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Haywood Securities has issued a new report on Foran Mining Corporation (TSXV: FOM)

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Haywood Securities has issued a new report on Foran Mining Corporation, symbol FOM on the TSX Venture Exchange. Following Foran’s announcement that they have initiated a winter exploration program, analyst Stefan Ioannou gives a target price of $0.35, a premium of 52% to the $0.23 price on February 19th, the day the report was issued.

Additional Information:

Company: Foran Mining Corp.
Website: http://www.foranmining.com/s/Home.asp
Stock Symbol: TSXV: FOM
Date Published: Feb 25, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch

Haywood Securities has issued a new report on Foran Mining Corporation, symbol FOM on the TSX Venture Exchange. Following Foran’s announcement that they have initiated a winter exploration program, analyst Stefan Ioannou gives a target price of $0.35, a premium of 52% to the $0.23 price on February 19th, the day the report was issued.

Foran’s 100% owned flagship McIlvenna Bay Project is located in Canada’s prolific Flin Flon mining belt in east central Saskatchewan, (mining camps) an easy 60 minute drive from the town of Flin Flon, Manitoba, which hosts Hudbay Mining’s zinc smelter.

This provides access to railhead, allowing concentrate to be shipped to all of North America and international ports.

Exploration activities will include diamond drilling on Target A, a recently identified high-priority geophysical target on the McIlvenna Bay property, as well as geophysical surveys on both the McIlvenna Bay and Bigstone properties.

Target A, a group of conductors located approximately 1.5 kilometres southeast of the McIlvenna Bay deposit, was identified by a deep-penetrating time-domain electromagnetic geophysical survey.

This anomaly is similar in shape, size, and orientation to the signature of the 25.2 million tonne McIlvenna Bay deposit along the same stratigraphic horizon.

Approximately 15 line kilometres of detailed large loop time-domain EM will be conducted directly over Target A to determine the optimum depth and orientation for the approximately 1,500 to 2,000 metres of diamond drilling, in 2 to 3 holes.

There is significant potential for discovery of economic base metal deposits at Foran’s Bigstone property, 10 kilometres to the west, which contains several occurrences of VMS mineralization associated with extensive zinc-rich felsic volcanic stratigraphy.

Past operators estimated an historic mineral resource for the Bigstone deposit of 3.75 million tonnes grading 2.03% copper and 0.33 grams per tonne gold using a 1.0% copper cut-off.

McIlvenna Bay, one of the largest undeveloped VMS deposits in Canada, with indicated resources of 13.9 million tonnes grading 1.96% copper equivalent and inferred resources of 11.3 9 million tonnes grading 2.01% copper equivalent, is the 3rd largest discovered in the region to date.

Foran is now working on engineering studies as a follow-up to an updated resource estimate for McIlvenna Bay published in 2013.

Analyst Stefan Ioannou stated, “Approximately 32% of McIlvenna Bay’s life-of-mine revenue is derived from zinc in our model (versus approximately 55% from copper). We believe this by-product profile significantly enhances the project’s intrinsic value given the scarcity of large advanced-stage zinc development projects in a market that is facing a medium-term supply shortfall.”

“We conceptually envision a US$200 million, 3,000 tonne-per-day, ramp-accessed underground mining operation utilizing standard froth flotation processing technology to produce approximately 25 million pounds of copper and approximately 50 million pounds of zinc (in separate concentrates) per annum over a 14-year mine life.”

Proceeds from a recently completed $1.2 million flow-through equity financing will be used to fund the program.

The most recent financial statements from September 30th, showed another $4.6 million in cash.

The shares are currently trading at $0.225, a significant discount to the $0.35 target price, and with approximately 83.4 million shares outstanding, the company is capitalized at $18.8 million.

For more information, please visit the company’s website www.foranmining.com or contact Fiona Childe, VP Corporate Development at 416-363-9229 or email ir@foranmining.com.

For more information about Haywood Securities or to obtain a copy of their research report, contact your nearest Haywood office. Their branches are listed on their website at www.haywood.com.

I’m Samantha Deutscher for InvestmentPitch
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This video is for information purposes only and it is not a recommendation to buy or sell any securities.