Foran Mining — Investor Presentation (September 2014)
28 slides from Foran Mining's investor presentation, September 2014
Slide 1: The McIlvenna Bay Deposit & Hanson Lake Camp
The McIlvenna Bay Deposit & Hanson Lake Camp September 2014 www.foranmining.com
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains "forward-looking information" (also referred to as "forward looking statements") which may include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects
Slide 3: 5 Reasons to Invest in Foran
5 Reasons to Invest in Foran Management Solid team with a shareholder depth of base – mining industry industry experience executives Resource McIlvenna Bay: growth & 100% ownership discovery of a large base potential metal deposit Superior project location & existing infrastructure 3
Slide 4: Management & Directors
Management & Directors Management Board of Directors Patrick Soares (BSc (Hons) PGeo) - President, CEO, Director Darren Morcombe, Chairman 30 years’ experience in the mining industry (incl. Sutton, EuroZinc, Aurizon); Founder of private investment company Springtide Capital President, CEO & Director
Slide 5: Capital Structure
Capital Structure 83.4 M 4.0 M 7.1 M 94.5 M I&O Warrants Options Fully Diluted Share Price & Capitalization Ownership Recent: $0.17-$0.20 52 week high-low: $0.32-$0.14 Institutional >20% Market Cap: ~$15M Mgt. & Directors 19% Treasury $3.9M as at June 30, 2014 Pierre Lassonde 11% No debt Capital Str
Slide 6: Significant advancements in the last 3 years
Significant advancements in the last 3 years Commencement of PEA New Discovery in an Emerging VMS Camp Completion of Environmental Baseline Studies Presentation of Traditional Land Use Study to First Nations Completion of Positive PEA-level Metallurgy Doubling of the Resource Base +20,000m of Drilli
Slide 7: Key Project – McIlvenna Bay
Key Project – McIlvenna Bay Large 100% Foran-owned Copper-Zinc-Gold –Silver Deposit Located in Saskatchewan, Canada – a safe, stable pro-mining jurisdiction Excellent access & infrastructure: 65 km west of Flin Flon, Manitoba Year-round road access Nearby railhead & hydroelectricity Significant work
Slide 8: Community Involvement
Community Involvement Foran has established a positive relationship with First Nations & other stakeholders in the area Foran continues to engage & involve local stakeholders Contractors & employees hired from local Peter Ballantyne Cree Nation (PBCN) communities CanNorth Environmental Services, an
Slide 9: Regional Mining Camps
Regional Mining Camps McIlvenna Bay & the Hanson Lake Camp 9
Slide 10: VMS Deposits
VMS Deposits Volcanogenic Massive Sulphide (“VMS”) deposits form from metal-rich brines deposited on & below the seafloor Major source of base metals; gold & silver by-products Form in clusters – giving rise to VMS mining camps black smoker Zn-Cu-Au-Ag Zn-Ag Zn-Ag Cu-Au Cu-Au Massive to Semi- Massiv
Slide 11: VMS Deposit Size Comparison
VMS Deposit Size Comparison 62.5 30 McIlvenna Bay 13.9Mt indicated 25 11.3Mt inferred VMS deposits form in clusters Majority of the deposits in each 20 VMS cluster are 3-5 Mt, with Deposit Size potential for 1-2 large (+20Mt) to (Mt) very large (+50Mt) deposits 15 This clustering of VMS mineralizati
Slide 12: McIlvenna Bay – Deposit Overview
McIlvenna Bay – Deposit Overview Large Zinc-Copper-Gold-Silver VMS deposit: Main Lens: Upper West Zone (UWZ): zinc-copper-rich massive sulphides Zone 2: zinc-rich massive sulphides Copper Stockwork Zone (CSZ): copper-gold stockwork directly below UWZ & Zone 2 Top of deposit lies within 35m of surfac
Slide 13: McIlvenna Bay Mineral Resources
McIlvenna Bay Mineral Resources1 1 Effective date Jan. 1, 2013; Metal prices for 2013 Resource are US$3.25/lb. Cu, US$1.10/lb. Zn, US$1,400/oz. Au & US$25/oz. Ag; The base case uses a US$60/t NSR cut-off using provisions for metallurgical recoveries, smelter payables, refining costs, freight, and ap
Slide 14: McIlvenna Bay: Copper Stockwork Zone (CSZ)
McIlvenna Bay: Copper Stockwork Zone (CSZ) Indicated: 7.61 MT @ 1.60% Cu, 0.30% Zn, 0.50 g/t Au Inferred: 5.48 MT @ 1.56% Cu, 0.47% Zn, 0.42 g/t Au Indicated Inferred View looking down and South West 14
Slide 15: McIlvenna Bay: CSZ + UW MS + Zone 2 MS
McIlvenna Bay: CSZ + UW MS + Zone 2 MS Indicated: 7.61 MT @ 1.60% Cu, 0.30% Zn, 0.50 g/t Au Inferred: 5.48 MT @ 1.56% Cu, 0.47% Zn, 0.42 g/t Au Indicated: 2.15 MT @ 1.66% Cu, 4.10 % Zn, 0.88 g/t Au Inferred: 2.91 MT @ 1.63% Cu, 3.68% Zn, 0.51 g/t Au Indicated Inferred View looking down and South Wes
Slide 16: McIlvenna Bay Contained Metal Summary
McIlvenna Bay Contained Metal Summary1 2013 McIlvenna Bay Mineral Resource – Contained Metal Resource Value Cu Zn Au Ag (M lbs.) (M lbs.) (k oz.) (k oz.) by Metal Indicated Massive to semi- 122 770 94 5,054 massive sulphides Ag (Upper West Zone, Au 7% 11% Zone 2, Lens 3) Cu Copper Stockwork Zone 269
Slide 17: McIlvenna Bay Metallurgy
McIlvenna Bay Metallurgy Positive PEA-level results Concentrates amenable to conventional grinding & flotation Coarse sulphides with moderate hardness Clean concentrates with low penalty elements Zone Cu Concentrate Zn Concentrate Cu-Pb Concentrate CSZ Grade: 29% Cu, 6.4 g/t Au, 126 g/t Ag Recoverie
Slide 18: The Hanson Lake Camp
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Slide 19: Bigstone
Bigstone Bigstone Property located 10 km west of the McIlvenna Bay Property Previous operators identified zones of copper- and zinc-rich VMS mineralization Historic mineral resource estimate of 3.75 Mt grading 2.03% Cu, 0.33 g/t Au in the Bigstone Copper Zone1 Geophysics (EM) conducted in winter 201
Slide 20: Regional Exploration
Regional Exploration 2013 DEEP-EM survey identified 2 high-priority targets: Target A 1.6 km long EM conductor - similar size & character as McIlvenna Bay Initial drill test inconclusive – further testing required to determine source Target B Final hole drilled in the winter 2013 regional program hi
Slide 21: Regional Exploration
Regional Exploration Target A 1.2-1.6km long high-priority target Target B Further drill testing required Thunder Zone Discovery Hole: Balsam 4.1% Cu over 3.7m McIlvenna Bay Deposit 13.9Mt of 1.96% CuEq (indicated) 11.3Mt of 2.01% CuEq (inferred) McIlvenna Bay Deposit Resource Shell 2013 DEEP-EM sur
Slide 22: The Road Ahead
The Road Ahead Continue to Engage & Involve Local Stakeholders McIlvenna Bay PEA Underway – Results Expected Q4/14 Stay Tuned for 2015 Winter Exploration Program 22
Slide 23: Contacts
Contacts Patrick Soares Fiona Childe President & CEO VP, Corporate Development 904-409 Granville Street, 2000-199 Bay St., P.O. Box 285 Vancouver, BC, V6C 1T2 Toronto, ON, M5L 1G9 ir@foranmining.com 416-363-9229 23
Slide 24: Appendices
. FO Ap pe n d ic es MINING CORPORATION P| -www.foranmining.com
Slide 25: McIlvenna Bay Resource Footnotes
McIlvenna Bay Resource Footnotes 1 Effective date January 1, 2013; CIM definitions were followed for Mineral Resources; CuEq = copper equivalent; ZnEq = zinc equivalent; NSR = Net Smelter Return. 2 The base case mineral resource is estimated based on 178 diamond drill holes and a NSR cut-off grade o
Slide 26: Resource Sensitivity
Resource Sensitivity1 Tonnage Copper Zinc Gold Silver CuEq ZnEq (kt) (%) (%) (g/t) (g/t) (%) (%) US$75/t NSR cut- cut-off - indicated Main Lens - Upper West Zone 2,022 1.71 4.24 0.92 32 2.88 19.39 Main Lens - Zone 2 2,143 0.35 7.73 0.26 24 1.66 11.15 Zone 3 431 1.65 2.36 0.34 17 2.21 14.84 Copper St
Slide 27: McIlvenna Bay Metallurgy
McIlvenna Bay Metallurgy Overall Metallurgical Response locked cycle testing of composite samples Copper Stockwork Zone (1o grind of 100 µm K80, regrind of 35 µm K80) Assay Distribution Product Mass Cu Zn Ag Au Cu Zn Ag Au (%) (%) (%) (g/t) (g/t) (%) (%) (%) (%) Feed 100 1.57 0.16 8 0.38 100 100 100
Slide 28: VMS Camp Size Comparison
VMS Camp Size Comparison VMS deposits & occurrences on Foran’s >43,000 hectare land package compare favourably to the footprint of World Class VMS Camps Sources: Sangster (1980), Galley et al. (2007); dashed lines show approximate limit of regional scale-alteration; The McIlvenna Bay Deposit resourc
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