Almaden Minerals Ltd. · TSXV:AMM
Almaden Minerals — Investor Presentation (November 2019)
28 slides from Almaden Minerals's investor presentation, November 2019
Slide 1: Almaden Minerals Ltd.
Almaden Minerals Ltd. “Building the next modern mining project for Mexico” November 2019
Slide 2: Disclaimer
DISCLAIMER Safe Harbour Statement Statements contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United St
Slide 3: Developing a New Precious Metals District in Mexico
Developing a New Precious Metals District in Mexico Geology Strategy Large, wide & cohesive Au-Ag Permit and build a safe and high return vein zones, near surface Au-Ag mine in Mexico for stakeholders ~2.5 MM oz AuEq* reserve Team 173,000 oz AuEq*/year avg. Vested and dedicated team that m
Slide 4: Almaden Minerals Capital Structure and Team
Almaden Minerals Capital Structure and Team • Approx. $3 MM WC* • 111.7 MM shares Major Shareholders issued* Management and 5% Directors • Options – 10.0 MM avg. strike $0.97* Ernesto Echavarria 7% • Warrants – 10.3 MM Tocqueville Gold 5% avg. strike $1.88 Global Strategic Mngmt 5% Total Institution
Slide 5: Key Feasibility Study Highlights
Key Feasibility Study Highlights1, 2, 3 Transparency Best Available Technology Economic Driver Extensive Community Engagement Filtered, dry-stack tailings Total direct taxes of US$210M Equator Principles, OECD Guidelines Ore sorting reduces carbon footprint ~ 420 direct employment jobs Human Rights
Slide 6: 2018 FS Highlights: US$174M Initial Capex
2018 FS Highlights (After Tax Basis) US$ 174M INITIAL CAPEX NPV (5%): US$310M IRR: 42% Payback: 1.9 yrs LOM: 11 yrs As Gold Equivalent1 As Silver Equivalent1 Life of Mine Production 1.79 million ounces 134.3 million ounces First 6 Years Annual Production 202,000 ounces/year 15,200,000 ounces/year LO
Slide 7: The Ixtaca Deposit – Excellent Infrastructure
The Ixtaca Deposit – Excellent Infrastructure Located in heart of industrialized state of Puebla Paved roads to within 2 km of deposit Power on site; ~30 km from industrial park with rail service The Xicohtencatl Industrial Park located 30km from Ixtaca Project 6
Slide 8: Ixtaca Reserves: Robust Geology
High Grade Intersections Ixtaca Reserves: Robust Geology Hole 10-001 Width Au (g/t) Ag (g/t) AuEq* 10.96m 3.90 114.0 5.6 10-004 14.50m 2.97 158.8 5.3 Ixtaca Proven and Probable Reserve 10-006 19.18m 2.84 160.2 5.2 Tonnes Diluted Avg. Grade Contained Metal 10-010 43.96m 3.10 62.3 4.0 Category (millio
Slide 9: Ixtaca Property Plan Map
LA Almaden Minerals Ltd IXTACA PROPERTY MAP AREA IXTACA NORTH, ZONE , 1X | HIGH GRADE Almaden Minerals Ltd. HIGH GRADE HEMALACO ZONE PLAN MAP FS (January 2019) PIT OUTLINE LEGEND Low Grade Mineralized Shell adc 0 gt abet High Grade Mineralized Shelt ieee or73 gt ug St LEGEND GEOLOGY a = uay ALTERED,
Slide 10: Longitudinal Section
LONGITUDINAL SECTION LOOKING 340 w S B B S| z Q eI is) a a CLAY ALTERED , VOLCANICLASTICS HIGH GRADE MAIN IXTACA ZONE 04.45m 1994 gitAg Inc. 46.20m 3.9 g/t Au, 15 g/tAg And 28.95m 5.6 g/t Au, 20 git Agy NYSE American: AAU | TSX: AMM | www.almadenminerals.com
Slide 11: Section 10550: Interpreted Veins within Grade Shells
Section 10550: Interpreted Veins within Grade Shells Stockwork / sheeted veins High grade ore Low grade internal waste
Slide 12: Mine Resource Analogy: Waihi Mine, New Zealand
Mine Resource Analogy: Waihi Mine, New Zealand The Waihi pit had similar geology to Ixtaca. Veins were well confined but pre-mining geologic models (top right) oversimplified actual veining (bottom right) and diluted precious metal content Above: Waihi modeled veins, pre-mining. Above: Waihi actua
Slide 13: Ore Sorting improves mill head grade
Ore Sorting improves mill head grade The contrast between the mineralized veins and the interwoven barren host rock is ideally suited to ore sorting technology (see core below) XRT ore sorting rejects 25.1 million tonnes of ROM ore as waste, after the secondary crushers, thus upgrading the pre-m
Slide 14: Rock Creek Mill Secured: 7,000 tpd plant
Rock Creek Mill Secured: 7,000 tpd plant Purchased for US$6.5M and approx. 400,000 shares FS plan: plant to be dismantled and transported to Mexico for use at the Ixtaca project The mill operated from Sept. to Nov. 2008 only, prior to being put on care and maintenance Currently dismantled an
Slide 15: Rock Creek Mill Dismantling, Summer 2018
Rock Creek Mill Dismantling, Summer 2018 14
Slide 16: Simplified Flow Sheet
Simplified Flow Sheet Almaden Minerals Ltd, Wash Ore Sort Water Waste Rock un of | Teariany wine oe y Sone CYCLONE oe -_ sors sTOCk SECONDARY PILE GRAVITY oS ee SECONDARY TERTIARY CONE CONE CRUSHER CRUSHERS Water __» To Process Mill Feed ° Water | THICKENER BALL MILLING i Lime v REGRIND AGITATION 6a
Slide 17: Detailed Mill Throughput and Head Grade
Detailed Mill Throughput and Head Grade 6.00 2.80 3.00 2.62 2.46 5.00 2.32 2.50 Mill Head Grade (g/t AuEq) Tonnes Processed (Mtpa) 4.00 2.00 1.58 1.47 3.00 1.50 1.16 1.14 2.00 0.83 1.00 0.74 0.59 1.00 0.50 0.00 0.00 1 2 3 4 5 6 7 8 9 10 11 Year Limestone Volcanic Black Shale Volcanic Stockpile Post-
Slide 18: FS Price Sensitivity
FS Price Sensitivity After-Tax NPV (5%) and IRR Leverage 57% $466M X% = IRR = NPV (US$M) 42% $310M 25% $151M Au: $1125; Ag: $14 Au: $1275; Ag: $17 Au: $1425; Ag: $20 Positive economic results in lower price scenarios For more details please refer to Almaden’s Technical Report, entitled “Ixtaca Gol
Slide 19: Current Resource Statement (inclusive of Reserves)
Current Resource Statement (inclusive of Reserves) Measured + Indicated Resource for Total Blocks - FS Grade>Cut-off Contained Metal x1000 AuEq Tonnes > Cut-off Cut-off (tonnes) Au (g/t) Ag (g/t) Au (ozs) Ag (ozs) 0.30 124,140,000 0.5 27.42 2,008 109,450 0.50 80,750,000 0.66 35.82 1,701 93,000 0.70
Slide 20: Significant District Potential: Recent Discovery
Significant District Potential: Recent Discovery 19
Slide 21: Stakeholder Engagement
Stakeholder Engagement International Standards and oversight: 2017 Independent Social Impact Assessment completed and Social Investment Plan community engagement underway Community Presence: Permanent office provides access to project information Community Meetings: Nine large scale informatio
Slide 22: Independent Assessment in Focus Area
Independent Assessment in Focus Area In 2017, Almaden engaged GMI Consulting to conduct an independent social assessment and, based on this, to develop a Social Investment Plan to accompany Ixtaca project development The objective of this work was to build on Almaden’s own efforts by formally id
Slide 23: Community Partnerships
Community Partnerships Employment: Up to 70 people from surrounding area employed & trained Social Investment Plan: Community Engagement Process Underway Environmental stewardship: On-going tree-planting, recycling & environmental education programs Community-borne initiatives: Health care a
Slide 24: Low Environmental Impact Mine Plan
Low Environmental Impact Mine Plan Land for mine plan area previously cleared Water-balance models show sufficient water for operations from collection of surface runoff with potential community water improvement opportunities Waste rock is net neutralising Dry-stack filtered tailings reduce
Slide 25: Why invest in Almaden?
Why invest in Almaden? Simple, open-pit operation in a top tier mining jurisdiction Robust mine plan down to lower metal prices Re-valuation potential based on our peer group Re-rating potential as company pursues permitting Exploration potential on large prospective property Experienced
Slide 26: Contact Us
Contact Us Morgan Poliquin, CEO Doug McDonald, VP Korm Trieu, CFO rockman@almadenminerals.com dmcdonald@almadenminerals.com ktrieu@almadenminerals.com Our Headquarters are located in Vancouver, Canada PLEASE CONTACT US BY MAIL: Suite 210-1333 Johnston Street, Vancouver, BC, Canada, V6H 3R9 PHONE: +1
Slide 27: Appendix A. Ixtaca Deposit FS Details
Appendix A. Ixtaca Deposit FS Details Feasibility Study Projected Operating Costs ($USD/tonne) FS Total Mill Feed Material 48 MM tonnes Contractor Mining $15.20 Processing Rate (tonnes/day) 7,650 to 15,300 tonnes/day Processing $10.50 LOM Strip Ratio 1 4.5:1 G&A $1.10 Gold Silver Total $26.80 Averag
Slide 28: Appendix A, Cont.
Appendix A, Cont. Cautionary Note concerning estimates of Measured, Indicated and Inferred Mineral Resources This presentation uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with Canadian National Instrument 43-101 (“NI 43-101”). NI 43-101 is a
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