Almaden Minerals Ltd. · TSXV:AMM
Almaden Minerals — Investor Presentation (May 2015)
29 slides from Almaden Minerals's investor presentation, May 2015
Slide 1: Almaden Minerals
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Slide 2: Disclaimer
DISCLAIMER Safe Harbour Statement Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. Such forward-looking statements involve known and unknown risks, uncertain
Slide 3: The Almaden Advantage
The Almaden Advantage Proven Project Generators: Strong Financials: Discoveries include: Santa Fe, Nevada Cash position of CAD$8.2M (Dec. 31, 2014) Sheelite, Trinidad Gold Mine, Caballo Blanco $5.5M Financing in Feb, 2015 Gold Mine, Ixtaca Gold-Silver Deposit High quality Asset Portfolio: Disc
Slide 4: The Almaden Story: Innovation & Longevity
The Almaden Story: Innovation & Longevity Amalgamation with “AAU” starts trading Fairfield Minerals on NYSE MKT Almaden IPO Almaden enters Sold 49% of La Morgan Poliquin Caballo “Spinco” at $0.70 Mexico Trinidad to Eldorado President and CEO Blanco sold Announced 1986 1992 1997 1996-1998 1999-2001 2
Slide 5: Pioneering Project Generation
Pioneering Project Generation Project Generation at a Lower Cost: • Unrivalled geological database of Eastern Mexico • Low cost property acquisition (stake vs buy) using proprietary intellectual capital • 5 Company-owned portable drills • Unique capacity to drill early & often • Drilling below marke
Slide 6: Eastern Mexico: A Special Area of Focus
Eastern Mexico: A Special Area of Focus Almaden’s Projects Under explored terrain with exceptional (+ 40 in portfolio) mineral potential JV / Optioned No historical work, rich geology Sold / Royalty Geology similar to gold-rich Nevada & Utah Hosts several exceptional deposits: Pachuca Mine (7M o
Slide 7: The Ixtaca Deposit
The Ixtaca Deposit History: 2001: Almaden stakes Tuligtic Project 2010: After 3 joint-venture partners, Almaden discovered the Ixtaxa Deposit Clay-altered ash 2014: Updated Resource Estimate & PEA Limestone Location: Located in industrial heart of Puebla State Discovery Outcrop Private sur
Slide 8: The Ixtaca Deposit
The Ixtaca Deposit Hallmarks of Successful Projects Excellent Infrastructure Paved roads 2km from deposit; power on site Favourable Resource Large, high grade core, responsive to prices Simple Metallurgy Standard process recovers 90% of Au and Ag Standard Mine Type Open-pit mine; low strip ratio Geo
Slide 9: Geology and Resource
Geology and Resource MEASURED RESOURCE • ~420 holes define resource AuEq Cut-off Tonnes > Cut-off Grade>Cut-off Contained Metal (g/t) (tonnes) Au (g/t) Ag (g/t) AuEq (g/t) Au (ozs) Ag (ozs) AuEq (ozs) • M&I: 3.53 MOz AuEq @ 1.19 g/t 0.3 44,590,000 0.48 30.27 1.07 682,000 43,400,000 1,528,000 AuEq (0
Slide 10: Plan Map
PLAN MAP LEGEND oa PEABase Case Pit Outline Low Grade Mineralized Shell BazadenC.t gt ALEg ra High Grade Mineralized Shell Brsedon 25 9h AA het DRILLHOLES Diamond Drill Hole Assay Intercept >2.5 git AUEQ / Assay Intercept <2.5 git AuEq LEGEND GEOLOGY Sica CLAY ALTERED WOLCANGLASTICS -MNCONFORMITY. .
Slide 11: High grade intersections below the pit limits indicate underground potential
High grade intersections below the pit limits indicate potential for an underground operation after mining of the open pit 10
Slide 12: Section 10550E
SECTION 10550E LOOKING 060 PEA BASE CASE PIT OUTLINE VOLCANICLA 163.5m 1.3 g/t Au, 62 g/t Ag, 2. Inc. 54.1m 2.3 g/t Au, 106 g/t Aj 5 gh AuEq e/4.4 g/t AuEq 203.7m 1.0 g/t Au, 44 gft Ag, 1.9 g/t AuEQ Inc, 83.1m 1.8 g/t Au, LEGEND Diamond Drill Hole Assay Intercept >2.5 g/t AUEq Assay Intercept <2.5 g
Slide 13: Ixtaca PEA Update, Sept. 2014
IXTACA PEA UPDATE, SEPT. 2014 Life-of-mine average production: PEA Results - $1320/oz Gold, $21/oz Silver 130 koz Au, 7.8 million oz Ag/year Base Case Ramp-Up Case Pre-Tax NPV (5%) $MM 842 699 Revenue approx. 50/50 gold/silver: Pre-Tax IRR % 37.2 28.9 true dual precious metal deposit After-Tax N
Slide 14: PEA Update and Ramp-Up Economic Results
PEA Update and Ramp-Up Economic Results After-Tax NPV (5%) and IRR Leverage Au: $1200; Ag: $18 Au: $1320; Ag: $21 Au: $1530; Ag: $29 41% X% = IRR $950M 35% = NPV (US$M) $826M 28% $515M 23% 21% $427M 17% $315M $246M Base Case Ramp-up Base Case Ramp-up Base Case Ramp-up Healthy returns at $1200 gold
Slide 15: Production and Cost Profile
Production and Cost Profile Base Case Production and Cost Profile Ramp-up Case Production and Cost Profile 500 $1,200 500 $1,200 450 450 $1,000 $1,000 AuEq Production (Dore, 000s) 400 AuEq Production (Dore, 000s) 400 350 350 $800 $800 Cash Costs/Oz AuEq Cash Costs/Oz AuEq 300 300 250 $600 250 $600 2
Slide 16: Tuligtic Project: Regional Potential
Tuligtic Project: Regional Potential • 2010 discovery demonstrates potential of new gold district Sol Zone Azul Zone • 20,200 hectare Tulgitic project: potential for further discovery Ixtaca East Caleva Zone 15
Slide 17: Community Partnerships and Education
Community Partnerships and Education Exploration jobs: up to 70 workers from surrounding area employed & trained Environmental stewardship: on-going tree-planting, recycling & environmental education programs Informed consent: Mining education & tours to active Mexican mines for community memb
Slide 18: Low Environmental Impact Mine Plan
Low Environmental Impact Mine Plan Land for mine plan previously cleared: little to no current land use Surface rights privately owned and acquired with lease/purchase agreements Water wells not required in current mine plan: models show sufficient water for operations from collection of rainw
Slide 19: Almaden Value
Almaden Value EV/Recoverable1 Oz (AuEq) 1400 Costs vs. LOM AuEq1 Production (000's) $250 227 219 1200 4,073 Golden Meadows $200 1000 Total Capex (US$ M)2 2,741 3,041 $150 143 Back River 800 Hardrock 3,120 Ixtaca 104 2,190 Phoenix $100 89 600 59 1,859 2,182 3,485 43 400 Amulsar Volta Grande Coffee $5
Slide 20: Spinco Overview
Spinco Overview Existing Almaden TSX: AMM NYSE MKT: AAU Almaden Minerals Ltd. “Spinco” • TSX / NYSE MKT Listing • TSX-V Listing • Tuligtic (Ixtaca) • Minimum 18 months working capital NSR Royalties Properties • Tuligtic (2%) • El Cobre (Mexico) • Caballo Blanco (1.5%) • Regional Eastern Mexico • Elk
Slide 21: Almaden's Other Assets: El Cobre
Almaden’s Other Assets: El Cobre El Cobre • Veracruz State, Mexico • Large Cu-Au porphyry system • 100% Almaden Caballo • 10 km from power plant Blanco Power plant • Past drilling includes: • 48.8 m @ 1.2 g/t Au, 0.12 % Cu incl. 10.7m @ 4.3 g/t Au, 0.40 % Cu • 80.0 m @ 0.6 g/t Au, 0.24% Cu • 41.2 m
Slide 22: Additional Projects
Additional Projects Caldera and El Chato Gold Projects (100%) Yago Project: Sold to Tarsis Resources for 2% royalty and shares Location: Puebla State, Mexico Almaden discovery, 100% owned through staking Location: Nayarit State, Mexico Both projects are new Caballo Blanco-like gold systems l
Slide 23: Capitalization Structure
Capitalization Structure TSX: AMM / NYSE MKT: AAU • ~$8 MM Cash* (plus $5.5M financing closed Feb 2015) • 1,597 ozs gold bullion Ixtaca discovery • Approx. $3.4 MM in Equity Investments • 73.15 MM shares issued • Options (6.3 MM shares) avg. exercise price $2.23 • Warrants (8.9 MM shares) avg. exerc
Slide 24: Contact Us
Contact Us Morgan Poliquin, CEO Doug McDonald, VP Korm Trieu, CFO OUR LOGO: [email protected] [email protected] [email protected] Almaden’s logo is a cuneiform inscription and the earliest-known written appearance of the word gold. Our Headquarters are located in Vanco
Slide 25: Appendix A: Ixtaca Deposit PEA Details
Appendix A: Ixtaca Deposit PEA Details Projected Production and Processing Summary Base Case Ramp-Up Total Mill Feed Material 125.3 MM Tonnes 121.0 MM tonnes 7,000 start, 30,000 after Processing Rate (tonnes/day) 30,000 throughout mine life year 6 LOM Strip Ratio 1.74 : 1 1.80 : 1 Gold Silver Gold S
Slide 26: General Site Layout from Updated PEA
General Site Layout from Updated PEA See Technical Report, entitled “Preliminary Economic Assessment of the Ixtaca Project”, prepared by Moose Mountain Technical Services and dated October 9, 2014, a copy of which is available under the Company’s profile on SEDAR at www.sedar.com. 25
Slide 27: Appendix A, Cont.: Next Engineering and Development Steps
Appendix A, Cont. Next Engineering and Development Steps The Company plans to immediately embark upon a Pre-Feasibility Engineering Program. Apart from further metallurgical studies, the work outlined includes geo-mechanical and geotechnical drilling, static geochemical tests to characterise rock ch
Slide 28: Appendix B: Royalty Package
Appendix B: Royalty Package Project Name Operator Location Royalty Type Size Commodity Stage of Development Tuligtic Almaden Minerals Ltd. Puebla, MX NSR 2.00% Au/Ag PEA Caballo Blanco Timmins Gold Corp. Veracruz, MX NSR 1.50% Au PEA Elk Gold Mountain Mining Corp. B.C., CAN NSR 2.00% Au PEA; Bulk sa
Slide 29: PEA-stage Royalties
PEA-stage Royalties The Ixtaca, Caballo Blanco, and Elk projects have all been the subject of PEA-level engineering reports The table below summarizes the attributable precious metals production forecast from these royalties, as per the technical reports Gold Equivalent Ounces Attributable to Ro