Franconia Announces 21% Increase in NI 43-101 Indicated Resource

 

SPOKANE, WA - Franconia Minerals Corporation reported an updated resource estimate for the Birch Lake copper-nickel-platinum group metal (PGM) deposit, one of three underground resource areas identified so far at Franconia's Birch Lake Project in Minnesota. Based on a NSR (net smelter/processing return) cut-off of US$20/tonne, Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) estimates an Indicated Resource(i) of 131.2 million tonnes, plus an Inferred Resource of 37.5 million tonnes for the Birch Lake deposit. This represents a 21% increase in the amount of Indicated Resources from the previous 2008 estimate of 108.2 million tonnes. On a copper equivalent (CuEq) basis (see table), the grade of the Indicated Resource increased in 2009 to 1.33% CuEq from 1.24% CuEq in 2008. Drilling has not fully defined the limits of the deposit to the south and southeast. This latest estimate takes into account all drilling conducted to date at Birch Lake, which comprises 75 holes and 151 associated wedge offsets, totaling 71,877.91 meters (235,820 ft.).

Brian Gavin, President and CEO of Franconia, said, "The latest program of in-fill drilling at Birch Lake has significantly increased the size of the Indicated Resource and gives us still greater confidence as we continue to assess the potential for 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."

Added Gavin, "This drilling has also provided sufficient mineralized material - approximately 60 tonnes - to enable us to conduct an important bulk metallurgical test for a future feasibility study."

The company’s address is 111 E. Magnesium Road, Suite A, Spokane, WA 99208, (509) 340.1328, fax: (509) 696.9680, email: [email protected].