Almaden Minerals Ltd. · TSXV:AMM
Almaden Minerals — Investor Presentation (September 2018)
34 slides from Almaden Minerals's investor presentation, September 2018
Slide 1: Unlocking Mexico's Next Great Gold and Silver District for all Stakeholders
Unlocking Mexico’s Next Great Gold and Silver District for all Stakeholders September 2018
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: 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 ~2.4 MM oz AuEq* reserve 147,900 oz AuEq*/year avg. Team Vested and dedicated team that m
Slide 4: Almaden Minerals Capital Structure and Team
Almaden Minerals Capital Structure and Team • Approx. $12.5 MM Cash* • 111.6 MM shares Major Shareholders issued* Management and 5% Directors • Options - 10 MM avg. strike $1.26* Ernesto Echavarria 7% • Warrants – 13 MM Tocqueville Gold 5% avg. strike $1.92* Sprott 2% • No Debt Institutions 12% *As
Slide 5: 2017 PFS Highlights: US$117M Initial Capex
2017 PFS Highlights (After Tax Basis) US$ 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/year 11,600,000 ounces/year L
Slide 6: 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 5
Slide 7: 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 8: Optical Ore Sorting improves mill head grade
Optical 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 Almaden has conducted tests on a 2.2 tonne bulk sample from the key limestone unit using a commercial-scale XRT sorter Ore sor
Slide 9: Rock Creek Mill Secured: 7,000 tpd plant
Rock Creek Mill Secured: 7,000 tpd plant Purchased for US$6.5M and approx. 400,000 shares PFS plan: plant to be dismantled and transported to Mexico for use at the Ixtaca project The mill operated from Sept. to Nov. 2008 only, prior to being put on care and maintenance Currently dismantling
Slide 10: Rock Creek Mill Dismantling, Summer 2017
Rock Creek Mill Dismantling, Summer 2017 Water 3-stage crushing plant Treatment Plant Mill, Gold Room, CIL, Detox Metallurgical, Chemical, and Fire Assay lab 9
Slide 11: Rock Creek Mill Dismantling, Summer 2018
Rock Creek Mill Dismantling, Summer 2018 10
Slide 12: Metallurgy: Simple Flowsheet, Doré on site
Metallurgy: Simple Flowsheet, Doré on site Average life of mine float con grade at ~ 8% ~4.3 g/t Au; mass pull ~390 g/t Ag For more details please refer to Almaden’s Technical Report, entitled “Pre-Feasibility Study of the Ixtaca Gold-Silver Project Puebla State, Mexico”, which was filed on SEDAR on
Slide 13: PFS Production Profile
PFS Production Profile Avg. Annual Production: 88,780 ozs Au and 5.47 million ozs Ag 180 2.14 2.25 1.57 Payable Metal Revenue (US$ 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
Slide 14: 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: $21 Positive economic results in lower price scenarios For more details please refer to Almaden’s Technical Report, entitled “Pre-Feasi
Slide 15: PFS Capex Intensity – Peer Comparison
PFS Capex Intensity – Peer Comparison Capex Intensity (Capex/LOM Annual Prod'n) 6000 US$ Capex/LOM Annual Production 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
Slide 16: Ixtaca Comparison to Existing Silver Projects: Resources
Ixtaca Comparison to Existing Silver Projects Ixtaca Project Precious Metal Resources vs. Comparable Mines 300 Silver plus Gold as Ag equivalent1 (MM ozs) 250 Measured and Indicated Proven and Probable 200 150 100 50 0 Source: Company Documents. 1AgEq calculation done at silver:gold ratio of 69:1. P
Slide 17: 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 most recent guidance, and most
Slide 18: Geology: Room for Expansion
Geology: Room for Expansion 17
Slide 19: Downdip Potential beneath PFS pit
Downdip Potential beneath PFS pit 18
Slide 20: Current Resource Statement (inclusive of Reserves)
Current Resource Statement (inclusive of Reserves) 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
Slide 21: New Veins Discovered Within PFS Pit post PFS
New Veins Discovered Within PFS Pit post PFS 20
Slide 22: Significant District Potential: Recent Discovery
Significant District Potential: Recent Discovery 21
Slide 23: Significant District Potential: Tano Zone
Significant District Potential: Tano Zone 22
Slide 24: Tano Zone: Section 616900; 1.2km from PFS Pit
Tano Zone: Section 616900; 1.2km from PFS Pit 23
Slide 25: 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: Eight large scale informati
Slide 26: 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 27: 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 28: 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 Topography allows for flexible and
Slide 29: Estimated Project Schedule
Estimated Project Schedule Subject to timely receipt of permits and successful project financing discussions, Almaden anticipates being able to make a production decision in 2019 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Updated Resource Estimate Feasibility Study Permitt
Slide 30: Relative Value
Relative Value $300 EV/Reserves Oz (AuEq)1 285 $250 $200 187 $150 120 $100 56 48 $50 32 17 $- Dalradian Continental Sabina Midas Victoria Almaden Belo Sun I.C.2 192 389 332 970 289 117 361 IRR 24% 31% 28% 14% 29% 41% 26% LOM Ozs1 1.4 3.6 2.3 4.1 1.9 2.1 3.5 NPV3 301 (1250) 860 (1200) 606 (1250) 513
Slide 31: Why invest in Almaden?
Why invest in Almaden? Simple, open-pit operation in a top tier mining jurisdiction Robust mine plan down to lower metal prices Re-valuation potential based on our peer group Re-rating potential as company transitions to feasibility and pursues permitting Exploration potential on large pro
Slide 32: Contact Us
Contact Us Morgan Poliquin, CEO Doug McDonald, VP Korm Trieu, CFO rockman@almadenminerals.com dmcdonald@almadenminerals.com ktrieu@almadenminerals.com Our Headquarters are located in Vancouver, Canada PLEASE CONTACT US BY MAIL: Suite 210-1333 Johnston Street, Vancouver, BC, Canada, V6H 3R9 PHONE: +1
Slide 33: Appendix A. Ixtaca Deposit PFS Details
Appendix A. Ixtaca Deposit PFS Details Pre-Feasibility Study Total Mill Feed Material 65 MM tonnes Projected Operating Costs ($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 34: 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)
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