Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Investor Presentation (October 2020)
27 slides from Mining Americas's investor presentation, Oct 22, 2020
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company September 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 PROVEN BUILDERS NEARING PRODUCTION • 3 successful mines put into production in last 12 years • 100 % Owned Assets • Strong operational expertise in heap leach mining • 3 high-quality, open pit development-stage assets • Ability to ex
Slide 4: Company snapshot
Capital Structure Company snapshot Capital Structure Shareholder Distribution Osisko Gold Royalties Ticker TSXV:MAI / OTCQB:MAIFF 17.5% Share Price (as of September 2nd, 2020) C$0.70 Donald Smith Value Fund Basic Shares Outstanding 435.4M 9.0% Options 23.8M Retail & other Warrants 2.7M 50.7% Aegis F
Slide 5: Equity Performance: 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 600% 500% • Minera Alamos has outperformed each of the GDXJ, gold price, and its peer 400% group since June 1, 2019 Relative Performance • Coupled with delivering
Slide 6: Board of Directors
The Team Board of Directors DARREN KONINGEN DOUG RAMSHAW BRUCE DURHAM RUBEN PADILLA KEVIN SMALL CEO, Director President, Director Non -Executive Non-Executive Non-Executive Director Director Director Metallurgist with +20 years of Mining Geologist with +25 Geologist with +40 years of Geologist with
Slide 7: Management
The Team Management DARREN KONINGEN DOUG RAMSHAW CHRIS CHADDER FEDERICO ALVAREZ CEO and Director President, Director Chief Financial Officer Chief Operating Officer +20 years of engineering and +25 years of experience in the +20 years of financial +30 years experience within metallurgical experience
Slide 8: High Quality Assets
High Quality Assets Santana – 100% owned La Fortuna – 100% owned Cerro de Oro – 100% owned* * Subject to a schedule of payments
Slide 9: Mexican gold development project pipeline
Property Summary Mexican gold development project pipeline SANTANA (Under Construction) • Fully funded C$10 million heap leach scheduled to be constructed by the end of 2020. • The heap leach pad area has been cleared and is undergoing contouring ahead of clay placement and the pad liner installatio
Slide 10: Santana Project: Near-term production opportunity
Santana Project Near-term production opportunity Low Capex (~C$10m) Heap Leach Development Project LOCATION / INFRASTRUCTURE With Bulk Test Mining Completed And Permits Approved • Sonora State, Mexico; 100% owned; 8,500 ha • Accessible by paved highway • 50 km SW of Alamos Gold’s 3M oz Mulatos Gold
Slide 11: Construction On Track
Economics Construction On Track AN INDUSTRY LEADER IN CAPITAL INTENSITY / PRODUCTION OUNCE • $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) financing • $5
Slide 12: Santana Project 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 13: Santana Project Construction Highlights
Santana Project Construction Highlights WATER TEST WELLS COMPLETED • 5 locations were identified for further evaluation via reverse circulation (RC) drilling following a hydrological survey in Q4 2019. • 800m of exploratory drilling (all holes combined) • Water was discovered in all the target areas
Slide 14: Multiple Targets - New Discoveries
Santana Project Multiple Targets - New Discoveries POTENTIAL TO DEFINE A SIGNIFICANT GOLD MINERAL DISTRICT - >1-2 MOZ POTENTIAL Divisadero Zone (2018 & 2019 Drilling Discovery) • Gold-silver discovery ~200m N of Nicho Norte ₋ 95.7 m @ 0.85 g/t Au, 9.8 g/t Ag ₋ 96.4 m @ 0.42 g/t Au, 3.6 g/t Ag ₋ 133.
Slide 15: Cerro de Oro: Near-term development opportunity
Cerro de Oro Project Near-term development opportunity LOCATION / INFRASTRUCTURE • Zacatecas State, Mexico; 100% owned*; 6,500 ha • Accessible by paved highway • 25 km N of Newmont’s 8M oz Au/471 Moz Ag Peñasquito Mine MINE PLAN/STAGE • Near-term development opportunity; extensive metallurgical stud
Slide 16: Cerro de Oro Transaction Highlights
Building out the Foundation Cerro de Oro Transaction Highlights Accretive Development Stage Acquisition of New Pipeline Asset ✓ • < 1% dilution to existing shareholders • The majority of cash payments due over multiple years post Santana entering production Adds An Advanced Gold Project in a Mining
Slide 17: Historic Exploration
Cerro de Oro Project Historic Exploration “The Cerro de Oro gold project has many characteristics that mimic the El Castillo gold mine our team developed under the Castle Gold Corporation banner from 2007 until its eventual sale in 2010.” – Darren Koningen, CEO “Cerro de Oro contains a large dissemi
Slide 18: Historic Exploration - Drilling
Cerro de Oro Project Historic Exploration - Drilling Hole From (m) To (m) Interval (m) Au Grade Zone Number (g/t) C094-19 0 92 92 0.45 North – oxide C094-17 0 71 71 0.31 North – oxide C094-20 0 77 77 0.29 North – oxide C093-04 0 80 80 0.31 North – oxide C094-26 0 40 40 0.27 South – oxide C094-23 0 7
Slide 19: Historic Exploration - Trenching
Cerro de Oro Project Historic Exploration - Trenching Trench Length (m) Au Grade (g/t) 75m 0.67 g/t 175m 0.39 g/t 130m 0.27 g/t 125m 0.18 g/t 100m 0.47 g/t 200m 0.50 g/t 131m 0.61 g/t 30m 0.52 g/t 20m 0.61 g/t 30m 0.59 g/t Noranda also completed a comprehensive program of trenches that outlined larg
Slide 20: La Fortuna: PEA – High Grade Open Pit
La Fortuna Project PEA – High Grade Open Pit LOCATION / INFRASTRUCTURE • Durango State, Mexico; 100% owned • ~6,200 ha • Easily accessible via a 100 km road from Culiacan, the Capital of Sinaloa State • State authorities are extending a 2-lane upgraded paved highway to the project including grid pow
Slide 21: La Fortuna: Initial starter zone
La Fortuna Project Initial starter zone High-Grade High- Margin • +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 Open • 2,000 tpd mill acquired • 1,100 t
Slide 22: La Fortuna 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 23: La Fortuna: 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 fault s
Slide 24: Value Proposition
Value Proposition
Slide 25: Growth Model: Path to intermediate production
Growth Model Path to intermediate production ACQUIRE 4TH ASSET Targeting > LA FORTUNA • Targeting +/- 700K 200,000 oz/y • Low Capex Build quality ounces 1st SANTANA EXPANSION supported by royalty • Low Capex • Exploration driven and internal financial • Large land package expansion derived resources
Slide 26: 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 Q3 – Q4 Cerro de Oro – Q4 Initiate Permitting Activities On
Slide 27: Thank you
Thank you For more information contact us: Info@mineraalamos.com Or visit us at : Mineraalamos.com TSX-V: MAI / OTCQB: MAIFF