CORPORATE PRESENTATION - Atico Mining...
Transcript of CORPORATE PRESENTATION - Atico Mining...
CORPORATEPRESENTATIONOCTOBER2016
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM 1
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
CAUT IONARY NOTES AND QP
Certain statements in this presenta-on cons-tute forward-looking statements and as such are based on anassumed setofeconomic condi-onsandcoursesof ac-on.These includees-matesof futureproduc-on levels,expecta-ons regardingmine produc-on costs, expected trends in mineral prices and statements that describeA-coMiningCorpora-on’sfutureplans,objec-vesorgoals.Thereisasignificantriskthatactualresultswillvary,perhapsmaterially, fromresultsprojecteddependingonsuchfactorsaschanges ingeneraleconomiccondi-onsand financial markets, changes in prices for silver and other metals, technological and opera-onal hazards inA-co’sminingandminedevelopmentac-vi-es,risksinherentinmineralexplora-on,uncertain-esinherentinthees-ma-onofmineral reserves,mineral resources,andmetal recoveries, the-mingandavailabilityoffinancing,governmentalandotherapprovals,poli-calunrestorinstabilityincountrieswhereA-coisac-ve,labourrela-onsandotherriskfactors.TheCompanyhasnotbaseditsproduc-ondecisionsandongoingmineproduc-ononmineralreservees-mates,preliminaryeconomicassessmentsorfeasibilitystudies,andhistoricallysuchprojectshaveincreaseduncertaintyandriskoffailure.Mineralresourcesthatarenotmineralreservesdonothavedemonstratedeconomicviability.Dr.DemetriusPohl,PhD,istheQualifiedPersonforA-co,asdefinedbyNa-onalInstrument43-101.Dr.Pohlwasalso responsible forensuring that the informa-oncontained in thispresenta-on isanaccurate summaryof theoriginalreportsprovidedtoA-coandhasapprovedthescien-ficandtechnicalcontentofthispresenta-on.
NON-GAAPFINANCIALMEASURESCashcostperpoundofpayablecopperproducedandcashcostpertonneofprocessedorearekeyperformancemeasuresthatmanagementusestomonitorperformance.Inaddi-on,cashcostsareanindustrystandardmethodofcomparingcertaincostsonaperunitbasis;however,thesedonothaveastandardizedmeaningandmaydifferfrommethodsusedbyothercompanieswithsimilardescrip-ons.Managementbelievesthatcertaininvestorsusethesenon-GAAPfinancialmeasurestoevaluatetheCompany’sperformance.Theseperformancemeasureshavenomeaningunder IFRSand,therefore,amountspresentedmaynotbecomparabletosimilardatapresentedbyotherminingcompanies.
2
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
AT ICO MIN ING CORPORAT ION Companysnapshot
MANAGEMENT&DIRECTORS
STRATEGY
ELROBLEMINE,COLOMBIA
SHARESTRUCTURE
CASHBALANCE*
*AsofJuly31st,2016
§ ~18%foundinggroup§ ~49%ins-tu-onalshareholders§ ~33%retailshareholders
§ Successfultrackrecordcrea-ngshareholdervalue
§ Industryexper-seandextensiveregionalnetworkinLa-nAmerica
§ Buildaleadingmid--erCu-Auproducerthroughorganicgrowthandacquisi-ons,focusedonhighmarginopera-onsinLa-nAmerica
§ 90%Ownershipofproducingmineandsurroundingclaims§ ElRoblehasminedhighgradeCu-Aumaterialforover22years§ M&Iresourceof1.87Mtat3.46%Copper,2.27g/tGold§ 6,679hectarecon-guousunderexploredlandpackagewith10kilometerfavorablegeologicalcontactzoneprospec-veforVMSmineraliza-on
§ US$4.7million
3
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
2015 2016
CAP ITAL STRUCTURE Tightsharestructure
TSX.V ATYOTC ATCMFSharesoutstanding 97.6millionOp-onsoutstanding 7.9millionFullydiluted 105.5million
TopinsWtuWonalshareholdersü Ingalls&Snyderü Frontdealü ResourceCapitalFundsü Gold2000
InsWtuWonalcoverageü PIFinancialü M-Partnersü DundeeSecuri-es
InsWtuWonalwatchlistü Canaccord
ATY.Vsharepriceperformance
4
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
FernandoE.Ganoza,B.Sc.Engineering,MBAChiefExecuWveOfficerFernandoisaMiningEngineerwithover15yearsofmanagementexperienceinLa-nAmericaincludingkeyrolesinthedevelopmentofminesinPeruandMexicoasProjectManagerandCountryManagerforCanadianbasedproducerFortunaSilverMines.
JorgeR.Ganoza,B.Sc.EngineeringPresidentandDirectorJorgehasover40yearsexperienceinLa-nAmericanminingindustryholdingseniorleadingrolesinthefoundinganddevelopmentofprivateandpublicminingcompanies.
JosephA.Salas,B.Sc.GeologicalEngineeringSr.ExploraWonManagerJosephhasover20yearsexperienceinexplora-on,minegeology,projectevalua-onanddevelopmentwithvastexper-seingold-copperandcopper-molybdenumporphyriesinColombiaandPeru.
BillTsang,CPA,CAChiefFinancialOfficerBillisaCharteredProfessionalAccountantwithmorethan10yearsoffinancialaccoun-ngandaudi-ngexperienceinthemineralexplora-onandminingindustry.
MANAGEMENT SuccessfultrackrecordinLaWnAmerica
5
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
D IRECTORS SuccessfultrackrecordinLaWnAmerica
JorgeA.Ganoza,GeologicalEngineerChairmanoftheBoardJorgeisaco-founderofFortunaSilverMinesInc.wherehecurrentlyholdstheposi-onofPresident,CEOandDirector.
JorgeR.Ganoza,B.Sc.EngineeringPresidentandDirectorJorgehasover40yearsexperienceinLa-nAmericanminingindustryholdingseniorleadingrolesinthefoundinganddevelopmentofprivateandpublicminingcompanies.PreviouslytojoiningA-co,Mr.Ganozaheldtheposi-onofVPofOpera-onsinFortunaSilverMinesInc.
LuisD.Ganoza,B.Sc.Engineering,MBA,M.Sc.DirectorLuisholdstheposi-onofChiefFinancialOfficerinFortunaSilverMinesInc.andhasover12yearsexperienceinthefinancialmanagementofpublicminingcompanies.
MarioSzotlenderDirectorMario,co-founderofFortunaSilverMines,isalsoaDirectorofRadiusGoldInc.andEndeavourSilverCorp.
MichaelWinnDirectorMichaelhasover20yearsexperienceintheresourcesector,andisthePresidentofSeabordCapitalCorp.whichprovidesinvestmentanalysisandfinancialservicestocompaniesopera-ngintheenergyandminingsectors.LuisF.SáenzDirectorMr.Sáenzisafinanceexecu-vewithover20yearsexperienceinminingfinanceandmetalstradingwithafocusonLa-nAmerica.
6
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
GROWTHSTRATEGY Focusedonmedium-sizedhighgradeCu-AuassetsinLaWnAmerica
§ Evaluatemedium-sizedadvancedexplora4onopportuni4esinColombia(VMSandcentralCu-Autrend),Peru(southerncopperbelt)andChile(northerncopperbelt)
§ Acquiremid-sizeprivateorpublicsmallscaleproducingmineswithexplora-onpoten-al
§ Focusonsustainableorganicgrowthatcurrentopera-on
7
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROBLE MINE , COLOMBIA
§ ElRoblemineistheonlyCu-AuVMSdepositinproduc-oninColombia
§ 3.5hoursawayfromthecityofMedellinviapaved145kilometerhighway
§ Powergrid,abundantwaterandminefacili-esonsite
ExcellentlocaWonandmineinfrastructure
ElRobleMine
8
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROBLE MINE , COLOMBIA InproducWonforover22years
LocaWon CarmendeAtrato,Colombia
Ownership 90%
Typeofdeposit Mafic-typeVolcanicMassiveSulphide
CommodiWes Cu,Au,Ag
Processing Standardgrinding,millingandflota-oncircuit
OperaWon 800tpdundergroundmine
EndProduct Cu(+Au,Ag)Concentrate
M&IResource 1.87Mtat3.46%Copper,2.27g/tGold
800tpdprocessingfacility
*
*1,412
9,07912,044
543%
33%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2013 2014 2015 2016E
(000s)lbs
CopperProducWon
2,297
9,53810,994315%
15%
0
2,000
4,000
6,000
8,000
10,000
12,000
2013 2014 2015 2016E
oz
GoldProducWon
* Duringtheop:ontermanduptoNovember22nd2013,theCompanywasnotresponsibleforminingorforresourcedevelopmentandgainednoincomefromtheminingopera:ons
**TheCompanyisbasing2016guidanceonyearendedDecember31,2015financialandproduc:on
results.PleaserefertoCau:onaryNoteonForwardLookingStatementsatthebeginningofthisdocument.
**
**
9
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROBLE MINE , COLOMBIA ProducWonSummary 2013* 2014 Q22015 Q32015 Q42015 2015 Q12016 Q22016
ProducWonCopper(000slbs) 1,412 9,079 2,909 3,255 3,876 12,044 4,277 4,786
Gold(ounces) 2,297 9,538 2,298 2,969 3,436 10,994 2,566 2,948
MineTonnesmined 69,901 139,154 41,287 48,319 57,725 179,995 53,752 63,112
MillTonnesprocessed 69,895 133,332 40,747 48,015 55,775 178,095 53,715 64,246
Tonnesprocessedperday 303 462 576 641 729 638 778 814
Coppergrade(%) 1.07 3.37 3.45 3.26 3.34 3.26 3.81 3.63
Goldgrade(g/t) 1.56 3.3 2.65 2.81 2.63 2.78 2.25 2.20
RecoveriesCopper(%) 89.6 91.4 93.7 94.4 94.4 94.1 94.4 93.0
Gold(%) 65.2 66.9 66.1 68.5 72.7 69.2 67.2 65.0
ConcentrateCopperandGoldconcentrates(dmt) 3,294 19,418 6,938 7,830 9,417 29,024 9,674 10,718
Payablecopperproduced(000slbs) 1,341 8,625 2,764 3,092 3,682 11,428 4,048 4,547
CashCostperpoundofpayablecopperproduced(1) N/A 0.82 1.16 0.98 0.81 1.00 0.86 0.96
*Duringtheop:ontermanduptoNovember22nd2013,theCompanywasnotresponsibleforminingorforresourcedevelopmentandgainednoincomefromtheminingopera:onsNote:Metalproduc:onfiguresaresubjecttoadjustmentsbasedonfinalsePlement(1) Netofby-productcredits(refertonon-GAAPFinancialMeasures)
10
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROBLE MINE , COLOMBIA Majorscale-upcomponentscompletedtoachieve800tpd
NewtailingsfacilityEntrancetonewlevel1880adit
§ Firstandsecondphaseofthenewtailingsfacilitycompleted
§ Facilitybuilttointerna-onalstandards
§ Thirdphaseconstruc-onwillcommenceasrequiredbyopera-onalneeds
§ Fivebyfive,830meteradit
§ Directaccesstothenewlydiscoveredresources
§ Improvedundergrounddrillaccess
§ Capacitybeyond800tpd
800tpdprocessingfacility
§ Upgradestothecrushingandmillingcircuitincludinganewconecrusherandstrongerballmillmotors
§ Addi-onalflota-oncells
§ Upgradestothethickenerandvacuumdrumfilter
§ Newonsitelab
ADIT TAILINGSFACILITY PROCESSINGFACILITY
11
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
EXPLORAT ION PROGRAMMineoverviewfromArchietarget
AdministraWveoffices
Mill
Coreshack
TailingsdaminremediaWon
ElRobleMine,Colombia
New1880adit
12
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROB L E M INE V I C IN I T Y E XP LORAT ION PROGRAM Resourceupdatecompleted
Undergrounddrilling
§ HighCu-Augradesdefinedbelowthe2000metereleva-on,previousoperator’slowestproduc-onlevelatthecurrentlyproducingmine
§ Measuredandindicatedresourceof1.87Mtat3.46%Copper,2.27g/tGoldand8.87g/tSilverusingacut-offgradeof0.93%CuEq
§ Poten-altofurtherincreaseresourceattheElRoblemineasmineraliza-onisopenalongstrikeandatdepth
Coreshack
13
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROB L E M I N E V I C I N I T Y E X P LORA T I ON P ROGRAM
Highgrademassivesulfidediscovered
ElRobleLongSecWon
14
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROB L E M I N E V I C I N I T Y E X P LORA T I ON P ROGRAM
HighgrademineralizaWonconWnuesatdepth Intercept(m)
Body HoleID From To Interval(m) Cu(%) Au(g/t) Ag(g/t)Goliath ATDHR-01 109.2 151.0 41.7 6.54 1.82 7.43
Including 109.2 111.0 1.7 9.00 4.81 22.2 121.0 123.0 2.0 6.87 10.27 11.4 125.0 141.0 16.0 7.13 1.00 3.87 143.0 145.0 2.0 14.85 0.91 15.15
ATDHR-12 113.9 132.1 18.15 10.30 2.10 6.59Including
113.9 118.0 4.10 11.06 6.46 17.57120.0 122.0 2.00 15.91 0.78 3.23122.0 126.0 4.00 17.45 1.06 3.94
ATDHR-20 128.0 148.4 20.40 5.25 1.28 6.16
Maximus ATDHR-04 61.0 102.0 41.0 6.49 17.57 13.26Including 75.0 85.0 10.0 3.00 3.59 12.77
85.0 95.0 10.0 18.40 8.63 19.29 95.0 97.0 2.0 3.92 250.0 21.2 97.0 102.0 5.0 6.05 7.21 13.20
ATDHR-05 70.0 79.0 9.0 2.50 2.31 16.17Including 75.5 77.0 1.5 3.81 9.41 145.5
77.0 78.0 1.0 10.82 1.60 0.00ATDHR-17 71.8 160.5 88.70 5.41 2.48 10.83Including
71.8 75.2 3.40 11.50 7.22 13.77100.3 104.1 3.80 7.17 3.89 18.20141.1 149.5 8.45 12.96 1.09 12.70
Zeus ATDHR-26 144.0 263.7 119.7 6.89 6.26 16.50Including 145.8 156.3 10.43 11.68 14.14 33.83ATD-0003 158.8 245.20 86.4 5.04 3.71 8.69ATD-0004 155.7 225.75 70.1 6.26 1.85 7.93Including 186.4 225.75 39.53 7.50 1.31 5.67ATDHR-28 242.8 292.0 49.20 4.11 2.32 6.36Including 257.4 266.5 9.12 6.69 1.71 7.07
2012-15ExploraWonHighlights
15
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROB L E M INE D I S TR I C T E XP LORAT ION UPS ID E
§ 6,679con-guoushectarepropertywithlimitedandintermipentexplora-onoverthepast40years
§ 10,000metersofdrillingbyKennecopandNipetsuattheminevicinitytodefinethehistoricalresources(1982-1986)
§ Con-nuousexplora-onprogramsbyA-cooverthepast5years,havedefined16regionaldrilltargets.
PastexploraWonprogramsfocusedonminevicinity
ElRoblemineandsurroundingclaims
ElRobleMineVMSwithaMeasuredand
Indicatedresourceof1.87Mt3.46%Cu,2.27g/tAuand8.00
g/tAg
ZeusmassivesulfideCoreshownfromhole26:119mof6.9%Cu,6.3g/tAu
16
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROB L E M INE D I S TR I C T E XP LORAT ION UPS ID E
§ A-coiden-fiedandmappeda10kmstra-graphiccontactbetweenbasaltflowsandpelagicsedimentsthatcontrolmineraliza-on
§ Geochemicalprogram(1)andgeophysicalsurveys(2)haveoutlinedmul-pleVMStargetsoverthe10kmfavorablecontact
§ Only2of15districtgeochemicaltargetshavebeenpreviouslydrilled;ArchieandSantaAnita
§ A-coplanstodrillatleast2targetsin2016
§ Poten-alformoretargetstobediscoveredduringdistrictexplora-onoftheheavilyvegetatedterrain
PotenWaltodiscoveraddiWonalVMSbodies
(1)Geochemicalprogramcorrespondstorockchipandsoilsampling(2)GeophysicalsurveysconductedincludeIP,VTEM,magne-csurvey,
gravityanddown-holeEM GeologicalmapoffavorablecontactwithinElRobleclaims
17
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
INVESTMENT H IGHL IGHTS Buildingaleadingmid-WerCu-Auproducer
ü Proventeamofminedevelopersandmineoperators
ü Industryexper-seandregionalnetworkü Focusedondevelopingandopera-nghighmarginmid-
sizedCu-Audeposits
ü Inproduc-onandgenera-ngcashflowatElRoblemine
ü UpsideatElRoblemine’sunderexploredlargelandpackagewithmul-plegeochemicalandgeophysicalVMSanomalies
18
CORPORATEOFFICESuite501–543GranvilleSt.VancouverBCV6C1X8T:+1.604.633.9022
CONTAC T I N FORMAT I ON
19
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
APPENDIX
ElRoblemineanalystvisit
20
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROB L E M INE V I C IN I T Y E XP LORAT ION PROGRAM ResourceEsWmateTable
Note:1. Themineralresourcees-mateupdatewaspreparedinaccordancewiththedefini-onsintheCanadianNa-onalInstrument43-101andbasedondatafrom
230drillholestotaling27,945meterscompletedbyA-co,during2010anduptoJune2015.2. MineralResourcesareasdefinedbyCIMDefini:onStandardsonMineralResourcesandMineralReserves;3. TheElRobleminecurrentlycontainsnoMineralReserves;4. MineralResourcesthatarenotMineralReservesdonothavedemonstratedeconomicviability;5. Therearenoknownlegal,poli-cal,environmentalorotherrisksthatcouldmateriallyaffectthepoten-aldevelopmentoftheMineralResourcesatElRoble;6. ElRobleMineralResourcesarees-matedandreportedasofJune30,2015;7. ElRobleMineralResourcesarees-matedandreportedataCuEquivalentof0.93%Cu,withCuEquivalentin%usingaCupriceofUSD$6,172/tonneCu
metalandUSD$1,200/tr.Oz.Auandcopperandgoldrecoveriesof93.5%and73%,respec-vely;8. Totalsmaynotaddduetoroundingprocedures.
ContainedMetal
CuEqCutoff(%)
Tonnes(000)
CuEq(%)
Cu(%)
Au(g/t)
Ag(g/t)
CuLbs(000)
Auoz(000)
Agoz(000)
MeasuredResources
0.93% 791 4.94 3.68 2.61 10.06 64,189 66 256
IndicatedResources
0.93% 1,074 4.27 3.29 2.02 8.00 78,023 70 276
[email protected]%CuEq.
0.93% 1,865 4.55 3.46 2.27 8.87 142,212 136 532
InferredResources
0.93% 255 4.75 4.1 1.34 5.21 23,042 11 43
21
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
VMS DEPOS ITS Typicallyoccurinclusters
VMSDeposit
§ Volcanogenicmassivesulfidemineraldepositsareformedatornearthesea-floorbyvolcanicac-vity
§ VMSdepositsgenerallyoccurinclusters;raretofindjustasingledeposit
§ Over1,000knowndepositsfrom<1Mttoover300Mt,averagesize2.87Mttonnesof1.82%Cuand1.4g/tAu
§ Itispossibletoes-matethesizeandgradeoffuturediscoveriesinadistrictbasedontheknowndistribu-onofVMSdeposits
§ ColombiarepresentsanewVMSprovinceinSouthAmerica.
VMSdepositstypicallyoccurinclusters
22
TSX-V:ATY|OTC:ATCMF|ATICOMINING.COM
E L ROBLE MINE EXPLORAT ION UPS IDE
§ Mappingofmainlithologiesfor10kilometersthroughtheElRoblepropertythatcontrolmineraliza-on-stra-graphiccontactbetweenbasaltflowsandpelagicsediments
§ Wellunderstoodoccurrenceofmineraliza-oninfavorablelithology
§ Knowledgegainedfrommineinformsregionalexplora-on
§ Structuralcontrolss-llneedtobebeperunderstood
Wellunderstoodgeologicalmodel
SchemaWcRegionalConceptSecWon
23