Almaden Minerals Ltd. · TSXV:AMM
Almaden Minerals — Investor Presentation (September 2016)
30 slides from Almaden Minerals's investor presentation, September 2016
Slide 1: Almaden Minerals – September 2016
Almaden Minerals’ tscau af September 2016
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: Capitalization Structure
Capitalization Structure TSX: AMM / NYSE MKT: AAU • ~$13.6 MM Cash* Caballo Blanco discovery Ixtaca discovery • 86.0 MM shares issued • Options (7.5 MM shares) avg. strike $1.25 • Warrants (3.7 MM shares) avg. strike $1.44 • No Debt • Avg. Daily Vol: ~460,000 in U.S. ~70,000 in Canada (based on trad
Slide 4: The Almaden Advantage
The Almaden Advantage Discovery of the Ixtaca Deposit: Strong Financials: 100% owned in safe jurisdiction Puebla State, MX Cash position ~CAD$13.6M* > 3.5Moz M&I Au equivalent resource Clear Path to Value Creation: Robust Asset: Rock Creek mill reduces capex substantially and increases proje
Slide 5: The Almaden Story: Innovation & Longevity
The Almaden Story: Innovation & Longevity Almaden IPO Amalgamation with “AAU” starts trading at $0.70 Fairfield Minerals on NYSE MKT Almaden enters Sold 49% of La Morgan Poliquin Caballo “Spinco” Almadex Mexico Trinidad to Eldorado President and CEO Blanco sold Announced Spinout 1986 1992 1997 1996-
Slide 6: The Ixtaca Deposit - Location
The Ixtaca Deposit - Location Located in heart of industrialized state of Puebla Paved roads to within 2 km of deposit Power on site; ~20 km from industrial park with rail service 5
Slide 7: Our History - Pioneering Project Generation
Our History - Pioneering Project Generation Ixtaca: Confirming New District • Eastern Mexico identified as prospective environment for Clay-altered ash epithermal and porphyry deposits • Unrivalled geological database Limestone created over span of 18 years • Several areas of alteration consistent D
Slide 8: The Ixtaca Deposit - Resource
The Ixtaca Deposit - Resource MEASURED RESOURCE AuEq Cut-off Tonnes > Cut-off Grade>Cut-off Contained Metal x 1,000 (g/t) (tonnes) Au (g/t) Ag (g/t) AuEq (g/t) Au (ozs) Ag (ozs) AuEq (ozs) 0.3 44,550,000 0.48 30.28 1.07 682 43,370 1,527 0.5 30,420,000 0.61 39.44 1.38 599 38,570 1,350 0.7 22,300,000
Slide 9: Plan Map
PLAN MAP uy <b, O Q &, % PIT OUTLINE PEA (Jan 2016) PIT OUTLINE Almaden Minerals” tscam om PEA BASE CASE (Oct 2014) LEGEND Low Grade Mineralized Shell Basalon(.t LEQ Set Ma ers DRILLHOLES Diamond Drill Hole ‘Assay Intercept >2.5 git AEG / Assay Intercept <2.5 git AUEq LEGEND GEOLOGY Ll] Suen Cuay AL
Slide 10: Section 10550E drill intercepts
24.85m 0.75 g/t Au, 163.4 g/t Ag, 4.0 ¢/t AuEq Inc. 1.26m. g/t Au, 854 g/t Inc. 0.95m 13.86 g/t Au, 2577 g/t Ag, SECTION 10550E LOOKING 060 PEA BASE CASE (Oct 2014) PIT OUTLINE 163.5m 1.3 g/t Au, 62 g/t Ag, 2.5 g/t AuEq Inc. 54.1m 2.3 g/t Au, 106 g/t Ag, 4.4 g/t AuEq 203.7m 1.0 g/t Au, 44 g/t Ag, 1.
Slide 11: Ixtaca PEA Highlights
Ixtaca PEA Highlights US$ 100M Initial Capital Cost PEA Results - $1150/oz Gold, $16/oz Silver Site Infrastructure Unit PEA Result $15.30 $22.20 Pre-Tax NPV (5%) US$MM 266 TMF and Water Mngmt Pre-Tax IRR % 39 $9.60 After-Tax NPV (5%) US$MM 166 Mining After-Tax IRR % 30 Process Plant After-tax Paybac
Slide 12: Ixtaca Deposit PEA Details
Ixtaca Deposit PEA Details PEA Update Projected Start-up Capital Costs (Millions $USD) Total Mill Feed Material 35.5 MM tonnes PEA Processing Rate (tonnes/day) 7,500 Site Infrastructure $15.30 LOM Strip Ratio 5:1 TMF and Water Management $9.60 Gold Silver Mining $25.10 Average Mill Feed Grade 0.76 4
Slide 13: Updated 2015 PEA Price Sensitivity
Updated 2015 PEA Price Sensitivity After-Tax NPV (5%) and IRR Leverage 44% $293M X% = IRR = NPV (US$M) 30% $166M 18% $78M Au: $1000; Ag: $14 Au: $1150; Ag: $16 Au: $1300; Ag: $20 Positive economic results in lower price scenarios Mine plan at $1150 Au and $16 Ag excludes significant mineralised
Slide 14: PEA Capital Cost Optimization Success
PEA Capital Cost Optimization Success Ixtaca Initial Capex Reductions (US$M) $600 $500 $496 $400 US$M $300 $200 $244 $100 $100 $- Apr 2014 Sept 2014 Apr 2016 Since April 2014 Almaden has driven significant capital cost savings at Ixtaca through engineering optimization work, alternate mine scenari
Slide 15: Capex Intensity – Peer Comparison
Capex Intensity – Peer Comparison Capex Intensity (Capex/LOM Prod'n) 12000 10,613 10000 8000 6000 4,974 4000 3,038 2,429 2,404 2,059 2,013 1,990 1,974 1,424 2000 1,361 1,244 0 Source: National Bank Financial, as of September 9, 2016 14
Slide 16: Rock Creek Mill
Rock Creek Mill Almaden has secured an option to purchase the Rock Creek Mill 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 Items comprising the mill incl
Slide 17: 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 16
Slide 18: Toot
700 7000 31.00 94.00 Toot 10730 a0 237.00 238.00 32450 From (an) Yo ¢m) | taverval (m) [Gold (gp [ Sinver (2) | x7i_[ seo] 725 92 00 [ sts] 2250 «299 | sao | 050 3240 363.00 372.00 7690 7690 7650 T1520 TS. 11a 1s.00 T7s.00 191.00, 113.0 [29.10 1570 | at 34s 34011390. 050 1259012640) 0.50 305.00 217.
Slide 19: Tuligtic Project: Regional Potential
Tuligtic Project: Regional Potential 18
Slide 20: Transparency and Communication
Transparency and Communication Community Presence: provides community with point of access to project information Community Meetings: six large scale information meetings since 2012. Over 1,800 people attended from total of 35 invited communities Mobile Information Centres: we work hard to edu
Slide 21: 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 22: 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 23: Next Steps
Next Steps Continue optimization studies Integrate Rock Creek Mill into flowsheet Continue to explore opportunities to reduce capex and operating costs Additional resource drilling within mine plan area Permitting related activities Ongoing water monitoring and characterization Deliver
Slide 24: Valuation Metric – P/NAV
Valuation Metric – P/NAV P/NAVPS 1.50x 1.37x 1.29x 1.24x 0.97x 1.00x 0.79x 0.78x 0.72x 0.71x 0.69x 0.69x 0.64x 0.60x 0.58x 0.52x 0.50x 0.00x MAG Novagold TMAC Victoria Seabridge Orezone Midas Belo Sun Lydian Lundin Almaden Pilot Dalradian Sabina Source: National Bank Financial, as of September 9, 20
Slide 25: 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 pre-feasibility Exploration potential on large prospective property
Slide 26: 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 310-1385 West 8th Avenue, Vancouver, BC, Canada, V6H 3V9 PHONE: +1
Slide 27: Appendix A, Cont. – Next Engineering and Development Steps
Appendix A, Cont. Next Engineering and Development Steps The Company plans to immediately embark upon a Pre-Feasibility Engineering Program. Apart from further metallurgical studies, the work outlined includes geo-mechanical and geotechnical drilling, static geochemical tests to characterise rock ch
Slide 28: 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 27
Slide 29: Section 10250E
SECTION 10250E LOOKING 060 NW REFERENCE LINE PEA BASE CASE (Oct 2014) PIT OUTLINE PEA (Jan 2016) PIT OUTLINE _ ALTERED VOLCANICLASTICS 152.0m 0.9 g/t Au, 14 g/t Ag, 1.2 g/t AuEq LEGEND Diamond Drill Hole Assay Intercept >2.5 g/t AUEq Assay Intercept <2.5 g/t AUEq
Slide 30: Section 11000E
SECTION 11000E LOOKING 060 CLAY ALTERED VOLCANICLASTICS PEA (Jan 2016) HIGH GRADE PIT OUTLINE MAIN IXTACA ZONE 134.2m 3.8 g/t Au, 18 g/t Ag, 4.1 g/t AuEt 4m 26.8 g/t Au, 50 g/t Ag, 27.8 g/t AuEq Inc. LEGEND 7 Diamond Drill Hole Assay Intercept >2.5 g/t AUEq Assay Intercept <2.5 g/t AUEq
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