Almaden Minerals Ltd. · TSXV:AMM
Almaden Minerals — Investor Presentation (January 2019)
28 slides from Almaden Minerals's investor presentation, January 2019
Slide 1: Almaden Minerals Ltd.
Almaden Minerals Ltd. “Building the next modern mining project for Mexico” January 2018
Slide 2: Disclaimer: Safe Harbour Statement
DISCLAIMER Safe Harbour Statement Statements contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United St
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 ~2.5 MM oz AuEq* reserve Team 173,000 oz AuEq*/year avg. Vested and dedicated team that m
Slide 4: Almaden Minerals Capital Structure and Team
Almaden Minerals Capital Structure and Team • Approx. $8.6 MM Cash* • 111.6 MM shares Major Shareholders issued* Management and 5% Directors • Options – 9.5 MM avg. strike $1.20* Ernesto Echavarria 7% • Warrants – 13 MM Tocqueville Gold 5% avg. strike $1.92* Global Strategic Mngmt 5% • No Debt Total
Slide 5: Key Feasibility Study Highlights
Key Feasibility Study Highlights1, 2, 3 Highly Visible Best Available Technology Economic Driver Extensive Community Engagement Filtered, dry-stack tailings Total direct taxes of US$210M Equator Principles, OECD Guidelines Ore sorting reduces carbon footprint ~ 420 direct employment jobs Human Right
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: Ore Sorting improves mill head grade
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 (see core below) XRT ore sorting rejects 25.1 million tonnes of ROM ore as waste, after the secondary crushers, thus upgrading the pre-m
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 FS 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 dismantled an
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: Simplified Flow Sheet
Simplified Flow Sheet Almaden Minerals Wash Ore Sort Water Waste Rock TERTIARY Run of 1 y | PRIMARY JAW CRUSHER SECONDARY SCREEN ORE SORT SECONDARY TERTIARY CONE CONE CRUSHER CRUSHERS STOCK PILE r’ Water CYCLONE SCREEN GRAVITY CONCENTRATION Mill Feed n ein FLOTATION | THICKENER BALL MILLING | ume RE
Slide 13: Detailed Mill Throughput and Head Grade
Detailed Mill Throughput and Head Grade 6.00 2.80 3.00 2.62 2.46 5.00 2.32 2.50 Mill Head Grade (g/t AuEq) Tonnes Processed (Mtpa) 4.00 2.00 1.58 1.47 3.00 1.50 1.16 1.14 2.00 0.83 1.00 0.74 0.59 1.00 0.50 0.00 0.00 1 2 3 4 5 6 7 8 9 10 11 Year Limestone Volcanic Black Shale Volcanic Stockpile Post-
Slide 14: FS Price Sensitivity
FS Price Sensitivity After-Tax NPV (5%) and IRR Leverage 57% $466M X% = IRR = NPV (US$M) 42% $310M 25% $151M Au: $1125; Ag: $14 Au: $1275; Ag: $17 Au: $1425; Ag: $20 Positive economic results in lower price scenarios For more details please refer to Almaden’s Press Release of December 11, 2018. Ad
Slide 15: 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 75:1. P
Slide 16: Ixtaca Comparison to Existing Silver Projects: Production
Ixtaca Comparison to Existing Silver Projects Ixtaca Project Precious Metal Production vs. Comparable Mines 1 18 Production2 (Silver plus Gold as Ag equivalent MM ozs) AgEq Annual Production 16 Ag Annual Production 14 12 10 8 6 4 2 0 Source: Company Documents. 1 Based on most recent guidance, and mo
Slide 17: Current Resource Statement (inclusive of Reserves)
Current Resource Statement (inclusive of Reserves) Measured + Indicated Resource for Total Blocks - FS Grade>Cut-off Contained Metal x1000 AuEq Tonnes > Cut-off Cut-off (tonnes) Au (g/t) Ag (g/t) Au (ozs) Ag (ozs) 0.30 124,140,000 0.5 27.42 2,008 109,450 0.50 80,750,000 0.66 35.82 1,701 93,000 0.70
Slide 18: Significant District Potential: Recent Discovery
Significant District Potential: Recent Discovery 17
Slide 19: 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: Nine large scale informatio
Slide 20: 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 21: 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 22: 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 Dry-stack filtered tailings reduce
Slide 23: 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 24: Relative Value
Relative Value $250 EV/Recovered Oz (AuEq)1 210 $200 154 $150 132 CAD$ $100 72 75 64 $50 46 49 $- Marathon Almaden Midas Bluestone Pure Gold Sabina Victoria Continental I.C.2 355 174 970 171 38 332 289 389 IRR 30% 42% 14% 44% 47% 28% 29% 31% LOM Ozs1 2.7 1.8 4.1 1.0 0.9 2.3 1.9 3.6 NPV3 493 (1250) 3
Slide 25: Why invest in Almaden?
Why invest in Almaden? Simple, open-pit operation in a top tier mining jurisdiction Robust mine plan down to lower metal prices Re-valuation potential based on our peer group Re-rating potential as company pursues permitting Exploration potential on large prospective property Experienced
Slide 26: Contact Us
Contact Us Morgan Poliquin, CEO Doug McDonald, VP Korm Trieu, CFO rockman@almadenminerals.com dmcdonald@almadenminerals.com ktrieu@almadenminerals.com Our Headquarters are located in Vancouver, Canada PLEASE CONTACT US BY MAIL: Suite 210-1333 Johnston Street, Vancouver, BC, Canada, V6H 3R9 PHONE: +1
Slide 27: Appendix A. Ixtaca Deposit FS Details
Appendix A. Ixtaca Deposit FS Details Feasibility Study Projected Operating Costs ($USD/tonne) FS Total Mill Feed Material 48 MM tonnes Contractor Mining $15.20 Processing Rate (tonnes/day) 7,650 to 15,300 tonnes/day Processing $10.50 LOM Strip Ratio 1 4.5:1 G&A $1.10 Gold Silver Total $26.80 Averag
Slide 28: Appendix A, Cont.
Appendix A, Cont. Cautionary Note concerning estimates of Measured, Indicated and Inferred Mineral Resources This presentation uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with Canadian National Instrument 43-101 (“NI 43-101”). NI 43-101 is a
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