Focus Metals and SOQUEM report significant results in the field of rare earth metals from the 2011 drilling program at Kwyjibo, northeastern Quebec
OTTAWA - March 13, 2012 - Focus Metals Inc. ("Focus" or the "Company") (FMS: TSX-V; FCSMF: OTCQX; FKC: FSE) and its partner SOQUEM Inc. ("SOQUEM") are pleased to Announce the results of the fall 2011 core drill program on the Kwyjibo polymetallic property (the “Property”) in the Grenville geological province of northeast Québec (see Figure 1).
Hole 10885-11-57 drilled on the Josette horizon yielded the highest grade rare earth mineralization ("REE"):
- 2,40% TREO * on 48,8 m (from 65,2 to 114,0 m), inclusive
- 3,40% TREO over 24,3 m (from 68,5 to 92,8 m) and 6,83% TREO over 1,1 m (from 82,7 to 83,8 m).
The REOc ** ratio is in the mineralized section between 41 and 42%. The REE mineralization is embedded in a mesoproterozoic iron oxide copper-gold ("IOCG") zone. This consists of a strongly magnetite-containing hydrothermal iron formation (referred to as magnetite) and magnetite debris zones, which are associated with a calcification in the bedrock (which consists mainly of folded or gneishaltigem leukocratic granite). The REE- and yttrium-containing minerals include apatite, britholite, allanite and bastnasite.
* TREO: total rare earth oxides, including yttria
** REOc: ratio of critical rare earth metals (see definition below)
Main results of drilling
The fall 2011 core drilling program at Kwyjibo included twelve (12) holes totaling 2.604 meters. The drilling program was intended to test the following areas: (a) an anomaly determined by geophysical VTEM flight measurements or the extension of the magnetite horizon in the area of the Gabriel discovery at depth (holes 10885-11-49 & 50); (b) the extension of the copper-gold zone at the Grabuge discovery at depth (10885-11-51); (c) an off-hole geophysical EM anomaly (hole 10885-11-59); and (d) VTEM anomalies along the northeast extension of the Josette Horizon (holes 10885-11-52, 53, 57, 58 & 60), between the Josette and Andradite discoveries (Figure 1). The best drilling results were obtained on the Josette horizon;
- Hole 10885-11-56: 1,80% TREO over 32,5 m (from 168,5 to 201,0 m) including:
- 5,88% TREO over 1,0 m (from 169,7 to 170,7 m).
- Hole 10885-11-58: 1,64% TREO over 20,6 m (from 75,4 to 96,0 m) including:
- 7,05% TREO over 0,8 m (from 80,3 to 81,1 m).
- Hole 10885-11-60: 3,61% TREO over 33,1 m (from 271,0 to 304,1 m) including:
- 8,68% TREO over 1,0 m (from 290,0 to 291,0 m).
The REOc ** ratio for the above results is between 41 and 44%.
Exploration Program Summer 2012
Focus and SOQUEM are currently working on the design of a two-phase exploration program to be held on the Kwyjibo property in summer 2012. Phase I of this program (mid-June to mid-July) will include line sampling in the west portion of the property, geophotometric TDEM ground sampling in the range of selected VTEM anomalies, and geophysical EM logging in twelve (12) holes from 2011 , a smaller bulk sample was taken for metallurgical investigation of the excavation 95-29, 95-30 at Josette and smaller samples from selected wells. Phase II of the exploration program (mid-July to mid-September) will be followed by an 4.000 m core drill program on the Josette horizon to better define shape, size and REE-Fe-Cu content. Subsequent to the results, a resource estimate according to National Instrument (NI) 43-101 is planned. The field work will begin on schedule in June and be completed by the end of September.
The REOc ratio
The TREO values shown (total rare earth oxides, REE2O3) are the sum of all lanthanide rare earth oxides and yttrium oxide. Strictly speaking, yttrium is not a rare earth metal, but it is added to the total value of the REE because its chemical behavior and its uses are similar to those of the lanthanides.
The US Department of Energy ("DOE") has recently announced that some rare earth elements such as neodymium (Nd), europium (Eu), terbium (Tb), dysprosium (Dy) and yttrium (Y) are in the short term (now to 2015) to medium term (2015-2020) may be running out (Source: Critical Materials Strategy, December 2011, US Department of Energy). The ratio of the critical rare earth metals ("REOc") is defined as the sum of the Nd + Eu + Tb + Dy + Y oxides divided by the totality of the REE oxides (REOc = ((Nd + Eu + Tb + Dy + Er + Y ) / REO) X 100). The REOc ratio reflects the importance of REEs demanded by industry. It does not take into account the technical challenge of extracting REE and all costs associated with mine development. Except for some holes with a low REE content, the REOc ratio varies between 36 and 47% (see table 1).
Drill program 2011 and methodology
The 2011 drill program at Kwyjibo started in mid-September and ended at 17. November 2011. Drilling was carried out by G4 Drilling of Val-d'Or under the supervision of SOQUEM, operator of the exploration program at Kwyjibo. Of the holes planned for 15, three holes were abandoned due to the difficult topographical situation, poor weather conditions in November and lack of time.
A total of 852 samples (consisting of 804 half NQ drill core samples from 12 drill holes, 13 duplicates, 17 standard samples and 18 blanks) were sent to the ISO 9001: 2008 and ISO / IEC 17025: 2005 certified laboratory of ALS Canada (in Val-d ' or and Vancouver) communicated to analyze all rare earth metals, most trace substances and major elements. With the exception of one hole, depending on the number of samples analyzed, between 1 and 3 standard samples and the same number of blanks were added per hole. In addition, a duplicate sample was analyzed per hole. The standard sample is an internal standard from the Josette discovery. To be valid, the blank sample (a quartzite with SiO2 of ~ 96%) only contained traces of REE (<60 ppm). Rare earths and trace substances were analyzed with the aid of a lithium-boron fusion of the sample before it was dissolved in acid or with the aid of the ICP-MS method (inductively coupled plasma mass spectrometry). This method works best for acid-resistant minerals such as some REE-containing silicates. For samples with a particularly high REE content, a sample of the processed material was analyzed again. In this case, a high sample volume ratio is selected in addition to the volumetric measurement (glass class A). The laboratory of ALS used as part of standardized procedures certified high-grade rare-earth reference substances. The main elements were analyzed with the aid of a lithium-boron fusion of the sample before dissolution in acid or with the aid of the ICP-MS method (inductively coupled plasma mass spectrometry). REE, trace elements and major elements were analyzed in the ALS laboratory in Vancouver. Copper, gold, silver, lead, zinc and sulfur were analyzed for the sulfide-containing samples. Copper, lead, silver, zinc and sulfur were analyzed under aqua regia digestion and then with the AAS method (atomic absorption spectrometry). Gold was analyzed by fire test and AAS using a 30 g sample weight. Base metals and precious metals were analyzed in the ALS laboratory in Val-d'Or.
Location of the Property
The Kwyjibo property with its iron-rare earth metal (gold) (Fe-REE-Cu (Au)) iron ore deposits comprises a total of 118 mining concessions covering an area of 6.278 hectares located a few kilometers north of Manitou Lake and 125 km northeast from Sept-Îles in the Côte-Nord district (Québec). The property is also located 25 km east of a railway line (Quebec North Shore and Labrador Railway Line) and is accessible by air from Sept-Îles.
Provisions of the agreement
On the 3. August 2010 announced that it has signed an option agreement with SOQUEM Inc., an 100% subsidiary of the Société générale de financement du Québec ("SGF") (SGF merged with Investissement Québec in April 2011). The agreement aimed to acquire an 50% interest in the Kwyjibo property.
Under the agreement, Focus Metals will have the opportunity to acquire an 50% interest in the Kwyjibo property. This requires Focus Metals to invest $ 5 million in exploration on the property within 3 years; 1 million of it must be raised during the first 2 years.
SOQUEM will be the operator of all exploration work on the property for the first two years of the option period until the first $ 1 million has been invested in exploration. Subsequently, Focus has the option of becoming an operator by paying 50.000 $ in cash or issuing ordinary shares worth 50.000 $.
Since 31. December 2011 has invested a total of approximately 2,6 million $ in the project Kwyjibo.
The technical information contained in this news release has been reviewed by Qualified Person (NI 43-101) Tony Brisson, P.Geo (Quebec).
About Focus Metals Inc.
Focus Metals Inc. is an emerging mid-tier junior exploration company with promising base metal and industrial mineral projects in Quebec, which are still in the discovery stage. In addition, the Company intends to expand its portfolio with advanced industrial mining projects. The company is led by an ambitious team of executives and technicians with extensive experience in exploration and mining operations.
About SOQUEM and Investissement Québec
SOQUEM is an 100% subsidiary of Investissement Québec.Investissement Québec has set itself the goal of contributing to more investment in Québec, thereby promoting economic development and job creation in each region. The company offers its clients a wide range of financing solutions including loans, loan guarantees and equity investments to assist them in all phases of development. The company also provides tax services and seeks out foreign investors.
Forward-looking statements
This press release may contain or refer to "forward-looking statements". These statements are based on management’s expectations regarding future company growth, results of operations, performance and business opportunities for the company. These statements reflect the current beliefs of management at the time of this press release and are based on information currently available to management. All statements in this press release that are not historical facts, including but not limited to statements regarding possible mineral values and reserves, exploration results, and the Company's future plans and objectives, are forward-looking statements and, as such, involve various risks and uncertainties. There is no guarantee that such statements will prove to be truthful. Actual results and future events could differ materially from such statements. Important factors that could cause actual results to differ materially from management's expectations include exploration risks, which are described in this release or, at regular intervals, in documents submitted by the company to regional securities regulators. Although the company assumes that future events and developments could also change the company's perspective, the company is under no obligation to update these forward-looking statements unless required by applicable securities laws. Readers are cautioned that forward-looking information is not reliable.
The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
For more information, please contact:
Gary Economo
President & Chief Executive Officer
Focus Metals Inc.
613-691-1091 DW 101
ppgad@pucrs.br
or
Tony Brisson, P.Geo
Vice President, Exploration
Focus Metals Inc.
613-691-1091 DW 113
ppgad@pucrs.br
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