VERADALE, Wash., May 13, 2003 (PRIMEZONE) -- Franconia Minerals Corporation (OFEX:FRA) is pleased to report that Impala Platinum Holdings (Impala) has advanced a further UD$200,000 to Franconia under the auspices of a continuing Earn-in and Joint Venture Agreement. These funds, to be credited against expenditure requirements in any subsequent joint venture, will allow additional platinum group metal (PGM) targets to be tested as part of the Duluth Project, operated by Franconia.
Duluth Project:
The Duluth Project is a platinum-palladium (PGM)/copper-nickel exploration program in the Duluth Complex of Minnesota. Franconia currently controls 15 properties over 23,000 acres and is the operator of an exploration program funded by Impala Platinum Holdings. Under the agreement Franconia has previously received US$600,000 in funding for the project, which has been ongoing since November of 2001. Recently Impala agreed to advance an additional US$200,000 in order to test additional PGM targets.
Franconia has also been successful in obtaining supplementary financing from the state of Minnesota for initial drilling at several targets on the Duluth during the past year. (Under a cooperative program the State will pay 40% of direct drilling costs of the first drill hole on selected targets.)
Franconia's program is based on 17 years of PGM exploration experience in the Duluth Complex. Franconia has a unique proprietary database of airborne electromagnetic geophysical data collected in the early eighties and exploration geochemical data from the mid-eighties. Franconia also completed new airborne geophysical surveys and extensive geochemical surveys in 2002. Geophysics is an indispensable tool in the Duluth complex due to the nearly ubiquitous thin (generally less that 50 feet) cover of glacial material in the area. Geophysical exploration tools may help detect PGM ore deposits by their geophysical signature. Franconia continues to consolidate its land position though State leases, private leases and federal prospecting permits.
To date, as part of the Duluth Project, Franconia has flown airborne electromagnetic and magnetic surveys over three blocks covering targets for 762 line kilometers (150 square kilometers). Franconia has conducted geochemical surveys at eight targets, ground geophysical surveys at five targets and diamond drilling at four targets. It is anticipated that as many as three additional targets will be drilled this year.
Franconia Minerals Corporation brings together a wealth of knowledge, experience and information of the worldwide minerals industry and has formed two strategic alliances with major mining companies, Teck Cominco American and Impala Platinum Holdings, to explore for and develop large, commercially and strategically critical mineral resources in an efficient and timely manner. Franconia Minerals Corporation is a Canadian corporation trading on the OFEX in London under the symbol FRA.
On behalf of the Board of Directors, FRANCONIA MINERALS CORPORATIONBrian GavinPresident
For more information contact: Brian Gavin Colin Bird Franconia Minerals Corporation Lion Capital Corp. Ltd. 415 N. Sullivan Road 7-8 Kendrick Mews Suite C, PMB 165 London SW7 3HG Veradale, WA 99037, USA UK Tel: +1 509 623 0342 Tel: +44 (0)207 590 8806 Fax: +1 509 696 9680 Fax: +44 (0)207 591 0535 E-mail: E-mail: franconia@franconiaminerals.com cbird@lionmining.com www.franconiaminerals.com
The directors of Franconia Minerals accept responsibility for this announcement
This document, which has been issued by Franconia Minerals Corporation (Franconia), has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000, by Lion Capital Corporation Limited (Lion), 7-8 Kendrick Mews London SW7 3HG, who is authorised to carry on Investment Business by the Financial Services Authority. Lion, is acting as advisers for Franconia and to no-one else and will not be responsible to anyone other than Franconia for providing protections afforded to customers of Lion for providing advice in relation to any investment made pursuant to this announcement and makes no recommendation for the suitability of any investment, which is the subject of this announcement. FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential, its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted. Incorporated in Alberta Canada No. 207953670