Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — European Gold Forum Virtual Conference 2020
23 slides from Mining Americas's conference presentation, Apr 20, 2020
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company European Gold Forum –Virtual Conference April 20th – 23rd 2020 TSX-V: MAI
Slide 2: Forward Looking Statements
Forward Looking Statements 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-lookin
Slide 3: Investment Thesis
Investment Thesis Why invest in us? Multi-leveraged! We are We are at PROVEN BUILDERS DEVELOPMENT STAGE • 3 successful mines put into production in last 12 years • 100 % Owned Assets • Strong operational expertise in heap leach mining • 2 high-quality, open pit development-stage assets • Ability to
Slide 4: Company snapshot
Capital Structure Company snapshot Capital Structure Shareholder Distribution Ticker TSXV:MAI Osisko Gold Royalties 18.7% Share Price (as of April 17th, 2020) C$0.295 Retail & other 52.2% Donald Smith Value Basic Shares Outstanding 407.4M Fund Options 26.0M 9.6% Aegis Financial Warrants 2.8M 4.9% Fu
Slide 5: Equity Performance: Outperformance of Peer Group, Gold and GDXJ
Equity Performance Outperformance of Peer Group, Gold and GDXJ • Minera Alamos has outperformed each Minera Alamos Performance Versus Gold Price and Peers | Since June 1, 2019 of the GDXJ, gold price, and its peer 250% group since June 1, 2019 • Minera Alamos saw ~81M warrants 200% expire or be exer
Slide 6: Equity Performance: Outperformance of Peer Group, Gold and GDXJ
Equity Performance Outperformance of Peer Group, Gold and GDXJ Minera Alamos Performance Versus Gold Price and Peers | Since June 1, 2019 HRT -59% AUG -28% KOR -11% MAX -10% OSK -7% TML 11% LUM 11% MOZ 28% PGM 39% SBB 42% GOLD 54% OLA 134% MAI 181% LGD 215% -100% -50% 0% 50% 100% 150% 200% 250% Sour
Slide 7: Management & Board of Directors
The Team Management & Board of Directors Darren Koningen • +20 years of engineering/metallurgical experience and led the development of Castle Gold’s El Castillo project prior to its sale to Argonaut CEO and Director • Designed, constructed, commissioned and operated two gold heap leach operations i
Slide 8: High Quality Assets
High Quality Assets Santana – 100% owned La Fortuna – 100% owned TSX-V: MAI
Slide 9: Mexican gold development project pipeline
Property Summary Mexican gold development project pipeline SANTANA (Permitted – Construction Underway) • Bulk test mining phase successfully completed • Preliminary engineering and design work completed • Approval of its MIA/ETJ environmental permits on August 8th, 2019 • Construction Funding Secure
Slide 10: Santana Project: Near-term production opportunity
Santana Project Near-term production opportunity Low CAPEX (~C$10m) heap leach development project with bulk test mining completed and permits approved Location/Infrastructure • Sonora State, Mexico; 100% owned; 8,500 ha • Accessible by paved highway • 50 km SW of Alamos Gold’s 3M oz Mulatos Gold Mi
Slide 11: Construction Funding Announced
Economics Construction Funding Announced $14 Million Royalty/Equity Construction Announced December 2019 • $6 million equity financing with largest shareholder Osisko Gold Royalties increasing their stake in the Company from 12.5% to 18.7% (Completed) • Third consecutive straight share (no warrant)
Slide 12: Santana Construction Highlights
Santana Project Construction Highlights Test Mining Completed • ~50,000 t mined • Recovered gold grade +0.67 g/t • Various crush sizes tested <1/2”-5/8” up to 3” resulting in consistent recoveries across test sizes • Excellent percolation eliminating the need for agglomeration Mine Construction • Co
Slide 13: Santana Construction Highlights
Santana Project Construction Highlights Crushing, Screening & Agglomeration System Purchase • Design capacity of approximately 300 tph (5,000-6,000 tpd) taking run-of- mine (“ROM”) heap leach material and crushing/screening (three stage crushing) to a fine size passing 3/8” • The system will provide
Slide 14: Geological Model
Santana Project Geological Model KILOMETRE SCALE SYSTEMS A 1Km+ A’ • View looking east at the Nicho – Divisadero ridge line • Breccia pipe zones form topographic highs that have a positive influence on external waste required in their development Divisadero Nicho Norte Nicho • Drilling to be complet
Slide 15: Exploration potential
Santana Project Exploration potential Potential to define a significant gold mineral district (>1-2MMoz potential) Divisadero Zone (2018 & 2019 Drilling Discovery) • Gold-silver discovery ~200m N of Nicho Norte 95.7 m @ 0.85 g/t Au, 9.8 g/t Ag Multiple targets; New discoveries; Actively being dril
Slide 16: La Fortuna PEA – High Grade Open Pit
La Fortuna Project PEA – High Grade Open Pit A high-grade, low-CAPEX open pit operation with significant resource expansion potential – Notice of Permit Approval received Location • Durango State, Mexico; 100% owned • ~6,200 ha Infrastructure • Easily accessible via a 100 km road from Culiacan, the
Slide 17: La Fortuna Initial starter zone
La Fortuna Project Initial starter zone High-Grade High-Margin Starter Pit • +300k oz resources currently defined • Majority of resource grades 3.5-4.0 g/t Au • Wide zones of mineralized breccia • Metallurgical testing demonstrated +90% Au recoveries Processing Capacity • 2,000 tpd mill acquired Ope
Slide 18: La Fortuna PEA – Economic summary
La Fortuna Project PEA – Economic summary Pre-Tax NPV (7.5%) US$103.8M Pre-Tax IRR After-Tax NPV (7.5%) 122% US$69.8M 93% After-Tax IRR 93% STRONG IRR After-Tax US$1,250/oz Pre-Tax Payback Period 9 months After-Tax Payback Period 11 months Ave. Annual Production 43k oz Au, 220K oz Ag 1,000 t Cu (50k
Slide 19: Value Proposition
Value Proposition TSX-V: MAI
Slide 20: Path to a mid tier producer
Growth Model Path to a mid tier producer >150,000K per annum Acquire 3rd Santana asset La Fortuna Expansion • Targeting +/- 700k quality ounces • Low Capex • Exploration driven expansion Santana • Large land package • Low Capex Build derived from ongoing drilling supported by royalty and • Significa
Slide 21: Peer Gold Developer Comparables
Equity Performance Peer Gold Developer Comparables Minera Alamos Peer Gold Developer Comparables • Minera Alamos currently trades at a discount to its peer group (0.46x to 0.90x 0.55x), indicating the strong re-rating 0.80x potential and continued positive share price momentum, as it transitions fro
Slide 22: Execution – 2019 a springboard for this year's transition
Real business in action Execution – 2019 a springboard for this year’s transition The secret to our success so far - Business “101” - When you say you are going to do something – do it! • Dealt with our legacy warrant overhang – no artificial warrant related cap moving forward • Permit Issuance – On
Slide 23: Executing in 2020 – The Transition to Gold Producer
Real business in action Executing in 2020 – The Transition to Gold Producer Santana Mine Construction Q1 – Q3 Santana- Start of Mining Operations Q4 Santana- Phase 2 Exploration Ongoing Q1 – Q4 La Fortuna - Permit Issuance / Finalize Debt Negotiations Q2 – Q3 Ongoing Evaluation of Near-Term Producti
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