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Valencia Resource Update- Forsys Increases Deposit Size and Grade

posted on Jan 28, 2009 07:49AM
January 28, 2009
Valencia Resource Update- Forsys Increases Deposit Size and Grade
TORONTO, ONTARIO--(Marketwire - Jan. 28, 2009) - Forsys Metals Corp ("Forsys" or the "Company") (TSX:FSY) (FRANKFURT:F2T) (NSX:FSY) is pleased to announce the completion of an independent mineral resource estimate update at the Company's wholly-owned Valencia Uranium Deposit ("Valencia") located in Namibia, Africa. The total Measured and Indicated mineral resource has been upgraded to 61 million lbs U3O8, using a cut-off grade of 60 ppm U3O8, as at January 2009.

- Measured and Indicated resource has increased 47% to 61 million lbs U3O8 from 41 million lbs.

- Measured and Indicated resource grade has increased by 18% to 130 ppm U3O8.

- Measured and Indicated resource grades range from 151 ppm U3O8 to 157 ppm U3O8 at the anticipated Selective Mining Unit scale.

The updated resource estimate is based on results from infill drilling at Valencia since mid2007 incorporating: completion of 205 percussion drill holes which total 60,565 m, and sixteen diamond drill holes (VAL 26-137 to VAL 26-152) which total 5,102.4 m.

A National Instrument 43-101 ("NI 43-101") Technical Report is being prepared by Snowden Mining Industry Consultants ("Snowden") of Australia and will be filed on SEDAR at www.sedar.com within 45 days. This report will describe the increased resources of the Valencia Deposit.

The mineral resources for the Valencia Deposit as reported in Table 1 below were classified as Measured, Indicated and Inferred using the guidelines of the JORC code, which is a recognized foreign code under NI 43-101 including the CIM Definition Standards (CIM, 2005). The resource has been constrained to a maximum depth of 380 m below surface and limited to geological modeling of the alaskite, which was conditionally simulated in blocks of 5 m X 5 m X 5 m. These blocks were reblocked to 30 m x 30 m x 5 m and then estimated by ordinary block kriging, with a grade cap of 1,000 ppm U3O8. Only mineralization associated with the alaskite has been estimated and reported. The resource has been reported at a cut-off grade of 60 ppm U3O8.

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Category                               Cut-off   Tonnes  Grade U3 08  U3 08
                                    U3 08 (ppm)      (K)        (ppm) (Mlbs)
----------------------------------------------------------------------------
Measured                                    60   24,500          149    8.0
Indicated                                   60  188,700          128   53.0
----------------------------------------------------------------------------
Total Measured and Indicated                60  213,200          130     61

Inferred                                    60   76,900          119     20
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Table 1 - Summary of Valencia Uranium Deposit Mineral Resources, as at
January 2009
Table 2 below describes a mineral resource for the Valencia Uranium Deposit estimated by conditional simulation at the scale of the anticipated Selective Mining Unit ("SMU"). An SMU of 10 m x 10 m x 5 m has been assumed based upon previous optimization studies of the Valencia Uranium Deposit. The simulation at the SMU scale indicates the potential that exists through the selective mining and effective grade control of the resource, that the resource grade might be increased by approximately 15%, with a corresponding drop in tonnage. A total of 100 conditional simulations were run, and the three reported simulations P10, P50, and P90, representing the 10th , 50th and 90th percentiles respectively, of the simulations based on metal content at a 60 ppm U3O8 cut-off. As with the ordinary block kriged estimate, only the alaskite mineralization has been estimated and reported. The anticipated selectivity needs to be confirmed by planned optimization studies and does not imply that any economic viability has been demonstrated.

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Category                               Cut-off   Tonnes  U3 08  U3 08 metal
                                    U3 08 (ppm)      (K)  (ppm)       (Mlbs)
----------------------------------------------------------------------------
P50
----------------------------------------------------------------------------
Measured                                    60   20,000    155            7
Indicated                                   60  159,400    153           54
Total Measured and Indicated                60  179,400    153           61

Inferred                                    60   75,300    152           25

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P10
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Measured                                    60   19,700    150            7
Indicated                                   60  156,100    151           52
Total Measured and Indicated                60  175,800    151           59

Inferred                                    60   75,300    149           25
----------------------------------------------------------------------------

P90
----------------------------------------------------------------------------
Measured                                    60   20,500    164          7.4
Indicated                                   60  158,400    156         54.4
Total Measured and Indicated                60  178,900    157           62

Inferred                                    60   76,100    153           26

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Table 2 - Summary of Valencia Uranium Deposit Mineral Resources, estimated
at the anticipated SMU scale, as at January 2009
These mineral resources are based on the ongoing optimization studies currently underway with Forsys personnel and the Company's various external consultants.

Forsys and George Forrest International Afrique S.P.R.L have agreed to a CAD$10 million exploration and development budget, pursuant to the terms of a previously announced arrangement agreement. The Company will immediately commence with the completion of the resource definition drilling to a 40 m grid spacing with another 40,000 m or approximately 130 new percussion drill holes, concentrating in areas where the deposit is still open such as the West side, North Pit anomaly, and east of the East Arm (Refer to Figure 1).

Forsys will use the new mineral resource estimate for Valencia to support long term planning goals and allow for several mining alternative options to be fully evaluated. Mineral reserves will be announced in due course.

To view Figure 1 -Valencia Uranium Deposit Surface Map Showing the Various Zones of Mineralization, please click on the following link: http://media3.marketwire.com/docs/12...

Dr. Roger Laine, Ph.D., P.Geo., Chief Geologist for Forsys, is the designated Qualified Person ("QP") responsible for the Company's exploration programs. Dr. Laine has verified the geological database which included review of geological description and interpretation, assays, and radiometric readings, and Dr. Laine is familiar with the methods for Quality Assurance and Quality Control specifically applicable to uranium. Dr. Laine has sufficient experience which is relevant to the style and mineralization, type of deposit and the use of radiometrics in resource estimates as well as to the activity he is undertaking to qualify as a QP under NI 43-101.

The information in this report that relates to mineral resources is based on information compiled by Mr. Michael C. Andrew who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a full time employee of Snowden. Mr. Andrew has sufficient experience which is relevant to the style of mineralization and type of deposit and to the activity he is undertaking to qualify as a QP under NI 43-101. Michael Andrew holds no interests in Forsys or its associated companies. As part of the data verification used in the estimate, Mr. Andrew visited the Valencia Uranium Deposit in December 2008. The QP has read and consents to the content of this news release. The associated Technical Report will be filed on SEDAR at www.sedar.com within 45 days of this news release.

On Behalf of the Board of Directors of Forsys Metals Corp

Duane Parnham, President and CEO

For further information visit our website at www.forsysmetals.com.

Sedar Profile #00008536

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