Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Foran Mining (TSXV: FOM) has updated the indicated resource at its 100%-owned McIlvenna Bay copper-zinc project in Saskatchewan, reporting a 70% increase in indicated tonnage. Foran is working towards completing a feasibility study for the project, which is about 60 km west of Flin Flon, Manitoba, before the end of the year.
The indicated resource has increased to 39.1 million tonnes from 223 million tonnes. The material grades 1.2% copper, 2.16% zinc, 0.41g/t gold, and 14 g/t silver, or 2.04% copper-equivalent. The company completed over 25,000 metres of drilling in 36 holes since the earlier estimate was published in 2019.
There is also a significant increase in contained metal in the indicated resource – a 74% increase in copper (103 billion lb.), a 21% jump in zinc (284 million lb.), a 58% increase in gold (40,000 oz.), and 47% rise in silver (18.1 million oz.).
Inferred resources total 5 million tonnes at 0.95% copper, 2.56% zinc, 0.27 g/t gold, and 16 g/t silver, or 1.77% copper-equivalent.
The McIlvenna Bay mineralization begins about 25 metres below surface and has been traced down-plunge 2 km, where it remains open in all directions.
One of the best hole results released in September was from hole MB-21-247d1, which intersected over 44 metres of continuous mineralization. It cut 2.5 metres averaging 1.13% copper, 1.66% zinc, 0.2 g/t gold, and 10.3 g/t silver from the massive sulphide zone plus 41.7 metres grading 0.92% copper, 0.21% zinc, 0.11 g/t gold, and 7.8 g/t silver from the copper stockwork zone.
The company is planning to make McIlvenna Bay the world’s first carbon neutral copper development project. Ten years’ worth of carbon emissions from exploration activities have been offset.
(This article first appeared in the Canadian Mining Journal)
