Update on Colombia and Ecuador: A Project Generating Company's Perspective. minelatinamerica 2016

Transcription

1 Update on Colombia and Ecuador: A Project Generating Company's Perspective minelatinamerica 2016 Toronto November 14, 2016

2 Presentation Outline 1 NW South America offers great geological potential 2 Colombia and Ecuador poised for major advancements in mining exploration and mining over the next 10 years 3 Colombia in 2016: Progress amidst Difficult Challenges 4 Ecuador in 2016: Dawn of a 2 nd Gained Decade 5 Alicanto poised to start operations at its Mina Guayos project in Q and self-fund advancement of prospective Au and Cu projects

3 Overview: Colombia, Ecuador, Canada & Ontario *2013 data

4 NW South America: A Geological Treasure Chest Geology ignores Poli5cal Boundaries Colombia and Ecuador: Under- explored with great Mining Poten5al Next decade will be transforma5ve

5 Colombia and Ecuador are Under-Explored Colombia s and Ecuador s great mineral potential is underexplored compared to their peers in the region such as Brazil, México, Chile and Perú

6 Fraser Institute Rankings: 2015 vs Source: Fraser Ins5tute Annual Survey of Mining Companies: 2015 Published on June 8, 2016 See more at: hrps:// survey- of- mining- companies- 2015

7 Background - Colombia Long mining history El Dorado legend 30% of the world s gold up to early 20 th Century Today a significant producer of nickel, coal, gold and emeralds Early 21 st Century expectation burst Expectations bubble Despite exciting discoveries project development stalled Progress and Challenges evidenced during 2016 Major Issues: Peace Process, Constitutional Court & Role of Mining

8 Colombia: New infrastructure under construction Colombia s infrastructure programme will spur economic growth and make accessible mineral resources

9 New infrastructure will unlock mineral potential RIOHACHA Coal SANTA MARTA BARRANQUILLA Ponedera CARTAGENA VALLEDUPAR Buenavista San Juan La Paz Paraguachon Cuestecitas Cruz del Viso Carreto San Pelayo Toluviejo Carmen de Bolívar SINCELEJO San Roque Palo de Letras Necoclí MONTERÍA Planeta Rica La Yé Achí San Marcos Caucasia Aguachica Aguaclara El Tigre Simití B/MANGA CÚCUTA Barrancabermeja Remedios Pamplona ARAUCA Santa Fé de Ant. Pto. Berrío Tame Buenaventura Camilo C Bolombolo MANIZALES PEREIRA ARMENIA La Paila Buga MEDELLÍN Barbosa Sogamoso Pto. Salgar TUNJA La Manuela Zipaquirá YOPAL Sisga Villeta El Secreto Sopó Cartago Calera BOGOTA Cáqueza Ibagué Girardot Puerto Gaitán Espinal VILLAVICENCIO Pto. Arimena PTO CARRENO PTO CARRENO Copper Granada CALI Santander De Quilichao NEIVA POPAYÁN Chachagüí PASTO MOCOA Exis-ng projects 4G projects

10 Colombia has a significant Mining Sector (with upside) Mineral Thermal Coal Nickel Emeralds Gold Copper La-n World America ranking Source: ANM, Nickel (2012): US Geological (Survey 2013), Coal (2012): World Coal Associa5on, Gold (2011): Reuters. The mining sector will play an ever increasing role in fostering prosperity and growth in Colombia

11 Colombia: Mining, FDI and Export Revenues

12 Colombia: Advancement in the Mining Sector Red Eagle Mining poured first gold at the Santa Rosa Gold Project in Antioquia, Colombia (November 7, 2016) Antioquia Gold received its Environmental Licence for the Guayabito Deposit at its Cisneros Project in Antioquia, Colombia (Issued October 26, 2016 and announced on November 9, 2016)

13 Colombia: Advancement in the Mining Sector (cont.) Continental Gold received widespread support for the development of its underground gold mine at Buritica, Antioquia during a public hearing re the enlargement of its environmental license (November 4, 2016) Alicanto Mining filed its new, updated EIA for its Mina Guayos project in Santander, Colombia with the CDMB (Nov. 4, 2016)

14 Colombia: Major Events and Challenges The Peace Process with the FARC Implementation of the Peace Agreements in the Field Negotiations with the ELN Fight against Illegal/Criminal Mining & campaign to eradicate Mercury use Challenges with the Constitutional Court Jurisdictional Issues between the Central Government, the Departments and Municipalities Institutional Issues and Personnel Rotation at the various Ministries Negative Perceptions about Mining Role of NGOs and the Media Arbitration proceedings against Colombia (Cosigo, possible Eco-Oro)

15 Background - Ecuador Great Mining Potential Fruta del Norte discovered 2006 In November 2006 Rafael Correa, Ph.D., becomes Ecuador s youngest president elect - takes office in 2007 and is re-elected in 2013 Left-wing orientation with Pragmatic Bent Ten Gained Years During decade, major progress made in poverty reduction, education, health, infrastructure, power generation and institutional reform Elections scheduled for H President Correa will not run Mining potential viewed as strategic factor for economic and social advancement new Mining Ministry set up in 2015 Ecuador returns as PDAC Country Sponsor in 2017

16 Ecuador: Important Achievements during Ecuador is now Ready for Growth - Supportive Government Committed to attracting Foreign Investment Major Accomplishments New Infrastructure in place: Highway Network and Hydro Power Stations have been built Implemented Social Policies: Economic, Health & Educational achievements Legislation and Tax rules amended to enhance Attractiveness and Security for Investors Dedicated Mining Ministry established in 2015 to better serve the mining sector Lundin Gold agreed financial terms for Fruta del Norte in January 2016 Junefield s Rio Blanco Au project started construction Production to start in 2018 Corriente started construction at Mirador - Production anticipated for 2018 Cornerstone/SolGold s spectacular results at Cascabel (1,338 metres of 0.49% Cu) Mining information can be obtained at:

17 Ecuador: Progress in the Mining Sector Source: Ecuador Ministry of Mining

18 Ecuador: Other Advancements in the Mining Sector Source: Ecuador Ministry of Mining

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20 Alicanto s Mission Statement Alicanto will create value and offer liquidity to its shareholders by: Discovering, advancing and monetizing exploration plays Monetizing via sale, earn-in, JV, NSR, spin-out, RTO or IPO of projects or the company as a whole Projects such as Mina Guayos at the Rionegro project to be kept as cash-cows, generating dividends while allowing for the non-dilutive advancement or Rionegro and other projects

21 Alicanto s Rionegro Project: Near-Term Production Alicanto has discovered a new gold mining district in Colombia Alicanto has acquired the key Mina Guayos concession, with an area of 7.66 km 2 Rionegro Project (190 km 2 ) Alicanto owns 66.68% of the Rionegro Project with Affinity Gold Corp. holding a 33.32% interest earned during an earlier investment round 2.5 hour drive from Alicanto s office in Bucaramanga via reliable road Lebrija River Mina Guayos 7.66 km 2 Direction of river flow Surata River km Excellent relations with supportive local community at Vanegas (where our initial field camp has been completed see next slide) Access to electric grid and water Direction of river flow Rio de Oro

22 Alicanto s San Martín Au-Cu License The San Martín license is located in a well known gold district and appears to be hosting a VMS (Volcanic Massive Sulphide) type of deposit At the San Martín property our team discovered a 20 meter wide sulphidesrich zone right at the surface that will be the first target of exploration in this license. We expect to soon formally receive this license from the ANM Alicanto is is seeking suitable strategic partner(s) for this and other projects

23 Rionegro Project: Our camp at Vanegas village Excellent relations with supportive local communities in the area of influence and local authorities CSR activities include providing the school at Vanegas with furniture, laptops and supplies, as well as rehabilitating the local soccer field and providing uniforms, soccer shoes and toys for local kids Providing employment for locals and sourcing goods and services from the community. Community surveys show overwhelming support for the mining project among the population Mina Guayos 7.66 km 2

24 Alicanto s Approach: Do it Right from the Start Alicanto Mining is committed to advancing its projects in an inclusive, sustainable manner The only way to go

25 Contact Details Raziel Zisman, M.A., M.E.S., LL.M. Executive Chairman Cell: (416) Head Office: 133 Richmond Street West, Suite 204 Toronto, Ontario, M5H 2L3, Canada Tel.: Fax: Alicanto Mining Corp. is a private project generating company whose strength is its strong technical team which has over 130 years of successful international exploration experience. With offices in Bucaramanga, Colombia, Alicanto is very close to start generating revenue from gold production at its low-capex, low-cost Rionegro Project DISCLAIMER: Alicanto Mining Corp. (the Company ) assumes no responsibility for the accuracy or completeness of information or data cited in this presentation data for which has been sourced from outside institutions, as indicated or referred to in the corresponding slides, for the purposes of this seminar. The views reflected in the presentation are solely the views of the Company and do not in any way imply endorsement by any outside institution, private of public. Images and photographs are used here for informational purposes only on the basis of fair use doctrine. The Company disclaims any intention or obligation to update or revise any information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law Alicanto Mining Corp.

26 Thank You Gracias