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Franconia Minerals Intercepts 124 Feet Of 0.67% Copper And 0.17% Nickel At Duluth Complex, Birch Lake Copper-Nickel-Pgm Deposit Includes 27.9 Feet Of 0.95% Copper & 0.27% Nickel
May 12, 2010 Spokane Valley, Washington: Franconia Minerals Corporation ("Franconia") (TSX: FRA) is pleased to present results from the first three holes of its 2010 drilling program at the Birch Lake deposit in northern Minnesota (see table and map), part of the Company's Duluth Complex Project.
| Results of the 2010 Drill Program, 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) |
|
| BL10-1 |
2613.7 |
2737.5 |
123.8 |
0.67 |
0.17 |
0.37 |
0.79 |
0.17 |
1.33 |
|
| incl. |
2618.0 |
2645.9 |
27.9 |
0.95 |
0.27 |
0.57 |
1.25 |
0.31 |
2.12 |
|
| BL10-2 |
1569.4 |
1703.7 |
134.3 |
0.52 |
0.18 |
0.12 |
0.26 |
0.06 |
0.45 |
|
| incl. |
1595.2 |
1618.1 |
22.9 |
0.71 |
0.22 |
0.10 |
0.25 |
0.07 |
0.42 |
|
| BL10-3 |
1985.8 |
2047.0 |
61.2 |
0.68 |
0.23 |
0.15 |
0.27 |
0.07 |
0.49 |
|
| incl. |
2001.3 |
2025.9 |
24.6 |
0.77 |
0.27 |
0.18 |
0.31 |
0.07 |
0.56 |
|
**True thickness is approximately 90% of the down hole interval
** TPM = Palladium + Platinum + Gold |
A total of 13 diamond core holes for 33,000 feet are planned for 2010. The goal of the current program is to drill additional holes to convert as much as possible of the previously delineated inferred resource to the indicated category and to add additional, newly defined inferred resources. This work is part of a pre-feasibility program including metallurgical, geologic, environmental and waste characterization studies currently underway at Birch Lake.
"These results from step out drilling are extremely encouraging not only because of the grades and size of the intercepts, but also as they demonstrate still greater continuity of what is a large and growing deposit," said Brian Gavin, President and CEO of Franconia. "This is more evidence suggesting we may be well on the way to reaching our goal of delineating an Indicated Resource sufficient to support a stand-alone, 20,000 tonne-per-day underground operation at Birch Lake with a 20 year-plus mine life. Bearing in mind that the limits of the deposit have not yet been fully defined, we consider this size of operation to be a good foundation on which to start operations at Birch Lake."
This latest drilling is designed to follow on from the resource estimate completed in 2009 at Birch Lake. In that study Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) estimates an Indicated Resource* of 131.2 million tonnes, plus an Inferred Resources of 37.5 million tonnes for the Birch Lake deposit. This represented a 21% increase in the amount of Indicated Resource from the previous estimates (see tables). Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at www.SEDAR.com and www.franconiaminerals.com.
Mineral Resources Estimated at $20 NSR Cut-off Grade as of May 29, 2009 |
| Franconia Minerals Corporation, Birch Lake Property, Minnesota |
| |
|
|
|
|
|
|
|
|
|
| |
Indicated Resources 1,3,6,7 |
|
| Cut-off |
Tonnes5 |
Cu |
Ni |
Co |
Pt |
Pd |
Au |
CuEq4 |
NSR |
| NSR8 |
(000's) |
% |
% |
% |
g/t |
g/t |
g/t |
% |
US$ |
| $20 |
131,213 |
0.561 |
0.175 |
0.010 |
0.263 |
0.569 |
0.127 |
1.332 |
51 |
| |
|
|
|
|
|
|
|
|
|
| |
Inferred Resources 1,3,6,7 |
|
| Cut-off |
Tonnes5 |
Cu |
Ni |
Co |
Pt |
Pd |
Au |
CuEq4 |
NSR |
| NSR8 |
(000's) |
% |
% |
% |
g/t |
g/t |
g/t |
% |
US$ |
| $20 |
37,471 |
0.546 |
0.166 |
0.009 |
0.227 |
0.495 |
0.112 |
1.251 |
47 |
| |
|
|
|
|
|
|
|
|
|
| 1. CIM definitions were followed for Mineral Resource estimation and classification. |
2. Mineral Resources are estimated for the deposit as defined and wireframed based on Cu:Pd, Ni:Pt ratios, mineral
occurrence and other lithologic and stratigraphic factors. |
3. Mineral Resources were estimated using average long-term metal US$ prices of $7.50/lb nickel, $2.25/lb copper,
$20/lb cobalt, $1,300/oz platinum, $350/oz palladium and $950/oz gold. |
4. Copper equivalent (CuEq%) = Cu% + 2.42 x Ni% + 3.09 x Co% + 0.25 x Au g/t + 0.71 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/m3 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 336 m depth to approximately 830 m depth. |
8. NSR=$43.76 x Cu% + $108.94 x Ni% + $134.00 x Co%+ $11.02 x Au g/t + $30.70 x Pt g/t +$7.51 x Pd g/t - $8.00
(treatment) |
| 9. Scott Wilson RPA recommends reporting resources for the $20 NSR cut-off. |
(*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.
About 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. The latest NI 43-101 report estimates an Indicated Resource of 131.2 million tonnes, plus an Inferred Resource of 37.5 million tonnes for the Birch Lake deposit (see news release dated September 23, 2009). 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.
In the US: Douglas Sherk: 415 896 6820
dsherk@evcgroup.com
In Toronto: Greg Taylor: O: 905 337 7673 / M: 416 605-5120
gtaylor@franconiaminerals.com
In Vancouver: Farah Alibhai: 604 731 7340
info@franconiaminerals.com
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.
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