Patrick Soares President & CEO Canada s Next Base Metal Mining Camp

Transcription

1 Patrick Soares President & CEO Canada s Next Base Metal Mining Camp TakeStock! AB Nov. 6,

2 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, the future price of metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, costs and timing of future exploration, the timing of the development of new deposits, requirements for additional capital, foreign exchange risk, government regulation of mining and exploration operations, environmental risks, reclamation expenses, title disputes or claims, insurance coverage and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "hopes", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves and is subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; fluctuations in the value of the United States dollar and the Canadian dollar relative to each other; future prices of metals; possible variations of ore grade or recovery rates; accidents, labour disputes or slow downs and other risks of the mining industry; climatic conditions; political instability, insurrection or war; arbitrary decisions by governmental authorities; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forwardlooking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this presentation and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. Accordingly, readers should not place undue reliance on forward-looking statements. Dr. Fiona Childe (Ph.D., P. Geo), VP of Corporate Development for the Company, is a Qualified Person as defined in National Instrument and has reviewed the disclosure of a technical or scientific nature contained in this presentation. Mr. Roger March (B.Sc. (Hons.), P. Geo), VP Project Exploration for the Company, is a Qualified Person as defined in National Instrument and is the Qualified Person for the McIlvenna Bay Deposit. 2

3 5 Reasons to Invest in Foran Management team with a proven track record Positive PEA at McIlvenna Bay a large copper-zinc deposit with growth potential New copper-zinc discoveries in the Hanson Lake Camp Solid shareholder base mining industry executives Excellent location & infrastructure in a pro-mining jurisdiction 3

4 Foran Overview 100% Ownership: McIlvenna Bay Deposit & Hanson Lake Camp in east-central Saskatchewan #1 Mining Jurisdiction in Canada: 2015 Fraser Institute rankings Excellent Access & Infrastructure: one hour drive from the world-class Flin Flon Mining Camp Positive PEA on 1 st Deposit in the Camp: McIlvenna Bay deposit Discovery & Delineation of Satellite Copper-Zinc Deposits: Bigstone deposit & Thunder zone Positive Relationship with Local Stakeholders 4

5 Central Canada Base Metal Camps Foran is not treating historic (non-ni compliant) resource estimates as current, additional work required to bring historic resource to current 5

6 McIlvenna Bay Deposit Overview Mineral Resource: 13.9Mt of 13.2% ZnEq (2.0% CuEq) indicated & 11.3Mt of 13.5% ZnEq (2.0% CuEq) Deposit open Metallurgy: Clean, saleable copper and zinc concentrates by conventional processes Positive PEA 1 : NPV 7% of $382M ($263M post-tax) IRR of 22% (19% post-tax) Initial CapEx: $249M; Sustaining CapEx $150M 2 14 year mine life, 4.1 year payback Cash costs: US$0.84/lb Cu; -US$0.37/lb Zn 3 Zn production: 59Mlbs pa (805M lbs LOM) Cu production: 38Mlbs pa (514M lbs LOM) A large, roadaccessible copperzinc-gold resource with a positive PEA Payable Metal Production (LOM) 30% 10% Copper 56% Zinc Gold Silver Lead 1 The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. 2 Includes 20% contingency. 3 Net of by-product, includes all TC/RC, operating costs & royalties. All figures are quoted in CDN$ 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,

7 The Hanson Lake Camp Hanson Lake Mine (Past Producer) McIlvenna Bay Deposit Target A Bigstone Deposit Balsam Property McIlvenna Bay Property Hanson Property Bigstone Property Thunder Zone 7

8 Satellite Deposits Bigstone Deposit 25km southwest of McIlvenna Bay Near-surface copper & zinc mineralization High-grade historic mineral resource infill drilling 2 : All holes hit high-grade mineralization 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 2.0% Cu over 105m, incl. 4.1% Cu over 20m & 3.4% Cu over 19.0m Growth potential - deposit not fully defined by historic drilling Metallurgy underway results before year end Zone Bigstone Deposit Historic Resource 1 Tonnage (t) Cu Au (g/t) Zn Ag (g/t) Copper Zinc Thunder Zone 7km southeast of McIlvenna Bay New copper-zinc discovery 2013 discovery hole: 4.1% Cu, 0.43g/t Au over 3.7m 2015 follow-up drilling 2 : 5.0% Cu, 2.1% Zn, 0.84g/t Au & 41g/t Ag over 2.26m 2.0% Cu, 3.5% Zn, 0.37g/t Au & 11.6g/t Ag over 3.46m & 0.7% Cu, 7.2% Zn, 0.29 g/t Au & 42.8 g/t Ag over 3.70m Open along strike & thickening downplunge 1 Foran is not treating historic resource estimates as current, additional work is required to bring historic resources to current; 2 See Foran news releases dated April 1, 17 and 30, 2015 for additional information; true thickness approx % of downhole distance. 8

9 Board of Directors & Management Directors Darren Morcombe Patrick Soares Sharon Dowdall Maurice Tagami Bradley Summach David M. Petroff Executive Chairman President & CEO Former Chief Legal Officer for Franco-Nevada VP Mining Operations for Silver Wheaton CFO of BBS Aircraft & President of Summach Ventures Former President, CEO & Director of Breakwater Resources Management Darren Morcombe Patrick Soares Tim Thiessen Fiona Childe Roger March David Fleming Connie Norman Executive Chairman President & CEO CFO VP Corporate Development VP Project Exploration VP Exploration Corporate Secretary 9

10 Capital Structure 90.8 M I&O 2.0 M Warrants 7.8 M Options M Fully Diluted Share Price & Capitalization Recent: $0.10-$ Week High-Low: $0.48-$0.10 Market Cap: ~$10M Treasury $1.8M Cash (June 30/15) Warrants $0.70 exp. Dec./15 $0.24 exp. Oct./16 Exchange/Symbol TSXV-FOM Ownership 3% 20% ~25% 17% ~30% Analyst Coverage Haywood Securities Mackie Research Capital M Partners Management & Directors High Net Worth (incl. 11% Pierre Lassonde) Institutional Corporate Retail As at Oct. 31, 2015; Options Ave. $0.64; Market Cap based on I&O Shares; Treasury includes cash & short-term investments; All figures in CDN$; Institutional & Corporate Shareholders include Geologic Resource Partners, CQS, CIBC, City Natural Resources & Teck Resources 10

11 The Road Ahead Positive PEA results demonstrate that the McIlvenna Bay deposit should advance to a feasibility study Resource growth potential through satellite deposits Foran s objective is to develop Canada s next base metal mining camp 11

12 Contacts Visit our booth or contact us at : Patrick Soares President & CEO Granville Street, Vancouver, BC, V6C 1T2 Fiona Childe VP, Corporate Development Toronto St. Toronto, ON, M5C 2C5 ir@foranmining.com TSX-V FOM 12

13 McIlvenna Bay Mineral Resource 1 A large resource base open to depth 2013 McIlvenna Bay Indicated Mineral Resource Estimate (US$60t/ NSR cut-off) Indicated Zone Tonnes (kt) Cu Main Lens Upper West Zone 2, Main Lens Zone 2 3, Lens Copper Stockwork Zone 7, Total Indicated 13, Zn Au (g/t) Ag (g/t) CuEq ZnEq 2013 McIlvenna Bay Inferred Mineral Resource Estimate (US$60t/ NSR cut-off) Inferred Zone Tonnes (kt) Cu Main Lens Upper West Zone 2, Main Lens Zone 2 2, Lens Copper Stockwork Zone 5, Total Inferred 11, Zn Au (g/t) Ag (g/t) CuEq ZnEq 1 Effective date Dec. 31, 2012; 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 26, 2013 at 13

14 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 & 14