Foran Mining — Technical Presentation (November 2014)
20 slides from Foran Mining's technical presentation, November 2014
Slide 1: McIlvenna Bay Deposit Preliminary Economic Assessment
McIlvenna Bay Deposit Preliminary Economic Assessment November 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: McIlvenna Bay Location
McIlvenna Bay Location McIlvenna Bay & the Hanson Lake Camp 3
Slide 4: McIlvenna Bay is the only development project with significant zinc exposure
McIlvenna Bay is the ONLY development project with significant zinc exposure that checks all the boxes… Project Advantages: Large resource base & long mine life Clean, marketable concentrates Potential to add to mine life - deposit open to depth Potential to develop satellite deposits and create a l
Slide 5: McIlvenna Bay PEA Highlights
McIlvenna Bay PEA Highlights Estimated pre-tax NPV7% of $382M & IRR of 22% Estimated post-tax NPV7% $263M & IRR of 19% 14 year mine life, 4.1 year payback Pre-production CapEx of $249M (incl. 20% contingency ) Sustaining capital of $150M (incl. 20% contingency) Payable metal production: Zinc: 58.9 M
Slide 6: EV/NPV Comparables
McIlvenna Bay Comparables 0.30 Foran is undervalued 0.25 relative to its peer group 0.20 EV/NPV 0.15 0.10 0.05 0.00 Based on post-tax project Net Present Values; Enterprise Values estimates as at November 11, 2014; Sources: company websites 6
Slide 7: Mineral Resources
Mineral Resources1 McIlvenna Bay has a large resource base & is open to depth 2013 McIlvenna Bay Indicated Mineral Resource Estimate (US$60t/ NSR cut-off) Zone Tonnes Cu Zn Au Ag CuEq ZnEq (kt) (%) (%) (g/t) (g/t) (%) (%) Main Lens – Upper West Zone 2,148 1.66 4.10 0.88 31 2.79 18.75 Main Lens – Zon
Slide 8: Metallurgy
Metallurgy Clean, marketable concentrates amenable to conventional grinding & flotation Zone Cu Concentrate Zn Concentrate Pb-Cu Concentrate Copper Stockwork Grade: NA NA Zone 29% Cu, 6.4g/t Au, 126g/t Ag Composite Head Recoveries: Grade: 1.45% Cu, 0.34 g/t Au, 8 g/t Ag 94% Cu, 85% Au, 77% Ag Main L
Slide 9: Summary of Key Parameters
Summary of Key Parameters1 Estimated costs & design are Mine Life 13.7 years Plant Throughput (LOM ave.) 4,761 tpd in-line with existing mining Revenue $2,504.9M LOM operations in the region OpEx $1,211.3M LOM $51.03/tonne milled Operating Costs Net Pre-tax Cash Flow $894.6M LOM Ave. OpEx Per tonne
Slide 10: Payable Metal Production
Payable Metal Production 3% 1% 10% Copper 30% Zinc 56% Gold Silver Lead Metal Per annum LOM lbs. tonnes lbs. tonnes Zinc 58.9M 26,717 804.7M 365,101 Copper 37.6M 17,055 513.7M 233,013 Lead 1.2M 544 15.8M 7,167 oz. oz. Gold 16,000 218,000 Silver 398,000 5,437,000 10
Slide 11: Sensitivity Analysis
Sensitivity Analysis $450 $400 $350 $300 After-Tax NPV $250 $200 $150 $100 $50 $0 0.9 1 1.1 Metal Price Head Grades Operating Costs Capital Costs F/X Rate 11
Slide 12: Conceptual Mine Design
Conceptual Mine Design 5,000 tpd underground mine Ramp & shaft to optimize resource extraction Broad thicknesses & steep dip of mineralization amenable to longhole stoping Structural backfill provided by cemented paste fill & ROM waste 12
Slide 13: Mine, Concentrator & Infrastructure
Mine, Concentrator & Infrastructure Similar to existing mining operations in the region, with cost structure based on existing operations The majority of mine construction in 18 months, with a further 6 months for underground mine development On-site concentrator with conventional milling and flotat
Slide 14: The Road Ahead
The Road Ahead Positive PEA results demonstrate that McIlvenna Bay should advance to a feasibility study Foran will continue to advance new discoveries & historic resources to delineate satellite deposits close to McIlvenna Bay Foran’s objective is to evaluate the economic potential of McIlvenna Bay
Slide 15: 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 15
Slide 16: Appendices
. FO Ap pe n d ic es MINING CORPORATION P| -www.foranmining.com
Slide 17: Disclosures & Qualified Persons
Disclosures & Qualified Persons Disclosures The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized a
Slide 18: 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 19: 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 20: 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
Foran Mining — Technical Presentation (November 2014) on 6ix