Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Very Independent Research Conference 2019
29 slides from Mining Americas's conference presentation, Jun 19, 2019
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company June 19th/20th 2019 Very Independent Research Conference, NJ 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 • 3 successful mines put into production in last 12 years We are • Strong operational expertise in heap leach mining Proven Mine Builders • Ability to expedite projects towards production and minimize initial CAPEX requirements We have • 2 high-qua
Slide 4: Company snapshot: Capital Structure
Capital Structure Company snapshot Capital Structure Shareholder Distribution Osisko Gold Royalties 13% Dona ld Smith Value Ticker TSXV:MAI Fund Share Price (as of June 13th, 2019) C$0.12 10% Aegi s Financial 5% Basic Shares Outstanding 372.9M Reta il & other 56% Options 18.1M Other Institutions War
Slide 5: 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 6: Castle Gold 2.0 – Tighten your bootstraps
The Concept Castle Gold 2.0 – Tighten your bootstraps • Team behind Castle Gold • In 2008, built the El Castillo gold mine in Mexico with initial production of 25,000 oz/y for just US$6 million CAPEX • Starting resource 300koz • Expanded twice from internal cash flow to 75koz/y • Bought by Argonaut
Slide 7: Acquisition Strategy: Target asset attributes
Acquisition Strategy Target asset attributes • Proven in-house expertise to acquire and consolidate a late-stage assets that can be rapidly transformed in a series of low CAPEX stages We leverage to create a mid-tier gold producer In-house expertise • Built strategic agreement to unlock the value of
Slide 8: High Quality Assets
High Quality Assets Santana La Fortuna Guadalupe de Los Reyes TSX-V: MAI
Slide 9: Mexican gold development project pipeline
Property Summary Mexican gold development project pipeline Santana (Permitting) • Bulk test mining phase successfully completed • Engineering and design work completed • Applications for commercial-scale permits submitted La Fortuna (Permitting) • Robust PEA released August 2018 • Low capex and <1 y
Slide 10: Santana Project: Near-term production opportunity
Santana Project Near-term production opportunity Low CAPEX heap leach development project with bulk test mining completed 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 Mine Mine Plan/Stage • Near-term
Slide 11: Santana Project: Bulk test mining completed
Santana Project Bulk test mining completed Test Mining Results • ~50,000 t mined • Recovered gold values +0.66 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 11
Slide 12: Santana Project: Commercial production designs completed
Santana Project Commercial production designs completed Proposed gold heap leach operations site arrangement The Company advises that it has not made a production decision and that although it is advancing the project towards such a decision it does not have a Feasibility Study of mineral reserves d
Slide 13: Santana Project: Two core zones of mineralization
Santana Project Two core zones of mineralization Nicho Zone: Exploration Focus Nicho Norte: Heap-Leach Test Mining Completed • Nicho is open along strike in both directions with good ore • Good continuity of disseminated mineralization zone continuity from surface to depth • Commercial-scale product
Slide 14: Santana Project: Exploration potential
Santana Project Exploration potential (10,000 m planned in 2019) • Multiple targets, known zones appear to be open along strike and to Hole Area From To Width Gold Silver Copper m m m g/t g/t % depth S18-114 Nicho Satellite 66.2 81.1 14.9 1.40 • 2018 surface work resulted in the discovery of the Zat
Slide 15: La Fortuna Project: PEA (released August 2018)
La Fortuna Project PEA (released August 2018) 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, th
Slide 16: 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 • 1
Slide 17: La Fortuna Project: PEA – Economic summary
La Fortuna Project PEA – Economic summary Pre-Tax NPV (7.5%) US$103.8M Pre-Tax IRR 122% Notes: After-Tax NPV (7.5%) US$69.8M 1. AuEq – gold equivalent ounces. 2. “ASIC per ounce” is a non-GAAP financial performance After-Tax IRR 93% measure with no standardized definition under IFRS. 3. Base case pr
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: Guadalupe de los Reyes: Strategic Partnership
Guadalupe de los Reyes Project Strategic Partnership 19.8% equity interest in ePower Metals advancing the project development Terms of the Transaction • Enables MAI to continue to support the advancement of GDR through active Board level participation and through offering up its operating and develo
Slide 20: Guadalupe de los Reyes: Exploration potential
Guadalupe de los Reyes Project Exploration potential • Significant regional gold system with estimated historical production of 500 -600 Koz Au and +40 Moz Ag • Project area includes at least 8 target areas identified along 3 major structural zones (+10 km identified at surface) • 4 zones with drill
Slide 21: Valuation Proposition
Valuation Proposition TSX-V: MAI
Slide 22: Accelerator model: Osisko Investment Approach
Osisko Gold Royalties Partnership Accelerator model: Osisko Investment Approach Favorable jurisdiction Well understood orebodies Simple metallurgy Contract mining Low initial capex Funding from royalty sales to Santana Osisko Gold Royalties La Fortuna Final permits in 2019 Reproduced w
Slide 23: Growth Model: Path to a mid tier producer
Growth Model Path to a mid tier producer >150,000K Acquire per annum 3rd asset • 40-45M (USD) CAPEX Santana for all projects • Average 650 AISC (USD) La Expansion • Targeting +/- 500k quality ounces • Low Capex Santana Fortuna • Low Capex build supported by internal cash flow • Large land package •
Slide 24: Economics: Production Profile
Economics Production Profile Resource/Production Growth at Operating Mines* and Company Projections* * Resource Expansion 24
Slide 25: Strong Cash Flow
Economics Strong Cash Flow 25
Slide 26: Undervalued Vs. Peer Group
Comps P/NAV Undervalued Vs. Peer Group Broad Developer Peer Group | P/NAV 0.90x Re-rating opportunities from: 0.80x 0.80x 0.77x 0.74x • Organic Production growth 0.70x • Resource Expansion (~ <$10/oz discovery cost) 0.61x 0.60x 0.60x 0.59x 0.55x 0.49x 0.48x 0.50x 0.47x Average; 0.47x 0.47x 0.46x 0.4
Slide 27: Upcoming Catalysts
A Transformational Year Upcoming Catalysts Develop low CAPEX high IRR assets while expanding the near mine resource and remaining opportunistic for further consolidation Mine Development Resource Expansion Corporate Development Large contiguous land packages Santana surrounding areas of defined Acqu
Slide 28: Building a 150,000 oz Near-term Producer
In Summary Building a 150,000 oz Near-term Producer Clear path to • Two advanced-stage assets (Santana and La Fortuna) in established mining jurisdictions in Mexico production • Expecting to receive key permits for both in 2019 • Santana: 50,000 tonne bulk sample demonstrates potential for contract
Slide 29: Thank you
Thank you www.mineraalamos.com TSX-V: MAI
Minera Alamos — Very Independent Research Conference 2019 on 6ix