Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company PDAC – March 1st , 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 February 19th, 2020) C$0.315 Retail & other 52.2% Donald Smith Value Basic Shares Outstanding 407.1M Fund Options 26.3M 9.6% Aegis Financial Warrants 2.8M 4.9%
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 expire or be exercised
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 -41% MAX -14% AUG -10% KOR 5% OSK 5% TML 13% LUM 25% MOZ 39% SBB 46% PGM 48% GOLD 67% CNL 114% OLA 130% MAI 157% LGD 241% -100% -50% 0% 50% 100% 150% 200% 250
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 Commenced) • 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 Secur
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 Project: Construction Highlights
Santana Project Construction Highlights Test Mining Results • ~50,000 t mined • Recovered gold values +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 • Con
Slide 13: Santana Project: 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: Santana Project: 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: Santana Project: 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 Multiple targets; New discoveries; Actively being drilled 95.7 m @ 0.85 g/t Au, 9.8 g/t
Slide 16: La Fortuna Project: 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 Project: 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 Project: Exploration potential
La Fortuna Project Exploration potential • Multiple zones of “La Fortuna-style” mineralization identified • Some alteration zones (e.g. PN Prospects area) are significantly greater in scale than those present at La Fortuna • No systematic exploration since 2008/9 Zone Description Ramada • Parallel f
Slide 19: La Fortuna Project: 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 20: Value Proposition
Value Proposition TSX-V: MAI
Slide 21: 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 22: Peer Gold Developer Comparables
Equity Performance Peer Gold Developer Comparables • Minera Alamos currently trades at a Minera Alamos Peer Gold Developer Comparables discount to its peer group (0.46x to 0.62x), indicating the strong re-rating potential and continued positive share price momentum, as it transitions from 0.90x cons
Slide 23: Execution – a busy second half of 2019
Real business in action Execution – a busy second half of 2019 Warrant Overhang (66M) Impacting Share Price Appreciation 63 Million Warrants Exercised or Expired Santana Change of Land Use Application – End of June Guidance On schedule completion June 27th 2019 Full Santana Permit Issuance – End of
Slide 24: 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 - Royalty/Debt Santana- Start of Funding Package for Mining Operations Project Capex Q3 Santana- Phase 2 Exploration Ongoing Q1 – Q4 La Fortuna - Permit Issuance / Finalize Debt Nego