BUILDING A NEW PRECIOUS METALS COMPANY

Transcription

1 BUILDING A NEW PRECIOUS METALS COMPANY TSXV: MAI OTCBQ: VGMTF Q2 2018

2 Disclaimer This presentation contains certain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Minera Alamos believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as seek, anticipate, believe, plan, estimate, expect, and intend and statements that an event or result may, will, can, should, could, or might occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Minera Alamos based on information currently available to Minera Alamos. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Minera Alamos with securities regulatory authorities, that may cause the actual results of Minera Alamos to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Minera Alamos. Minera Alamos expressly disclaims any obligation to update or revise any such forward-looking statements. This presentation is not for distribution to United State newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the US Securities Act ), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available. The Preliminary Economic Assessments (PEA) discussed in this presentation are preliminary in nature, includes 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, and there is no certainty that the preliminary economic assessment will be realized. Economic studies will need to be completed prior to accurate guidance and projections can be provided. Darren Koningen, P. Eng., President of Minera Alamos is the Qualified Person (within the meaning of National Instrument ) responsible for the information contained in this presentation. To the best of knowledge, information and belief of Minera Alamos, there is no new material scientific or technical information that would make the disclosure of the mineral resources set out in the this presentation that is inaccurate or misleading. For further information on the technical data provided in this presentation, including the key assumptions underlying the mineral resource herein, data verification, quality assurance program, quality control measures applied, risks and uncertainties please refer to the SEDAR filings of Minera Alamos, Argonaut Gold Inc. and Vista Gold as listed below: NI Technical Report titled Preliminary Economic Assessment of Guadalupe de los Reyes Gold Silver Project by Tetra Tech, dated March 4, 2013, Amended and Restarted: July 3, 2014 NI Technical Report titled Los Verdes Cu/Mo Project Preliminary Economic Assessment by Darren Koningen, P.Eng., dated May 23, 2012 NI Technical Report titled La Fortuna Project, Durango Mexico, Updated Technical Report Re-Issued to Minera Alamos Inc. by Toren K. Olson, P.Geo., dated May 30, Press release dated October 27, 2011 Press release dated April 28, 2015 Please note that all financial figures are in Canadian dollars, unless otherwise stated. The reader is advised that no production decisions have yet to be made on any of the Company s current projects. 2

3 Key Attributes in Place for Success Proven Mine Builders with History of Successful Low CAPEX Projects Leverage in-house expertise to quickly develop late-stage assets into a series of free cash flow producing mines to create a mid-tier gold producer Strong Cash Position and Financial Backer Cornerstone financial partner Osisko Gold Royalties (June 2017) supports asset roll-up business growth model High Quality Development and Exploration Assets 3 late-stage projects in Mexico with large land packages surrounding areas of defined resources Company Target Profile in months* : +150,000 oz/yr production +3 million oz resource *No production decisions have yet to be made on any of the Company s current projects 3

4 Proven Mine Builders Deep operational expertise in heap leach mining Management Team 3 Mines Put Into Production in Last 12 Years + Chester Millar, Director Canadian Hall of Fame mining legend with half-century of building junior gold mining companies into larger companies Co-founded Alamos Gold Chairman Eldorado Gold Chairman Glamis Gold 1 Acquired Mulatos Project Chairman Pediment Gold Corp 2 Chairman Castle Gold Corporation 3 Discovered/ developed famed Afton Mine s 1 Glamis Gold Ltd was acquired by Goldcorp Inc in 2006 for $8.6 billion 2 Pediment Gold Corp was acquired by Argonaut Gold Inc in Castle Gold Corporation was acquired by Argonaut Gold Inc in

5 Management / Technical Team Management Darren Koningen CEO and Director Doug Ramshaw President, Director Chris Chadder, CFO Federico Alvarez VP Project Development Miguel Cardona VP Exploration > +20 years of engineering/metallurgical experience > Led the development of Castle Gold s El Castillo project prior to its sale to Argonaut > Designed, constructed, commissioned and operated two gold heap leach operations (El Sastre in Guatemala and El Castillo in Mexico) under budget and on time > ~20 years of experience as a senior executive of several exploration companies > B.Sc. Mining Geology from the Royal School of Mines, former mining analyst > +20 years of experience in financial reporting and in senior management roles in the mining sector > Served in senior executive roles at companies in various stages of the mining cycle > +30 years of mine management in Mexico; widely recognized as one of the top mining professionals > Managed mine planning, pads and expansion of El Castillo for Argonaut as Operations Manager > +20 years experience as a mining and exploration geologist > Led the 3x increase of El Castillo s gold resource for Castle Gold from 400Koz to 1.2Moz prior to in 2009 prior to the sale Non-Executive Board of Directors Ruben Padilla Director Bruce Durham Director Chester Millar Director > +25 years of experience on target generation, project evaluations, mining geology and management of exploration programs focused on the Americas > Chief Geologist of Talisker Exploration Services Inc. > +40 years of experience in the mineral exploration business, focused mainly on junior explorers > President and CEO of Nevada Zinc Corporation and Director of Norvista Capital Corporation > Canadian Mining Hall of Fame legend with a half-century of building majors from the ground up > Co-founder of Alamos Gold, former chairman of Eldorado Gold, Glamis Gold, Pediment Gold Corp., and Castle Gold Corp 5

6 The Osisko Advantage Partnership with Osisko Gold Royalties provides Minera Alamos with the ability to replicate a strategy similar to Osisko Mining in Latin America Osisko Mining Market Capitalization (June 2015 to November 2017) $1,200 $1,000 $800 $600 June 9, 2015: Oban Mining announces combination with Eagle Hill, Temex, Ryan Gold, and Corona Gold Osisko Gold Royalties agrees to acquire royalty rights from Oban Mining for up to $20M and up to a 19.9% in the pro forma entity August 25, 2015: Oban completes the acquisition of Eagle Hill, Ryan Gold, and Corona Gold Osisko Gold Royalties acquires 19.9% interest in Oban for $17.8M August 2016: Osisko Mining acquires 17% interest in Barkerville Gold Mines $400 $200 MAI Current Status December 2015: Oban completes acquisition of Northern Gold and acquires 19.9% of IDM Mining March 2016: Oban completes acquisition of Niogold ~$277M in equity capital raised 7,651% increase in market capitalization 5+ acquisitions (excluding property acquisitions) Numerous strategic investments $0 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 6

7 Market Capitalization Cdn$ $ Millions TSXV: MAI Aggressive Multi-Project Development Path Path to +150,000 Au Eq oz/yr Junior Producers Current Development Plans Santana (bulk test nearing completion) La Fortuna (permits expected mid 2018) Guadalupe de los Reyes (PEA planned for H2-2018) Acquisitions targets identified, preliminary discussions underway Additional targets identified Argonaut Gold Roxgold McEwen Mining Guyana Goldfields Alacer Gold Leagold Mining Klondex Mines Following the Castle Gold model but this time with: Stronger initial asset base Cornerstone corporate backer in Osisko Royalties Minera Alamos 2017 Gold Equivalent Ounces Produced Production figures for each company are based on the respective company s 2017 year-end reports and MD&A. Market capitalization in Cdn$ as of April

8 High Quality Development and Exploration Assets Santana/Los Verdes La Fortuna Guadalupe de los Reyes ( GdR ) Los Verdes Santana La Fortuna GdR

9 Santana/Los Verdes Project Low CAPEX heap leach development project with test mining currently underway Project Location Location / Infrastructure Sonora State, Mexico 100% owned / 8,500 ha Accessible by paved highway 50 km SE of Alamos Gold s 3 Moz Mulatos Gold Mine Mine Plan / Stage +30,000 m of drilling to date Near-term production opportunity (currently engaged in pre-commercial bulk sample) ~23,000 t mined to date with excellent recoveries (440 oz gold produced) LOS VERDES Exploration Value Unlocked by Consolidation of Project with Los Verdes Contiguous to the North High priority exploration targets along strike of Nicho North and onto claims at Los Verdes All zones appear open along strike and at depth 9

10 Santana/Los Verdes Project Three identified gold zones with strong drilling results * North Nicho Zones (Focus Area) 23,000 tonne bulk sample processed on heap leach pad; New 10,000 tonne fine crushed bulk sample underway Drilling highlights include: 1.03 g/t Au 0.78 g/t Au Contiguous to Los Verdes Nicho Zone (Phase 2 Development) Mineralized from surface Drilling to depth of +150m Appears open at depth and along strike Drilling highlights include: 1.04 g/t Au 0.80 g/t Au Benjamin Zone Drilling highlights include: 2.3 g/t Au, g/t Ag 0.70 g/t Au Benjamin Exploration Upside Los Verdes (MAI) Nicho North Nicho Zones appear open along strike and at depth Testing extensions of Nicho North zone on to Los Verdes claim block a priority in Q2/Q3 of 2018 Other regional targets identified including Ubaldo, Tres Hermanos and La Micha 10

11 Santana/Los Verdes Project Two core zones of mineralization: Nicho and Nicho North Nicho Zone: Exploration Focus Nicho North: Active Bulk Sampling Operation The Nicho Zone appears to remain open along strike in both directions, with good ore zone continuity from surface to depth Past drilling has yielded broad zones of gold mineralization including 87 m at 1.04 g/t Au Mineralization amenable to heap leach mining Good continuity of disseminated mineralization. Drilling was stopped at Minera Alamos contiguous claim boundary New fine crushed bulk sample processing underway Commercial scale production decision to follow bulk sample test mining Low strip ratio (management estimates of ~2:1) 11

12 La Fortuna Project A potential high grade / low-capex open pit operation with significant resource expansion potential Project Location Location Durango State, Mexico +6,200 ha Infrastructure Easily accessible via a 100 km road from Culiacan, the Capital of Sinaloa state State authorities are extending a 2-lane highway to the project Mine Plan / Stage PEA issue target Q contemplating a simple open-pit mine with initial Koz Au annual production and a low CAPEX start-up Mill procured and ready for shipping to site 12

13 La Fortuna Main Zone High-Grade and High-Margin Majority of resource grades g/t Au Wide zones of mineralized breccia Metallurgical testing demonstrated +90% Au recoveries Block Model Processing Capacity 2,000 tpd mill acquired in ,000 tpd starter operation expandable to potentially double production capacity Resource Expansion Potential Other major gold bearing structures (i.e. Ramada and PN) exhibiting similar style mineralization to La Fortuna Updated resource will include silver, historically estimated at g/t Ag Similar style mineralization to main orebody identified ~500m to the south Mineral Resource* Tonnage (Kt) Au Grade (g/t) Au Contained (Koz) Measured 1, Indicated 3, M&I 4, *As of October 2008 at a cut-off of 0.50 g/t Au 13

14 La Fortuna Regional Prospects Multiple zones of Fortunastyle mineralization identified Mineralization focused in areas of intersecting fault structures Some of alteration zones (i.e. PN Prospects area) significantly greater in scale than those present at Fortuna No systematic exploration prior (and subsequent) to current management in 2008/9 First modern drill program on regional targets to commence Q2/Q

15 Guadalupe de los Reyes (GdR) Project Engineering work initiated outlining a path to develop the existing resource base as a low CAPEX heap leach operation Location/Land Package ~15,575 ha in Sinaloa State, Mexico Significant regional gold system - est. historical production of Koz Au and +40 Moz Ag Recent History Vista Gold focused on development of conventional grinding/cyanidation project during period of high gold prices Project development was discontinued (2013) once gold prices declined and Vista Gold moved focus to development project in Australia Mine Plan / Stage Minera Alamos team preparing updated engineering work contemplating a simple heap leach operation (1) Growth Plan Updated resource will be completed at a lower cut-off relative to the current resource s 0.5 g/t Au cut-off, adding immediate ounces Aggressive exploration to expand the current resource and planned throughput Project Location Sinaloa, Mexico Guadalupe de los Reyes Mineral Resource* (Cut-off: 0.5 g/t Au) Tonnage Au Grade Ag Grade Au Contained AuEq Contained kt g/t g/t Koz Koz Indicated 6, M&I 6, Inferred 3, *NI Technical Report Preliminary Economic Assessment of Guadalupe de los Reyes Gold Silver Project, Sinaloa, Mexico (Amended and Restated: July 3, 2014) (1) Vista Gold retains a 49% non-carried back-in right on any underground gold resources (all open pit resources are excluded) 15

16 GdR Exploration Potential Significant regional gold system with estimated historical production of 500, ,000 oz Au and +40 Moz Ag Project area includes at least 8 target areas identified along 3 major structural zones (+10 km identified at surface) 4 deposits: with drilled resources -- El Zapote, Guadalupe, Noche Buena, and San Miguel Near surface low sulfidation, epithermal systems with gold and silver occurrences 16

17 Future Catalysts in 2018 A proven success strategy: Develop low CAPEX high IRR assets while expanding the near mine resource and remaining opportunistic for further consolidation Mine Development Resource Expansion Corporate Development Santana: Commercial production decision in H2 La Fortuna: PEA in Q2, permitting and construction decision GdR: Ongoing resource advancement, heap leach engineering and permitting Large contiguous land packages surrounding areas of defined resources Targeting previously underexplored areas Exploit synergies of nearterm targets on Santana/Los Verdes Acquire additional advanced stage assets Team with a track record of success turning around out of favour assets Osisko Gold Royalties provides a cornerstone strategic partner Company Target Profile in months* : +150,000 oz/yr production +3 million oz resource *No production decisions have yet to be made on any of the Company s current projects 17

18 Investment Highlights Multi-asset Gold Developer Strong Team and Great Shareholders Platform for Growth Portfolio approach provides path to +150 koz Au per year producer over the medium term Proven team coupled with one of the most respected financial partners in the mining business Leverage proven in-house expertise to acquire and consolidate latestage assets in Latin America Santana Project Near-term commercial gold production with low CAPEX and expansion potential Synergies with MAI s contiguous Los Verdes project La Fortuna Project A potential high grade / low- CAPEX open pit operation with significant resource expansion potential Guadalupe de los Reyes Project Advanced stage heap leachable gold-silver asset with ~2 g/t AuEq grade Proven Mine Building Team Led by Darren Koningen who, alongside Chester Millar, successfully built and sold Castle Gold (Argonaut Gold) Cornerstone Financial Partner Osisko Gold Royalties as a significant shareholder and potential future capital provider High Quality Shareholders Leading institutional shareholders Chester Millar, a proven mine builder, is a significant shareholder and board member Continue Roll-Up Strategy Goal to rapidly transform new projects into series of low CAPEX mines to create a mid-tied gold producer Target assets with +/- 500K Au oz of drilled/quality resources Initial production rate of +/- 50K oz/yr with minimal initial CAPEX Large land packages with upside potential to increase resource/production through aggressive exploration 18

19 Appendix Appendix 19

20 Company Snapshot General Shareholder Distribution Headquarters Symbol Toronto, Ontario TSXV:MAI OTCQB:VGMTF Capitalization Current Price $0.15 Basic Shares Outstanding 300.7M Warrants 94.0M 52-Week Stock Performance Options 8.1M Basic Market Capitalization $45.1M Balance Sheet Cash Debt ~$5.5M Nil 20

21 Summary Castle Gold 2.0 Commence the execution of an aggressive 3-year build out plan on 3 existing development/production assets targeting a combined 150,000 oz/yrproduction rate Concurrent exploration plans at each project to test new target areas and define additional ounces to be included within project mine plans Leverage the strong financial and technical support of the strategic relationship with Osisko Royalties to identify new acquisitions and source non-dilutive project financing Provide the market with a new opportunity to participate in a growth/development/production Company with a focus on management responsibility through bottom-line profitability Castle Gold 2.0 triple the starting project scale of the original 21

22 El Castillo Mine Start-up Low CAPEX can be a Reality TSXV: MAI Low CAPEX Production Castle Gold Case Study Cumulative to Dec 31, 2007 Cumulative to Dec 31, 2007 % MEXICO USD (Avg) MXN El Castillo Project (initial capex) Mine site development costs 3,466,872 33,189, % Field work and supplies 1,516,214 14,515, % Field office expense 349,002 3,341, % Consulting / administration 492,137 4,711, % Equipment (Computer, Transportation, Office, General) 581,614 5,568, % $ 6,405,839 $ 61,325, % Heap leach project started successfully at 20,000-25,000 oz/yr and then expanded towards 70,000-80,000 oz/yr utilizing internal cash flows Merger Construction Production Takeover All in 2 Yrs 22

23 Low CAPEX Production Castle Gold Case Study El Saster / El Castillo Mines 23

24 MAI/CGE Merger Summary Transaction Description Minera Alamos to acquire all of the issued and outstanding shares of Corex by way of Plan of Arrangement Approval required from 66 2/3 of Corex shareholders and a majority of the minority Consideration Exchange Ratio of 0.95 Minera Alamos shares for each Corex share held in an at market merger of equals transaction Shareholders of each of Minera Alamos and Corex to own ~50% of the combined company on a basic basis Deal Protections Termination fee $600,000 payable by Corex in certain circumstances if the transaction is not completed Unanimous support of the Board of Directors of each of Minera Alamos and Corex Voting and support agreements from all officers and directors of Corex, as well as certain shareholders representing approximately 26% of Corex s outstanding shares Timing / Other Mailing of the management information circular describing the transaction in further detail expected in March Closing of the transaction expected in April 24

25 Mexico s Jurisdictional Benefits Ranked on a country vs country basis against the rest of Central and Latin America Mexico ranks third behind only Chile and Peru for investment attractiveness (Source: Fraser Institute 2017 Annual Survey of Mining Companies) Transparent and Structured Permitting Process (typically 6-12 months from submission) Skilled and Available Labour Force Government Agencies Dedicated to Aid the Expansion of Mining Activity (such as FOFOMI) Pro-mining Culture (mining is constitutionally noted as a priority industry) Highly Successful Track Record of Canadian Mining Development Within Jurisdictions of the Company s Focus (North American NAFTA - legal and business frameworks) 25

26 Mexico s Mineral Endowment Located in a prolific mining district Santana/Los Verdes 26

27 Advantageous Peso Between 60-70% of an open pit gold miner s costs in Mexico such as labour and power is priced in pesos Significant benefits compared with jurisdictions with stronger currencies given that output is sold in US$ 10-Year USD, CAD, MXN Gold Price Movement Gold at historic highs in Pesos Source: LBMA, Datastream, Bulliondesk/FastMarkets, World Gold Council 27

28 THANK YOU April