Resource Estimate On Birch Lake Copper-Nickel-PGM Resource

SPOKANE, WA - Franconia Minerals Corporation reported to report that the Technical Report has been filed supporting its previously announced updated resource estimate for the Main Zone at the Birch Lake property copper-nickel-platinum group metal (PGM) deposit, one of three underground resource areas identified thus far at Franconia's Birch Lake Project in Minnesota.
Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), which provided the Technical Report according to NI 43-101 standards, estimates an Indicated Resource(a) of 108.2 million tonnes averaging 0.53% Cu, 0.16% Ni, 0.009% Co, 0.28 g/t Pt, 0.60 g/t Pd and 0.13 g/t Au plus an Inferred Resource of 87.3 million tonnes averaging 0.54% Cu, 0.17% Ni, 0.009% Co, 0.23 g/t Pt, 0.49 g/t Pd and 0.11 g/t Au for the Birch Lake deposit. This represents a substantial increase from the previous Birch Lake property resource, which included only an Inferred Resource of 100.4 million tonnes grading 0.58% Cu, 0.19% Ni, 0.008% Co, 0.32 g/t Pt, 0.65 g/t Pd and 0.14 g/t Au and no Indicated Resource. Drilling to convert the inferred resource to indicated resource as part of a pre-feasibility study is currently underway.
Previous technical reports (also by Scott Wilson RPA), completed in 2006, examined the potential economic viability of mining concurrently the Birch Lake and the nearby Maturi resources, feeding one central processing facility. With this recent reassessment of the Birch Lake property resources, the Company is to begin 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. Such a scenario would involve lower capital costs and a more favorable land ownership and permitting environment than the previously contemplated combined Birch Lake/Maturi operation, thereby significantly reducing the time to production.
The new estimate only considers material within the geologically-defined, readily recognizable Main Zone. It does not incorporate any of the additional mineralization that has already been identified immediately above and below this zone and to the northwest of the deposit where diamond drilling has cut the longest, high-grade mineralization intercepted so far on the property. The deposit remains open to the north, northwest and to the south and additional "step-out" drilling is currently underway (The Main Zone is a mineralized zone with excellent geological continuity that should present a well defined mineable unit for mine planning and development).
The company's address is 111 E. Magnesium Road, Suite A, Spokane, WA 99208, (509) 340.1328, fax: (509) 696.9680, email: [email protected].