Forsys Metals Corp: In search of uranium

Source: Exec Digital USA

Date :9/3/2008 10:25:03 AM

Granted a rare licence in Namibia, this advanced mining exploration and development company hopes to achieve production within two years

Written by Terrence Doyle and Produced by Jason Wright

Though based in Toronto, Forsys Metals Corp owns properties solely in Namibia, Africa. This exploration and development company specializes in advancing high value uranium as well as precious and base metal exploration with advanced stage projects in Namibia.

As mentioned on Forsys’ website, the company “provides its shareholders with a unique opportunity to participate and gain exposure to the exceptional growth potential of the Namibian economy.”

Forsys is under the direction of President and CEO Duane Parnham, who brings a wealth of experience to the company. He previously served in the same capacities for Temex Resources Corp from its creation in 1996 until January 2005. Parnham has a strong background in geological and environmental consultation, corporate development and regulatory compliance. In the past three years, he has assisted in raising in excess of CAN$80 million for companies with which he holds a Director’s position.

The company’s target market is its shareholders along with retail, institutional and private investors, explains Chief Communications Officer Bruce Hall. Before joining Forsys a year ago, Hall spent 14 years as one of the principals of a leading marketing and advertising agency. He also spent 10 years in the automotive industry in management roles with two major companies.

High profile project

Forsys’ flagship project is the Valencia Uranium Deposit. Valencia is “100 percent owned and is one of only a handful of new uranium projects around the globe that is scheduled for production in 2010. Valencia’s robust financial model underpins our strategic position to participate in an energy sector that is enjoying very positive long-term fundamentals.”

In the company’s news release dated June 17, 2008, Forsys announced it had received a Notice of Preparedness to Grant an Application for a Mining License (ML 149) for the Valencia project. On August 21, 2008, the Mining License was granted by the Ministry of Mines and Energy, Republic of Namibia. According to the company’s news release “Granting of the Mining License is the most significant milestone in the development of Valencia, and is only the second License to be granted within the last few decades in Namibia.”

The Valencia project is under the direction of General Manager Jimmie Wilde, who was appointed to the position on August 1, 2008. He brings 32 years of mining experience and is responsible for overseeing all aspects of Valencia’s development.

The Valencia project is now in an advanced stage of development and is maintaining a target of achieving production in 2010. The company is focusing on the completion of a 30,000 meter drilling campaign and anticipates finalization and delivery of an updated reserve, resource and grade calculation in September 2008 along with major components of the feasibility study.

“Our primary focus is bringing Valencia, our flagship project, into production as well as continuing to explore our other uranium and non uranium assets in an effort to maximize shareholder value,” Hall says.

Other endeavors

The Valencia Uranium Deposit is not the only uranium project for which Forsys holds an exclusive prospecting license. The company also holds five additional licenses in the region, thereby solidifying a pipeline of projects well into the future.

“Exploration on these uranium projects, which are near to Valencia, has uncovered high grade uranium mineralization that appears to be very promising; additional exploration on these as well as other areas is ongoing. With an ever increasing requirement for uranium combined with extremely positive industry fundamentals, Forsys offers excitement to increase shareholder value by bringing Valencia into production while providing organic growth with new discoveries.”

Other Forsys projects, as listed on their website, include:

Ondundu Gold Deposit: Located in the Northern Zone of the Neoproterozoic Damara Orogen in north-central Namibia. Ondundu is a sediment-hosted structurally-controlled mesothermal gold deposit belonging to a family of deposits that include some of the world’s most significant gold resources including Muruntau, Telfer and Kumtor and locally to the Navachab Mine and the Otjikoto Deposit. Discovered in 1917, the Ondundu Gold deposit is Forsys’ most advanced gold project.

Sperrgebiet Zinc Project: Located in the restricted Sperrgebiet (Diamond Area No. 1) in southwest Namibia, approximately 30 kilometres northwest of the Skorpion Mine and 50 kilometres northwest of the Rosh Pinah Mine.

Omaruru Gold Project: An early stage exploration project consisting of one EPL, located in north central Namibia near the town of Omaruru. The EPL is located approximately 70km northeast of Navachab and covers folded and faulted altered lithologies similar to the mine horizon at Anglo American’s Navachab Gold Mine, a low cost gold producer having reported reserves of over 10 million tonnes at a gold grade of 2.4 grammes per tonne.

Elbe Copper Project: An advanced stage copper, zinc, silver and gold deposit, and located 70 kilomteres northwest of the capital Windhoek. Access to the site is via a 12 kilometres heavy-load gravel road off the Trans-Kalahari highway. The main Ruacana power transmission corridor also crosses the Licence area.

Moving forward

Though Forsys has many projects ongoing, the Valencia Uranium Deposit remains the company’s main focus. A timeline on its website illustrates that most, if not all, of Forsys’ resources have been dedicated to the project for the bulk of 2008 and beyond.

Forsys presently has 60 employees but plans to employ almost 900 by the end of 2009 as the Valencia project moves towards production.

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