Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Precious Metals Summit, Zurich 2019
24 slides from Mining Americas's conference presentation, November 2019
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company November 2019 Precious Metals Summit, Zurich 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: Why invest in us? Multi-leveraged!
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% Share Price (as of November 4th, 2019) C$0.21 Donald Smith Value Fund Basic Shares Outstanding 376.1M 10% Options 27.1M Retail & other Aegis Financial 56% 5% Warrants 3.0M Fully Di
Slide 5: 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: Castle Gold 2.0 – Tighten your bootstraps
The Concept Castle Gold 2.0 – Tighten your bootstraps Our Technical Team designed, built, expanded and sold Castle Gold Bought by: Argonaut Gold For: US$130M Expanded Resource and Production Initial Resources: Profile – was heading towards Quadrupled to 1.25Moz Built El Castillo 75,000 oz/y Starting
Slide 9: High Quality Assets
High Quality Assets Santana – 100% owned La Fortuna – 100% owned TSX-V: MAI
Slide 10: Mexican gold development project pipeline
Property Summary Mexican gold development project pipeline SANTANA (Permitted – Construction Imminent) • Bulk test mining phase successfully completed • Preliminary engineering and design work completed • Received Approval of its EIS on August 8th, 2019 LA FORTUNA (Permitting drawing to a close) • R
Slide 11: Santana Project: Near-term production opportunity
Santana Project Near-term production opportunity Low CAPEX heap leach development project with bulk test mining completed and EIS approved Location/Infrastructure • Sonora State, Mexico; 100% owned; 8,500 ha • Accessible by paved highway • 50 km SW of Alamos Gold’s 3M oz Mulatos Gold Mine Mine Plan/
Slide 12: Bulk test mining completed / Designs Submitted
Santana Project Bulk test mining completed / Designs Submitted Test Mining Results • ~50,000 t mined • Recovered gold values +0.67 g/t; +1,000 oz gold produced (additional residual gold still being recovered) • Various crush sizes tested <1/2”-5/8” up to 3” resulting in consistent recoveries across
Slide 13: CAPEX
Economics CAPEX 600% Improved use of capital Ca pex Sh ortfa ll (A s % O f M kt Cap ) MAX FF 400% ER ORG RGD Low er finan cin g hu rdle CDV RIO AMM ORE 200% Minera Alamos SBB (6K) BSR MAG SBB (3K) AXR GSV WAF CNL SIL 0% Capex Intensity (Initial Capex (C$)/Annual Production) 13 TSX-V: MAI
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: Valuation Proposition
Valuation Proposition TSX-V: MAI
Slide 21: Path to a mid tier producer
Growth Model Path to a mid tier producer >150,000K per annum Acquire 3rd asset • 40-45M (USD) CAPEX Santana for all projects • Average ~700 AISC Expansion (USD) • Targeting +/- 700k La Fortuna quality ounces • Low Capex • Low Capex build supported Santana • Large land package • Low Capex Build by in
Slide 22: 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 23: 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 24: Executing – The Transition to Gold Producer
Real business in action Executing – The Transition to Gold Producer Santana Mine Construction Santana - Royalty/Debt Santana- Start of Funding Package for Mining Project Capex Operations Santana- Phase 2 Exploration Ongoing - Results La Fortuna - Permit Issuance / Finalize Debt Negotiations Ongoing