Foran Mining — SK Mining Forum 2015
19 slides from Foran Mining's conference presentation, Apr 29, 2015
Slide 1: Managing Risks, Unlocking Value in Base Metals Exploration & Development in Saskatchewan
Patrick Soares, President & CEO: Managing Risks, Unlocking Value in Base Metals Exploration & Development in Saskatchewan April 2015 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: Mining in Saskatchewan: Overview
Mining in Saskatchewan: Overview SK is a mining leader both in Canada and globally, with over 25 operating mines, including potash, uranium, gold and coal SK has the largest high-grade reserves in the world for both potash and uranium SK contains almost half the world’s potash reserves and produced
Slide 4: Mining in Saskatchewan: Base Metals
Mining in Saskatchewan: Base Metals The discovery of base metals in SK dates back to 1909 In 1915, prospector Tom Creighton discovered one of the most important base metal deposits in Canada, when he found sulphide outcrops of what would become the Flin Flon Mine on the SK-MB border The Flin Flon Mi
Slide 5: Exploration in Saskatchewan: Base Metals
Exploration in Saskatchewan: Base Metals Four types of base metal deposits have been found in SK, the most important of these are volcanogenic massive sulphide (or VMS) deposits Recent VMS discoveries in SK include: The Bigstone copper-zinc deposit1, discovered by Garanges in 1982 (now owned 100% by
Slide 6: Looking Across the Border
Looking Across the Border MB is home to world class base metal mining districts in Flin Flon and Snow Lake The same rocks that host the base metal deposits in MB cross the border into east-central SK Flin Flon Camp: Hanson Lake Camp: well-explored, under-explored 16 deposits mined 1 deposit mined Sn
Slide 7: VMS Deposit Size Comparison
VMS Deposit Size Comparison 62.5 30 McIlvenna Bay one of the five largest VMS despots 25 discovered in SK-MB VMS deposits form in clusters 20 Majority of the deposits in each VMS cluster Deposit Size are 3-5 Mt, with potential for 1-2 large (Mt) 15 (+20Mt) deposits This same clustering of VMS minera
Slide 8: The McIlvenna Bay Deposit & Hanson Lake Camp
The McIlvenna Bay Deposit & Hanson Lake Camp Foran’s new management team reinitiated exploration on the McIlvenna Bay deposit in 2011 A positive preliminary economic assessment (PEA) for McIlvenna Bay was announced in November 2014: 3% 1% NPV7% of $382M ($263M post-tax) 10% Copper IRR of 22% (19% po
Slide 9: McIlvenna Bay Mineral Resource
McIlvenna Bay Mineral Resource1 A large resource base 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) (%) (%) Indicated Main Lens – Upper West Zone 2,148 1.66 4.10 0.88 31 2.79 18.75 Main Lens – Zon
Slide 10: McIlvenna Bay Metallurgy
McIlvenna Bay Metallurgy Clean, marketable concentrates amenable to conventional grinding & flotation Zone Cu Conc. Zn Conc. Copper Stockwork Zone Cu Conc. #1 NA Composite Head Grade: Grade: 1.45% Cu, 0.34 g/t Au, 8 g/t Ag 29% Cu, 6.4g/t Au, 126g/t Ag Recoveries: Copper Stockwork 94% Cu, 85% Au, 77%
Slide 11: McIlvenna Bay PEA Summary
McIlvenna Bay PEA Summary1 Estimated costs & design are in-line with existing mining operations in the region Pre-Tax Post-Tax NPV7% $382M $263M IRR 22% 19% Payback 4.1 years 4.1 years Mine Life 14 years Plant Throughput 5,000 tpd CapEx2 C$249M Pre-Production C$150M Sustaining Cash Costs3 Cu US$0.84
Slide 12: 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 59M 26,717 805M 365,101 Copper 38M 17,055 514M 233,013 Lead 1.2M 544 16M 7,167 oz. oz. Gold 16,000 218,000 Silver 398,000 5,437,000 12
Slide 13: McIlvenna Bay Conceptual Mine Design
McIlvenna Bay Conceptual Mine Design 35m of Dolomite Decline & Sand Cover Shaft 200m L 0m L 5,000 tpd Resource underground mine -200m L Shell Ramp & shaft to optimize resource Ramp extraction -400m L Broad thicknesses & steep dip of mineralization -600m L amenable to longhole stoping Structural back
Slide 14: The Hanson Lake Camp
The Hanson Lake Camp Smart, systematic exploration leads to new discoveries… McIlvenna Hanson Bay Deposit Lake Mine (Past Producer) Target A Bigstone Balsam Property McIlvenna Hanson Bay Property Property Bigstone Property Thunder Zone 14
Slide 15: Exploration
Exploration Geophysics + Drilling = New Discoveries 15
Slide 16: The Hanson Lake Camp: Thunder Zone
The Hanson Lake Camp Thunder Zone 7km SE of McIlvenna Bay 100% Foran-owned 2013 discovery hole intersected high-grade massive sulphides McIlvenna 2015 follow-up drilling confirms & expands Cu-Zn discovery: Hanson Bay Deposit Lake Mine 5.0% Cu, 2.1% Zn, 0.84g/t Au & 41g/t (Past Producer) Ag over 2.26
Slide 17: The Hanson Lake Camp: Bigstone Deposit
The Hanson Lake Camp Bigstone Deposit1 25km SW of McIlvenna Bay 100% Foran-owned Cu- & Zn-rich VMS mineralization McIlvenna Historic mineral resource estimates1: Bay 3.75 Mt of 2.03% Cu, 0.33g/t Au Hanson (1% Cu cutoff) & Deposit Lake Mine 0.53 Mt of 9.6% Zn, 16g/t Ag (5% (Past Producer) Zn cutoff)
Slide 18: Managing Risks & Unlocking Value
Managing Risks & Unlocking Value SK is a world leader in mining and the #1 mining jurisdiction in Canada Despite a strong history of base metal mining, SK currently has no operating base metal mines Foran has demonstrated robust preliminary economics at its large McIlvenna Bay deposit and continues
Slide 19: Contacts
Contacts Patrick Soares Fiona Childe President & CEO VP, Corporate Development 904-409 Granville Street, 1000-36 Toronto St. Vancouver, BC, V6C 1T2 Toronto, ON, M5C 2C5 ir@foranmining.com 416-363-9229 19