Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Investor Presentation (December 2019)
23 slides from Mining Americas's investor presentation, December 2019
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company December 2019 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 13%2 Donald Smith Value Share Price (as of December 6th, 2019) C$0.24 Fund Basic Shares Outstanding2 376.1M 10% Aegis Financial Options 27.1M Retail & other 5% 56% Warrants 3.0M Fully
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 80% group since June 1, 2019 70% • Minera Alamos saw ~81M warrants expire or be exerci
Slide 6: 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 Midas -22% Harte -18% Osisko Mining -17% Goldquest -13% Auryn -11% Lumina -9% Corvus -5% Almaden -2% Pure Gold 2% Treasury 4% Gold Price 14% GoldMining 20% GDXJ 2
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 Imminent) • 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 Announ
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: Bulk test mining completed / Designs Submitted
Santana Project Bulk test mining completed / Designs Submitted Test Mining Results • ~50,000 t mined • Recovered gold values +0.67 g/t; ~1,100 oz gold • Various crush sizes tested <1/2”-5/8” up to 3” resulting in consistent recoveries across test sizes • Excellent percolation eliminating the need fo
Slide 12: Construction Funding Announced
Economics Construction Funding Announced $14 Million Royalty/Equity Construction Financing announced in December 2019 • $6 million equity financing with largest 600% Improved use of capital shareholder Osisko Gold Royalties Capex Shortfall (As %Of Mkt Cap) increasing their stake in the Company MAX f
Slide 13: Geological Model
Santana Project Geological Model • View looking east at the Nicho – Divisadero ridge line A 900m A’ • Breccia pipe zones form topographic highs that have a positive influence on external waste required in their development • Drilling to be completed to determine whether the three distinct zones iden
Slide 14: Exploration potential (10,000m of drilling commenced)
Santana Project Exploration potential (10,000m of drilling commenced) Potential to define a significant gold mineral district (>1-2MMoz potential) Divisadero Zone (2018 Drilling Discovery) Multiple targets, known zones appear to be open along strike and to depth • Gold-silver-copper discovery ~200m
Slide 15: La Fortuna: 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 16: La Fortuna: 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 17: 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 Pre-Tax Payback Period 9 months After-Tax Payback Period Ave. Annual Production 11 months 43k oz Au, 220K oz Ag 1,000 t Cu (50k oz AuEq) $1
Slide 18: La Fortuna: 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: Valuation Proposition
Valuation Proposition TSX-V: MAI
Slide 20: 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 21: 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, indicating the strong re-rating potential and 1.40x continued positive share price momentum, as it transitions into the 1.20x constructio
Slide 22: Execution – a busy 6 months
Real business in action Execution – a busy 6 months 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 September G
Slide 23: Executing – The Transition to Gold Producer
Real business in action Executing – The Transition to Gold Producer Santana Mine Construction Q1 – Q3 Santana - Royalty/Debt Funding Santana- Start of Package for Project Mining Capex Operations Q3 Santana- Phase 2 Exploration Ongoing – Results Q1 – Q3 La Fortuna - Permit Issuance / Finalize Debt Ne
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