Bear Creek Mining — Investor Presentation (February 2023)
31 slides from Bear Creek Mining's investor presentation, February 2023
Slide 1: Bear Creek Mining Corporation
Bear Creek Mining Corporation February 2023 TSX-V: BCM BVL: BCM OTCQX: BCEKF
Slide 2: Cautionary Note
Cautionary Note This presentation includes Forward Looking Statements and information of a technical and scientific nature. Viewers are urged to review Appendix 4 of this presentation for further details and assumptions. 2
Slide 3: Multi-Asset Producer
Multi-Asset Producer Bear Creek is amulti- asset precious metals Mercedes Santa Elena Mercedes Mine producer anchored by SONORA Gold Dolores the Mercedes gold La Colorada Mulatos Sonora, Mexico PRODUCING mine and world-class Corani silver deposit. Our assets provide jurisdictional and commodity dive
Slide 4: Bear Creek Vision: Mid-Tier Precious Metals Producer within 5 years
Bear Creek Vision: To be a Mid-Tier Precious Metals Producer within 5 years. Over 100k Oz Au / year Over 10M Oz Ag / year Over 150M lb Base Metals / year How? FULFIL THE POTENTIAL OF MERCEDES Mercedes Mine Make it Better; Make it Better for Longer Corani Project FINANCE, CONSTRUCT AND OPERATE Pipeli
Slide 5: MERCEDES - Make it Better
MERCEDES - Make it Better 5
Slide 6: Mercedes Mine: Turnaround in Progress
Mercedes Mine: Turnaround in Progress Gold Produced (koz) Ore Processed (kt) 100 800 80 Upside Opportunity Upside Opportunity 600 2023 Guidance 65-75k oz 60 400 40 200 20 - 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Sources: Internal Mercedes performance data,
Slide 7: Sustainable Production Improvements – Tonnes Mined and Au Grade
Sustainable Production Improvements – Tonnes Mined and Au Grade Mine Tonnes & Gold Grade 60,000 7.00 6.00 50,000 5.00 40,000 Tonnes Ore Mined 4.00 Au g/t 30,000 3.00 20,000 2.00 10,000 1.00 2022 Actual 2023 Plan - - Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tonnes M
Slide 8: Production Improvements – Monthly Gold Production
Production Improvements – Monthly Gold Production Gold Production 9,000 1 2022 Actual 2023 Plan 8,000 1 7,000 6,000 1 Oz Au Production Oz Ag Production 5,000 1 4,000 3,000 0 2,000 0 1,000 - - Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Oz Au 8
Slide 9: Production Improvements – Mine Dilution 2022
Production Improvements – Mine Dilution 2022 120.0 100.0 80.0 2021 Avg. Dilution % Dilution 60.0 H2 2022 Avg. Dilution 40.0 20.0 0.0 January February March April May June July August September October November December Planned Dilution Real Dilution 9
Slide 10: MERCEDES - Make it Better For Longer
MERCEDES - Make it Better For Longer 10
Slide 11: Mercedes Workings and Targets
Mercedes Workings and Targets Mercedes Vein Trend • Marianas… and Beyond • 4 km exploration target Rey de Oro / Klondike • Cut and Fill • Open at depth • San Martin Displacement Diluvio Group • Long Hole Stoping • Cut and Fill • 6 km exploration target 11
Slide 12: Mercedes Trend: Marianas
Mercedes Trend : Marianas Hole 105: 2.8m @12.4 g/t Au + 2.8 m @5.7 g/t Au Hole 106: 0.8m @41.0 g/t Au Hole 107: 4.3m @5.2 g/t Au + 3.2m @13.1 g/t Au Hole 113: 3.0m @8.5 g/t Au + 3.0m @5.0 g/t Au Hole 114: 0.7m @89.1 g/t Au + 2.8m @15.8 g/t Au Hole 934: 2.2m @6.5 g/t Au 12
Slide 13: Marianas Extension
Marianas Extension NW 20 km SE 4.5 km 2500 2500 Resource mined in high grade ore bodies Tonnes Au Ag Au Ounces Ag Ounces Mine concession Ore Zone 2000 2000 kt g/t g/t koz koz boundary limit Mercedes Trend 2,994 8.52 87.54 820 8,429 1500 1500 Au/Ag Exploration targets 2023 Caliche Hydrothermal vein d
Slide 14: Rey de Oro
Rey de Oro Hole 215: 0.9m @ 26.2 g/t Au Hole 23-075: 3.5m @ 10.2 g/t Au Hole 23-077: 1.0m @15.4 g/t Au 14
Slide 15: Margarita Extension
Margarita Extension Longer Term Opportunity • 6 km to Claim Boundary • 6 Blind Deposits discovered to date • New recognition of role of low angle listric/detachment faults Claim Boundary • Opens up potential for bulkier ore L21-623D EX22-068D Margarita L21-644D bodies and additional blind discoverie
Slide 16: Mercedes Concession Targets
Mercedes Concession Targets • 69,284 Hectares of Concessions • 11 Mines Discovered • 7 current High Potential Exploration Targets • Impressive Recent Definition Drilling Results • Blind targets account for virtually all recent discoveries and reserve replacement • Total Drill Budget of $4.4 M in 202
Slide 17: CORANI – Finance, Construct and Operate
CORANI – Finance, Construct and Operate 17
Slide 18: Corani Silver Project
Corani Silver Project World´s Largest Fully Permitted Silver Project Silver Lead Zinc RESERVES AND RESOURCES (1) (oz) (lbs) (lbs) Proven and Probable Reserves 229 M 2,742 M 1,694 M Measured and Indicated Resources (additional) 94 M 725 M 620 M Silver Lead Zinc PRODUCTION (2) (oz) (lbs) (lbs) Average
Slide 19: Corani Silver Project Economics
Corani Silver Project @ Spot Metal @ Base Case @ Spot Metal Prices and +20% ECONOMICS (2) (AFTER TAX) Metal Prices (1) Prices (2) Base Case Initial Capex NPV (5%) $531 M $890 M $820 M IRR 22.9% 31.9% 27.4% Payback 2.4 years 1.85 years 2.2 years Corani NPV Leverage to Silver (3) Corani Free Cash Flow
Slide 20: Corani - How and When? Why?
Corani - How and When? Why? • Corani is shovel ready Peru Political Situation • All key permits in place and surface • Social Licence remains solid rights purchased • Community support is unwavering • Valuable option on silver pricing Financing • Corani’s value is completely discounted • Estimated 2
Slide 21: Shareholder Profile
Shareholder Profile Share Registry (2) Insiders Basic shares outstanding (M) 154.6 Other Institutional 5.0% 4.7% Options, RSUs & DSUs (M) (1) 9.5 Atlantic Investments Equinox Gold 16.4% 3.5% Fully Diluted Shares (M) 164.1 Kopernik 2.8% Close price – C$ (TSXV: BCM) $0.67 Van Eck January 18, 2022 3.8%
Slide 22: Market Position and Opportunity
Market Position and Opportunity 1.20x Junior Au Producer Peer Group P/NPV Multiple 1.00x 0.80x 0.60x Avg 0.58x 0.96x VALUATION 0.89x 0.40x GAP 0.76x 0.70x 0.68x 0.68x 0.54x 0.20x 0.37x 0.35x 0.29x 0.18x 0.00x GoGold Karora Orla Argonaut Americas G&S K92 Mandalay Galiano Calibre Bear Creek Cerrado (1
Slide 23: Head Office and Contacts
HEAD OFFICE Suite 1400 – 400 Burrard Street Vancouver BC Canada V6C 3A6 Tel: +1-604.685.6269 LIMA OFFICE Av. Conquistadores 1144 Piso 6 San Isidro, Lima, Peru Tel: +511.711.6400 HERMASILLO OFFICE Boulevard Jose Maria Morelos 307 Building F, Local 06 Loma Linda, Hermosillo, Sonora, Mexico, 83150 info
Slide 24: Appendix 1: Mercedes Basics
Appendix 1: Mercedes Basics Location Sonora, Mexico (~250 km NE of Hermosillo) History Acquired in April 2022 (1) Operating since 2011 Mining Combination of cut-and-fill and long-hole open stoping Processing 2,000 tpd (nameplate) conventional milling with agitated leach recovery of gold-silver doré
Slide 25: Appendix 1: Transaction Overview
Appendix 1: Transaction Overview Acquisition Summary Bear Creek acquired a 100% interest in the Mercedes Mine from Equinox Gold Consideration to Equinox Gold • $75 million cash on closing • $25 million to be paid out of cash flow maturing October 21, 2024 • Issuance of 24.73 million Bear Creek commo
Slide 26: Appendix 1: Transaction Financing with Sandstorm Gold Royalties
Appendix 1: Transaction Financing with Sandstorm Gold Royalties Financing Partnership Strategic financing partnership with Sandstorm Gold Royalties, providing $60 million towards the Mercedes purchase Gold Stream $37.5 million gold stream advanced on closing • Fixed deliveries of 600 gold ounces per
Slide 27: Appendix 2: Mercedes Reserve and Resource Estimates
Appendix 2: Mercedes Reserve and Resource Estimates MERCEDES MINERAL RESERVES Reserve estimate assumptions • CIM Definitions Standards on Mineral Resource and Reserves (2014) have been CONTAINED METAL followed. • Mineral Reserves are minable tonnes and grades; the reference point is the mill feed at
Slide 28: Appendix 2: Corani Reserve and Resource Estimates
Appendix 2: Corani Reserve and Resource Estimates CORANI MINERAL RESERVES • The Mineral Reserves have been estimated using the definitions of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). CONTAINED METAL • The Mineral Reserves have been estimated using the following metal prices:
Slide 29: Appendix 3: Bear Creek Mining Board and Management
Appendix 3: Bear Creek Mining Board and Management CATHERINE TONY ANDY KEVIN STEPHEN ERFAN ALFREDO ALAN MCLEOD-SELTZER HAWKSHAW SWARTHOUT MORANO LANG KAZEMI BULLARD HAIR Chair CEO Director Director Director Director Director Director Bear Creek Board and Management have substantial breadth and depth
Slide 30: Appendix 4: Cautionary Statements
Appendix 4: Cautionary Statements CAUTION REGARDING FORWARD LOOKING INFORMATION This document, and the documents referred to herein, contain "forward-looking statements" within the meaning of applicable Canadian securities laws concerning the Company's plans for its properties, operations and other
Slide 31: Cautionary Notes to United States Investors Concerning Canadian Mineral Property Disclosures
CAUTIONARY NOTES TO UNITED STATES INVESTORS CONCERNING CANADIAN MINERAL PROPERTY DISCLOSURES As a Canadian issuer, the Company is required to comply with reporting standards in Canada that require that the Company make disclosure regarding its mineral properties, including any estimates of mineral r
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