Foran Mining — PDAC 2015
27 slides from Foran Mining's conference presentation, Mar 2, 2015
Slide 1: On the Path to Development: The McIlvenna Bay Deposit & Hanson Lake Camp
On the Path to Development: The McIlvenna Bay Deposit & Hanson Lake Camp, Saskatchewan Patrick Soares, President & CEO PDAC 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: 5 Reasons to Invest in Foran
5 Reasons to Invest in Foran Management Robust PEA at team with a McIlvenna Bay – a proven track large copper-zinc record deposit Resource growth Excellent location & discovery & infrastructure potential in the in a pro-mining Hanson Lake jurisdiction Camp Solid shareholder base – mining industry ex
Slide 4: Management & Directors
Management & Directors Management Board of Directors Darren Morcombe, Executive Chairman Darren Morcombe Founder of Springtide Capital Pty. Ltd., former Chairman and major Founder of Springtide Capital Pty. Ltd., former shareholder of European Gold Refineries SA and Director of AGR Chairman and majo
Slide 5: Capital Structure
Capital Structure 90.8 M 5.0 M 8.1 M 103.9 M I&O Warrants Options Fully Diluted Share Price & Capitalization Ownership Recent: $0.20-$0.25 52 week high-low: $0.32-$0.14 Institutional >25% Market Cap: ~$20M Mgt. & Directors 18% Treasury $3.4M Cash as at Sept. 30/14 Pierre Lassonde 11% $1.6M FT Financ
Slide 6: Overview
Overview 100% owned advanced- & exploration-stage copper-zinc projects located in Saskatchewan, Canada Excellent access & infrastructure Positive relationship with local stakeholders Positive PEA completed on the McIlvenna Bay Deposit: NPV7% of $382M ($263M post-tax) IRR of 22% (19% post-tax) 14 yea
Slide 7: Location
J _ : MINING CORPORATION Location : f FLIN FLON CAMP: MCILVENNA BAY te 16 VMS Deposits > 115Mt &THE HANSON 7 LAKE CAMP ree 4 REED LAKE Legend © VMS Mine (Operating) ™) Foran Claim Boundary @_ VMS Mine (Past Producing) Highway @ VMs Deposit (Sk) === Secondary Road (SK) @ VMS Deposit (sk) +++ RailLine
Slide 8: 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 9: McIlvenna Bay project, location and infrastructure advantages
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 10: Base Metal Comparables: EV/NPV
Base Metal Comparables 0.35 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 Feb. 12, 2015; Sources: Stockwatch, Company Websites 10
Slide 11: 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 12: 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 13: 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$125M Sustaining Cash Costs3 Cu US$0.84
Slide 14: 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 14
Slide 15: 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 16: The Hanson Lake Camp
The Hanson Lake Camp McIlvenna Bay Hanson Deposit Lake Mine (Past Producer) Target A Bigstone Balsam Property McIlvenna Hanson Bay Property Property Bigstone Property Balsam & Thunder Zone 16
Slide 17: The Hanson Lake Camp: Bigstone
The Hanson Lake Camp Bigstone Historic mineral resource 25km west of the McIlvenna Bay Deposit McIlvenna 100% owned by Foran Bay Copper- Hanson& zinc-rich VMSDeposit mineralization Lake Mine delineated by past operators (Past Producer) Target A Historic mineral resource estimates1: 3.75 Mt of 2.03%
Slide 18: The Hanson Lake Camp: Thunder Zone
The Hanson Lake Camp Thunder Zone 12km southeast of the McIlvenna Bay Deposit 100% owned by Foran McIlvenna 2013 discovery hole Bay intersected high-grade Hanson Deposit copper mineralization Lake Mine (4.1% Cu & 0.43 g/t Au (Past Producer) Target A over 3.7m) Follow-up drilling underway Bigstone Ba
Slide 19: The Road Ahead
The Road Ahead Positive PEA results demonstrate that McIlvenna Bay should advance to a feasibility study Foran’s objective is to evaluate the economic potential of the Hanson Lake Camp to develop a long-lived mining district in central Canada Winter drill program underway in the Hanson Lake Camp (Ba
Slide 20: 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 20
Slide 21: Appendices
cN Append ices FO CORPORATION —— il -www.foranmining.com
Slide 22: McIlvenna Bay Mineral Resources
McIlvenna Bay Mineral Resources1 1 Effective date Jan. 1, 2013; Metal prices for 2013 Resource are US$3.25/lb. Cu, US$1.10/lb. Zn, US$1,400/oz. Au & US$25/oz. Ag; The base case uses a US$60/t NSR cut-off using provisions for metallurgical recoveries, smelter payables, refining costs, freight, and ap
Slide 23: McIlvenna Bay: Copper Stockwork Zone (CSZ)
McIlvenna Bay: Copper Stockwork Zone (CSZ) Indicated: 7.61 MT @ 1.60% Cu, 0.30% Zn, 0.50 g/t Au Inferred: 5.48 MT @ 1.56% Cu, 0.47% Zn, 0.42 g/t Au Indicated Inferred View looking down and South West 23
Slide 24: McIlvenna Bay: CSZ + UW MS + Zone 2 MS
McIlvenna Bay: CSZ + UW MS + Zone 2 MS Indicated: 7.61 MT @ 1.60% Cu, 0.30% Zn, 0.50 g/t Au Inferred: 5.48 MT @ 1.56% Cu, 0.47% Zn, 0.42 g/t Au Indicated: 2.15 MT @ 1.66% Cu, 4.10 % Zn, 0.88 g/t Au Inferred: 2.91 MT @ 1.63% Cu, 3.68% Zn, 0.51 g/t Au Indicated Inferred View looking down and South Wes
Slide 25: 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 26: Regional Exploration
Regional Exploration 2013 DEEP-EM survey identified 2 high-priority targets: Target A 1.6 km long EM conductor - similar size & character as McIlvenna Bay Initial drill test inconclusive – further testing required to determine source Target B Final hole drilled in the winter 2013 regional program hi
Slide 27: Hanson Lake Camp Regional Exploration
Hanson Lake Camp Regional Exploration Target A 1.2-1.6km long high-priority target Target B Further drill testing required Thunder Zone Discovery Hole: Balsam 4.1% Cu & 0.43 g/t Au over 3.7m McIlvenna Bay Deposit 13.9Mt of 1.96% CuEq (indicated) 11.3Mt of 2.01% CuEq (inferred) McIlvenna Bay Deposit