Foran Mining — Investor Presentation (April 2022)
34 slides from Foran Mining's investor presentation, April 2022
Slide 1: Zero Carbon Copper
TSXV: FOM US OTC: FMCXF foranmining.com Zero Carbon Copper Developing a mine for the future in Canada’s top mining jurisdiction - Saskatchewan CORPORATE PRESENTATION April 2022 | TSXVFOM | OTCFMCXF | FORANMINING.COM
Slide 2: Forward Looking Statements
F O R W A R D L O O K I N G S TAT E M E N T S This presentation contains "forward-looking information" (also referred to as "forward looking statements"), which relate to These forward looking statements are made as of the date hereof and, except as required by applicable securities regulations, fut
Slide 3: The Foran Vision
The Foran Vision Foran’s strategy is to build, scale and grow critical element production in a top global jurisdiction, maximizing shareholder returns in a decarbonizing world. Deliver Initial Phase Production • Plan to McIlvenna Bay based on recent Feasibility Study results. Explore, Define, and Ex
Slide 4: The Cost of Carbon Intensive Businesses are set to Escalate Dramatically
The Cost of Carbon Intensive Businesses are set to Escalate Dramatically – a Hidden Liability for Many Mining Operators • Mining companies are facing increasing pressure to reduce GHG emissions as decarbonization is high on the agenda of stakeholders. • Companies leading the way have the opportunity
Slide 5: How Foran is Turning a Carbon Liability Into an Asset
H o w F o r a n i s Tu r n i n g a C a r b o n L i a b i l i t y Into an Asset McIlvenna Bay is expected to become the world’s first zero-carbon copper mine. Opportunities exist to go carbon negative and create circular economies that could spawn new businesses for Foran. Mcllvenna Bay GHG Emission
Slide 6: Strategic Investors & Material Insider Holdings
Strategic Investors & Material Insider Holdings Fairfax C$100M Investment in Foran Creates Partnership to Build the World’s First Carbon Neutral Copper Company Cornerstone Investor in Prem Watsa’s Highly Respected Fairfax Financial • Significant de-risking investment an endorsement of Foran’s busine
Slide 7: Location
L O C AT I O N L O C AT I O N L O C AT I O N Paved road Rail line Powerline HANSON LAKE FLIN FLON SNOW LAKE DISTRICT DISTRICT DISTRICT Deschambault Lake THE FLIN FLON DISTRICT HAS McILVENNA BAY PRODUCED CU+ ZN + AU + AG FOR largest undeveloped MORE THAN 90 YEARS WITH 170+ deposit along trend MILLION
Slide 8: Copper Production Growth – Geopolitical Risk
Copper Production Growth – Geopolitical Risk Fraser Institute ranks global government public policy factors that encourage/discourage mining investment. When looking at late-stage copper development projects, the majority are in higher-risk jurisdictions. Saskatchewan ranks #3 on Fraser Institute’s
Slide 9: Key Valuation Metrics
K e y Va l u a t i o n M e t r i c s Significant upside exists at McIlvenna Bay (we are still early days!) Resource growth + High Based on current Feasibility Study Grade clusters = World-Class VHMS Hub Operating Metrics Daily Throughput (tpd) 4,200tpd FURTHER POTENTIAL INCREASE Annual Throughput (M
Slide 10: Robust Economics at Any Commodity Price
Robust Economics at Any Commodity Price At current prices, McIlvenna Bay has a Pre-Tax NPV7% of C$1.5B and IRR of 46%. Given Foran’s top global jurisdiction, access to infrastructure, and Net Positive targets, valuations at lower discount rates outline significant re-rate opportunity. Discount Rate
Slide 11: Years of Doubling Deposits
100 YEARS OF DOUBLING DEPOSITS and building a long life mining camp 62.5 ? 50 ? Discovered resources in the Flin Flon Greenstone Belt ? have historically DOUBLED in size once in production 45 Regional Opportunities for Foran 40 Faraday - 4km from McIlvenna Bay Resource 35 - Similar Size & Greater Co
Slide 12: VHMS Deposits Offer Enormous Value
V H M S D e p o s i t s O f f e r E n o r m o u s Va l u e McIlvenna Bay is the first of potentially many mineable deposits on Foran’s property. By building a centralized mill, near-mine targets could become highly accretive opportunities. Why Invest in VHMS Deposits? VHMS CAMPS IN CANADA PRODUCTION
Slide 13: Exploration Opportunities – Vast Canvas
E x p l o r a t i o n O p p o r t u n i t i e s – Va s t C a n v a s Foran is in the early stages of exploring its vast 1,472 km2 land package. There has been 10-21x more drilling and 2-15x more resources defined at other VHMS camps, providing material opportunity for future discoveries across the H
Slide 14: Market Cycles Matter
Market Cycles Matter Developers more levered to commodity cycles than Producers Significant Share Price Outperformance Showcases Track Record of Delivering Extraordinary Returns; Average Trading Volumes/Liquidity Increasing Performance During 2008-2011 Market Cycle Capital Markets Profile1 Shares Ou
Slide 15: Upcoming Catalysts
Upcoming Catalysts Permitting Milestones – Ongoing Initial permits to begin exploration decline receive. Remaining permits expected in due course with full construction permits to follow thereafter. Bigstone Drilling Results – Ongoing Holes drilled during the 2021 season to expand inferred resources
Slide 16: Board of Directors
Board of Directors Dan Myerson, Executive Chairman & CEO Dr. Jean Rogers, Independent Director • Previously head of Glencore’s Canadian zinc business. • Founder & Former CEO of the Sustainability Accounting Significant global experience in the metals and mining sector, Board (SASB), the gold standar
Slide 17: For Additional Information, Please Contact
FOR ADDITIONAL INFORMATION, PLEASE CONTACT Jonathan French, CFA Director, Investor Relations jfrench@foranmining.com 904 – 409 Granville St. Vancouver, BC, Canada V6C 1T2 Tel: 604.488.0008 www.foranmining.com TSXV: FOM US OTC: FMCXF 17 | TSXVFOM | OTCFMCXF | FORANMINING.COM
Slide 18: Appendix
APPENDIX 18 | TSXVFOM | OTCFMCXF | FORANMINING.COM
Slide 19: Foran fast emerging into the big leagues of world class VMS camps
Foran…fast emerging into the big leagues of world class VMS camps 19 | TSXVFOM | OTCFMCXF | FORANMINING.COM
Slide 20: Resource Update
2 0 2 1 R E S O U R C E U P D AT E ➢ Significant Resource Growth. 70% increase in Indicated resources to 39Mt (from 23Mt) at 2.04% 12.0% CuEq. McIlvenna Bay is one of the ➢ High Quality, Large and Cohesive Deposit. The 9.0% few sizeable and high-grade CuEq Grade (%) significant growth in indicated r
Slide 21: Metallurgy
M E TA L L U R G Y PREDICTABLE, LOW RISK PROCESS FLOWSHEET Crushing-Grinding & Flotation GRINDING COPPER ZINC CRUSHING FLOTATION FLOTATION DESULPHURIZATION Water Recirculation 4.200 tpd P80 75m Water Recirculation • Premium products: TAILING • 28% Cu Conc with full deportation DEWATERING of Au/Ag t
Slide 22: Plant Expansion
Plant Expansion The planned site layout provides sufficient space for future expansion opportunities as the Company explores and potentially delineates additional satellite deposit opportunities | TSXVFOM | OTCFMCXF | FORANMINING.COM
Slide 23: McIlvenna Bay Reserves
M c I LV E N N A B AY R e s e r v e s McIlvenna Bay Reserve Estimate (tonnes) 30 25.7 25 +127% 20 Tonnes (Mt) 15 11.3 10 5 0 2020 Reserve Estimate 2022 Reserve Estimate 2022 Mineral Reserve Estimate (US$90/tonne NSR cut-off) Reserves Tonnes Cu Grade Zn Grade Au Grade Ag Grade CuEq Grade (Mt) (% Cu)
Slide 24: McIlvenna Bay Resources
M c I LV E N N A B AY R e s o u r c e s 2021 Mineral Resource Estimate Tonnes Cu Zn Pb Au Ag CuEq Zone (Mt) (%) (%) (%) (g/t) (g/t) (%) 2021 Main Lens – Massive Sulphide 10.8 1.01 6.17 0.41 0.53 27 3.13 Lens 3 2.6 0.82 3.07 0.14 0.25 15 1.80 INDICATED RESOURCE1 Stringer Zone 1.2 1.26 0.52 0.07 0.31
Slide 25: Near-Mine Targets & Land Package
N e a r - M i n e Ta r g e t s & L a n d P a c k a g e • Exploration in 2022 will focus on near- mine and brown-fields targets. These include potential extensions immediately to the north and east of McIlvenna Bay deposit as well as drilling at the mineralized Marconi deposit and follow-up at Farada
Slide 26: Near-Mine & High Priority Targets
N e a r - M i n e & H i g h P r i o r i t y Ta r g e t s Near-Mine Exploration Drilling Focused on High-Priority Targets Initiated Targets Close to Planned Centralized Infrastructure • Tesla: immediately north of McIlvenna Bay, targeting a potential northern extension based on EM and magnetic data.
Slide 27: Priority Targets: Bigstone Region
P R I O R I T Y TA R G E T S B I G S T O N E R E G I O N Foran conducting step-out and exploration drilling at Bigstone • High grade resources showing IOCG affinities (3.86Mt at 2.2% CuEq) located approximately 25km west of McIlvenna Bay. • Potential source for additional high grade mill feed for th
Slide 28: High Grade Bigstone Deposit – Untapped Upside
H I G H G R AD E B I G S TO N E D E P O S I T – U n t a p p ed U p side Initial resource published 2020 high grade Cu and Zn First NI 43-101 resource1 Infill Drilling • 1.98Mt Ind @1.88%Cu • 2015 drilling – 6 holes and 0.92%Zn • High grade Cu +/- Zn • 1.88Mt Inf @1.35%Cu and 2.75%Zn 18.4% Zn2 2.0% C
Slide 29: Bigstone Resource
BI G S TO N E RE S O U RCE 2 0 2 0 2020 Bigstone Mineral Resource Estimate 2020 Tonnes Cu Zn Au Ag CuEq Zone (Mt) (%) (%) (g/t) (g/t) (%) Copper Zone 1.83 2.01 0.19 0.24 8.9 2.18 INDICATED RESOURCE1 Massive Sulphide Zone 0.15 0.25 9.87 0.33 16.5 2.82 (US$65t/NSR cut-off) TOTAL INDICATED 1.98 1.88 0.
Slide 30: Community & Permitting
COMMUNITY & PERMITTING The Peter Ballantyne Cree Nation communities of Amisk Lake, Pelican Narrows and Deschambault are near the McIlvenna Bay Project. We have made our relationship with the PBCN a priority and value the knowledge that is shared. It is important for us to be a good neighbour, and pr
Slide 31: Our pathway to Carbon Neutrality
Our pathway to Carbon Neutrality Emissions impact will be an integral part of our mine design, not an add-on or an afterthought • Minimize transportation of consumables and people to/from site • Energy efficiency key consideration for all mine and processing equipment • Water usage – recycling, redu
Slide 32: Solidifying our position as the Mining Company for a better world
Solidifying our position as the Mining Company for a better world CLEANER CONSCIOUS CHANGE Objective: Objective: Objective: Minimize carbon footprint while Increase availability of responsibly Encouraging collaboration, leading reducing costs. produced copper and zinc while by example creating value
Slide 33: Pierre Lassonde quote
“We should never forget that the most important natural resource of our country is not nickel, gold or diamonds but its people.” Pierre Lassonde Founder and former Chairman Franco-Nevada
Slide 34: McIlvenna Bay 2021 Resource Footnotes, Charts Footnotes
M c I LV E N N A B AY 2021 RESOURCE FOOTNOTES CHARTS FOOTNOTES 1 Effective date September 6, 2021; CIM definitions were followed for Mineral I. Precious Producers: Newmont, Barrick, Newcrest, Agnico, Kinross, Resources; CuEq = copper equivalent; NSR = Net Smelter Return. Totals may not Anglogold, Ya