Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Investor Presentation (July 2020)
21 slides from Mining Americas's investor presentation, July 2020
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company July 2020 TSX-V: MAI / OTCQB: MAIFF
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 / OTCQB:MAIFF Osisko Gold Royalties Share Price (as of July 14th, 2020) C$0.54 Retail & other 18.7% 52.2% Basic Shares Outstanding 410.2M Donald Smith Value Fund Options 23.7M 9.6% Warrants 2.6M Aegis Finan
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 group since June 1, 2019 500% • Minera Alamos saw ~81M warrants expire or be exercised
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 HRT -46% OSK 16% AUG 29% MAX 33% SBB 62% LUM 64% KOR 64% MOZ 75% TML 143% GOLD 151% PGM 259% OLA 271% MAI 414% LGD 486% -100% 0% 100% 200% 300% 400% 500% 600% Sou
Slide 7: Management & Board of Directors
The Team Management & Board of Directors DARREN KONINGEN DOUG RAMSHAW BRUCE DURHAM RUBEN PADILLA KEVIN SMALL CEO and Director President, Director Non-Executive Director Non-Executive Director Non-Executive Director +20 years of +25 years of experience the +40 years of experience in +25 years of of d
Slide 8: High Quality Assets
High Quality Assets Santana – 100% owned La Fortuna – 100% owned TSX-V: MAI
Slide 9: 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 10: Construction Funding Announced
Economics Construction Funding Announced $14 Million Royalty/Equity Construction Announced December 2019 • $6 million equity financing with largest shareholder Osisko Gold Royalties increasing their stake in the Company from 12.5% to 18.7% (Completed) • Third consecutive straight share (no warrant)
Slide 11: Construction Highlights
Santana Project Construction Highlights Test Mining Completed • ~50,000 t mined • Recovered gold grade +0.67 g/t (~1,100 oz recovered) • Various crush sizes tested <1/2”-5/8” up to 3” resulting in consistent recoveries across test sizes • Excellent percolation eliminating the need for agglomeration
Slide 12: Construction Highlights
Santana Project Construction Highlights Crushing, Screening & Agglomeration System Purchase • Design capacity of approximately 300 tph (5,000-6,000 tpd) taking run-of- mine (“ROM”) heap leach material and crushing/screening (three stage crushing) to a fine size passing 3/8” • The system will provide
Slide 13: Exploration potential
Santana Project Exploration potential Divisadero Zone (2018 & 2019 Drilling Discovery) Potential to define a significant gold mineral district (>1-2MMoz potential) • Gold-silver discovery ~200m N of Nicho Norte 95.7 m @ 0.85 g/t Au, 9.8 g/t Ag Multiple targets; New discoveries; Actively being dril
Slide 14: 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 15: 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 16: 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 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 US$1,250/oz Pre-Tax Payback Period 9 months After-Tax Payback Period 11 months Ave. Annual Production 43k oz Au, 220K oz Ag 1,000 t Cu (50k
Slide 18: Value Proposition
Value Proposition TSX-V: MAI
Slide 19: 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 Santana • Exploration driven expansion • Large land package • Low Capex Build derived from ongoing drilling supported by royalty and • Significa
Slide 20: Peer Gold Developer Comparables
Equity Performance Peer Gold Developer Comparables Minera Alamos Peer Gold Developer Comparables • Minera Alamos currently trades at a slight premium to its peer group (0.70x to 0.63x). 1.20x • Importantly, Minera Alamos is one of 1.00x the few within the developer peer group that will graduate to t
Slide 21: Executing in 2020 – The Transition to Gold Producer
Real business in action Executing in 2020 – The Transition to Gold Producer Santana Mine Construction Ongoing Q1 – Q4 Santana- Start of Mining Operations Q4 or Q1 ‘21 Santana- Phase 3 Exploration Ongoing Q2 – Q4 La Fortuna - Permit Issuance / Finalize Debt Negotiations Q3 – Q4 Ongoing Evaluation of