Foran Mining Corporation announced results from a Feasibility Study ("FS") on its expanded and re-scoped initial mine plan for its 100%-owned McIlvenna Bay project in east-central Saskatchewan. The McIlvenna Bay project is located in east-central Saskatchewan approximately 375km northeast of Saskatoon, and 85 km West of Flin Flon Manitoba, and is accessible year-round via a 18km all-weather road connected to Saskatchewan Provincial Highway 106. The FS outlines a project designed to be a decline/shaft underground mining operation utilizing long-hole mining methods for ore extraction.

Ore is expected to be processed via conventional single stage crushing circuit with a semi-autogenous grinding ("SAG") mill and ball mill design. Grinding is planned to be followed by a flotation circuit to produce both a copper and zinc concentrate for transportation from site to Flin Flon for shipment by rail to Canadian smelters and/or offshore. The deposit at McIlvenna Bay includes several zones and two distinct styles of mineralization, typical of volcanogenic-hosted massive sulphide ("VHMS") deposits, massive sulphide mineralization and stockwork-style mineralization in the Copper Stockwork Zone ("CSZ").

The massive sulphide is a continuous mineralized horizon which averages 3.5m in thickness while the CSZ averages a thickness of 12.0m. The massive sulphide and the underlying CSZ are generally in contact with one another throughout the deposit, giving the bulk of the deposit an average thickness of 15.5m overall. The capital and operating cost estimates in the FS reflect the current inflationary pressures being faced by the industry globally, however the relatively light capital intensity associated with the project helps mute the overall impact inflation has on economics, which remain robust.

The FS was led and compiled by Stantec Inc. as the lead author. Stantec completed the detailed mine design and engineering, with Halyard Inc. completing process plant, paste plant and surface support infrastructure design. Knight Piésold worked in conjunction with both Stantec and Halyard on the Dry Stack Tailings Management Facility Design.

RockEng prepared the geotechnical model, working closely with Stantec and the Foran site team. The McIlvenna Bay Mineral Resource estimate was prepared by Micon International Limited, and the Mineral Reserve estimate was completed by Stantec. The 2022 Mineral Reserve Estimate was prepared by Stantec Inc., with an effective date of February 23, 2022.

Reserves total 25.7Mt, a 127% increase from its 2020 Reserve estimate of 11.3Mt. This represents a 66% reserve conversion rate from the existing 39.1Mt of indicated resources (vs. 49% reserve conversion from the prior 2019 resource estimate).

The higher conversion rate is attributable to optimized mine design, which includes a reduction in minimum mining widths from 3.8m to 3.0m, and a lower net smelter return ("NSR") cut-off value, and higher commodity prices. Reserves grade of 1.23% Cu, 2.39% Zn, 0.47 g/t Au and 15.3 g/t Ag use a USD 90/t NSR cut-off. These compare to 2020 reserve grades of 1.14% Cu, 4.01% Zn, 0.54 g.t Au and 21.0 g/t Ag using a USD 100/t NSR cut-off.

The decline in by-product grades are predominantly attributable to the significant reserve additions for the Copper Stockwork Zone, which has higher copper grades and lower zinc grades than the Massive Sulphide Lens. Foran sees the opportunity for further reserve upside potential given the deposit remains open at depth and along strike, in addition to higher current commodity prices. The FS proposes to mine ore using three different, but similar, longhole mining methods.

Most ore will be mined by way of transverse stoping, and some longitudinal and Avoca stoping, depending on the orebody thickness and geometry. These longhole methods involve developing lateral drifts at 30 metre sublevel intervals and drilling holes between the levels and blasting the ore from the upper elevation. The ore will be extracted from the lower elevation of the stopes and transported to surface in the early part of the mine life and will be hauled to underground stations after the shaft is commissioned.

Empty stopes will be filled with either paste backfill or waste rock from development headings. Ore will be moved using battery electric vehicles ("BEVs"), which will help the company achieve its carbon-neutrality goals. The ramped-up 4,200 tonnes per day ("tpd") operation will require a fleet of seven haul trucks and six loaders.

The use of BEVs will translate to operating cost efficiencies through reduced fuel consumption, and reduced ventilation and infrastructure requirements while improving air quality for all those working in the mine. Swappable batteries will be charged in special charging stations located underground. Underground development will be undertaken with innovative technology and computerized development jumbos, which can install ground support, in addition to face drilling.

The FS assumes the company will be able to take advantage of the existing infrastructure associated with the previously announced exploration decline. Given the close proximity of the McIlvenna Bay reserve to surface, the company expects a relatively short timeline to initial ore mining and a relatively quick ramp up. As highlighted in Figure 2 below, the CSZ will constitute approximately 61% of the ore processed, while roughly 39% will be sourced from the massive sulphide zone.

Included in the FS is the eventual construction of a production shaft to benefit mine efficiency at depth and to support any potential future resource and mine expansion down dip of the existing resource. Under the current plans, the shaft will the developed in two separate legs. Development of the upper leg is expected to begin in Year 5 with completion of the (loading pocket) in Year 7 at a total cost of CAD 63.9 million, which will lower operating cost in the lower levels of the mine, support future exploration initiatives and potential mine life extension.

The production shaft will be rectangular, extending from surface to a depth of 630m. Lateral development will precede excavation and furnishing allowing for the shaft to be developed from the bottom up in two separate sections resulting in lower cost than a conventional "blind sink" shaft. A pilot and slash method will be utilized for the excavation portion with the equipping of the shaft will be done from the top downwards.

A personnel hoist will also be installed within a separate compartment of the production shaft for improved effective work times and to facilitate a second means of egress from the mine.