VERADALE, Wash., July 23, 2002 (PRIMEZONE) -- Franconia Minerals Corporation (OFEX:FRA) is pleased to announce the results of core drilling completed month at Franconia's Sonju Lake platinum group element (PGE) property in the Duluth Complex in Minnesota. This work is part of an exploration program funded by Impala Platinum Holdings (Impala). Previous surface sampling of sparse outcrop at Sonju Lake delineated a PGE-enriched zone within a mafic layered igneous complex. Drilling continues at Franconia's high-grade San Francisco zinc property in Utah.
Drilling at Sonju Lake:
Three core holes at the Sonju Lake layered igneous complex (for a total of 1200 feet) were completed in late May and June as part of Franconia's platinum-palladium (PGE)/copper-nickel exploration program in the Duluth Complex of Minnesota. Franconia controls 14 properties over 28,000 acres and is the operator of an exploration program funded by Impala Platinum Holdings. Under the agreement Franconia has already received US$600,000 in funding for exploration.
The Sonju Lake Intrusion is the most completely differentiated layered intrusion known along the Mid-continent rift system. Early studies of the intrusion recognized that its cumulate nature is comparable to the Skaergaard Intrusion in Greenland. Outcrop sampling by the Minnesota Geological Survey, and confirmed and extended by Franconia, have identified a PGE-enriched horizon within ferrogabbro in the upper mid-level section of the intrusion. The PGE values are strongly anomalous (up to 0.65 g/ton platinum and palladium).
The recent drill program consisted of one 700-foot and two 250-foot core holes to test this mineralized horizon in the subsurface. The deepest hole, SL02-1, cut two broad zones of anomalous but sub-economic PGE concentration in oxide-bearing gabbros. The strongest zone was 30 feet thick (apparent thickness) with a combined platinum and palladium (Pt+Pd) grade of 0.26 g/ton (Pt:Pd=1:3 approximately). Within this zone the highest grade was 0.50 g/ton Pt+Pd. This zone occurred between 300 and 330 feet down the hole. The second, lower grade, slightly thicker anomalous zone was cut between 378 and 415 feet.
Drill holes SL02-2 and -3, each drilled to a depth of 250 feet, both intersected similar zones of anomalous PGEs in zones, interpreted as continuations of the upper zone cut in hole SL02-1. Although the assay data show elevated concentrations of PGEs to be present, the grades are well below mineable levels.
Franconia geologists are currently interpreting the results and considering additional ground magnetic surveys to trace this zone to the west. Additional holes will be drilled if merited with the goal of delineating zones of higher grade PGE mineralization.
Franconia continues to consolidate its land position in the Duluth complex though the acquisition of additional State leases, private leases and federal prospecting permits. Several previously unexplored intrusions within the complex are currently being evaluated by an extensive program of geological mapping and soil geochemical surveys. When winter freeze-up allows access, several targets identified by a recent airborne geophysical survey will be tested by drill holes.
Drilling at the San Francisco Project, Utah
Core drilling is in progress on Franconia Minerals Corporation's high-grade zinc San Francisco property in southwestern Utah. Previous drilling and sampling on the property showed the presence of high-grade sphalerite (zinc sulfide) "manto-style" mineralization, with up to 55 feet of 19% zinc in drilling and 105 feet of 14.5% zinc in underground drift sampling. Additional details are available at www.franconiaminerals.com.
A series of three core holes are being drilled to target extensions of known high grade Zn-Pb mineralization on the 650 through 1000 foot mine levels and below that, to a total depth of 1200 feet. These holes are designed to test for potential zinc manto and breccia mineralization in previously unexplored areas.
Recent underground mapping and sampling by Franconia geologists on the 650, 900, and 1000 foot levels of the old workings confirm high grade Zn-Pb mineralization, with accompanying Ag and Au, in structurally-prepared limestone host rocks. The best mineralization occurs in hydrothermal breccias immediately adjacent to and grading west and northward from the fault and fracture planes. The current drill holes are positioned to test the west and northward extension of high-grade mineralization, encountered in both workings and in underground drill holes, north of an area of complex fault intersections.
Hole SF-1 was drilled to 949 feet before being abandoned due to poor ground conditions and, consequently, only partly tested the prospective horizons. While no sulfide mineralization was observed in SF-1 at depth, intense wall rock brecciation with silicification, clay alteration, and Fe-Zn oxides suggests close proximity to mineralized breccia. Selected sections of core have been split and sent for analysis.
Hole SF-2, collared some 300 feet south and west of SF-1, was drilled to 1,257 feet. SF-2 intersected veined, brecciated altered marble with four gossan (strongly oxidized) intervals between 1170 feet and 1225.7 feet; the thickest interval is 21.5 feet. The gossanous intervals are comprised of more than 60% earthy, red-yellow-brown iron oxide and appear similar to gossans mapped and sampled underground that assayed up to 24% zinc. Assay results are pending.
Hole SF-3 was drilled to intersect the target horizons 150 feet south of SF-2 and is in progress at 1269 feet. Twenty feet of sulfide mineralization was encountered at 1135 feet. Oxidized gossans, similar to those cut in SF-2, were encountered from 1180ft onward.
Assay results from these holes should be received by mid-August.
In addition to this drill program Franconia will commission additional "mise a la masse" geophysical surveys using the newly drilled holes to position survey electrodes. This will reduce the possibility of "interference" from the old workings and facilitate interpretation of the survey. This survey will be completed in August.
Teck Cominco Agreements
Teck Cominco American Incorporated ("'Teck Cominco"), a wholly owned subsidiary of Teck Cominco Limited, one of the largest zinc producers in the world, is an equity holder in Franconia. Under the terms of a strategic alliance between Teck Cominco and Franconia, Teck Cominco is presenting properties to Franconia and providing access to Teck Cominco's United States exploration database. Teck Cominco also retains limited back-in joint venture rights. Teck Cominco's first submittal is the San Francisco zinc property.
Franconia's agreement with Teck Cominco regarding the San Francisco project gives the latter a one-time option to joint venture the property once Franconia has drilled eight holes (9,600 feet) and expended approximately US$500,000. Under the option Teck Cominco can earn a 60% interest in the project by producing a feasibility study.
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 CORPORATION Brian Gavin President For more information contact: Brian Gavin Franconia Minerals Corporation 415 N. Sullivan Road Suite C, PMB 165 Veradale, WA 99037,USA Tel: +1 509 623 0342 Fax: +1 509 696 9680 E-mail: franconia@franconiaminerals.com www.franconiaminerals.com Colin Bird Lion Capital Corporation Ltd. 7-8 Kendrick Mews London SW7 3HG UK Tel: +44 (0)207 590 8806 Fax: +44 (0)207 591 0535 E-mail: cbird@lionmining.com
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 Act2000, by Lion Capital Corporation (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 mineralisation may be economically extracted.