FOM Presentation Sept182014

8/11/2019 FOM Presentation Sept182014

1/28

www.foranmining.comSeptember 2014

The McIlvenna Bay Deposit &Hanson Lake Camp


2/28


3/28

5 Reasons to Invest in Foran

3

Management

team with adepth ofindustry

experience

Management

team with adepth ofindustry

experience

Solid

shareholderbase mining

industryexecutives

Solid

shareholderbase mining

industryexecutives

Superiorproject location

& existinginfrastructure

Superiorproject location

& existinginfrastructure

McIlvenna Bay:100% ownership

of a large basemetal deposit

McIlvenna Bay:100% ownership

of a large basemetal deposit

Resourcegrowth &discoverypotential

Resourcegrowth &discoverypotential


4/28

Management & Directors

4

Board of DirectorsDarren Morcombe, ChairmanFounder of private investment company Springtide CapitalPty. Ltd., former Chairman and major shareholder ofEuropean Gold Refineries SA and Director of AGR Matthey

Patrick Soares30 years experience in the mining industry, formerPresident, CEO & Director of Brett Resources Inc. (acquiredby Osisko Mining in 2010)

Sharon DowdallOver 30 years' experience in the legal field; former Chief

Legal Officer & Corporate Secretary of Franco-NevadaCorporation

Maurice TagamiMetallurgical Engineer; Vice President, Mining Operationsfor Silver Wheaton Corp.

Bradley SummachCFO of BBS Aircraft Inc. & President of Summach Ventures;

past President & CEO of Foran

David M. PetroffOver 30 years' experience in the mining & investmentindustry; former President, CEO & Director of BreakwaterResources Ltd. (acquired by Nyrstar NV in 2011)

ManagementPatrick Soares (BSc (Hons) PGeo) - President, CEO, Director30 years experience in the mining industry (incl. Sutton, EuroZinc, Aurizon);President, CEO & Director of Brett Resources until its acquisition by OsiskoMining in 2010

Tim Thiessen (BComm, CA) - CFOChartered Accountant; 15 years international experience in public accounting& the mining industry; former CFO of Aurcana Corporation and former VPFinance for Endeavour Mining Corporation

Fiona Childe (PhD, PGeo) - VP Corporate DevelopmentPhD in VMS deposits; 15 years international experience in the mining

industry, former VP Corporate Communications with Tau Capital Corp.,involved with the advancement of AfriOre from an early-stage explorer to itsacquisition by Lonmin in 2007

Roger March (BSc (Hons), PGeo) - VP Project Exploration20 years exploration & project management experience; including withCumberland Resources as part of the team responsible for the resourcegrowth & prefeasibility-feasibility studies for the Meadowbank Gold Project

David Fleming (BSc, PGeo) - VP Exploration30 years' experience in mineral exploration generation, management andimplementation in North America; experience with several major miningcompanies. Involved in the exploration & development of the MeadowbankGold Deposit from exploration to feasibility stage with CumberlandResources (acquired by Agnico-Eagle Mines Ltd. In 2007)


5/28

Capital Structure

5

83.4 MI&O

4.0 MWarrants

7.1 MOptions

94.5 MFully Diluted

C . 15, 2014; 1 @ $0.70 . D. 2015; 3 @0.30 . A. 2015; A. $0.71; C & ; & ; A CD$

Treasury$3.9M as at June 30, 2014

No debt

Share Price & CapitalizationRecent: $0.17-$0.20

52 week high-low: $0.32-$0.14Market Cap: ~$15M

Ownership

20%

19%

11%

. & D


6/28

The Case for Zinc

6

Improved western demand &high Chinese imports has

resulted in low inventories As major mines close on or

before schedule the zinc marketcontinues to tighten

With no significant new projects

underway to replace lostproduction the market isexpected to continue to tighten

As the zinc supply gap widens the market will look to thoseprojects with reasonable capital costs & a clean, saleable product

located in stable, low-risk jurisdictions

Source: CRU Metals; Glencore website


7/28

Key Project McIlvenna Bay

7

Located in Saskatchewan, Canada asafe, stable pro-mining jurisdiction

Excellent access & infrastructure:

65 km west of Flin Flon, Manitoba

Year-round road access

Nearby railhead & hydroelectricity

Significant work since discovery in1988

Resource growth potential both at

McIlvenna Bay & in satellite deposits

Foran is de-risking the McIlvenna Bay deposit

Large 100% Foran-owned Copper-Zinc-Gold-Silver Deposit


8/28

Significant advancements

in the last 3 years

8

+20,000 D

D B

C EA

C E B

C EA

F

D E C


9/28

Community Involvement

9

Foran has established a positiverelationship with First Nations &

other stakeholders in the area

Foran continues to engage & involve localstakeholders

Contractors & employees hired from localPeter Ballantyne Cree Nation (PBCN)

communities CanNorth Environmental Services, an 100%

aboriginal-owned, multi-disciplinaryenvironmental consulting firm conductedenvironmental baseline studies

Management of McIlvenna Bay environmental

program by ASKI, an experienced & well-respected environmental consultancy set upby the PBCN

Foran sponsorship of PBCN students atMining Matters Earth Sciences Camps


10/28

Regional Mining Camps

10


11/28

VMS Deposits

11

Volcanogenic Massive Sulphide (VMS) deposits form from metal-rich brines deposited on &below the seafloor

Major source of base metals; gold & silver by-products

Idealized Volcanogenic Massive Sulphide (VMS) deposit(after Hannington et al., 1998)

:

:

& &

CAA

AA

CA CA

Form in clusters giving riseto VMS mining camps


12/28

0

5

10

15

20

25

30

FF

B

777

C

C

C/G

C

A

C

A

C

D

D

G&

C

F

B

D

VMS Deposit Size Comparison

12

VMS deposits form in clusters

Majority of the deposits in eachVMS cluster are 3-5 Mt, withpotential for 1-2 large (+20Mt) tovery large (+50Mt) deposits

This clustering of VMS

mineralization is being outlinedat McIlvenna Bay

DepositSize

(Mt)

VMS Deposits: Flin Flon Snow Lake McIlvenna Bay

Sources: Galley et al. (2007), company websites

McIlvenna Bay13.9Mt indicated11.3Mt inferred


13/28

McIlvenna Bay Deposit Overview

13

Large Zinc-Copper-Gold-Silver VMS deposit:

Top of deposit lieswithin 35m of surface,below dolomite cap

Deposit extends 2km down-plunge

Open to depth

Steep dip (~65o) &wide zones (18-20m

horizontal thickness)potentially amenableto cost-effective bulkunderground mining

Main Lens:

Upper West Zone (UWZ): zinc-copper-rich massive sulphides

Zone 2: zinc-rich massive sulphides

Copper Stockwork Zone (CSZ): copper-gold stockwork directly below UWZ & Zone 2


14/28

McIlvenna Bay Mineral Resources1

14

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 basecase 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


15/28

15

McIlvenna Bay: Copper Stockwork Zone (CSZ)

: 7.61 1.60% , 0.30% , 0.50 /

: 5.48 1.56% , 0.47% , 0.42 /


16/28

16

McIlvenna Bay: CSZ + UW MS + Zone 2 MS

: 3.39 0.31% , 7.15 % , 0.38 /

: 2.80 0.51% , 7.13% , 0.38 /

: 7.61 1.60% , 0.30% , 0.50 /

: 5.48 1.56% , 0.47% , 0.42 /

: 2.15 1.66% , 4.10 % , 0.88 / : 2.91 1.63% , 3.68% , 0.51 /


17/28

McIlvenna Bay

Contained Metal Summary1

17

2013 McIlvenna Bay Mineral Resource Contained Metal

Cu(M lbs.)

Zn(M lbs.)

Au(k oz.)

Ag(k oz.)

Indicated Massive to semi-

massive sulphides

(Upper West Zone,

Zone 2, Lens 3)

122 770 94 5,054

Copper Stockwork Zone 269 475 126 2,598

Total Indicated 391 817 220 7,651

Inferred Massive to semi-

massive sulphides

(Upper West Zone,

Zone 2, Lens 3)

140 683 83 4,191

Copper Stockwork Zone 188 57 73 2,136

Total Inferred 328 740 157 6,327

1 Based on the mineral resource estimate with an effective date of Jan. 1, 2013; see resource estimate slide and appendices for additional information.

47%

35%

11%

7%

Based on US$3.25/lb. Cu, US$1.10/lb. Zn,

US$1,400/oz. Au & US$25/oz. Ag


18/28

McIlvenna Bay Metallurgy

18

Testwork conducted by G&T Metallurgical Services (Stewart Group) on 3 composite samples prepared from core drilled by the Company in 2011;for additional information see Appendices & www.foranmining.com

Positive PEA-level results

Concentrates amenable to conventional grinding & flotation

Coarse sulphides with moderate hardness

Clean concentrates with low penalty elements

G:

29% C, 6.4 / A, 126 / A

:

94% C, 85% A, 77% A

G:

24% C, 6.5 / A, 216 / A

:

84% C, 60% A, 50% A

G:

54%

:

76%

2 G:

55%

:

85%

G:

12% C, 59% , 5.3 / A, 332 / A

:

56% C, 59% , 39% A, 34% A


19/28

The Hanson Lake Camp

19


20/28

Bigstone

20

1 Foran is not treating the historic estimate as current; a Qualified Person within the meaning of National Instrument 43-101has not completed sufficient work to classify the historic estimate as current; additional work, including re-surveying, re-logging

and drill core QA/QC would be required to verify and upgrade the historic estimate to current.

(%)

()

(%)

(/)

1.0 3,748 2.03 0.33

1.5 3,137 2.26 0.36

2.0 1,984 2.57 0.482.5 1,199 3.11 0.61

Bigstone Property located 10 km west of the McIlvenna Bay Property

Previous operators identified zones of copper- and zinc-rich VMS mineralization

Historic mineral resource estimate of 3.75 Mt grading 2.03% Cu, 0.33 g/t Au in theBigstone Copper Zone1

Geophysics (EM) conducted in winter 2014 to better resolve the conductors associatedwith Bigstone & identify other nearby conductors detailed modeling of the 2014 dataunderway

Bigstone Copper Zone

Historic Mineral Resource Sensitivity Analysis1


21/28

Regional Exploration

21

2013 DEEP-EM surveyidentified 2 high-prioritytargets:

Target A

1.6 km long EMconductor - similarsize & character asMcIlvenna Bay

Initial drill testinconclusive further

testing required todetermine source

Target B

Final hole drilled in thewinter 2013 regional

program hit high-grade coppermineralization in theThunder Zone (4.1%Cu & 0.43 g/t Au over3.7m)


22/28

22

Regional Exploration

2013 DEEP-EM survey 3D rendering McIlvenna Bay & Balsam Grids; looking east

13.9 1.96% CE ()

11.3 2.01% CE ()

1.21.6

F

D :

%


23/28

The Road Ahead

23

Continue to Engage & InvolveLocal Stakeholders

McIlvenna Bay PEA Underway Results Expected Q4/14

Stay Tuned for 2015 WinterExploration Program


24/28

Contacts

24

Patrick SoaresPresident & CEO

904-409 Granville Street,Vancouver, BC, V6C 1T2

Fiona ChildeVP, Corporate Development2000-199 Bay St., P.O. Box 285Toronto, ON, M5L 1G9

[email protected]

416-363-9229


25/28

Appendices

25


26/28

McIlvenna Bay Resource Footnotes

26

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 NSRcut-off grade of US$60/t. NSR grades were calculated and high grade caps were applied asper the discussion in Estimation Methodology and Parameters below and include provisionsfor metallurgical recovery and estimates of current shipping terms and smelter rates forsimilar 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 measurementstaken from core specimens.

3 Mr. David Rennie, P.Eng., of RPA, prepared this mineral resource estimate. Mr. Rennie isindependent of Foran and is a Qualified Person within the meaning of NI 43-101.4 Mineral resources which are not mineral reserves do not have demonstrated economicviability. 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 atwww.foranmining.com & www.sedar.com


27/28


28/28

McIlvenna Bay Metallurgy

28

Testwork conducted by G&T Metallurgical Services (Stewart Group); for additional information see Foran June 20, 2012 news release

(1 grind of 100 m K80, regrind of 35 m K80)

A D

(%)

C

(%)

(%)

A

(/)

A

(/)

C

(%)

(%)

A

(%)

A

(%)

100 1.57 0.16 8 0.38 100 100 100 100

5.1 29.2 1.05 126 6.38 94.4 33.8 76.9 84.6

3.9 0.79 0.57 14 0.81 2.0 14.1 6.8 8.3

91.0 0.06 0.09 2 0.03 3.7 52.1 16.4 7.1

(1 grind of 100 m K80, regrind of 12 m K80 for Cu & 14 m K80 for Zn)

A D

(%)

C

(%)

(%)

(%)

A

(/)

A

(/)

C

(%)

(%)

(%)

A

(%)

A

(%)

100 1.75 0.18 4.02 26 0.66 100 100 100 100 100

2.8 0.86 0.13 1.44 23 1.16 1.4 2.1 1.0 2.5 4.9 6.0 24.2 1.3 6.40 216 6.50 83.4 43.4 9.6 50.3 59.7

5.6 1.87 0.24 54.3 63 0.81 6.0 7.5 76.3 13.6 6.9

7.7 0.69 0.14 2.39 22 0.53 3.0 6.0 4.6 6.6 6.2

77.8 0.14 0.10 0.44 9 0.19 6.2 41.0 8.5 27.0 22.2

2 (1 grind of 73 m K80, regrind of 16 m K80 for Zn)

A D

(%)

C

(%)

(%)

(%)

A

(/)

A

(/)

C

(%)

(%)

(%)

A

(%)

A

(%)

100 0.33 0.41 6.96 15 0.21 100 100 100 100 100

3.5 0.20 0.32 5.89 11 0.11 2.1 2.8 3.0 2.6 1.9

1.6 11.9 15.4 9.18 332 5.27 56.0 59.1 2.1 34.4 38.5

10.8 0.63 0.46 55.0 38 0.29 20.5 12.2 85.4 27.3 14.6

17.8 0.16 0.15 0.96 10 0.15 8.4 6.5 2.5 11.6 12.7

66.3 0.07 0.12 0.74 5 0.10 13.1 19.5 7.0 24.1 32.3

Overall Metallurgical Responselocked cycle testing of composite samples

Date post:	02-Jun-2018
Category:	Documents
Upload:	kashif-afzal
View:	219 times
Download:	0 times

FOM Presentation Sept182014

Documents