Florida Canyon Gold — Argonaut Gold — Corporate Update (December 2021)
22 slides from Florida Canyon Gold's corporate update, Dec 14, 2021
Slide 1: Magino Project Capital Estimate at Completion
TSX:AR Magino Project Capital Estimate at Completion December 14, 2021
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All information, other than statements of historical facts, included in this presentation that address activities, events or developments that the
Slide 3: Magino Construction Project Capital – Estimate at Completion (CAD $M)
Magino Construction Project Capital – Estimate at Completion (“EAC”) (CAD $M) $33 $800 $57 $30 $75 $24 $53 $(8) $26 $510 Process Facilities Site Development Permanent Power Project Indirects Current EAC October 2020 Total EAC Tailings Management Facility Site Infrastructure Owner Pre-Production G&A
Slide 4: EAC Variances by Category (CAD $M)
EAC Variances by Category (CAD $M) $33 $800 $58 $25 $80 $94 $510 CostCost / Inflation / Inflation /… / COVID-19 Quantities Contingency October 2020 EAC Scope Schedule Recovery Current EAC Cost increases/inflation/COVID-19 Scope changes account for ~28% of account for ~32% of the capital the capital
Slide 5: Process Facilities (CAD $M)
Process Facilities (CAD $M) $11 $2 $219 $12 $193 Schedule Recovery Cost / Inflation / COVID-19 Process Facilities OCT 2020 Scope Current EAC EAC Largely shielded from Schedule Recovery Scope cost inflation in process • Delay in preparing • Increased earthwork facilities area due to EPC foundation ar
Slide 6: TMF (CAD $M)
TMF (CAD $M) $12 $3 $130 $20 $(7) $25 $77 Scope Quantities Deferral to Sustaining TMF OCT 2020 EAC Cost / Inflation / Other Capital Current EAC COVID-19 Scope Cost / Inflation / COVID-19 • Bedrock cleaning and • Higher unit cost for sand cement slush grout. bentonite and embankment filter. Quantitie
Slide 7: Site Development (CAD $M)
Site Development (CAD $M) $6 $138 $16 $24 $30 $63 Scope Cost / Inflation / COVID-19 Current EAC Site Development Site Development OCT Quantities Other OCT 2020 EAC 2020 EAC Scope Quantities Cost/Inflation/COVID-19 • CEMP: 11 water dams • Increased earthwork • Higher unit rates for for water manageme
Slide 8: Site Infrastructure (CAD $M)
Site Infrastructure (CAD $M) $2 $7 $(3) $32 $24 $(15) Cost / Inflation / COVID-19 Other Current EAC Site Infrastucture OCT Scope Deferral to Sustaining 2020 EAC Capital Deferral Cost / Inflation / COVID-19 • Truck shop and site office • Main camp complex deferred until after • Plant maintenance buil
Slide 9: Permanent Power (CAD $M)
Permanent Power (CAD $M) $24 $41 $18 Permanent Power OCT 2020 EAC Scope Current EAC Scope • Change from line power to onsite LNG power plant TSX:AR Magino Project Capital Estimate at Complete – DECEMBER 14, 2021 | ARGONAUT GOLD 9
Slide 10: Owner Pre-Production G&A (CAD $M)
Owner Pre-Production G&A (CAD $M) $5 $2 $9 $55 $(4) $19 $25 Cost / Inflation / Quantities Other Owner OwnerPre-Production Pre-Production COVID-19 Schedule Recovery Scope Current EAC G&A G&AOCT OCT2020 2020EAC EAC Cost / Inflation / COVID-19 Schedule Recovery • Labour • Additional headcount • COVID-1
Slide 11: Project Indirects (CAD $M)
Project Indirects (CAD $M) $18 $4 $4 $132 $31 $75 Cost / Inflation / COVID-19 Scope Current EAC Project Indirects OCT Quantities Schedule Recovery 2020 EAC Cost / Inflation / COVID-19 • Main camp services • Offsite accommodations/temporary camp • Third-party engineering and construction management T
Slide 12: Remaining Required Investment to Project Completion (CAD $M)
Remaining Required Investment to Project Completion (CAD $M) Forecasted Spend through Q1 Q2 Q3 Q4 Q1 Q2 Area Total December 31, 2022 2022 2022 2022 2023 2023 2021 Process Facilities $110 $54 $14 $23 $11 $5 $3 $219 TMF $45 $24 $21 $15 $13 $9 - $128 Site Development $80 $21 $18 $13 $8 - - $140 Site In
Slide 13: Liquidity Outlook / Strategic Review
Liquidity Outlook / Strategic Review December 31, 2021 Forecast: Positive Cash Flow from existing Total liquidity: operations at current gold price, Cash + Revolver = $290M (US$230M) but funding shortfall to complete the Project. Conducting Review of Financing and Strategic Alternatives • Extension
Slide 14: New Magino NI 43-101 Technical Report
New Magino NI 43-101 Technical Report New Magino NI 43-101 Technical Report • Planning to publish during Q1 2022 • Current Project (10k tpd, no expansion or underground) • Current EAC, revised gold price, updated resource model, optimizations to equipment sizing and processing facilities, operating
Slide 15: Critical Path Items
Critical Path Items 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ready for Site Water Management Water Ph. 1 requirement Fish Habitat Phase 1 complete Earthworks Indirects SNL complete and demobilized Camp Facilities & Catering Peak Construction complete Process Plant First Gold Pour TMF Deferred to Ready for
Slide 16: Level of Confidence Going Forward – Critical Areas of Remaining Investment
Level of Confidence Going Forward – Critical Areas of Remaining Investment to Project Completion Level of Confidence in Captial Percentage of Engineering Area Estimate for Each Area After Completed Detailed Risk Assessment Process Facilities 65% 90% TMF 100% 85% Power Plant 2% 75% Site Water Managem
Slide 17: Level of Confidence Going Forward – Process Facilities
Level of Confidence Going Forward – Process Facilities Crusher Mill Cyclone CIP Tanks Multiple trades will Key process facilities Early orders on key work in parallel to components will be components has recover process delivered Q1 2022 allowed for on-time facilities schedule delivery TSX:AR Magino
Slide 18: Level of Confidence Going Forward - TMF
Level of Confidence Going Forward - TMF 75% stripped 20% complete Very good understanding of remaining work TSX:AR Magino Project Capital Estimate at Complete – DECEMBER 14, 2021 | ARGONAUT GOLD 18
Slide 19: Level of Confidence Going Forward – Open Pit
Level of Confidence Going Forward – Open Pit Mining in pit to provide Very good understand of material for TMF amount of material needed to complete TMF TSX:AR Magino Project Capital Estimate at Complete – DECEMBER 14, 2021 | ARGONAUT GOLD 19
Slide 20: Notes and Disclosures
Notes and Disclosures Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Flo
Slide 21: Mineral Resource Notes and Disclosures
Mineral Resource Notes and Disclosures (1) Mineral Reserves and Mineral Resources have been estimated as at December 31, 2020 in accordance with National Instrument (“NI”) 43-101 as required by Canadian securities regulatory authorities. Mineral Resources are presented inclusive of Mineral Reserves.
Slide 22: Consolidated Mineral Resources & Mineral Reserves
Consolidated Mineral Resources & Mineral Reserves(1) MINERAL RESERVES PROVEN & PROBABLE Contained Au Contained Ag Contained Tonnes Tonnes Au Grade Ag Grade Cu Grade Project Category Ounces Ounces Cu (Millions) (g/t) (g/t) (% Cu) (000s) (000s) El Castillo2 Proven 0.2 0.51 4 El Castillo2 Probable 17.1