Foran Mining — Mines & Money London 2014
16 slides from Foran Mining's conference presentation, Dec 2, 2014
Slide 1: The McIlvenna Bay Deposit & Hanson Lake Base Metal Camp
Patrick Soares, President & CEO The McIlvenna Bay Deposit & Hanson Lake Base Metal Camp, Saskatchewan, Canada Mines & Money London December 2, 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 McIlvenna Bay: Robust PEA 100% ownership & growth of a large copper- potential zinc deposit Superior project location & existing infrastructure 3
Slide 4: Capital Structure
Capital Structure 84.4 M 5.0 M 7.1 M 96.5 M I&O Warrants Options Fully Diluted Share Price & Capitalization Ownership Recent: $0.22-$0.25 52 week high-low: $0.32-$0.14 Institutional >20% Market Cap: ~$20M Mgt. & Directors 19% Treasury $3.4M as at Sept. 30, 2014 Pierre Lassonde 12% No debt Corporate
Slide 5: The Case for Zinc
The Case for Zinc Improved western demand & high Chinese imports has resulted in low inventories As major mines close on or before schedule the zinc market continues to tighten With no significant new projects underway to replace lost production the market is expected to continue to tighten As the z
Slide 6: The McIlvenna Bay Deposit & Hanson Lake Camp, Saskatchewan, Canada
The McIlvenna Bay Deposit & Hanson Lake Camp, Saskatchewan, Canada Large Copper-Zinc-Gold-Silver Resource • 13.9Mt @ 1.96% CuEq or 13.2% ZnEq (indicated) • 11.3Mt @ 2.01% CuEq or 13.5% ZnEq (inferred) New McIlvenna Bay PEA shows robust preliminary economics • NPV7% $382M & IRR of 22% (pre-tax) • NPV
Slide 7: McIlvenna Bay & the Hanson Lake Camp
McIlvenna Bay & the Hanson Lake Camp 7
Slide 8: 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 9: Base Metal Comparables
Base Metal 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 9
Slide 10: 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 on a 5,000 tpd underground mine Pre-production CapEx of $249M (incl. 20% contingency ) Sustaining capital of $150M (incl. 20% contingency) Payabl
Slide 11: McIlvenna Bay Payable Metal Production
McIlvenna Bay 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 11
Slide 12: McIlvenna Bay Conceptual Mine Design
McIlvenna Bay Conceptual Mine Design 35m of Dolomite Decline & Sand Cover Shaft 200m L 0m L Resource -200m L Shell 5,000 tpd Ramp underground mine -400m L Ramp & shaft to optimize resource extraction -600m L Broad thicknesses & steep dip of mineralization -800m L amenable to longhole stoping 200m Lo
Slide 13: Regional Exploration
Regional Exploration 2013 DEEP-EM survey identified 2 high- priority targets with 7km of McIlvenna Bay: Target A 1.6 km long EM conductor - similar size & character as McIlvenna Bay Target B Thunder Zone discovery: 4.1% Cu & 0.43 g/t Au over 3.7m 13
Slide 14: Bigstone
Bigstone Historic mineral resource in the Hanson Lake Camp, 25km west of the McIlvenna Bay Deposit 100% owned by Foran 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 Zo
Slide 15: 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 in the Hanson Lake Camp around McIlvenna Bay Foran’s objective is to evaluate the economic pote
Slide 16: 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 16