Seizing Opportunity and Building Value Hanson Lake District - - PowerPoint PPT Presentation

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Seizing Opportunity and Building Value

December 2017

Hanson Lake District

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Opportunity is meaningless unless

• ne takes action.

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The Parties

Largest zinc miner

• Trades 42% of Zn market
• 60 day technical review
• Commitment
• 9 months to complete FS
• Zn and Cu purchased at

market rates

• Potential cost benefits
• Facilitate financing
• Procurement savings

3

Committed to value creation

• 100% of McIlvenna Bay
• Upside
• Prospective – Target A
• Bigstone, Thunder Zone
• Over 40,000 ha, limited historical

drilling

• Leveraged to Zn and Cu

McIlvenna Bay

• Largest undeveloped deposit
• Historic mining region
• FOM added value
• PEA – 2015
• NPV C$263M after tax

– $1.06Zn & $3.08Cu $Fx 0.89

• Current spot: $1.46Zn, $3.08Cu,

$FX0.79

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The Opportunity

McIlvenna Bay

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Location

Largest undeveloped VMS in Flin Flon region

PEA

Completed in 2015

Commitment

Advance project to production with a partner

Investment

Minimizing shareholder dilution

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Enter

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Expertise

Development, mining and

• perations

Commodities

Expert in metal markets

Support

Engineering and technical

Endorsement

McIlvenna Bay could be a mine

The Deal

Technical Services Agreement - Glencore

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Offtake

Agreement on McIlvenna Bay

Project

Team experience in advancing asset

Optionality

Bigstone, Thunder Zone

Prospective

Target A + others

The Deal

Technical Services Agreement - Foran

Retain 100%

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Terms of the Technical Services Agreement

Desktop study

• 60 day review of project
• Evaluate options
• Toll treatment
• Second hand plant processing
• New build plant

Design in-fill drilling program

• FOM executes drill program

Action plan to complete Feasibility Study

• Time frame
• 9 months to complete after

drill program

• Technical assistance
• Through to development and

construction

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Terms of the Technical Services Agreement

FOM obligations

• Fund and conduct drill

program

• Use Foran team
• Environmental baseline
• Apply for permits
• Socio-economic studies
• Community engagement

Additional commitment

• Fund up to $1.5M required

engineering services

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Foran is not treating historic (non NI 43-101 compliant) resource estimates as current; Additional work is required bring historic resource to current

HANSON LAKE DISTRICT FLIN FLON DISTRICT SNOW LAKE DISTRICT

Deschambault Lake Flin Flon Snow Lake REED LAKE LALOR 777

MCILVENNA BAY TARGET A THUNDER ZONE BIGSTONE

Denare Beach/ Amisk Lake

World Class Mining Belt

200 km

N

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Hanson Lake VMS District

MCILVENNA BAY TARGET A THUNDER ZONE BIGSTONE

N

UTM Zone 13 NAD83 NTS 63L/10

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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

Hanson Lake VMS District

McIlvenna Bay Camp

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0 500 m

McIlvenna Bay deposit (projected), exploration camp and Silica Sand Mine (under reclamation); looking Northwest – April 2012 Hanson Lake Foran Camp Silica Sand Mine

Access Road & Power Line

McIlvenna Bay Deposit

(projection to surface-approximate)

Access Road & Power Line

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McIlvenna Bay

Mineral Resources1

2013 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 2,148 1.66 4.10 0.88 31 2.79 18.75 Main Lens – Zone 2 3,386 0.31 7.15 0.24 24 1.51 10.19 Lens 3 756 1.23 2.55 0.30 15 1.79 12.03 Copper Stockwork Zone 7,610 1.60 0.30 0.50 11 1.90 13.10 TOTAL INDICATED 13,900 1.96 13.19

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 applicable royalties; see appendices for full footnotes; for additional information see the Foran news release dated March 27, 2013 at www.sedar.com

2013 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 2,913 1.63 3.68 0.51 19 2.47 16.62 Main Lens – Zone 2 2,796 0.51 7.13 0.38 26 1.79 12.04 Lens 3 124 1.61 2.67 0.51 18 2.31 15.52 Copper Stockwork Zone 5,478 1.56 0.47 0.42 12 1.87 12.59 TOTAL INFERRED 11,311 2.01 13.52

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Mine Life

13.7 years

Plant Throughput

4,761 tpd

Pre-Tax NPV7% Pre-Tax IRR

$381.7M 21.9%

Post-Tax NPV7% Post-Tax IRR

$262.6M 18.9%

Payback

4.1 years

McIlvenna Bay

Deposit PEA1

Summary

5000 tpd, ramp and shaft access, on-site concentrator and tailings facilities; batch processing multiple ore zones

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

• z.
• z.

Gold

16,000 218,000

Silver

398,000 5,437,000

Metal Production

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, 2014. See the Foran news releases dated November 12, 2014 and January 21, 2015 at www.sedar.com

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• Avg. OpEx

Per tonne milled LOM Mining $33.54 $796.2M Processing $13.39 $317.7M G&A $4.10 $97.4M Total $51.03 $1,211.3M Base Contingency

(20%)

Total Pre-Prod. CapEx $207.3M $41.5M $248.8M Sustaining Capital $125.2M $25.0M $150.3M LOM $332.5M $66.5M $399.1M

Capital Costs Operating Costs

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, 2014. See the Foran news releases dated November 12, 2014 and January 21, 2015 at www.sedar.com

McIlvenna Bay

Deposit PEA1

5000 tpd, ramp and shaft access, on-site concentrator and tailings facilities; batch processing multiple ore zones

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McIlvenna Bay

PEA Sensitivity Analyses1

• 10%

Base Case +10% Zinc (US$/lb.) 0.95 1.06 1.17 Copper (US$/lb.) 2.77 3.08 3.39 Lead (US$/lb.) 0.84 0.93 1.02 Gold (US$/oz.) 1,114 1,238 1,362 Silver (US$/oz.) 15.30 17.00 18.70

Pre-tax

NPV7% $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

NPV7% $129.4M $262.6M $394.5M IRR 13.3% 18.9% 24.0% Payback 5.4 years 4.1 years 3.5 years

Metal Price

• 10%

Base Case +10% CDN$:US$ 0.98 0.89 0.80

Pre-tax

NPV7% $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

NPV7% $166.9M $262.6M $378.7M IRR 14.9% 18.9% 23.4% Payback 4.9 years 4.1 years 3.5 years

Exchange Rate

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. 3Comprised 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

• therwise 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, 2014. See the Foran news releases dated November 12, 2014 and January 21, 2015 at www.sedar.com

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Adding value

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UTM Zone 13 NAD83 NTS 63L/10

N

Bigstone Cu-Zn Deposit

1 Foran is not treating historic (non NI 43-101 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. 60-65% of downhole distance.

BIGSTONE

Upgrade historic resource to NI43-101

• Specific gravity underestimated

2015 infill drilling2

• 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-15-240)

2.0% Cu over 105m

• incl. 4.1% Cu over 20m & 3.4% Cu over 19.0m (BS-

15-239)

Historic mineral resource1:

Zone Tonnage (t) Cu (%) Au (g/t) Zn (%) Ag (g/t) Copper

(1% cutoff)

3.75 2.0 0.33

• Zinc

(5% cutoff)

0.53

• 9.6

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UTM Zone 13 NAD83 NTS 63L/10

N

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 discovery1 Higher grades than McIlvenna Bay

Open along strike Thickening down-plunge

1 See Foran news release dated March 25, 2015 for additional information; true thickness approx. 85%

• f downhole distance.

Thunder Zone Cu-Zn Deposit

MCILVENNA BAY TARGET A THUNDER ZONE

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N

UTM Zone 13 NAD83 NTS 63L/10

MCILVENNA BAY TARGET A THUNDER ZONE

Target A Exploration

BIGSTONE

High priority target Identified using updated geophysics

Potential game changer

Planned drilling for 2017

Prior drilling stopped short of target Wedge off existing hole

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Regional Exploration

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Target A

High priority

McIlvenna Bay

Flagship deposit

Thunder Zone

First new discovery in 30 years

Discovery Hole

3.7 m @4.07% Cu and 0.43 g/t Au

MR-17-09

1323 m

MR-14-08

1683 m

Conductor Target 10 km Resource Grade Shell

13.9 Mt@ 13.19%ZnEq (Ind) 11.3Mt @13.52% ZnEq (Inf)

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UTM Zone 13 NAD83 NTS 63L/10

0 5 km

Regional Exploration

McIlvenna Bay Grid

McIlvenna Bay Deposit Target A

1.2 to 1.6 km long high-priority DEEP-EM conductor; not previously drill tested

N

0 1500 m

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Metals Market

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“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

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60% 15% 14% 8% 3%

Galvinizing Zinc base alloys Brass and bronze Compounds Other alloys

45% 25% 23% 7%

Construction Transportation Consumer Goods Industrial Machinery

Applications Sectors

From International Zinc Association

Global Zinc Market

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31% 30% 12% 15% 12%

Equipment Construction Industrial Infrastructure Transportation

Regions Sectors

From International Copper Study Group World Factbook 2016

Global Copper Market

63% 18% 13% 6%

Asia Europe Americas ROW

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Building Value

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Asset Location Team Access to Capital Potential Community Relations Tenacity Optionality Innovation Thunder Zone McIlvenna Bay Target A Zinc Copper Production

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Contact Us

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Foran Mining Corporation 904-409 Granville Street Vancouver, BC, Canada V6C 1T2 P: 604-488-0008 E: ir@foranmining.com

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