Almaden Minerals Ltd. · TSXV:AMM
Almaden Minerals — Investor Presentation (October 2017)
33 slides from Almaden Minerals's investor presentation, October 2017
Slide 1: Unlocking Mexico's Next Great Gold and Silver District
Unlocking Mexico’s Next Great Gold and Silver District October 2017
Slide 2: Disclaimer
DISCLAIMER Safe Harbour Statement Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. Such forward-looking statements involve known and unknown risks, uncertain
Slide 3: Almaden Minerals Capital Structure
Almaden Minerals Capital Structure TSX: AMM / NYSE American: AAU – 3 Yr. Chart Spinout of New • Approx. $20 MM Cash* Company, Almadex Minerals Ixtaca discovery • 99.9 MM shares issued* Caballo Blanco (“AMZ” on TSX-V) discovery • Options (8.1 MM shares) avg. strike $1.37* • Warrants (9.9 MM shares) a
Slide 4: The Almaden Advantage
The Almaden Advantage Discovery of the Ixtaca Deposit: Strong Financials: 100% owned in safe jurisdiction Puebla Cash position ~CAD$20M* State, MX Clear Path to Value Creation: Precious metal deposit containing Proven and Probable reserves of 1.29M ozs Au and Rock Creek mill reduces capex su
Slide 5: The Almaden Story: Innovation & Longevity
The Almaden Story: Innovation & Longevity Almaden IPO Amalgamation with “AAU” starts trading at $0.70 Fairfield Minerals on NYSE MKT Almaden enters Sold 49% of La Morgan Poliquin Caballo Updated Almadex Mexico Trinidad to Eldorado President and CEO Blanco sold Ixtaca PEA “AMZ” Spinout 1986 1992 1997
Slide 6: The Ixtaca Deposit - Location
The Ixtaca Deposit - Location Located in heart of industrialized state of Puebla Paved roads to within 2 km of deposit Power on site; ~30 km from industrial park with rail service The Xicohtencatl Industrial Park located 30km from Ixtaca Project 5
Slide 7: The Ixtaca Deposit - Reserves
High Grade Intersections The Ixtaca Deposit - Reserves Hole 10-001 Width Au (g/t) Ag (g/t) AuEq* 10.96m 3.90 114.0 5.6 10-004 14.50m 2.97 158.8 5.3 Ixtaca Proven and Probable Reserve 10-006 19.18m 2.84 160.2 5.2 Tonnes Diluted Avg. Grade Contained Metal 10-010 43.96m 3.10 62.3 4.0 Category (millions
Slide 8: The Ixtaca Deposit - Resources
The Ixtaca Deposit - Resources Measured + Indicated Resource for Total Blocks Grade>Cut-off Contained Metal x1000 AuEq Tonnes > Cut-off AuEQ Cut-off (tonnes) Au (g/t) Ag (g/t) AuEq (g/t) Au (ozs) Ag (ozs) (ozs) 0.30 125,830,000 0.49 26.99 0.88 1,974 109,200 3,686 0.50 81,160,000 0.64 35.22 1.15 1,66
Slide 9: Ixtaca PFS Highlights (After Tax Basis)
Ixtaca PFS Highlights (After Tax Basis) US$ 117M INITIAL CAPEX NPV (5%): US$310M IRR: 41% Payback: 2.2 yrs LOM: 14 yrs As Gold Equivalent1 As Silver Equivalent1 Life of Mine Production 2.07 million ounces 142.9 million ounces First 9 Years Annual Production 168,100 ounces 11,600,000 ounces LOM Avera
Slide 10: Production Profile
Production Profile Avg. Annual Production: 88,780 ozs Au and 5.47 million ozs Ag 180 2.14 2.25 1.57 Payable Metal Revenue (US$ MM) 160 1.46 1.62 140 1.75 Head Grade (AuEq, g/t) 1.44 1.17 1.27 1.05 120 1.22 0.92 1.25 100 0.90 0.98 0.74 80 0.65 0.75 60 40 0.25 20 - -0.25 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5
Slide 11: PFS Price Sensitivity
PFS Price Sensitivity After-Tax NPV (5%) and IRR Leverage 52% $443M X% = IRR = NPV (US$M) 41% $310M 28% $175M Au: $1150; Ag: $15 Au: $1250; Ag: $18 Au: $1350; Ag: $21 Positive economic results in lower price scenarios For more details please refer to Almaden’s Technical Report, entitled “Pre-Feasi
Slide 12: Capex Intensity – Peer Comparison
Capex Intensity – Peer Comparison Capex Intensity (Capex/LOM Annual Prod'n) 6000 9,951 4,928 5000 4000 3000 2,059 2000 1,627 1,462 1,420 1,281 825 1000 0 Source: National Bank Financial, as of April 7, 2017 Almaden has excellent capital intensity numbers due to the infrastructure advantage and the
Slide 13: Ixtaca Comparison to Existing Silver Projects
Ixtaca Comparison to Existing Silver Projects Ixtaca Project Precious Metal Resources vs. Comparable Mines 250 Silver plus Gold as Ag equivalent1 (MM ozs) Measured and Indicated 200 Proven and Probable 150 100 50 0 Source: Company Documents. 1AgEq calculation done at silver:gold ratio of 65:1. Preci
Slide 14: Ixtaca Comparison to Existing Silver Projects: Production
Ixtaca Comparison to Existing Silver Projects Ixtaca Project Precious Metal Production vs. Comparable Mines 1 16 Production2 (Silver plus Gold as Ag equivalent MM ozs) AgEq Annual Production 14 Ag Annual Production 12 10 8 6 4 2 0 Source: Company Documents. 1 Based on 2017 Guidance, and most recent
Slide 15: Rock Creek Mill
Rock Creek Mill Almaden has secured an option to purchase the Rock Creek Mill US$3.75 MM in remaining pmts This 7,000 tpd mill will 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
Slide 16: Rock Creek Mill Aerial View
Rock Creek Mill Aerial View Water 3-stage crushing plant Treatment Plant Mill, Gold Room, CIL, Detox Metallurgical, Chemical, and Fire Assay lab 15
Slide 17: Rock Creek Mill Dismantling, Summer 2017
Rock Creek Mill Dismantling, Summer 2017 Water 3-stage crushing plant Treatment Plant Mill, Gold Room, CIL, Detox Metallurgical, Chemical, and Fire Assay lab 16
Slide 18: Simplified Ixtaca Flowsheet
Simplified Ixtaca Flowsheet Float CON: ~4.3 g/t Au; ~390 g/t Ag For more details please refer to Almaden’s Technical Report, entitled “Pre-Feasibility Study of the Ixtaca Gold-Silver Project Puebla State, Mexico”, which was filed on SEDAR on May 17, 2017. Additional report details are contained in A
Slide 19: Plan Map
PLAN MAP Almaden Minerals HIGH GRADE CHEMALACO ZONE yi VS oO. oe 0, , we 2. as “> PFS (April 2017) PIT OUTLINE \, ‘ PEA (Jan 2016) PIT OUTLINE NYSE MKT: AAU om TSX: AMM LEGEND Low Grade Mineralized Shell aseson0. gt Ase HE 1 es Minoralized Shell Sosasen 25g ALEQ Set DRILLHOLES Diamond Drill Hole Ass
Slide 20: High grade intersections below the pit limits
High grade intersections below the pit limits indicate potential for an underground operation after mining of the open pit+ 19
Slide 21: Tuligtic drill hole TU-17-504 intercepts
Hole ID | From(m)| To (m) ae Gold (g/t) | Si Ee TU-17-504 108.00 182.50 74.50 g including [108.00 | 12250 [1450 5 including | 130.00 149.00 19.00 2 Including | 164.70 | 16845 | _3.75 Tu-17-504 | 22740 | 291.70 64.30 2,400mRL | including .65 | 236.10 3.45 including 50 | 269.00 10.50 TU-17-504 | 306.5
Slide 22: Tuligtic Project: Regional Potential
Tuligtic Project: Regional Potential 21
Slide 23: Transparency and Communication
Transparency and Communication Community Presence: provides community with point of access to project information Community Meetings: seven large scale information meetings since 2012. Over 2,000 people attended from total of 35 invited communities Mobile Information Centres: we work hard to e
Slide 24: Community Partnerships
Community Partnerships Employment: Up to 70 people from surrounding area employed & trained Environmental stewardship: On-going tree-planting, recycling & environmental education programs Community-borne initiatives: Health care and educational programs based on consultation to determine local
Slide 25: Low Environmental Impact Mine Plan
Low Environmental Impact Mine Plan Land for mine plan previously cleared: little to no current land use Surface rights privately owned Water wells not required in current mine plan: models show sufficient water for operations from collection of rainwater Drainages are local and only flow in
Slide 26: Estimated Project Schedule
Estimated Project Schedule Subject to timely receipt of permits and successful project financing discussions, Almaden expects to be able to make a production decision in 2019 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Updated Resource Estimate Pre-Feasibility Feasibility Permitting Project
Slide 27: 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 transitions to feasibility and pursues permitting Exploration potential on large pro
Slide 28: 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 29: Appendix A. Ixtaca Deposit PFS Details
Appendix A. Ixtaca Deposit PFS Details Pre-Feasibility Study Total Mill Feed Material 65 MM tonnes Projected Operating Costs ($USD/tonne) PFS Unit Processing Rate (tonnes/day) 7,650 to 15,300 tonnes/day Contractor Mining $1.70 $/tonne mined LOM Strip Ratio 1 5:1 Contractor Mining $10.00 $/tonne mill
Slide 30: Appendix A, Cont. Qualified Persons, Quality Control and Assurance
Appendix A, Cont. Qualified Persons, Quality Control and Assurance The following companies have undertaken work in preparation of the Pre-Feasibility Study of the Ixtaca Project (“PFS”): • APEX Geoscience Ltd. (Exploration and Drill data QA/QC) • Giroux Consultants Ltd. (Mineral Resource Estimation)
Slide 31: Section 10250E
ECTION 10250E OOKING 060 PFS (May 2017) PIT OUTLINE PEA (Jan 2016) PIT OUTLINE ALTERED OLCANICLASTICS 152.0m 0.9 g/t Au, 14 g/t Ag, 1.2 g/t AuEC LEGEND Diamond Drill Hole Assay Intercept >2.5 g/t AUEq Assay Intercept <2.5 git AUEq
Slide 32: Section 10550E
SECTION 10550E LOOKING REFERENCE LINE PEA (Jan 2016) PIT OUTLINE HIGH GRADE IXTACA NORTH ZONE 24.85m 0.75 g/t Au, 163.4 g/t Ag, 4.0 g/t AuEq 163.5m 1.3 g/t Au, 62 g/t Ag, 2.5 g/t AUEq Inc. 54.1m 2.3 g/t Au, 106 g/t Ag, 4.4 g/t AuEq 0 g/t Au, 44 g/t Ag, 1.9 g/t Auk 1m 1.8 g/t Au, 78 g/t Ag, 4.5 g/t A
Slide 33: Section 11000E
PFS (May 2017) PIT OUTLINE PEA (Jan 2016) PIT OUTLINE _ SECTION 11000E LOOKING 060 CLAY ALTERED VOLCANICLASTICS LEGEND / Diamond Drill Hole Assay Intercept >2.5 g/t AUEq Assay Intercept <2.5 g/t AUEq
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