The camp at Foran Mining’s McIlvenna Bay polymetallic project in Saskatchewan. Credit: Foran Mining.
Foran Mining (TSX: FOM) cut a highlight result of 21.3 metres grading 1.55% copper at its McIlvenna Bay project in east-central Saskatchewan.
Hole BZ-25-02 also intersected 0.69% zinc, 4.8 grams per tonne silver and 0.01 gram gold from 1,186 metres depth, Foran said Tuesday in a statement. This included 7.6 metres grading 1.9% copper, 0.85% zinc, 5.3 grams silver and 0.01 gram gold.
Vancouver-based Foran is planning to drill up to 6,500 metres this summer with two rigs as it works to complete a maiden resource estimate for the project’s Tesla zone. Results from an additional 14 drill holes completed at the Tesla and Bridge zones this past winter remain pending.
“The latest results returned consistent high-grade intercepts, bolstering potential for resource growth in the forthcoming maiden resource estimate for the Tesla zone,” Scotia Capital mining analyst Eric Winmill said Tuesday in a note.
Full capacity
After regional wildfires forced Foran to evacuate about 540 non-essential workers from McIlvenna Bay on May 22, the company started repatriating staff in early June when authorities determined the site was no longer under threat from the flames. Foran has since ramped construction back to full capacity.
Hole BZ-25-02 drilled through mineralization at the Tesla and Bridge zones followed by a significant step-out intersection at McIlvenna Bay deposit, Foran said Tuesday. That made it the first drillhole so far to intersect all three of the project’s mineralized blocks.
Foran has completed about 28,500 metres of drilling in 32 drill holes and wedges at the site. Most of the work until now has focused on infill and increased definition of the mineralized lenses of the Tesla zone.
Other highlights included hole TS-25-36w3, which intersected 12.4 metres grading 0.6% copper, 10.33% zinc, 30.5 grams silver and 0.54 gram gold from 1,463 metres depth. This included 4 metres at 1.23% copper, 11.43% zinc, 36 grams silver and 1.11 gram gold from 1,466 metres downhole.
Growth potential
“The growth potential of the Tesla zone continues to shine through our 2025 infill drilling results,” Erin Carswell, Foran’s vice president of exploration, said in the statement. “Not only are we confirming continuity at Tesla with every new hole drilled, but we have identified a significant thickening of Tesla’s lower lenses in the down-dip direction.”
Foran shares dropped 2.7% to C$3.19 Tuesday afternoon in Toronto, giving the company a market capitalization of about C$1.3 billion. The stock has traded between C$2.81 and C$4.69 in the past 12 months.
Canada’s Agnico Eagle (TSX, NYSE: AEM) last month increased its stake in Foran to 13.5% by investing $90 million via a private placement. The deal included backing from the C$15 billion federal government Canada Growth Fund and Toronto-based Fairfax Financial Holdings, which has $96.8 billion under management.
The funding announcement came after Foran hiked its estimated capital cost for McIlvenna Bay by 22% to C$1.08 billion from C$886 million. BMO Capital Markets called it “a disappointing development, particularly given Foran recently filed an updated technical report and provided a construction update.”
Large deposit
Located in the Flin Flon greenstone belt, McIlvenna Bay has the region’s largest undeveloped volcanic-hosted massive sulphide deposit. Its resource is 39 million indicated tonnes grading 1.2% copper, 2.16% zinc, 0.41 gram gold per tonne, and 14 grams silver. It equals 2.04% copper-equivalent.
A 2022 feasibility study outlined an 18-year mine capable of producing an average of 65 million lb. of copper equivalent annually (34.5 million lb. of copper, 58.6 million lb. of zinc, 17,500 oz. of gold and 435,200 oz. of silver).
Construction is about a third completed, according to Foran, with C$381 million spent towards the first stage and C$701 million remaining to completion. The increased capital budget includes about 46% due to non-recoverable sales taxes and reduced pre-commercial production revenue credits, the company said. The budget includes C$40 million for working capital, C$25 million to C$30 million for exploration and the same again for corporate expenses, according to Foran.
Agnico’s strategic partnership with Foran began in August 2024 when the gold miner was granted certain ownership threshold rights. Recent changes to the agreement now allow Agnico to raise its stake to 19.99% and gain additional board representation if the Vancouver-based developer explorer expands its board.
