Taylor: 905 337 7673
FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential, these 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.
You can view the Next News Releases item: Thu Jan 15, 2009, Franconia Minerals Receives Final Loan And Grant Payments From The State Of Minnesota For Birch Lake
You can view the Previous News Releases item: Mon Aug 25, 2008, Franconia Files Technical Report Supporting Latest Ni 43-101 Resource Estimate On Birch Lake Copper-Nickel-Pgm Resource
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