Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Investor Presentation (August 2020)
29 slides from Mining Americas's investor presentation, August 2020
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company August 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 • 3 high-quality, open pit development-stage assets • Ability to
Slide 4: 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 5: Company snapshot
Capital Structure Company snapshot Capital Structure Shareholder Distribution Ticker TSXV:MAI / OTCQB:MAIFF Osisko Gold Royalties Share Price (as of July 31st, 2020) C$0.61 Retail & other 18.7% 52.2% Basic Shares Outstanding 410.8M Donald Smith Value Fund Options 22.8M 9.6% Warrants 2.4M Aegis Finan
Slide 6: 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 600% • Coupled with delivering on significant 500% de-risking
Slide 7: 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 -43% OSK 27% AUG 41% LUM 69% SBB 84% KOR 105% MOZ 112% TML 135% GOLD 146% MAX 148% PGM 283% OLA 448% MAI 490% LGD 523% -100% 0% 100% 200% 300% 400% 500% 600%
Slide 8: 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 9: 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 10: 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 11: 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 12: 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 13: Construction On Track
Economics Construction On Track 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 mi
Slide 14: 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 15: 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 16: 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 17: 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 studie
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: Value Proposition
Value Proposition
Slide 26: Path to intermediate production
Growth Model Path to intermediate production Targeting > CERRO DE ORO ACQUIRE 4TH ASSET 200,000oz • Low Capex Build • Targeting +/- 700K per quality ounces SANTANA EXPANSION • Commence Permitting • Low Capex annum • Exploration driven • Expand known • Large land package expansion derived resource an
Slide 27: 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 (0.77x 1.60x to 0.72x). 1.40x • Importantly, Minera Alamos is one of the few within the developer peer 1.20x P/NAV group that will g
Slide 28: 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 Cerro de Oro – Q4 Init
Slide 29: Thank you
Thank you For more information contact us: Info@mineraalamos.com Or visit us at : Mineraalamos.com TSX-V: MAI / OTCQB: MAIFF