Foran sees resource growth potential at Tesla discovery

Foran Mining (TSXV: FOM; US-OTCQX: FMCXF) has released initial drill results from the 2023 winter program at the Tesla copper-zinc-gold-silver discovery, about 300 metres north of its McIlvenna Bay deposit in Saskatchewan.

Several intersections highlighted grades well above that contained in the McIlvenna Bay reserve estimate. McIlvenna Bay’s reserve is 25.7 million tonnes grading 2.51% copper equivalent.

At McIlvenna Bay, Foran aims for an underground mine to produce 38.8 million lb. copper, 63.6 million lb. zinc, 20,000 oz. gold and 486,000 oz. silver annually for the first 15 years.

Among the exploration highlights are 10.1 metres grading 4.62% copper-equivalent from 905.4 metres depth, including 3.4 metres at 8.29% copper-equivalent; 17.4 metres at 4.04% copper equivalent from 1,114.6 metres, including 2 metres at 9.47% copper-equivalent; and, 17.1 metres at 5.69% copper-equivalent from 1,205 metres, including 4.7 metres grading 7.73% copper equivalent.

Foran says preliminary data suggests Tesla and McIlvenna Bay may have been linked once, with additional drilling set to confirm the relationship. Other ground surveys are also planned.

The discovery remains open with opportunities for expansion through further drilling. Step-out hole TS-22-06A was drilled downdip to the east from the surface to a depth of 1,314 metres.

Additional assays from the Tesla Zone are pending.

BMO Capital Markets mining analyst Rene Cartier views the results positively. “In our view, Tesla is seen as a high-value target that remains open and is situated in very close proximity to McIlvenna Bay, which could support the scaling of future operations,” Cartier said in a research note.

Looking ahead, Foran noted the McIlvenna Bay infill program, which is nearing completion, is set up to provide increased confidence in the resources, particularly in the initial years of production, and provide additional material for metallurgical work.

Three drills are in place targeting an expansion of the Tesla zone with 7,500 metres planned over seven to nine drill holes. Regional exploration planning during the summer months is underway.

Foran shares gained as much as 11.5% on Thursday to $3.40 before settling at $3.30 by the closing bell. The stock has traded between $1.93 and $3.41 over the past 12 months giving it a market cap of $843.3 million.