Results Following Drilling & Bulk Sample Collection at its Birch Lake

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Results Following Drilling & Bulk Sample Collection at its Birch Lake

posted on Feb 09, 2009 04:41AM

February 9, 2009

Franconia Minerals Summarizes Results Following Drilling & Bulk Sample Collection at its Birch Lake Copper-Nickel-PGM Project

SPOKANE, WASHINGTON--(Marketwire - Feb. 9, 2009) - Franconia Minerals Corporation ("Franconia" or the "Company") (TSX:FRA) is pleased to present a summary of the results of its completed 2008 barge drilling program at the Birch Lake deposit in northern Minnesota. A total of nine holes and associated wedged offsets for 19,566 feet were drilled between May and late September 2008. Results for all holes are presented here (see Table 1 and map).

The drilling mainly tested the northwestern sector of the Birch Lake deposit for extension of the previously outlined resource. Every hole encountered good thicknesses of mineralization and the drilling shows that the deposit continues in this northwesterly direction and remains open for further expansion.

This latest drilling represents the latest phase of a comprehensive program initiated in June 2006. The results of the 2008 program will enable the Company to update its resource estimates for the deposit with the expectation of converting much of the current Inferred Resource to the Indicated category and adding additional, new Inferred Resources. The program also provided representative material for bulk metallurgical testing.

All holes and wedged offsets were drilled using wide diameter (PQ) core. Wedges were drilled on the first two holes of the 2008 program. The wedged offsets provide additional material for metallurgical tests but only provide sampling for a very limited distance away from the original drill hole. Wedging was discontinued for the remainder of the holes as a large enough sample for bulk testing (approximately 60 tonnes) had been collected. Now that sufficient metallurgical sample is in hand, it is likely that the majority of future drilling at Birch Lake will utilize smaller diameter, more economical NQ core drilling.

Following the planned resource estimate update, a Preliminary Economic Assessment would examine the viability of a 20,000 tonnes-per-day, 20 year-plus mine-life Birch Lake underground operation. This assessment is expected to be followed by a more comprehensive and detailed pre-feasibility study.

                                    Table 1
----------------------------------------------------------------------------
           Results of the 2008 Drill Program, Birch Lake, Minnesota(i)
----------------------------------------------------------------------------
Drill Hole   From      To      Down  Copper Nickel Plat-  Pall-  Gold   TPM
              (ft)    (ft)     Hole      (%)    (%) inum  adium  (g/t) (iii)
                           Interval                 (g/t)  (g/t)       (g/t)
                            (ii)(ft)                 
----------------------------------------------------------------------------
BL08-1     1345.7  1601.3     255.6    0.43   0.16  0.07   0.17  0.05  0.29
----------------------------------------------------------------------------
BL08-1W1   1360.3  1595.7     235.4    0.52   0.18  0.08   0.21  0.05  0.34
----------------------------------------------------------------------------
BL08-1W2   1318.8  1591.7     272.9    0.43   0.17  0.08    0.2  0.05  0.33
----------------------------------------------------------------------------
BL08-1W3     1338  1583.1     245.1    0.47   0.17  0.09    0.2  0.05  0.34
----------------------------------------------------------------------------
BL08-1W4   1350.3  1613.9     263.6    0.48   0.17  0.08   0.19  0.05  0.32
----------------------------------------------------------------------------
BL08-2     1366.5    1414      47.5    0.72   0.23  0.17   0.39   0.1  0.66
----------------------------------------------------------------------------
BL08-2W1     1366  1413.9      47.9    0.85   0.30  0.22   0.51  0.12  0.85
----------------------------------------------------------------------------
BL08-3     1549.8  1668.8       119    0.60   0.18  0.15   0.31  0.08  0.54
----------------------------------------------------------------------------
BL08-4     1234.4  1339.6     105.2    0.49   0.16  0.08   0.18  0.04  0.31
----------------------------------------------------------------------------
BL08-4     1440.3  1525.8      85.5    0.45   0.19  0.06   0.14  0.04  0.24
----------------------------------------------------------------------------
BL08-5     1261.8  1338.3      76.5    0.26   0.09  0.12   0.21  0.06  0.39
----------------------------------------------------------------------------
BL08-6     1715.9  1914.4     198.5    0.73   0.26  0.16   0.35  0.12  0.63
----------------------------------------------------------------------------
incl.      1725.2  1766.4      41.2    1.14   0.40  0.28   0.67  0.17  1.12
----------------------------------------------------------------------------
BL08-7     1547.7  1754.7       207    0.61   0.16  0.17   0.40  0.10  0.67
----------------------------------------------------------------------------
BL08-8     2080.2  2189.7     109.5    0.48   0.14  0.34   0.76  0.14  1.24
----------------------------------------------------------------------------
BL08-9     2121.8  2253.9     132.1    0.54   0.15  0.23   0.58  0.14  0.95
----------------------------------------------------------------------------
(i)   Results for hole BL08-1 and -2 (including wedges) were released
      previously in October, 2008
(ii)  True thickness is approximately 90% of the down hole interval
(iii) TPM equals Palladium + Platinum + Gold
----------------------------------------------------------------------------

This latest drilling builds on Franconia's announcement in July, 2008 (see news release of July 9, 2008) of an updated resource estimate for the Main Zone at the Birch Lake deposit, one of three underground resource areas identified thus far at the Company's Birch Lake Project. Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) provided the estimate in their report entitled, "Technical Report on the Resource Estimate for the Birch Lake Property, Minnesota, U.S.A." and prepared by Richard Routledge, P. Geo., an appropriately qualified person according to NI 43-101. This report estimated an Indicated Resource(i) of 108.2 million tonnes plus an Inferred Resource of 87.3 million tonnes for the Birch Lake property deposit (see Table 2) This represented a substantial increase from the previous Birch Lake property resource completed in 2006, which included only an Inferred Resource of 100.4 million tonnes and no Indicated Resource. Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at www.SEDAR.com and www.franconiaminerals.com.

                                    Table 2

  Birch Lake Deposit Mineral Resources Estimated at Various Copper Cut-off
    Grades Franconia Minerals Corporation, Birch Lake Property, Minnesota

---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                Indicated Resources(1,3,7,8)
             --------------------------------------------------------------
Cut-off        Tonnes(6)    Cu    Ni    Co    Pt    Pd    Au TPM(5) CuEq(4)
Grade            (000's)     %     %     %   g/t   g/t   g/t   g/t       %
---------------------------------------------------------------------------
Main Zone(2)    108,206  0.528 0.163 0.009 0.279 0.599 0.132 1.010   1.241
---------------------------------------------------------------------------
0.3% Cu          98,336  0.557 0.170 0.010 0.292 0.631 0.140 1.062   1.303
---------------------------------------------------------------------------
0.4% Cu          83,958  0.592 0.178 0.010 0.302 0.657 0.146 1.105   1.371
---------------------------------------------------------------------------
0.5% Cu          63,137  0.638 0.191 0.010 0.318 0.695 0.155 1.167   1.466
---------------------------------------------------------------------------
0.6% Cu          35,559  0.706 0.209 0.011 0.346 0.763 0.171 1.280   1.612
---------------------------------------------------------------------------
0.7% Cu          16,400  0.779 0.231 0.012 0.383 0.852 0.191 1.425   1.780
---------------------------------------------------------------------------
---------------------------------------------------------------------------


---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                Inferred Resources(1,3,7,8)
             --------------------------------------------------------------
Cut-off        Tonnes(6)    Cu    Ni    Co    Pt    Pd    Au TPM(5) CuEq(4)
Grade            (000's)     %     %     %   g/t   g/t   g/t   g/t       %
---------------------------------------------------------------------------
Main Zone(2)     87,298  0.541 0.167 0.009 0.226 0.493 0.111 0.830  1.213
---------------------------------------------------------------------------
0.3% Cu          78,668  0.573 0.176 0.010 0.237 0.520 0.118 0.875  1.280
---------------------------------------------------------------------------
0.4% Cu          66,984  0.612 0.186 0.010 0.251 0.553 0.125 0.930  1.360
---------------------------------------------------------------------------
0.5% Cu          53,141  0.653 0.198 0.011 0.265 0.580 0.133 0.978  1.445
---------------------------------------------------------------------------
0.6% Cu          31,757  0.718 0.218 0.011 0.286 0.624 0.146 1.056  1.585
---------------------------------------------------------------------------
0.7% Cu          17,162  0.778 0.237 0.012 0.299 0.656 0.157 1.113  1.708
---------------------------------------------------------------------------
---------------------------------------------------------------------------

(1) CIM definitions were followed for Mineral Resource estimation and
    classification.
(2) Mineral Resources are estimated for the Main Zone of the deposit as
    defined and wireframed based on mineral occurrence, grades, Cu:Pd,
    Ni:Pt ratios and other lithologic and stratigraphic factors.
(3) Mineral Resources were estimated using average long-term metal US$
    prices of $8.50/lb nickel, $2.50/lb copper, $20/lb Co, $1,200/oz
    platinum, $350/oz palladium and $800/oz gold.
(4) Copper equivalent (CuEq%) equals Cu% + 2.47 x Ni% + 2.78 x Co% + 0.19
    x Au g/t + 0.59 x Pt g/t + 0.16 x Pd g/t based on metal prices and
    expected process recovery.
(5) TPM is Au g/t + Pt g/t + Pd g/t.
(6) Bulk density is 3.07 t/m(3) as averaged from specific gravity testing.
(7) Co, Au, Pt, Pd grades, that are lacking in historic drill holes, have
    been entered in the resource database based on regression of assay
    grades from Franconia drill hole assays.
(8) Resources are estimated from approximately 345 m depth to approximately
    840 m depth.
(9) Scott Wilson RPA recommends reporting resources for the wireframed zone.

((i)An indicated mineral resource is a portion of a mineral resource for which quantity, grade, and other characteristics can be estimated with a level of confidence sufficient to support mine planning and additional economic evaluation of the project. The Birch Lake deposit is currently classified as an inferred resource, which is that part of a mineral resource for which certain characteristics can be estimated based on geological evidence and limited sampling and which can be reasonably assumed to have a consistent grade of mineralization.)

Core samples were prepared at the ALS Chemex Ltd. Laboratories in Thunder Bay and then shipped to its analytical facilities in Vancouver. Samples were analyzed for gold, platinum and palladium using a standard fire assay with an ICP finish, as well as for 34 base metals and trace elements using a four-acid (near-total) digestion and a combination of ICPMS and ICPAES. ICP over-limits were reanalyzed using sodium peroxide fusion and acid dissolution followed by ICPAES.

All technical data have been reviewed by Brian Gavin, Franconia's president and CEO, who is also an appropriately qualified person as defined by NI 43-101.

Franconia Minerals Corporation trades on the TSX under the symbol FRA. (For additional information see www.franconiaminerals.com.) Franconia currently has 59,082,572 shares issued and outstanding.

FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential, these 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.

To view the "Birch Lake Project, Babbitt Minnesota" map, please visit the following link: http://file.marketwire.com/release/f... .

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