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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
AGCBF:OTCMKTS
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
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
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
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
The Qualified Persons for Amarillo are Frank Baker, M. IOM3 and MAusIMM., Mr.Mike Mutchler, MAusiMM and Buddy Doyle, MAusIMM.
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Rolly Uloth Executive Chairman
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
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
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
for drilling off several of Jaguar Mining’s Brazilian gold deposits. Frank Baker Project Manager, Mara Rosa
mining industry. Mr Baker has had the success of designing, building and commissioning five gold plants, including two in Brazil.
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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 $10 million
Major Shareholders
Board & Management 15% Institutions 42% High Net Worth 23% Retail 20%
* As at Jan 5,2018
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Mara Rosa Development Project, Goias State
Lavras do Sul Exploration Project, Rio Grande do Sul State
Brasilia Porto Alegre
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DEVELOPMENT AND EXPLORATION PROJECTS
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Typical Intercepts Within PFS Pit
Category Tonnes MT Grade g/t Ounces of Au Measured 10.00 1.70 580,000 Indicated 15.00 1.40 680,000 Resource M&I
25.00 1.56 1,250,000
Inferred
8.50 1.10 310,000
Category Tonnes MT Grade g/t Ounces of Au Proven 9.27 1.81 540,567 Probable 9.75 1.46 456,968 P&P Total
19.01 1.63 997,536
Notes:
Updated Pre-Feasibility Study Posse Mine Project-Mara Rosa GO” Notes:
Instrument 43-101 (“NI43-101”)
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*NPV(5%) US$ 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
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$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
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
Processing Plant Flow Sheet
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
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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
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DISCOUNTED CASH FLOW ANALYSIS
Upside Beyond Reserves
Posse Ore Body Down Dip:
○ M&I - 262,464 ozs ○ Inferred - 310,000 ozs
at depth
Significant Land Package:
permits
concessions
/Au soil anomaly
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Indicated and Inferred Ore Below the PFS Pit
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Indicated and Inferred Grades Below the PFS Pit
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Down Dip Intercepts
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POSSE TREND
Step 1 - Approved Preliminary License (LP)
process
environmental approval and public hearings
Step 2 - In Progress Installation License (LI)
which also demonstrates economic feasibility
Step 3 - Final Inspection Operation License (LO)
plant to ensure compliance with codes and provisions
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demonstrated overwhelming community support.
(LP) was granted in May 2016.
to the Feasibility Study and begin the next permit; construction of the Installation License (LI).
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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
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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.
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Notes: At 0.3g/t cut-off.
3D Model of Butia Zone (Leap Frog)
@ 1.92 g/t Au and 120m @ 3.23 g/t Au ○ Looking to recommence drilling.
Lavras do Sul.
discovered new zones not in the resource estimate.
Source: Amarillo
Category
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
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Source: “NI 43-101 Technical Report, Butia Prospect, Rio Grande do Sul, Brazil” prepared by Atticus & Associates, July 30, 2010
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AMARILLO TRADES AT A SIGNIFICANTLY DISCOUNTED NAV MULTIPLE
P/NAV - Average 0.41
ENTERPRISE VALUE PER OUNCE OF GOLD RESERVES
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EV/Reserve - Average $US77/ounce
shareholders.
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.
○ 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.
to management and relay the new strategy.
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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
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
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
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
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.
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
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