Forge Resources Corp. · CSE:FRG
Forge Resources — Investor Presentation (September 2024)
44 slides from Forge Resources's investor presentation, September 2024
Slide 1: Unearthing Opportunities, Forging a Future
Unearthing Opportunities, Forging a Future CSE: FRG | OTCQB: FRGGF | FSE: 5YZ SEPT 2024
Slide 2: Disclaimer and Statements
DISCLAIMER AND STATEMENTS This presentation includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation. Examples of such forward-looking information includes information regarding the timing, extent and success of exploration, development and mini
Slide 3: Unearthing Opportunities, Forging a Future
UNEARTHING OPPORTUNITIES, FORGING A FUTURE Forge Resources Corp, Formerly Benjamin Hill Mining is a dynamic exploration company with a focus on the Alotta Exploration Project and Aion Mining Corp.’s Coal Project. With a strong presence in the mining industry, we’re driven to uncover valuable resourc
Slide 4: Market Capitalization
MARKET CAPITALIZATION Shares Issued and Outstanding 82,700,244 OS Warrants 13,589,343 OS Options 9,939,105 Total Warrants and Options 23,528,448 Fully Diluted 106,228,692 *As of Sept 11, 2024 FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 4
Slide 5: Forge Resources Executive and Advisory Team
FORGE RESOURCES EXECUTIVE AND ADVISORY TEAM COLE MCCLAY - CEO; Director PJ MURPHY – Chairman; Director Mr. McClay is a key figure in securing venture capital and serves as a consultant for global Dr Murphy is a highly experienced investor with a proven track record of success in the junior industrie
Slide 6: Aion Mining Team: Colombian Coal Project
AION MINING TEAM: COLOMBIAN COAL PROJECT BORIS CORDOVEZ VARGAS - Country Manager LUIS CARLOS HERRERA - Civil Engineer Mr. Cordovez has a strong background, serving on the Board of Directors of FENALCARBON Luis Carlos is a Senior Civil Engineer with more than 25 years of experience in civil for 10 ye
Slide 7: La Estrella Coal Project
LA ESTRELLA COAL PROJECT Santander, Colombia X FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 7
Slide 8: Comparables
COMPARABLES In the realm of mining ventures, finding the perfect comparison can be as elusive as the precious resources they seek to extract from the Earth. For Forge Resources Corp, the quest for the ideal comparable company to gauge their performance may not yield an exact match, but it does unvei
Slide 9: Forge Holds a 40% Interest in Permitted Coal Project
FORGE HOLDS A 40% INTEREST IN PERMITTED COAL PROJECT A Strategic Investment with a Path to Generating Revenue • The property contains eight known seams of metallurgical and • Diverse and experienced Colombian management team consisting thermal coal shown from recent and historical diamond drilling o
Slide 10: The World Still Needs Coal
THE WORLD STILL NEEDS COAL 37% of the world’s electricity and over 70% of the world’s steel is produced using coal. Coal plays a major role in delivering power across the globe – it is still the world’s largest single source of electricity and will still contribute 22% in 2040. This figure is even h
Slide 11: Project Summary
PROJECT SUMMARY Fully licensed, from Exploration to Production: Approved 180,000 Mt/year possibility to increase Environmental License Granted Mining concession granted for 43 + years LOI’s to purchase 100% of bulk sample to production from top coal buyers SRK Consulting (UK) Ltd. NI 43-101 report b
Slide 12: Historical Coal Resources
HISTORICAL COAL RESOURCES Type Qty of Seams Measured Resources Indicated Resources Inferred Resources TOTAL RESOURCES 8 1,846,470 4,339,147 16,471,037 22,656,654 * According to SRK Consulting (UK) NI 43-101 report dated February 2012 by Paul Bright, Principal Geologist Drilling Campaign of 2023 conc
Slide 13: Bulk Sample Ready Project
BULK SAMPLE READY PROJECT Coal Mining Concession Description Granted by: Mining Agency of Colombia Concession Number: FLG-111 Concession Life: 43 + years Area of Concession: 548 has Licenses Status: Ready to start underground bulk sampling: - Environmental License Granted - Approved exploration unde
Slide 14: Property Location
PROPERTY LOCATION FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 14
Slide 15: Logistics – Underground Bulk Sampling Program
LOGISTICS –UNDERGROUND BULK SAMPLING PROGRAM The distance between the La Estrella Project site and the Santa Marta port offers two transportation options. The first involves a 9- kilometre off-road route, followed by a 575- kilometre journey on the National Highway, taking approximately 10 hours by
Slide 16: Underground Bulk Sample Strategy
UNDERGROUND BULK SAMPLE STRATEGY Exploration Plan Description Approved Bulk Sampling Plan: Development of main portal and inclined + crosscut cutting all seams Testeros / Reversed Steps Method for + 40º Blast and Slusher / Room & Pillar for – 40º Initial Underground Bulk Sampling Program 15,000 Mt/m
Slide 17: Pilot Drilling Completed for Decline
PILOT DRILLING COMPLETED FOR DECLINE Pilot Drilling completed in August 2024 to provide critical data about the soil conditions that will help guide the final design of the decline 175 metre pilot hole complete The pilot hole runs the distance of the proposed decline from the approved portal locatio
Slide 18: Underground Bulk Sample Strategy
UNDERGROUND BULK SAMPLE STRATEGY Bulk sampling provides a more detailed assessment of the deposit, which helps in refining the quantity and quality of resource estimates. The initial planned crosscut for the bulk sampling program will reach 6 coal seams: M200, M180, M160, M140, M120 and M110. Drilli
Slide 19: Underground Bulk Sample Strategy
UNDERGROUND BULK SAMPLE STRATEGY Comprehensive efforts in engineering, geotechnical analysis, and site development are laying the groundwork for a bulk sampling program of an initial 20,000 tonnes. It is estimated the decline would give early access to approximately 200,000 tonnes of coal. The bulk
Slide 20: Preliminary Project Advancements
PRELIMINARY PROJECT ADVANCMENTS Site development plan in place to show the location of infrastructure within the property boundaries Completed Mining Plaza (~5000 m2) Drainage works Camp dining and kitchen Temporary internal roads Core shack Warehouse Offices Planned / In Progress Camp housing Elect
Slide 21: Preliminary Project Advancements
PRELIMINARY PROJECT ADVANCMENTS Aerial view of the project Outcropping coal during development FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 21
Slide 22: Preliminary Project Advancements
PRELIMINARY PROJECT ADVANCMENTS Camp kitchen construction Enhancement of water management systems and slope control Terrace construction exposes coal seams at surface FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 22
Slide 23: Preliminary Project Advancements
PRELIMINARY PROJECT ADVANCMENTS Completed - construction of the powder magazine Completed – Road construction FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 23
Slide 24: Aion Recent Drill Program Supports Historical Work
AION RECENT DRILL PROGRAM SUPPORTS HISTORICAL WORK From January to May 2023, a 2nd drilling program of 1,325 metres was completed at the site, establishing the continuity and reliability of the deposit and coal sequences. FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 24
Slide 25: 2023 Exploration Advancement
2023 EXPLORATION ADVANCEMENT 2023 Drill Program Exploring Surface Outcrops Exploring Surface Outcrops FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 25
Slide 26: Social and Community Engagement
SOCIAL AND COMMUNITY ENGAGEMENT Company’s team has been actively engaging with the community and developing early actions to characterize, socialize and to impact the wellbeing of its neighbors. FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 26
Slide 27: Commitment to the Community and Environment
COMMITMENT TO THE COMMUNITY AND ENVIRONMENT EDUCATION WATER FORESTATION, FLORA AND FAUNA In the municipality of Betulia, there are three We aim to expand water infrastructure to Our goals include promoting and schools focused on academic development better serve the community by increasing implement
Slide 28: Coal Price - Average Coking & Thermal Coal
COAL PRICE - AVERAGE COKING & THERMAL COAL Average for 2023: Average for 2023: $387 CAD/Mt $240 CAD/Mt Coking Coal Average for 2022: Thermal Coal Average for 2022: FOB CAD/Mt $437 CAD/Mt FOB CAD/Mt $368 CAD/Mt Max Price for 2022: Max Price for 2022: $792 CAD/Mt $614 CAD/Mt Financial Model Assumption
Slide 29: Coal Price - Margins & Breakeven Analysis
COAL PRICE - MARGINS & BREAKEVEN ANALYSIS CAD Current High Base Low Breakeven Avg FOB Price CAD / $ 204 $ 247 $ 187 $ 155 $ 111 Mt Coal Revenue/Mt $ 204 $ 247 $ 187 $ 155 $ 111 Truck Freight to Port: CAD 29/Mt Production Cost/Mt $ 46 $ 46 $ 46 $ 46 $ 46 Port Costs: CAD 15/Mt Additional Admin Costs:
Slide 30: Potential Revenue - Bulk Sampling 20k Mt
POTENTIAL REVENUE - BULK SAMPLING 20k Mt CAD Current High Base Low Breakeven Avg FOB Price $ 204 $ 247 $ 187 $ 155 $ 111 CAD / Mt Revenue / 20k Mt $ 4,080,000 $ 4,940,000 $ 3,740,000 $ 3,100,000 $ 2,220,000 Avg FOT Price $160 $203 $143 $111 $67 CAD / M Revenue / $3,200,000 $4,060,000 $2,860,000 $2,2
Slide 31: Alotta Exploration Project
ALOTTA EXPLORATION PROJECT Yukon, Canada FORGE RESOURCES CORP - CSE:FRG | OTCQB: FRGGF | FSE:5YZ PAGE 31
Slide 32: Alotta Is a World-Class Opportunity
ALOTTA IS A WORLD-CLASS OPPORTUNITY The Alotta property consists of 230 mineral claims that cover 4,723 hectares. Situated approximately 40 kilometres south-east of Western Copper and Gold’s (TSX: WRN) Casino deposit, one of the largest undeveloped Gold/Copper deposits in the World. The Alotta is lo
Slide 33: Assay Results – 2023 Drilling Campaign ALT-23-001 / ALT-23-002
ASSAY RESULTS – 2023 DRILLING CAMPAIGN ALT-23-001 / ALT-23-002 From Interval Cu Hole Number (m) To (m) (m) Au (g/t) (ppm) ALT-23-001 7.35 219.00 211.65 0.46 191 including 97.55 120.00 22.45 1.20 233 including 104.97 105.61 0.64 9.94 3150 ALT-23-002 62.86 162.00 99.14 0.30 153 FORGE RESOURCES CORP -
Slide 34: 2024 Drilling Campaign
2024 DRILLING CAMPAIGN 4 drill holes completed in 2024 for a total of 1,815 metres as part of the continuation of the fall 2023 diamond drilling program that paused in for the winter season. Payout and Severance Zones Significant surface mineralization, which comprise highly anomalous gold, copper a
Slide 35: Observations - 2024 Drilling Campaign
OBSERVATIONS - 2024 DRILLING CAMPAIGN All holes completed on the property has intercepted potentially economic gold concentrations, most of which occur near surface. Higher grade gold mineralization is associated with Quartz-Sericite-Pyrite (QSP) alteration that is consistent with higher and/or flan
Slide 36: Assay Results – 2024 Drilling Campaign Payoff Zone
ASSAY RESULTS – 2024 DRILLING CAMPAIGN PAYOFF ZONE: ALT-24-001 / ALT-24-002 From Interval Hole Number To (m) Au (g/t) Ag (g/t) Cu (ppm) (m) (m) ALT-24-001 4.36 402 397.64 0.132 0.433 89.86 including 4.36 106.5 102.14 0.275 0.717 141.77 including 11 36 25.00 0.406 0.532 92.72 including 65.83 76.65 10
Slide 37: Assay Results – 2024 Drilling Campaign Severance Zone
ASSAY RESULTS – 2024 DRILLING CAMPAIGN SEVERANCE ZONE: ALT-24-003 / ALT-24-004 Interval Cu Hole Number From (m) To (m) Au (g/t) Ag (g/t) (m) (ppm) ALT-24-003 168.82 260 91.18 0.167 0.479 227.89 Interval Cu Hole Number From (m) To (m) Au (g/t) Ag (g/t) (m) (ppm) ALT-24-004 6 507 499.00 0.115 0.385 19
Slide 38: Expansion of Land Package by 55%
EXPANSION OF LAND PACKAGE BY 55% Since June 15, 2024, Forge has staked an additional 134 claims, covering a 2,797 hectares (27.97 km2) area, to expand the Alotta project by 55%. Claims were staked to cover prospective soil geochemistry and geophysical signatures that were off the claim block. The pr
Slide 39: Over 4 x 1 km of In-Situ Gold Soil Geochemistry
OVER 4 x 1 KM OF IN-SITU GOLD SOIL GEOCHEMISTRY The adjoining Google vertical view map provides a view of the topography with anomalous gold-in-soil geochemistry overlaid. No glaciation indicates no dispersion (expansion) of the in-soil geochemical anomalies. The anomalous gold in soil geochemistry
Slide 40: Evidence of Large Hydrothermal System Related to Porphyry Mineralization
EVIDENCE OF LARGE HYDROTHERMAL SYSTEM RELATED TO PORPHYRY MINERALIZATION Area of interest where magnetite depletion occurs in the intrusive complex typically consisting of moderate to high magnetics. Magnetic depletion is probably the result of sulphur enriched, hydrothermal fluids reacting with mag
Slide 41: Induced Polarization Survey
INDUCED POLARIZATION SURVEY The plan image shows only the >30mV chargeability results from the 2D IP-Res model overlain by gold-in- soil and magnetic susceptibility (RTP). The dashed polyline highlights the area of greatest interest for further testing given the occurrence of favorable geochemical a
Slide 42: Proximity to Western Copper and Gold's Casino Deposit
PROXIMITY TO WESTERN COPPER AND GOLD’S CASINO DEPOSIT The Alotta is located approximately 40 km south- east of Western Copper and Gold’s (TSX: WRN) Casino deposit. Superimposed in blue, the Casino Deposit covers only a portion of the unglaciated, copper-gold in soil geochemistry. The Casino deposit
Slide 43: Project Development
PROJECT DEVELOPMENT ARCHER, CATHRO & ASSOCIATES has been contracted to work on the Alotta Project July-August 2023 (Completed) Geophysical Survey – Induced Polarization Conducted approximately 34-line kilometres of survey over the copper- gold in soil anomalies with date compiled. Program defined la
Slide 44: Unearthing Opportunities, Forging a Future
Unearthing Opportunities, Forging a Future CSE: FRG | OTCQB: FRGGF | FSE: 5YZ info@forgeresourcescorp.com www.forgeresourcescorp.com SEPT 2024
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