2 MANAGEMENT Robert Carne, M.Sc., P.Geo. President and Director - - PowerPoint PPT Presentation
2 MANAGEMENT Robert Carne, M.Sc., P.Geo. President and Director - - PowerPoint PPT Presentation
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of inferred and indicated
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FORWARD-LOOKING STATEMENTS This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of inferred and indicated mineral resources; (ii) the success of exploration activities; (iii) the results of the PEA including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, and production timelines for the Tiger Deposit. These statements are based on information currently available to ATAC Resources Ltd. (“ATAC”) and ATAC provides no assurance that actual results will meet management's
- expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or
"would". Forward-looking information contained in this presentation is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of resource estimate, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Tiger Deposit in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While ATAC considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ATAC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining
- perations may not commence at the Tiger Deposit, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development
activities, risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Tiger Deposit may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, and environmental risks. This list is not exhaustive of the factors that may affect any of ATAC's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on ATAC's forward-looking information. ATAC does not undertake to update any forward-looking information that may be made from time to time by ATAC or on its behalf, except in accordance with applicable securities laws. PEA DISCLOSURE It should be noted that the Tiger Deposit PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecast will be realized or that any of the resources will ever be upgraded to reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. A NI 43-101 technical report for the Tiger Deposit PEA has been filed on SEDAR (www.sedar.com) and is available on ATAC's website (www.atacresources.com). QUALIFIED PERSON Robert C. Carne, M.Sc., P.Geo., the President and a director of ATAC, is a qualified person for the purposes of National Instrument 43-101. All technical information contained in this presentation has been approved by Robert Carne.
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MANAGEMENT Robert Carne, M.Sc., P.Geo. President and Director Graham Downs CEO Ian Talbot, B.Sc., LLB. COO Larry Donaldson, C.A. CFO Julia Lane, B.Sc., P.Geo. Project Manager Vanessa Pickering
- Mgr. Corporate Communications
DIRECTORS Douglas Goss, B.Comm., LLB. Chairman and Director Bruce Youngman, B.Sc. Director Glenn Yeadon, B.Comm., LLB. Secretary and Director Bruce Kenway, C.A. Director Helmut Wober, P.Eng. Director PROJECT MANAGEMENT Exploration at the Rackla Gold Project is managed by Archer, Cathro & Associates (1981) Limited. Archer, Cathro is the preeminent Yukon exploration consulting firm and has been in business since 1965.
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SHARE STRUCTURE SHARES OUTSTANDING 117,794,577 FULLY DILUTED 127,121,577 OPTIONS ($0.75 - $3.00) 9,327,000 WARRANTS WORKING CAPITAL
~$20M
SIGNIFICANT HOLDERS
TOCQUEVILLE 11,516,891 9.7% STRATEGIC METALS 10,144,136 8.6% AGNICO EAGLE* 9,600,000 8.1%
FINANCINGS
FLOW-THROUGH HARD DOLLARS PROCEEDS
- Mar. 2014
3,781,441 @ $1.80/share ~$6.8 M
- Mar. 2013
9,600,000 @ $1.35/share ~$13.0 M
- Nov. 2012
1,000,000 @ $2.05/share $2.0 M July 2012 3,980,100 @ $3.30/share 886,900 @ $2.85/share $15.6 M
- Feb. 2011
3,333,333 @ $7.50/share $25 M
Capital Structure as at March 31, 2015 Past 12 month trading pattern
*As at Sept. 22, 2014
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- WHY ATAC?
- Developing Canada’s only Carlin-type gold district in geopolitically safe and mining friendly
Yukon
- Well-funded - $20 million cash
- $3 million Phase I exploration and drilling program planned for 2015
- 100% owned with no underlying royalties
- Exploration Cooperation Agreement in place with the First Nation of Na Cho Nyäk Dun
- WHY CARLIN-TYPE GOLD?
- The USA is #4 in worldwide gold production – 69.2% of USA’s gold production comes from
Nevada*
- Multiple deposits with relatively small surface footprint forming district scale “trends”
- High-grade gold – ATAC’s best hole to date within the Nadaleen Trend intersected
42.93 m of 18.44 g/t gold at the Conrad Zone
* http://www.nevadamining.org/issues_policy/pdfs/NMA-01mineral-v8.pdf
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- GOVERNMENT OF YUKON
Promotes resource investment and responsible development
- CONTROL
Decisions about land, water and mineral resources are made by Yukoners
- LAWS
Secure mineral tenure and single coordinated approach to environmental assessment and regulatory permitting
- FIRST NATIONS
11 of 14 Yukon First Nations have finalized land claims including the Na Cho Nyäk Dun with whom ATAC has a long-standing Exploration Cooperation Agreement
- HISTORY
Exploration and mining have been a part of Yukon’s history and economic progress for over a century
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- Canada’s first Carlin-type discovery –
OS-10-001 intersected 65.20 m of 4.65 g/t gold
- Nadaleen Trend is 30 km long and hosts two
areas of Carlin-type gold mineralization at the 12 km² Osiris Cluster and 18 km² Anubis Cluster
- Conrad is the most advanced zone
- 800 m strike length in the Upper Zone
- 300 m strike length in the Middle Zone
- Drilling in 2014 below previous limit of
mineralization discovered a new Lower Zone
- OS-12-114 at Conrad Upper Zone intersected
42.93 m of 18.44 g/t gold
- OS-12-116 at Conrad Middle Zone intersected
56.93 m of 4.68 g/t gold
- incl. 15.24 m of 8.89 g/t gold
- OS-14-230 at Conrad Lower Zone intersected
42.67 m of 3.03 g/t gold
- incl. 6.09 m of 13.61 g/t gold
- 8 km of anomalous strike length within the
Anubis Cluster yet to be drill tested
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- Conrad Upper Zone strike length
currently 800 m – drilling in 2015 to test the eastern portion of the Upper Zone
- Three step-out holes drilled in 2014 at
the Conrad Middle Zone intersected high-grade gold mineralization :
- OS-14-227: 30.79 m of 9.50 g/t gold
- OS-14-228: 40.22 m of 6.57 g/t gold
- OS-14-229: 36.57 m of 5.06 g/t gold
- 2015 step-out diamond drilling of newly
discovered Conrad Lower Zone where OS-14-230 intersected 42.67 m of 3.03 g/t gold incl. 6.09 m of 13.61 g/t gold
- All zones within Conrad remain open
along strike and at depth
CONRAD AD
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13 HOLE FROM (m) TO (m) INTERVAL Au (g/t) OS-11-010 176.15 291.08 114.93 3.15 incl. 181.36 263.65 82.29 4.08 OS-11-030 179.83 252.98 73.15 3.05 OS-11-058 147.22 188.37 41.15 7.33 OS-11-062 83.21 142.65 59.44 4.32 OS-12-098 90.76 131.06 40.30 10.10 incl. 91.86 109.45 17.59 21.24 OS-12-103 34.44 80.50 46.06 11.24 OS-12-114 66.19 109.12 42.93 18.44 incl. 84.73 101.46 16.73 30.85 OS-12-116 256.95 313.88 56.93 4.68 OS-13-219 274.62 308.48 33.86 5.40 OS-14-227 452.80 483.59 30.79 9.50 OS-14-228 321.50 361.72 40.22 6.57 OS-14-229 448.06 484.63 36.57 5.06 OS-14-230 624.84 667.51 42.67 3.03 incl. 630.94 637.03 6.09 13.61 and 697.62 719.33 21.71 3.15 incl. 710.18 719.33 9.15 5.85 True widths for all Conrad highlight drill holes are estimated to be 60% - 100% of intersected widths
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- Well-financed with $20 million in the treasury
- ATAC’s Nadaleen Trend comparable in size to the entire northern
Carlin Trend of Nevada
- 100% owned Carlin-type gold district in safe mining jurisdiction
- $3 million Phase I 2015 exploration program to include diamond
and RAB drilling
- Conrad Zone continues to deliver exceptional results – Conrad Upper,
Middle and Lower zones to be diamond drilled in 2015
- Anubis Cluster results further indicate a large regional mineralizing
system exists with multiple targets to be tested by RAB drilling in 2015
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- The Rau Trend is 35 km long and hosts the Tiger
Deposit and Ocelot silver-lead-zinc discovery
- Permitted Wind River Winter Trail located
within 12 km of Tiger Deposit and 2 km of the Ocelot discovery
- Six untested satellite oxide gold targets within
8 km of Tiger Deposit
- Tiger Deposit discovered in 2007 and
delineated by 25,562 m of drilling
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For the Tiger PEA disclosure, please see page 1 of this presentation
- POSITIVE PEA
$52.1 million NPV at $1,250 gold, 30% IRR (pre-tax) at 5% discount rate
- SENSITIVITY
At a US$1,500 gold price – (pre-tax) NPV increases to $103.3 million at 5% discount rate
- FOUR YEAR, SEASONAL OPERATION
LOM production 221,558 oz gold
- HIGH-GRADE AT-SURFACE
3.72 g/t gold average over LOM
- EXCELLENT RECOVERIES
89.8% combined average recoveries from hybrid heap-leach and agitated tank carbon- in-leach (CIL)
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23. Recognition 24. Pictures 25. Pictures 26. 2011 – 2013 Rackla Gold Project Consultants 27. Northern Carlin Trend 28. Nadaleen Trend – arsenic geochemistry 29. Osiris Zone information 30. Osiris Zone highlight drill results 31. Rau Trend gold geochemistry 32. Tiger Deposit PEA Gold Price Sensitivity 33. Tiger Deposit PEA Projected Production & Processing Summary 34. Tiger Deposit PEA Capital & Operating Costs 35. Tiger Deposit NI 43-101 Mineral Resource Estimate 36. Tiger Deposit plan map 37. Ocelot silver-lead-zinc discovery plan map 38. Ocelot silver-lead-zinc cross-section 39. Ocelot highlight drill results
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Bill Wengzynowski, Geological Consultant to ATAC and Rob Carne, ATAC’s President receiving the 2011 Prospector of the Year Award at Yukon Geoscience for the discovery
- f Carlin-type mineralization at the Rackla Gold
Project. Rob Carne accepting the 2012 H.H. “Spud” Huestis Award on behalf of Bill Wengzynowski and Archer, Cathro President, Doug Eaton for excellence in prospecting and discovery of the Rackla Gold Belt.
21 NADALEEN CAMP 3000’ STEWART AIRSTRIP ROB CARNE WATER SAMPLING
CORE-SHACK CREW ATV TRAIL BUILDING AT SUNRISE
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PERSON SPECIALITY BILL WENGZYNOWSKI, PEng Regional-scale exploration manager for ATAC Resources Ltd. VENESSA BENNETT, PhD Deposit modeling, former Mineral Deposit Geologist with Yukon Geological Survey JOYIA CHAKUNGAL, PhD Geological mapping, former Regional Geologist with Yukon Geological Survey ODIN CHRISTENSEN, PhD Carlin-type gold deposit exploration consultant, former Nevada Exploration Manager for Newmont GREG AREHART, PhD Carlin-type gold deposit geochemistry, University of Nevada LIZ TURNER, PhD Carbonate stratigraphy consultant; Laurentian University HARRY COOK, PhD Carbonate stratigraphy consultant, Emeritus US Geological Survey SARAH GLEESON, PhD Mineral deposit geologist, thesis supervisor; University of Alberta CRAIG HART, PhD Gold deposit expert, thesis supervisor; University of BC (MDRU) YVETTE KUIPER, PhD Structural geology consultant, thesis supervisor; Colorado School of Mines
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- First area discovered within the
Nadaleen Trend
- Mineralization found at surface on
top of a ridge
- Discovery hole OS-10-001
intersected 65.20 m of 4.65 g/t gold*
- Mineralization is best developed in
the hinge or crest area of an anticline fold
- Stratabound gold mineralization
- utlined over a 850 m strike length
along the west limb of the fold and in the hinge of the fold
- A total of 14,200 m in 59 diamond drill holes
has been completed to date at Osiris
*True width for OS-10-001 is estimated to be 75% - 100% of the intersected width
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HOLE FROM (m) TO (m) INTERVAL Au (g/t) OS-10-001 56.08
121.28
65.20 4.65 OS-11-023 15.24 56.39 41.15 2.48 incl. 38.10 53.34 15.24 4.90 OS-11-031 39.62 71.63 32.01 4.25 OS-11-053 0.41 31.39 30.98 3.09 incl. 7.60 28.15 20.55 4.09 OS-11-055 1.42 27.54 26.12 6.08 OS-11-057 1.75 23.77 22.02 4.14 incl. 3.96 14.63 10.67 7.18 OS-11-082 134.11 178.31 44.20 4.41 incl. 160.02 175.26 15.24 6.83 OS-11-088 74.07 92.35 18.28 4.43 incl. 76.94 83.21 6.27 11.15
True widths for all Osiris highlight drill holes are estimated to be 75% - 100% of intersected widths
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Gold Price $US/oz $1,100 $1,250 $1,350 $1,500 Pre-Tax Cumulative Net Cash Flow $M $36.7 $72.7 $96.6 $132.6 Pre-Tax NPV (5% discount rate) $M $21.4 $52.1 $72.6 $103.3 Pre-Tax IRR 15.5% 30.0% 39.5% 53.5% Pre-Tax Payback (years) 2.9 2.2 1.8 1.3 After-Tax Cumulative Net Cash Flow $M $26.3 $51.0 $67.3 $91.5 After-Tax NPV (5% discount rate) $M $12.6 $33.7 $47.5 $68.0 After-Tax IRR 11.2% 21.5% 27.9% 37.2% After-Tax Payback (years) 3.2 2.6 2.3 1.9
Please see page 1 of this presentation for Tiger PEA disclosure
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Total Processing Feed 2.06 million tonnes Processing Rate* 3,300 tonnes/day Life of Mine (“LOM”) Strip Ratio 5.6:1 Description of Dual Process Heap Leach (42%) CIL (58%) Combined Average or Total Average Process Feed Grade 3.45 g/t Au 3.91 g/t Au 3.72 g/t Au Average Recovery 87.8% 91.0% 89.8% Average Annual Production LOM (oz) 21,132 34,257 55,389 Total Production (oz) 84,528 137,029 221,558
Silver is a minor by-product of gold production with an assumed recover of 19% and process feed grade of 5 g/t. Total recovered silver ounces
- ver LOM is 63,057 oz.
Please see page 1 of this presentation for Tiger PEA disclosure
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CAPITAL COSTS PRE PRODUCTION (millions) SUSTAINING CAPITAL LOM Site Infrastructure $1.7 $1.7 Heap Leach/Tailings¹ $5.7 $20.4 $26.1 Mining Equipment $10.1 $1.7 $11.8 Pre-Stripping & Stockpiling $10.5 $10.5 Process Plant $40.3 $40.3 Contingency (20%) $11.6 $4.4 $16.0 Indirect Costs $12.3 $12.3 Total² $92.3 $26.5 $118.8 OPERATING COSTS LIFE OF MINE Avg. C$ Mining Costs* $4.46 $/tonne Processing $20.10 $/tonne processed G & A $7.11 $/tonne processed
1.
Pre-production and annual heap leach cell and tailings development
2.
Total may not add exactly due to rounding * Not including capitalized pre-production mining costs
Please see page 1 of this presentation for Tiger PEA disclosure
34 Oxide plus Sulphide Cut-off grade (g/t)(Au) Tonnes Grade (g/t) Ounces (Au) Indicated 1.60 3,260,000 3.85 403,500 Inferred 1.60 1,570,000 2.44 123,200 Oxide only Cut-off grade (g/t)(Au) Tonnes Grade (g/t) Ounces (Au) Indicated 1.60 2,470,000 4.25 337,500 Inferred 1.60 180,000 3.00 17,400 The Tiger Gold Deposit mineral resource estimation was completed by Gary Giroux, P.Eng., MASc. (Giroux Consultants Ltd.) who is a qualified person and independent of ATAC, based on the criteria defined by National Instrument 43-101. Quality control data generated during the various drill programs conducted at the Tiger Gold Deposit were independently reviewed by Giroux Consultants
- Ltd. as part of the resource study. The full report dated effective November 15, 2011 and titled “Preparation of the Tiger Zone
Mineral Resource Estimate” was filed on SEDAR (www.sedar.com) December 1, 2011.
TIGER DEPOSIT NI 43-101 MINERAL RESOURCE ESTIMATE & DISCLOSURE
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True widths for all highlight Tiger drill-holes are estimated to be 70% - 100% of intersected widths