Seizing Opportunity and Building Value

Transcription

1 Hanson Lake District Seizing Opportunity and Building Value November

2 Origins of Success Inspiration Relationships Foresight Action TSX-V FOM 2

3 Opportunity is meaningless unless one takes action. TSX-V FOM 3

4 Seizing Opportunity Orphaned Asset Next door to 100 year old mining complex Team Leaders with history of success Potential Underexplored ground Global zinc deficit Commitment Skin in the game TSX-V FOM 4

5 Building Value Production Zinc Copper Thunder Zone McIlvenna Bay Target A Community Relations Tenacity Optionality Innovation Asset Location Team Access to Capital Potential TSX-V FOM 5

6 Metals Market Metals prices are projected to rise by 16% in 2017 amid tightening markets for most metals. The largest gains are expected in zinc (32%) and lead (18%) due to mine supply constraints brought on by permanent closures due to resource exhaustion, as well as discretionary closures (Glencore). Copper is also expected to increase by 18% on mine disruptions World Bank Forecast, April 2017 TSX-V FOM 6

7 Global Zinc Market Applications 8% 3% Galvinizing 14% 15% 60% Zinc base alloys Brass and bronze Compounds Other alloys 7% Sectors 23% 45% Construction Transportation Consumer Goods 25% Industrial Machinery From International Zinc Association TSX-V FOM 7

8 Global Copper Market 18% 13% 6% 63% Regions Asia Europe Americas ROW 15% 12% 12% 31% Sectors Equipment Construction Industrial Infrastructure Transportation 30% From International Copper Study Group World Factbook 2016 TSX-V FOM 8

9 World Class Mining Belt N Deschambault Lake HANSON LAKE DISTRICT FLIN FLON DISTRICT LALOR Snow Lake MCILVENNA BAY TARGET A Denare Beach/ Amisk Lake 777 Flin Flon SNOW LAKE DISTRICT BIGSTONE THUNDER ZONE REED LAKE 200 km Foran is not treating historic (non NI compliant) resource estimates as current; Additional work is required bring historic resource to current TSX-V FOM 9

10 Hanson Lake VMS District N MCILVENNA BAY TARGET A THUNDER ZONE BIGSTONE UTM Zone 13 NAD83 NTS 63L/10 TSX-V FOM 10

11 Hanson Lake VMS District Cluster of VMS deposits Poly-metallic Zinc, Copper, Gold, Silver Prolific mining belt Neighbouring Hudbay/Flin Flon/Lalor Long history of mining 30,000+ drill holes Current management Acquired project in 2011 Underexplored (~800 drill holes) Advanced project Upgraded deposits, new discovery Relationship with First Nations Peter Ballantyne Cree Nation McIlvenna Bay Camp TSX-V FOM 11

12 McIlvenna Bay Deposit N Flagship asset 100% ownership Center of gravity for the district MCILVENNA BAY TARGET A THUNDER ZONE BIGSTONE UTM Zone 13 NAD83 NTS 63L/10 TSX-V FOM 12

13 Access Road & Power Line Hanson Lake Foran Camp Silica Sand Mine McIlvenna Bay Deposit (projection to surface-approximate) Access Road & Power Line m McIlvenna Bay deposit (projected), exploration camp and Silica Sand Mine (under reclamation); looking Northwest April 2012 TSX-V FOM 13

14 McIlvenna Bay Mineral Resources Indicated Mineral Resource Estimate (US$60t/ NSR cut-off) Zone Tonnes (kt) Cu (%) Zn (%) Au (g/t) Ag (g/t) CuEq (%) ZnEq (%) Main Lens Upper West Zone 2, Main Lens Zone 2 3, Lens Copper Stockwork Zone 7, TOTAL INDICATED 13, Inferred Mineral Resource Estimate (US$60t/ NSR cut-off) Zone Tonnes (kt) Cu (%) Zn (%) Au (g/t) Ag (g/t) CuEq (%) ZnEq (%) Main Lens Upper West Zone 2, Main Lens Zone 2 2, Lens Copper Stockwork Zone 5, TOTAL INFERRED 11, 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 applicable royalties; see appendices for full footnotes; for additional information see the Foran news release dated March 27, 2013 at TSX-V FOM 14

15 McIlvenna Bay Deposit PEA tpd, ramp and shaft access, on-site concentrator and tailings facilities; batch processing multiple ore zones Summary Mine Life Plant Throughput Pre-Tax NPV 7% Pre-Tax IRR Post-Tax NPV 7% Post-Tax IRR Payback 13.7 years 4,761 tpd $381.7M 21.9% $262.6M 18.9% 4.1 years Metal Production Metal Per annum LOM lbs. tonnes lbs. tonnes Zinc 58.9M 26, M 365,101 Copper 37.6M 17, M 233,013 Lead 1.2M M 7,167 oz. oz. Gold 16, ,000 Silver 398,000 5,437,000 1 The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. 2 Includes 20% contingency. 3 Comprised of $33.54/t mining, $13.39/t processing & $4.10/t G&A. 4 Net of by-product, includes all TC/RC, operating costs & royalties. All figures are quoted in CDN$ unless otherwise noted; base case metal prices of US$3.08/lb. Cu, US$1.06/lb., Zn, US$0.93/lb. Pb, US$1,238/oz. Au and US$17/oz. Ag and exchange rate of 0.89 based on spot as at Oct. 15, See the Foran news releases dated November 12, 2014 and January 21, 2015 at TSX-V FOM 15

16 McIlvenna Bay Deposit PEA tpd, ramp and shaft access, on-site concentrator and tailings facilities; batch processing multiple ore zones Capital Costs Operating Costs Base Contingency (20%) Total Avg. OpEx Per tonne milled LOM Pre-Prod. CapEx Sustaining Capital $207.3M $41.5M $248.8M $125.2M $25.0M $150.3M Mining $33.54 $796.2M Processing $13.39 $317.7M LOM $332.5M $66.5M $399.1M G&A $4.10 $97.4M Total $51.03 $1,211.3M 1 The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. 2 Includes 20% contingency. 3 Comprised of $33.54/t mining, $13.39/t processing & $4.10/t G&A. 4 Net of by-product, includes all TC/RC, operating costs & royalties. All figures are quoted in CDN$ unless otherwise noted; base case metal prices of US$3.08/lb. Cu, US$1.06/lb., Zn, US$0.93/lb. Pb, US$1,238/oz. Au and US$17/oz. Ag and exchange rate of 0.89 based on spot as at Oct. 15, See the Foran news releases dated November 12, 2014 and January 21, 2015 at TSX-V FOM 16

17 McIlvenna Bay PEA Sensitivity Analyses 1 Metal Price -10% Base Case +10% Zinc (US$/lb.) Copper (US$/lb.) Lead (US$/lb.) Gold (US$/oz.) 1,114 1,238 1,362 Silver (US$/oz.) Pre-tax NPV 7% $200.6M $381.7M $562.9M IRR 15.4% 21.9% 27.6% Payback 5.4 years 4.1 years 3.4 years Post-tax NPV 7% $129.4M $262.6M $394.5M IRR 13.3% 18.9% 24.0% Payback 5.4 years 4.1 years 3.5 years Exchange Rate -10% Base Case +10% CDN$:US$ Pre-tax NPV 7% $251.3M $381.7M $541.1M IRR 17.2% 21.9% 26.9% Payback 4.9 years 4.1 years 3.5 years Post-tax NPV 7% $166.9M $262.6M $378.7M IRR 14.9% 18.9% 23.4% Payback 4.9 years 4.1 years 3.5 years 1 The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. 2 Includes 20% contingency. 3 Comprised of $33.54/t mining, $13.39/t processing & $4.10/t G&A. 4 Net of by-product, includes all TC/RC, operating costs & royalties. All figures are quoted in CDN$ unless otherwise noted; base case metal prices of US$3.08/lb. Cu, US$1.06/lb., Zn, US$0.93/lb. Pb, US$1,238/oz. Au and US$17/oz. Ag and exchange rate of 0.89 based on spot as at Oct. 15, See the Foran news releases dated November 12, 2014 and January 21, 2015 at TSX-V FOM 17

18 Bigstone Cu-Zn Deposit BIGSTONE Upgrade historic resource to NI Specific gravity underestimated 2015 infill drilling 2 All six holes hit high-grade Cu+/-Zn 18.4% Zn over 12m incl. 27.0% Zn over 7.6m, plus 1.4% Cu over 10.6m & 1.3% Cu over 8.5m (BS ) 2.0% Cu over 105m incl. 4.1% Cu over 20m & 3.4% Cu over 19.0m (BS ) Historic mineral resource 1 : Zone Tonnage (t) Cu (%) Au (g/t) Zn (%) Ag (g/t) Copper (1% cutoff) Zinc (5% cutoff) N UTM Zone 13 NAD83 NTS 63L/10 1 Foran is not treating historic (non NI compliant) resource estimates as current; additional work is required bring historic resource to current 2 See Foran news releases dated April 1, 17 and 30, 2015 for additional information; true thickness approx % of downhole distance. TSX-V FOM 18

19 Thunder Zone Cu-Zn Deposit Cu & Zn-rich VMS mineralization 2013 discovery hole First new discovery in 30 years Intersected high-grade massive sulphides 2015 follow-up drilling Confirmed & expanded discovery 1 Higher grades than McIlvenna Bay Open along strike Thickening down-plunge MCILVENNA BAY TARGET A THUNDER ZONE N UTM Zone 13 NAD83 NTS 63L/10 1 See Foran news release dated March 25, 2015 for additional information; true thickness approx. 85% of downhole distance. TSX-V FOM 19

20 Target A Exploration High priority target Identified using updated geophysics Potential game changer Planned drilling for 2017 Prior drilling stopped short of target Wedge off existing hole MCILVENNA BAY TARGET A THUNDER ZONE BIGSTONE N UTM Zone 13 NAD83 NTS 63L/10 TSX-V FOM 20

21 Regional Exploration McIlvenna Bay Deposit Target A 1.2 to 1.6 km long high-priority DEEP-EM conductor; not previously drill tested McIlvenna Bay Grid m 0 5 km UTM Zone 13 NAD83 NTS 63L/10 N TSX-V FOM 21

22 Regional Exploration Thunder Zone Balsam Balsam Grid m 0 5 km UTM Zone 13 NAD83 NTS 63L/10 N TSX-V FOM 22

23 Regional Exploration 10 km Thunder Zone First new discovery in 30 years Target A High priority McIlvenna Bay Flagship deposit Discovery Hole 3.7 Cu and 0.43 g/t Au MR m MR m Conductor Target Resource Grade Shell 13.9 Mt@ 13.19%ZnEq (Ind) ZnEq (Inf) TSX-V FOM 23

24 Community Engagement CanNorth Environmental Services 100% aboriginal-owned, multi-disciplinary environmental consulting firm Conducted environmental baseline studies ASKI PBCN environmental consultancy Managed McIlvenna Bay environmental program Mining Matters Earth Sciences Camps Students are sponsored to attend Educating local students is a priority Using local consulting firms and companies is mutually beneficial TSX-V FOM 24

25 Community Engagement Strong sense of history Foran team is committed to local communities Contractors & employees hired from local Peter Ballantyne Cree Nation (PBCN) communities Positive relationships with First Nations & other stakeholders in the area is critical TSX-V FOM 25

26 Building Value Project Location Large resource base Long mine life Clean, marketable concentrate Growth potential Optionality Safe, stable pro-mining jurisdiction Transparent mining laws Tax incentives 65 km to Flin Flon Available skilled workforce Infrastructure Investment Year-round road access Nearby railhead Low-cost hydro-electric power Water Reasonable capital costs Short timeline to production Community engagement TSX-V FOM 26

27 Capital Structure Issued & Outstanding 99.0 M Options 6.4 M Share Price & Capitalization Recent: $ $ Week High/Low: $0.47/$0.17 Market Cap: ~$26M Ownership Warrants* 0.8 M Fully Diluted M 23% 17% Management & Directors High Net Worth (incl. 11% Pierre Lassonde) 2% Institutional *Price: $0.25 expiring December 2017 ~28% ~30% Corporate Retail As at July 2017; Options Avg.: $0.31; Market Cap based on I&O Shares; All figures in CDN$; Institutional & Corporate Shareholders include CQS, CIBC, City Natural Resources, Gold 2000 & Teck TSX-V FOM 27

28 Leadership Team Directors Darren Morcombe Patrick Soares Sharon Dowdall Maurice Tagami David M. Petroff Executive Chairman President & CEO Former CLO Franco Nevada VP Mining Operations Wheaton Precious Metals Former President, CEO & Director Breakwater Resources Management Darren Morcombe Patrick Soares Tim Thiessen Roger March David Fleming Connie Norman Executive Chairman President & CEO CFO VP Project Exploration VP Exploration Corporate Secretary TSX-V FOM 28

29 Building Value Production Zinc Copper Thunder Zone McIlvenna Bay Target A Community Relations Tenacity Optionality Innovation Asset Location Team Access to Capital Potential TSX-V FOM 29

30 Foran Advantage ASSETS TEAM McIlvenna Bay PEA Thunder Zone New discovery Target A High potential Directors Executive & Staff Consultants & Advisors Proximity to water, roads, power First Nations Top global mining jurisdiction Optimize PEA Continue de-risking project Bigstone resource LOCATION FUTURE TSX-V FOM 30

31 Contact Us Foran Mining Corporation Granville Street Vancouver, BC, Canada V6C 1T2 P: E: TSX-V FOM TSX-V FOM 31

32 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 of US$60/t. NSR grades were calculated and high grade caps were applied as per the discussion in Estimation Methodology and Parameters below and include provisions for metallurgical recovery and estimates of current shipping terms and smelter rates for similar concentrates. Metal prices used are US$3.25/lb. Cu, US$1.10/lb. Zn, US$1,400/oz. Au, and US$25/oz. Ag. Specific gravity was interpolated for each block based on measurements taken from core specimens. 3 Mr. David Rennie, P.Eng., of RPA, prepared this mineral resource estimate. Mr. Rennie is independent of Foran and is a Qualified Person within the meaning of NI Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, marketing or other issues. 5 CuEq and ZnEq values were estimated based on $53.94 per % Cu, $8.11 per % Zn, $31.16 per g/t Au and $0.03 per g/t Ag. 6 For additional information see the Foran news release dated March 27, 2013 at & TSX-V FOM 32

33 McIlvenna Bay Conceptual Mine Design Decline 35m of Dolomite & Sand Cover 200m L Shaft 0m L -200m L Resource Shell -400m L -600m L -800m L Ramp 5,000 tpd underground mine Ramp & shaft to optimize resource extraction Broad thicknesses & steep dip of mineralization amenable to longhole stoping Structural backfill provided by cemented fill and ROM waste 200m Longitudinal Section, Looking Southeast TSX-V FOM 33

34 Flin Flon-Glennie Complex Paleoproterozoic Juvenile Arc Assemblages Deschambault Lake Snow Lake BG Hanson Lake District BA Birch Lake Belt Flin Flon 29 present and past producing mines ~170MT of production >30,000 drill holes Western Assemblages are poorly explored under Phanerozoic Cover - ~1,000 drill holes TSX-V FOM 34

35 McIlvenna Bay Payable Metal Production Metal Per annum LOM lbs. tonnes lbs. tonnes 50% Cu Zinc 59M 26, M 365,101 Copper 38M 17, M 233,013 Lead 1.2M M 7,167 oz. oz. 36% Zn Gold 16, ,000 Silver 398,000 5,437,000 10% Au TSX-V FOM 35

36 Flin Flon-Glennie Complex Deposits Geometry Comparisons 777/Callinan McIlvenna Bay Lalor MB massive sulphide resource geometry has a similar plunge and down-dip extent to large FFGC deposits Only a single body modeled at MB Suggests potential for discovery of additional lenses TSX-V FOM 3