Exciting Gold Development and Exploration Assets in Brazil - - PowerPoint PPT Presentation

exciting gold development and exploration assets in brazil
SMART_READER_LITE
LIVE PREVIEW

Exciting Gold Development and Exploration Assets in Brazil - - PowerPoint PPT Presentation

AGC:TSX-V AGCBF:OTCMKTS Exciting Gold Development and Exploration Assets in Brazil Corporate Presentation Important Notice Important Statements These presentation materials (the Presentation Materials) are being supplied to you for


slide-1
SLIDE 1

AGC:TSX-V

AGCBF:OTCMKTS

Exciting Gold Development and Exploration Assets in Brazil

Corporate Presentation

slide-2
SLIDE 2

Important Notice

These presentation materials (“the Presentation Materials”) are being supplied to you for information purposes only on Amarillo Gold Corporation (the “Company”). These Presentation Materials have been prepared by and are the sole responsibility of the Company. The Company has taken all reasonable care to ensure that the facts stated herein are true to the best of its knowledge, information and belief. These Presentation Materials are being distributed only to and are directed at (a) persons who have professional experience in matters relating to investments being investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “FPO”), (b) high net worth companies, unincorporated associations and other bodies within the meaning of Article 49 of the FPO or (c) persons to whom it may otherwise lawfully be communicated (together “Relevant Persons”). Any person who is not a Relevant Person or who does not have professional experience in the matters relating to investments should not act or rely on this document or any of its contents. These Presentation Materials do not constitute, or form part of, a prospectus relating to the Company, nor do they constitute or contain any invitation or

  • ffer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction,

nor shall it, or any part of it, form the basis of or be relied on in any connection with any contract. No reliance may be placed for any purpose whatsoever

  • n the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising

from any use of this document or its contents otherwise in connection therewith. Prospective investors are encouraged to obtain separate and independent verification of information and opinions contained in the Presentation Materials as part of their own due diligence. By accepting these Presentation Materials, the Recipient agrees that the information contained herein or sent herewith or made available is for information purposes only. Without prejudice to the foregoing, neither the Company, nor its advisers nor its representatives accept liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this document or its contents or otherwise arising in connection therewith. The distribution of these Presentation Materials in certain jurisdictions may be restricted by law and persons into whose possession these Presentation Materials come should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation

  • f the laws of any such other jurisdictions.

Some statements contained in these Presentation Materials or in documents referred to therein are or may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Past performance of the Company or its shares cannot be relied on as a guide to future performance. Any forward-looking information contained in these Presentation Materials has been prepared on the basis of a number

  • f assumptions which may prove to be incorrect, and accordingly, actual results may vary.

The Qualified Persons for Amarillo are Frank Baker, M. IOM3 and MAusIMM., Mr.Mike Mutchler, MAusiMM and Buddy Doyle, MAusIMM.

Important Statements

www.amarillogold.com 2

slide-3
SLIDE 3

33

2

Rolly Uloth Executive Chairman

  • Mr. Uloth has over 20 years as a seasoned mining executive, as well as a business professional with over 45 years of
  • experience. Rolly was President and Director of River Gold Mines in 2006. Upon the completion of the merger between

Wesdome Gold Mines and Eagle River Mines, Mr. Uloth became Chairman and then CEO from 2007 - 2010, where he led Wesdome through several of its most profitable years and reopened the Kiena Mine. In 2013, Mr. Uloth rejoined Wesdome and successfully restructured the Company and still remains on the Board. Mike Mutchler President and Chief Executive Officer

  • Mr. Mutchler, who is currently a Partner and Advisory Board Member at Whittle Consulting Pty. Ltd., has over 30 years’

experience as a mining engineer in both open-pit and underground mining operations. At Whittle, Mike conducts Enterprise Optimisation using its proprietary software for mining projects worldwide. Prior to Whittle, Mike was COO for Largo Resources where he was responsible for the construction, commissioning, operations and expansion of the Maracas Vanadium Mine and Mill in Bahia, Brazil. Mike’s extensive experience also included the position of COO of Rainy River Resources, Vice President Project Development for Kinross Gold Corporation, Mine & Infrastructure Manager for Kinross’s Cerro Casale project in Chile, Project Director for Kinross’s Paracatu Mine in Brazil, and he held managerial positions at Kinross and ASARCO. Mike holds a BSc (Mining Engineering), South Dakota School of Mines & Technology; MBA, Webster University, Missouri; Executive Juris Doctorate degree, Concord School of Law, Kaplan University; and Chartered Directors Certificate, The Directors College, McMaster University. Hemdat Sawh Chief Financial Officer

  • Mr. Sawh is a CPA, and holds an MBA, a BSc degree in Geology and a graduate diploma in Geology. Mr. Sawh has over

16 years of experience at Grant Thornton LLP, where he acted as lead supervisor for auditing teams. Mr. Sawh has over 12 years’ experience serving as CFO of Wesdome Gold Mines, Scorpio Mining, Crystallex and Goldbelt Resources, all TSX listed mining companies with assets in Canada, Mexico, Venezuela and Burkina Faso, respectively. Arao Portugal Director of Strategy Mr Portugal was instrumental in securing the main Preliminary License (SEIA equivalent) for Mara Rosa in 2016. In 2003 to 2014, Mr. Portugal held various roles including Country Manager for Yamana. From 1975 to 2003, sourcing and raw materials specialist for CVRD (now Vale). Luis Carlos F. da Silva General Manager Brazil

  • Mr. da Silva has over 20 years exploration experience in Brazil managing several campaigns. He was also responsible

for drilling off several of Jaguar Mining’s Brazilian gold deposits. Frank Baker Project Manager, Mara Rosa

  • Mr. Baker is a Graduate of Sheffield University with Masters in Metallurgy. Frank has over 40 years of experience in the

mining industry. Mr Baker has had the success of designing, building and commissioning five gold plants, including two in Brazil.

www.amarillogold.com 3

Management Team

slide-4
SLIDE 4

Capital Structure

Shares Outstanding 84.9 million Warrants ($0.25) 1.1 million Options ($0.31) 7.5 million Market Cap. @ $0.31 * $26 million Gold-linked Loan $10 million

Major Shareholders

Board & Management 15% Institutions 42% High Net Worth 23% Retail 20%

* As at Jan 5,2018

Corporate Information

www.amarillogold.com 4

slide-5
SLIDE 5

Mara Rosa Development Project, Goias State

  • Federal highway, 320km from the capital
  • 35km from Chapada mine (Yamana)
  • 62km from Pilar mine (Brio)
  • 500km from Paracatu mine (Kinross)

Lavras do Sul Exploration Project, Rio Grande do Sul State

  • Paved highway, 320km from Porto Alegre
  • Hydroelectric and thermal grid power
  • Town was founded on mining

Project Locations

Brasilia Porto Alegre

www.amarillogold.com 5

DEVELOPMENT AND EXPLORATION PROJECTS

slide-6
SLIDE 6

www.amarillogold.com 6

Mara Rosa Project

Goias State

Robust Gold Development Project with Significant Upside Exploration Potential

slide-7
SLIDE 7

www.amarillogold.com 7

Posse Cross Section (Looking North)

Typical Intercepts Within PFS Pit

slide-8
SLIDE 8

Category Tonnes MT Grade g/t Ounces of Au Measured 10.00 1.70 580,000 Indicated 15.00 1.40 680,000 Resource M&I

25.00 1.56 1,250,000

Inferred

8.50 1.10 310,000

Category Tonnes MT Grade g/t Ounces of Au Proven 9.27 1.81 540,567 Probable 9.75 1.46 456,968 P&P Total

19.01 1.63 997,536

Notes:

  • 1. Posse Deposit Resource @ 0.35 g/t cut-off
  • 2. Source: Keith Whitehouse Member of the AUSMIM Qualified person Australian Exploration Field Services; 43-101 Technical Report: prepared by SRK Consulting, April 2017 titled “2017

Updated Pre-Feasibility Study Posse Mine Project-Mara Rosa GO” Notes:

  • 1. SRK applied a 0.38 g/t Au cut-off to the block model
  • 2. Dilution: 3% mining & 3% handling
  • 3. All Mineral Reserves prepared by SRK have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under National

Instrument 43-101 (“NI43-101”)

www.amarillogold.com 8

Resource and Reserves

slide-9
SLIDE 9

Mara Rosa Project Robust Economics

*NPV(5%) US$ 178M *Payback 2.2 Years

*IRR

35% April 2017 PFS (US$1,200 Gold)

Upfront Capex $148M USD Sustaining Capex $13.5M USD Years 1-4 Average Production 140,000 Ounces Average Annual Production 112,000 Ounces Initial Mine Life 8 Years Operating Cost per Ounce $545 USD AISC per Ounce $630 USD Mineable Reserve 997,536 Ounces

*Post-tax

Mara Rosa Robust Economics

www.amarillogold.com 9

$1,300 $1,200 $1,000 $800 $600 $400 $200 $0

*AISC $630/oz Gold Margin $570/oz Gold Price

* AISC = Opex + Royalties + Transportation + Refining + Sustaining Capital + G&A

G&A + Royalties $6.35/tonne Processing US$10.27/tonne Mining US$12.93/tonne

slide-10
SLIDE 10

PFS Update Parameters

Economic Model $1,200 / oz Exchange Rate USD/BRL 3.20 Tax Rate 34% Power Costs $0.08 per kWh Overall Slope Angle 48° Strip Ratio 4.5:1 Contractor Mining Costs $2.35 / t Processing Costs $10.27 / t Throughput 7,000 tpd Recovery 92% G&A Costs $0.41 / t

Overall Cost Per Ore Tonne $29.55 / t www.amarillogold.com 10

PFS Update Parameters / Flow Sheet

Processing Plant Flow Sheet

slide-11
SLIDE 11

Capital Allocation (USD)

Mine Pre-Strip $15M Plant, Equipment & Facilities $57M Tailings Dam $9M Infrastructure & Buildings $13M Other & Non-tangibles $35M Contingencies $11M Working Capital $8M Total Upfront Capex $148M

www.amarillogold.com 11

Low CAPEX

slide-12
SLIDE 12

Gold / Ounce $1,000 $1,100

$1,200 $1,300

$1,400 A/T IRR 20% 28%

35% 42%

49% NPV0%

*

$130 $187 $243 $300 $357 NPV5% $84 $131

$178 $223

$273 NPV7% $69 $113 $157 $202 $254

Payback (Years)

3.5 2.7

2.2 1.9

1.7

* NPV’s in USD millions

www.amarillogold.com 12

Robust Economics

DISCOUNTED CASH FLOW ANALYSIS

slide-13
SLIDE 13

Upside Beyond Reserves

Posse Ore Body Down Dip:

  • Reserves - 997,536 ozs
  • Resources:

○ M&I - 262,464 ozs ○ Inferred - 310,000 ozs

  • Open to the north, south and

at depth

  • Potential for higher grades

Significant Land Package:

  • Greenstone belt shear hosted
  • 62,500 ha of exploration

permits

  • 2,600 ha of mining

concessions

  • 12 km coincident K-channel

/Au soil anomaly

www.amarillogold.com 13

Posse Cross Section (Looking North)

slide-14
SLIDE 14

www.amarillogold.com 14

POSSE Cross Section (Looking East)

Indicated and Inferred Ore Below the PFS Pit

slide-15
SLIDE 15

www.amarillogold.com 15

POSSE Cross Section (Looking East)

Indicated and Inferred Grades Below the PFS Pit

slide-16
SLIDE 16

www.amarillogold.com 16

POSSE Cross Section (Looking North)

Down Dip Intercepts

slide-17
SLIDE 17

www.amarillogold.com 17

Exploration Potential

POSSE TREND

slide-18
SLIDE 18

Step 1 - Approved Preliminary License (LP)

  • Most important and challenging part of the permit

process

  • Entails environmental baseline studies, social and

environmental approval and public hearings

  • Awarded by the EPA and the Judicial Ministry

Step 2 - In Progress Installation License (LI)

  • Provides authorization to initiate construction
  • Obtained approval of the mine development plan

which also demonstrates economic feasibility

Step 3 - Final Inspection Operation License (LO)

  • Granted shortly thereafter the LI permit
  • Requires inspection of the constructed mine and

plant to ensure compliance with codes and provisions

  • f LP, LI

www.amarillogold.com 18

Brazil Permitting Process

slide-19
SLIDE 19
  • Public hearing held in 2016

demonstrated overwhelming community support.

  • The main Preliminary Licence

(LP) was granted in May 2016.

  • Allows the project to advance

to the Feasibility Study and begin the next permit; construction of the Installation License (LI).

www.amarillogold.com 19

Major Permitting Milestones

slide-20
SLIDE 20

www.amarillogold.com 20

Development Schedule

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Whittle Optimization Study / Update PFS Infill & Exploration Drilling Resource Update Feasibility Study Basic Engineering License to Install Construction Commissioning & Ramp Up Commercial Production

*

MARA ROSA DEVELOPMENT SCHEDULE

slide-21
SLIDE 21

Lavras do Sul Project

Rio Grande do Sul State Significant Exploration Project

www.amarillogold.com 21

Lavras do Sul Targeting Intercepts

slide-22
SLIDE 22

BUTIA 120 m @ 3.23 g/t 232 m @1.95 g/t

PARADAO 12m @ 4.54 g/t CANELEIRA 37m @ 1.17 g/t CERRITO 135.5m @ 0.85 g/t 113m @ 1.02 g/t 210m @1.04 g/t ADVANCED TARGETS (with highlighted Au drill results) Old Gold Workings

Digital elevation in grey, roads in black. Colour image: airborne magnetics showing geology and structure.

Advancing Initiatives: Environmental baseline studies at Butiá. Soil sampling, geological mapping and airborne studies. 3,000 meter drilling campaign.

www.amarillogold.com 22

Drilling Highlights 120m @ 3.23 g/t

slide-23
SLIDE 23

Notes: At 0.3g/t cut-off.

3D Model of Butia Zone (Leap Frog)

  • Drill intercepts at Butia include 232 m

@ 1.92 g/t Au and 120m @ 3.23 g/t Au ○ Looking to recommence drilling.

  • One of 19 old workings (garimpos) at

Lavras do Sul.

  • Drilling results released in 2012

discovered new zones not in the resource estimate.

Source: Amarillo

Category

  • M. Tonnes

Grade g/t Ounces of Au Indicated 6.4 1.05 215,000 Inferred 12.9 0.74 308,000 Total 19.3 0.84 523,000

www.amarillogold.com 23

Butiá Prospect is now a focus

Source: “NI 43-101 Technical Report, Butia Prospect, Rio Grande do Sul, Brazil” prepared by Atticus & Associates, July 30, 2010

slide-24
SLIDE 24

www.amarillogold.com 24

Net Asset Value Multiple

AMARILLO TRADES AT A SIGNIFICANTLY DISCOUNTED NAV MULTIPLE

P/NAV - Average 0.41

slide-25
SLIDE 25

ENTERPRISE VALUE PER OUNCE OF GOLD RESERVES

www.amarillogold.com 25

Undervalued Reserves

EV/Reserve - Average $US77/ounce

slide-26
SLIDE 26
  • New management team incentivised to maximize value for

shareholders.

  • World class Mara Rosa Deposit: A/T IRR 35%, 2.2 year payback,

AISC of $637/oz. Trading at a P/NAV of ~0.12x. ○ Will recommence exploration drilling to extend the mine life and update the PFS.

  • Lavras do Sul Project: significant discovery given the grades and
  • ver 22 targets.

○ Commencing studies to advance this exciting property. ○ Looking to follow up on intercepts of 120 m @ 3.23 g/t and 232m @ 1.95 g/t.

  • Boosting marketing efforts globally given the recent positive changes

to management and relay the new strategy.

www.amarillogold.com 26

Corporate Summary

slide-27
SLIDE 27

www.amarillogold.com 27

Board of Directors

Rolly Uloth Executive Chairman See previous biography under ”Management Team”. Mike Mutchler President and CEO See previous biography under ”Management Team”. Colin Sutherland, CA Director

  • Mr. Sutherland is a CPA with over 20 years financial and operational experience. Colin served as Pres. of McEwen Mining.

During his tenure, the share price tripled. As former CEO of Archipelago Resources Plc, he led the privatization and delivered significant returns for shareholders. Mr. Sutherland has also held senior financial and executive roles with Timmins Gold, Capital Gold, Nayarit Gold and Aurico Gold. Rosty Raykov Director CEO of Fennec Pharmaceuticals, a successful publicly traded Biotechnology Company. Mr. Raykov is also a General Partner at DCML. Mr. Raykov began his career as a financial analyst in the natural resources group at Bear Stearns. He served on the board of publicly traded Wesdome Gold. He was also a Portfolio Manager, and investment Banking Analyst in NY. David Birkett Director

  • Mr. Birkett is Pres. & CEO of Stratus Aeronautics, a technology company dedicated to UAV development. Mr. Birkett was

the Pres. of Alton Natural Gas Storage LP ( 2005-2105) and Alton Natural Gas Storage Ltd( 2010-2015).Mr. Birkett was President of Landis Energy Inc., a publicly traded company, until it was acquired by Alta Gas in 2010. He served as a Director of Moss Lake Gold Mines (2000-2014) until is was acquired by Wesdome Gold Mines. He has over 25 years experience with public companies in the areas of corporate development, management, finance and exploration. Buddy Doyle Director

  • Mr. Doyle is a Geologist with 35 years industry experience including 23 years with Rio Tinto; a Project leader for Rio’s

Diavik discovery, won the 2007 Excellence in Diamond Exploration award. Mr. Doyle was involved in the >30M oz Lihir (Au) deposit discovery/definition team. Mr. Doyle is the co-founder of Amarillo Gold. Stephen Stow Director

  • Mr. Stow had held senior financial and executive roles with Timmins Gold, Capital Gold, Nayarit Gold and Aurico Gold.

Was a former Pres.& CEO of Odin Mining & Exploration. Currently Principal of Zen Capital & Mergers Ltd since 1995, Mr. Stow has been an adviser, investor, and executive engaged in various resource driven opportunities, start-ups and has global executive experience in management of public companies.

slide-28
SLIDE 28

Rolly Uloth Executive Chairman Tel: 1-416-201-2515 rolly.uloth@amarillogold.com Michael Mutchler President and CEO Tel: 1-416-294-0736 mike.mutchler@amarillogold.com Karen Mate Consultant Tel: 1-416-230-6454 karen.mate@amarillogold.com

www.amarillogold.com 28

Contact Information

slide-29
SLIDE 29

29