Mako Mining Corp. · TSXV:MKO
Mako Mining — Merger or Acquisition (June 2024)
35 slides from Mako Mining's merger presentation, June 2024
Slide 1: Creating a Diversified Gold Producer With a Platform for Growth
Creating a Diversified Gold Producer With a Platform for Growth Transaction Presentation | June 2024 TSX-V: MKO | OTCQX: MAKOF
Slide 2: Disclaimer
Disclaimer The presentation supersedes the Transaction Presentation dated March 2024 Forward Looking Information This document contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information may be identified by the use of forward-looking
Slide 3: Disclaimer
Disclaimer Scientific and Technical Information All scientific and technical information relating to the San Albino Project contained in this presentation is derived from the technical report with an effective date of October 11th, 2023, as amended on June 10th, 2024 and titled “Amended Technical Re
Slide 4: Disclaimer
Disclaimer Non-IFRS and other Performance Measures Mako discloses certain non-IFRS financial measures and ratios on its website from time to time, such as EBITDA (IFRS: operating income), adjusted EBITDA (IFRS: operating income), cash cost per ounce sold (IFRS: cost of sales), total cash cost per ou
Slide 5: Disclaimer
Disclaimer Total Cost Unit Cost Description (US$ M) (US$/t) milled (US$/oz produced) 2.40/t mined Mining (1)(2) 201.5 202 7.40 Processing (1)(2) 448.5 16.33 450 Rehandle 3.5 0.13 4 G&A 122.5 4.50 123 Other 7.5 0.55 8 Rent 0.8 0.03 1 Contractor Mobilization 2.0 0.07 2 Total Operating Costs 786.4 28.8
Slide 6: Mako: Low-Cost Gold Producer with Strong Free Cash Flow and Growth
Mako: Low-Cost Gold Producer with Strong Free Cash Flow (1) and Growth Geographic Diversification & Enhanced Operational Profile Strong Financial Position & Robust Cash Flow Generation • Combination of Mako’s high grade production base with a low- • Mako’s cash flow and access to capital will reduce
Slide 7: Transaction Summary
Transaction Summary Proposed • Acquisition of 100% of the shares of Goldsource by Mako pursuant to a Plan of Arrangement Transaction • 0.2200 of a Mako common share for each Goldsource common share Consideration • Implied equity value of approximately C$33.3M to Goldsource • 40.9% premium to Goldsou
Slide 8: Pro Forma Capitalization
Pro Forma Capitalization ➢ Goldsource shareholders to be issued 0.2200 Mako shares for each Goldsource share owned Goldsource 17% ➢ Goldsource shareholders to be issued 13.2 M Mako shares ➢ Pro forma ownership of 83% for current Mako shareholders and 17% for current Goldsource shareholders ➢ Mako to
Slide 9: Mako's Consistent Objective
Mako’s Consistent Objective Path for Sustainable Growth 2026 Advanced Explo. & 1st Production 2025 at Eagle Mountain Underground & 1st ➢ Identify new exploration targets Milestones Eagle ➢ Move targets to mid and/or advanced stage 2024 Mountain Project exploration ➢ Evaluate expansion potential to 1
Slide 10: Pro Forma Management Team & Board of Directors
Pro Forma Management Team & Board of Directors Akiba Leisman Steve Parsons CEO (Director) President Akiba was Executive Chairman and Interim CEO of Marlin Gold Steve is the current CEO of Goldsource. He is a capital markets Mining Ltd., leading the Company through the spinout of Sailfish professiona
Slide 11: Pro Forma Asset Overview
Pro Forma Asset Overview Diversified Gold Producer With a Platform for Growth Eagle Mountain Project ➢ Located in Guyana ➢ Large scale, near surface mineral resource with 1.2Moz Au Indicated @ 1.18 g/t Au San Albino Gold Mine and 582Koz Au Inferred @ 0.98 g/t Au (3) ➢ Existing infrastructure nearby
Slide 12: Similarities Between San Albino & Eagle Mountain
Similarities Between San Albino & Eagle Mountain(1)(2) Orebodies Mineralization at Eagle Mountain ➢ Shallow, low angle dip, with good continuity in relatively unexplored district with excellent upside potential ➢ San Albino – Outcrops, 20-30° dip, up to 270m defined down dip, >1 oz Au samples encoun
Slide 13: Eagle Mountain: Near Term Production with Long Mine Life
Eagle Mountain: Near Term Production with Long Mine Life PEA Stage Shallow Open Pit Asset Driven By A Phased Development Plan(1) Robust Project Economics(2) US$292M After-tax NPV5% & 57% IRR Large Gold Mineral Resource Near-term Production ~1.2Moz Au Indicated @1.18 g/t Au Expected Production begins
Slide 14: Leveraging Mako's Strength at Eagle Mountain
Leveraging Mako’s Strength at Eagle Mountain Utilizing Mako’s Technical and Financial Strength to Advance & Grow Eagle Mountain Mako’s Proven Ability to Deliver at San Albino Cash-Generating Operation 2019 - 2020 2021 - 2022 2023 2024+ US$ Mine Operating Cash Flow last 12 months 26.6M • Mine constru
Slide 15: Guyana: The Next Great Mining Jurisdiction
Guyana: The Next Great Mining Jurisdiction Guyana Highlights Goldsource’s Eagle Mountain Project ➢ Mining-friendly permitting process specifically designed to promote new mining projects 4 3 1 ➢ Emerging as one of the most attractive South American mining 2 jurisdictions ➢ Government support for min
Slide 16: Eagle Mountain Asset Overview
Eagle Mountain Asset Overview ➢ 100% interest in the Eagle Mountain Prospecting License (“PL”) covers an area of 5,000 hectares(1) ➢ Located 230 km SW of Georgetown, with highway access to the commercial airport in Mahdia, 7km from site ➢ 45km SW of the historic Omai gold mine, which produced est. 4
Slide 17: Eagle Mountain Phased Development
Eagle Mountain Phased Development Phase 1 – Saprolite-Only Mineralization (4.5 yrs) ➢ 5,000 tpd of saprolite at cut-off grade of 0.3 g/t ➢ Avg. annual gold production of ~68k oz/year for 4.5 yrs ➢ Development capex of US$95.6M (1) with short payback of 18 months Phase 2 – Blend of Fresh/Trans & Sapr
Slide 18: Eagle Mountain Project Geology
Eagle Mountain Project Geology (1) Eagle Mountain Deposit ➢ Series of tabular, shallow, dip-slope shear zones developed within a granodioritic host rock. Covers an area of ~ 2.5km by 1.5km ➢ At least three discrete zones of alteration and mineralization. Zone 1 is shallowest and outcrops at surface
Slide 19: Eagle Mountain Deposit (MRE Area) Intrusion Related
Eagle Mountain Deposit (MRE Area).... Intrusion Related Sub-Horizontal Zones in Granodiorite (1) ➢ Sub-horizontal mineralized zones starting at surface ➢ Shallow, west-dipping thrust faults in granodiorite range from Schematic of Mineralized Zones at Eagle Mountain Deposit narrow mylonite zones to b
Slide 20: Nicaragua: A Burgeoning Mining Jurisdiction
Nicaragua: A Burgeoning Mining Jurisdiction Nicaragua Highlights Top 3 foreign-owned operating gold mines(1) ➢ Pro-mining government underpinned by modern 1 Calibre (CXB): El Limon Mine: 639 Koz Au @5.89 g/t Probable Mineral Reserves and 1.3M mining law oz Au @3.05 g/t Indicated ➢ Gold is the larges
Slide 21: San Albino Asset Overview
San Albino Asset Overview Historic Mine District ➢ Mining began in the district in the late 18th century Strong Development Path ➢ Last commercial operation was in 1926 • Profitably operating at +550 tpd ➢ Mine shut down due to the onset of the Nicaraguan Civil War • Mine Cash Flow (US$25.9M in TTM)
Slide 22: Drilling for Underground Dev. (+10, 200m)
San Albino Meters of Drilling by Year(1) 45,000 Drilling for Underground Dev. (+10, 200m) Drilling - Regional Las Conchitas Resource San Albino Las Conchitas Other/New Discovery Underground Drilling (+33,530m) 40,000 35,000 Drilling San Albino 30,000 San Albino Project (+17,720m) San Albino resource
Slide 23: San Albino District-Scale Potential
San Albino District-Scale Potential Emerging High-Grade Gold District Potential ➢ The "Corona de Oro" (Golden Crown) Gold Belt is a 5-10km wide belt of orogenic gold bearing veins ➢ Orogenic gold deposits are significant for the following reasons: ➢ Orogenic deposits account for approximately 1/3 of
Slide 24: Corona de Oro Gold Belt
Corona de Oro Gold Belt Projected Long Section with Drill Results Q4 2023 LC22-524 0.9m @ 51.8 g/t Au LC19-72 SA19-155 1.4m @ 3.0 g/t Au Tunnel Mina Francisco INT18-19 LC20-181 EJ15-TR-03 1.5m @ 21.8 g/t Au AR11-24 AR12-65 SP18-03 CG18-24 1.7m @ 36.6 g/t Au 3.1m @ 60.7 g/t Au 1.9m @ 25.2 g/t Au 1.0m
Slide 25: Corona de Oro Gold Belt
Corona de Oro Gold Belt Pipeline of projects to support continuing exploration ➢ The Company has the unique opportunity to generate and advance new projects organically on its wholly owned,188km2 land package and is aggressively advancing projects through the pipeline 25
Slide 26: Mako's Value Generation Trajectory
Mako’s Value Generation Trajectory Selected Drilling Results in the past 15 months (See Press Releases on www.makominngcorp.com for full details) March 13, 2024: 13.43 g/t Au Milestones under new Management (since August 2019) and 36.8 g/t Ag over 9m (ETW) at Las Conchitas. 57 meters from surface (“
Slide 27: Thank You
Thank You Contact Suite 700 - 838 West Hastings St. Vancouver, BC - V6C 0A6 IR: +51 944 951 401 IR: pdurand@makominingcorp.com General: info@makominingcorp.com makominingcorp.com 27
Slide 28: Appendix - Eagle Mountain PEA Summary
Appendix - Eagle Mountain PEA Summary(1) 2024 PEA Summary Results After-Tax NPV & IRR Sensitivity Analysis Assumptions Gold Price (US$/oz) $1,850 Case Discount Rate (%) 5% Project Parameters Payback NPV5% NPV8% Total Ore Mined (Mt) 84.0 IRR % Period(2) US$M US$M (months) Mill Throughput (Mt/yr) 1.82
Slide 29: Appendix - Eagle Mountain January 2024 PEA Sensitivity
Appendix - Eagle Mountain January 2024 PEA Sensitivity(1) Units US$1,850/oz (Base Case) US$2,055/oz (spot)(2) Pre-Tax After-Tax Pre-Tax After-Tax IRR(3) % 75% 57% 91% 69% Payback Period(4) Months 16 18 14 16 NPV0%(3) US$ M 605 443 793 585 NPV5%(3) US$ M 406 292 532 388 NPV8%(3) US$ M 326 232 428 309
Slide 30: MRE April 2022 Sensitivity Analysis
Pit Constrained MRE - US$1,600/oz Au Price MRE April 2022 (1) Sensitivity Analysis (Gold Price) Eagle Mountain Looking North View Point Salbora Toucan-Powis Plunge: -6o Azimuth: 008o 11 Pit Constrained MRE - US$1,800/oz Au Price 30 (1) See Goldsource’s Technical Report available under Goldsource’s p
Slide 31: PEA – Life-of-Mine Profile
PEA – Life-of-Mine Profile Projected Figures and Production Profile(1) 250 Phase 1 - Saprolite Phase 2 - Fresh Rock/Trans + Saprolite Blend 600 Phase 1 - Saprolite Phase 2 - Fresh Rock/Trans + Saprolite Blend 120,000 2,000 Cumulative After-Tax Free Cash Flow (US$ M) 200 Annual Revenue (Opex & Capex)
Slide 32: Eagle Mountain Deposit - April 2022 MRE
Eagle Mountain Deposit - April 2022 MRE Sub-Horizontal Zones Starting at Surface(1) Eagle Mountain Deposit Oxidation Domains (looking South-East) Eagle Mountain Deposit Resource Category (looking South-East) April 2022 MRE Update Indicated Res. Extends from surface to max depth of 150m Average depth
Slide 33: Eagle Mountain Deposit - April 2022 MRE
Eagle Mountain Deposit - April 2022 MRE 2024 PEA Conceptual Life-of-Mine Plan Net Conversion April 2022 MRE 2024 PEA Conceptual LOM Plan of Tonnes CLASSIFICATION In-situ grade Mill head grades Mt Mt % (gpt Au) (gpt Au) Indicated Saprolite and Trans 12.5 1.04 11.3 1.08 90% Fresh Rock 18.7 1.28 8.7 1.
Slide 34: Appendix – Eagle Mountain Other Maps and Photos
Appendix – Eagle Mountain Other Maps and Photos St Elizabeth Mahdia – St. Elizabeth Paleochannel (north of Eagle Mtn) Mahdia Valley Eagle Mtn Breakfast Creek and Konawaruk River Salbora Mahdia – Tiger Eagle Mountain Creek Paleochannel Deposit (northeast of Eagle Mtn) Minnehaha River Wineaperu Mowasi
Slide 35: Mako's Total Mineral Resource Estimate
Mako’s Total Mineral Resource Estimate(1) All veins in San Albino Deposit: Open Pit, Underground, and Dump All veins in Las Conchitas Deposit: Open Pit, Underground, and All veins in San Albino Project: Open Pit, Underground, and Dump Resources Dump Resources Resources Open Pit and Underground and D