CARLIN-TYPE GOLD DISTRICT TSX-V: ATC July 2017 FORWARD LOOKING - - PowerPoint PPT Presentation

carlin type gold district
SMART_READER_LITE
LIVE PREVIEW

CARLIN-TYPE GOLD DISTRICT TSX-V: ATC July 2017 FORWARD LOOKING - - PowerPoint PPT Presentation

DEVELOPING CANADAS ONLY CARLIN-TYPE GOLD DISTRICT TSX-V: ATC July 2017 FORWARD LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS This presentation contains forward-looking information. Forward looking information contained in this presentation


slide-1
SLIDE 1

July 2017

DEVELOPING CANADA’S ONLY

CARLIN-TYPE GOLD DISTRICT

TSX-V: ATC

slide-2
SLIDE 2

FORWARD LOOKING STATEMENTS

1

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. Additional information about the Tiger Deposit PEA is summarized in ATAC’s May 31, 2016 technical report titled “Technical Report and Preliminary Economic Assessment for the Tiger Deposit, Rackla Gold Project, Yukon, Canada” which can be viewed at www.sedar.com under the ATAC profile or on the ATAC website at www.atacresources.com. QUALIFIED PERSON Julia Lane, B.Sc., P.Geo., the Vice President of Exploration 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 Julia Lane. TRUE WIDTHS True widths for all Conrad, Osiris, Sunrise, Ibis, Anubis, Tiger and Ocelot highlight diamond drill holes are estimated to be 30% - 100% of intersected widths. RAB drill hole intersections are drilled thicknesses and true widths are unknown. Orion diamond drilling true thicknesses are also unknown at this time.

slide-3
SLIDE 3

MANAGEMENT & DIRECTORS

2

MANAGEMENT Graham Downs President & CEO - 23 Years of Yukon mineral exploration experience Julia Lane, B.Sc., P.Geo. VP, Exploration - Partner of Archer, Cathro & Associates Ian Talbot, B.Sc., LLB. COO - Formerly internal counsel with BHP Billiton World Exploration Inc. Larry Donaldson, C.A. CFO - 30 years of accounting, auditing and tax experience Vanessa Pickering Manager, Corporate Communications - 13 years Yukon experience DIRECTORS AND TECHNICAL COMMITTEE Douglas Goss, B.Comm., LLB. Chairman & Director - Queen Elizabeth II Golden and Diamond Jubilee Medals, Alberta Order of Excellence Rob Carne, M.Sc., P.Geo. Director, Executive Chairman of Technical Committee - Former President of ATAC - Carlin-type gold discovery team for Rackla Gold Property Bruce Youngman, B.Sc. Director & Technical Committee - Former COO of Canplats Resources Corp. - former VP and director of Northern Dynasty Minerals Glenn Yeadon, B.Comm., LLB. Secretary & Director - Over 30 years practicing securities law Don Poirier, B.Sc. Director - Former VP, Corporate Development of Hecla Mining Bruce Kenway, C.A. Director - Founding member of chartered accounting firm Kenway Mack Slusarchuk Stewart LLP Ed Cope, M.Sc. Technical Committee - Former VP of Exploration, North America for Barrick Gold Corporation Bill Wengzynowski, P.Eng. Technical Committee - Former partner in Archer, Cathro - Carlin-type gold discovery team for Rackla Gold Property

slide-4
SLIDE 4

CAPITAL STRUCTURE

3

SHARE STRUCTURE SHARES OUTSTANDING 139,581,877 FULLY DILUTED 151,031,877 OPTIONS ($0.31 - $1.80) 11,450,000 WARRANTS WORKING CAPITAL

~$20M

Share Structure as at July 6, 2017

SIGNIFICANT HOLDERS

BARRICK ~27,771,818 19.9% TOCQUEVILLE 11,717,291* 8.4% STRATEGIC METALS 10,144,136 7.3%

*As at January 31, 2017

FINANCINGS

FLOW- THROUGH HARD DOLLARS PROCEEDS May 2017 Barrick 16,684,800 @ $0.50/share ~$8.3 M

  • Apr. 2016

5,000,000 @ $0.65/share ~$3.3 M

  • Mar. 2014

3,781,441 @ $1.80/share ~$6.8 M

  • Mar. 2013

Agnico Eagle 9,600,000 @ $1.35/share ~$13.0 M Past 12 month trading pattern

slide-5
SLIDE 5

THE RACKLA GOLD PROPERTY, YUKON

4

slide-6
SLIDE 6

THE RACKLA GOLD PROPERTY

5

  • The Rackla Gold Property is ~1,700 km² and is

comprised of three separate projects: the Osiris (100% ATAC), the Orion (ATAC-Barrick partnership) and the Rau (100% ATAC)

  • The Orion Project is subject to an earn-in

agreement with Barrick Gold Corporation whereby Barrick can earn up to 70% interest in Orion by spending $55 million in exploration

  • The Rau Project hosts the economic Tiger

Gold Deposit and 15 other underexplored targets

  • The Osiris Project is host to Canada’s first

Carlin-type gold discoveries within the 12 km² Osiris Cluster at the Conrad, Osiris, Sunrise and Ibis zones

slide-7
SLIDE 7

RACKLA GOLD PROPERTY HIGHLIGHTS

6

Canada’s only Carlin-type gold district discovered by ATAC in 2010 at the Osiris Project Drilled ~79,000 m and outlined 6 zones of significant, high-grade, Carlin-type gold mineralization at Conrad, Osiris, Sunrise, Ibis, Anubis and Orion between 2010 - 2016 April 10, 2017: Barrick and ATAC enter partnership to explore the Orion Project – transaction valued at ~$63 million May 3, 2017: initial regulatory approval to proceed with constructing a 65 km tote road to the Tiger Gold Deposit Well-funded with ~$22 million in cash and drilling has commenced

  • n the $10 million exploration program for the Osiris and Rau Projects
slide-8
SLIDE 8

THE BARRICK TRANSACTIONS

7

The transactions consist of a potential total investment by Barrick of approximately $63.3 million, which includes a private placement of $8.3 million (completed), and a two-staged, $55 million exploration earn-in option to acquire 70% of the Orion Project:

  • Stage 1 earn-in: $35 million expenditures for 60% of Orion
  • Guaranteed $10 million expenditures in the first 3 years
  • One or more senior Barrick exploration team members seconded to Orion
  • Stage 2 earn-in: further $20 million expenditures for an additional 10% of Orion (70% total)
  • Post earn-in: joint venture formed
  • If either party’s interest in the JV is reduced to 10% or less, their interest in Orion

converts to a sliding scale NSR on gold between 1% - 3% with no buyout

  • Barrick participated in a flow-through financing in ATAC for approximately $8.3 million
  • Barrick’s shareholding in ATAC post financing increased from 9.2% to 19.99%
slide-9
SLIDE 9

OSIRIS AND ORION PROJECTS

8

  • First discoveries of Carlin-type mineralization

found at the Osiris Project in 2010 - discovery hole OS-10-001 intersected 65.20 m of 4.65 g/t gold

  • The Orion Project is subject to an earn-in

agreement with Barrick Gold Corporation whereby Barrick can earn up to 70% interest in Orion by expending $55 million in exploration

  • Barrick will spend ~$5 million in exploration

at the Orion Project in 2017

  • ATAC will spend ~$8 million in exploration at

the Osiris Project in 2017

OSIRIS PROJECT ORION PROJECT

65 km tote road initial regulatory approval granted

slide-10
SLIDE 10

CARLIN-TYPE GOLD DISCOVERIES

9 2011-2016 ~5,000 m diamond drilling 2010-2015 ~74,000 m diamond drilling

1922 1991 1862 2002 1976 2011

slide-11
SLIDE 11

THE OSIRIS PROJECT

10

  • Diamond drilling the Osiris Zone along strike of

OS-11-080 and OS-11-082 which intersected 19.81 m

  • f 5.07 g/t gold and 44.20 of 4.41 g/t gold,

respectively

  • Conrad Zone diamond drilling near the 350 Fault

where OS-10-008 intersected 21.13 m of 8.03 g/t gold and the 650 Fault where OS-12-184 intersected 51.82 m of 4.05 g/t gold

  • Shallow drilling along the Sunrise Zone mineralized

corridor where OS-12-150 intersected 15.24 m of 2.64 g/t gold

2017 Exploration Plans - ATAC

  • Diamond drilling has commenced on the Osiris

Project and is focusing on expanding high-grade gold mineralization at the Conrad and Osiris Zones

slide-12
SLIDE 12

OSIRIS CLUSTER PLAN MAP

11

2017 diamond drilling has commenced on the Conrad and Osiris Zones

slide-13
SLIDE 13

CONRAD ZONE

slide-14
SLIDE 14

∗ Out of 148 released Conrad intersections, the minimum intersection grade was 1.01 g/t gold and the maximum was 18.44 g/t gold. The minimum interval width of intersections was 2.20 m and the maximum was 124.96 m

CONRAD ZONE

13

Previous Exploration 2017 Exploration Plans

  • Conrad is the most advanced zone in the

Nadaleen Trend and received 43,433 m of diamond drilling in 108 holes between 2010 - 2015

  • Previous shallow drilling focused on

developing the Conrad Upper Zone along the crest of an anticlinal fold where a strike length of 800 m has been defined

  • Limited drilling beneath the Upper Zone has

defined an area of mineralization proximal to a laterally extensive, near vertical siltstone- limestone contact at the Conrad Middle Zone – only 300 m of the 800 m long favourable contact has been tested

  • Limited drilling has tested for mineralization

at the Conrad Lower Zone, opening up an entirely new area for exploration

  • The average grade of all reported

intersections at Conrad is 4.75 g/t gold*

  • Diamond drilling will focus on crosscutting

faults thought to be associated with high- grade gold mineralization intersected in proximity to the 350 and 650 faults

  • Only limited drilling has tested the 350 and

650 faults due to their near parallel

  • rientation to previous drilling
  • Diamond drilling will also test the Conrad

Lower Zone along strike of OS-14-230 which intersected 42.67 m of 3.03 g/t gold and 21.71 m of 3.15 g/t gold

OS-12-114: 42.93 m of 18.44 g/t gold

slide-15
SLIDE 15

OSIRIS ZONE

14

slide-16
SLIDE 16

∗ Out of 55 released Osiris intersections, the minimum intersection grade was 1.36 g/t gold and the maximum was 8.37 g/t gold. The minimum interval width of intersections was 3.05 m and the maximum was 65.20 m ** See ATAC news release dated August 30, 2011 for further details

OSIRIS ZONE

15

Previous Exploration 2017 Exploration Plans

  • The Osiris Zone was ATAC’s first discovery of

Carlin-type gold mineralization and hole OS-10-001 intersected 65.20 m of 4.65 g/t gold

  • Diamond drilling will focus on the northern

extension of Osiris along strike of OS-11-080 and OS-11-082 which intersected 19.81 m of 5.07 g/t gold and 44.20 m of 4.41 g/t gold, respectively

  • Osiris received 14,220 m of diamond drilling

in 59 holes between 2010 - 2012

  • Previous diamond drilling focused on the

hinge of an anticline fold and along strike where shallow drilling traced mineralization

  • ver a 900 m strike length
  • The average grade of all reported Osiris

intersections is 3.62 g/t gold*

  • Drilling will also test additional high-grade

mineralized structures similar to the North Osiris Trench which returned values up to 80.40 g/t gold over 1.8 m**

slide-17
SLIDE 17

SUNRISE ZONE

14

slide-18
SLIDE 18

IBIS ZONE

slide-19
SLIDE 19

∗ Out of 17 released Sunrise intersections, the minimum intersection grade was 2.03 g/t gold and the maximum was 11.95 g/t gold. The minimum interval width of intersections was 1.05 m and the maximum was 19.81 m ** Out of 18 released Ibis intersections, the minimum intersection grade was 1.02 g/t gold and the maximum was 6.28 g/t gold The minimum intersection width of intersections was 3.32 m and the maximum was 51.82 m

SUNRISE & IBIS ZONES

18

Previous Exploration 2017 Exploration Plans

  • Sunrise is located 300 m east of the Osiris

anticline and received 4,328 m in 19 holes between 2012 - 2014

  • Shallow drilling at Sunrise will focus on

following the mineralized corridor along strike to the west where OS-12-150 intersected 15.24 m of 2.64 g/t gold

  • Ibis is located 550 m southwest of the Sunrise

Zone and received 6,574 m in 26 holes between 2011 - 2013

  • Much like at Osiris and the Conrad Upper

Zone, mineralization at Ibis is best developed in the crest of an anticline where mineralization has been traced through drilling for an unfolded strike length of 230 m

  • Mineralization at Sunrise occurs as sub-

parallel tabular bodies that dip steeply south and drilling to date outlined a 215 m strike length that is open along strike and past a depth of 350 m

  • The average grade of all reported Sunrise

intersections is 6.25 g/t gold*

  • The average grade of all reported Ibis

intersections is 3.10 g/t gold**

  • There are 3 untested gold-in-soil anomalies to

the north and east of where previous drilling intersected the main Ibis zone – select rock samples within these anomalous areas grade: 1.30 g/t gold, 1.81 g/t gold, 2.46 g/t gold, and 3.15 g/t gold

Sunrise OS-13-217: 16.76 m of 6.76 g/t gold

slide-20
SLIDE 20

THE ORION PROJECT

19

  • Grassroots target delineation through detailed

mapping, prospecting and trenching along with rock, soil and stream sediment sampling

  • Regional-scale geophysical surveys
  • RAB drilling with possible follow-up diamond

drilling

  • Hosts the 18 km² Anubis Cluster with the drill-

confirmed Carlin-type Orion and Anubis gold zones

  • Subject to an earn-in agreement with Barrick,

whereby Barrick can earn up to 70% of Orion by spending $55 million in exploration

  • ~$5 million exploration program commenced

mid-June

2017 Exploration Plans - Barrick

slide-21
SLIDE 21

ORION PROJECT - ANUBIS CLUSTER GEOLOGY

20

slide-22
SLIDE 22

OSIRIS & ORION PROJECTS HIGHLIGHT DIAMOND DRILL RESULTS

21

ZONE HOLE FROM (m) TO (m) INTERVAL (m) Au (g/t) CONRAD OS-10-008 41.35 62.48 21.13 8.03 OS-12-114 66.19 109.12 42.93 18.44 OS-12-116 256.95 313.88 56.93 4.68 OS-12-184 146.91 198.73 51.82 4.05 OS-14-229 448.06 484.63 36.57 5.06 OSIRIS OS-10-001 56.08 121.28 65.20 4.65 OS-11-080 24.39 44.20 19.81 5.07 OS-11-082 134.11 178.31 44.20 4.41 SUNRISE OS-12-173 0.99 15.85 14.86 10.54 OS-13-206 120.70 135.94 15.24 9.83 OS-13-217 218.85 235.61 16.79 6.76 IBIS OS-11-040 95.40 133.50 38.10 3.33 OS-11-073 17.37 69.19 51.82 3.13 OS-12-120 106.07 133.50 27.43 6.28 ANUBIS AN-12-001 63.09 71.60 8.51 19.85 AN-12-003 69.19 85.95 16.76 9.08 ORION AN-16-001 18.00 79.29 61.29 2.75

True widths for all highlight drill holes on this slide are estimated to be 30% - 100% of intersected widths

slide-23
SLIDE 23

THE RAU PROJECT

20

  • ATAC received initial regulatory approval from

YESAB to proceed with constructing a 65 km tote road to the Tiger Deposit

  • Prospecting and mapping of the numerous
  • xide gold targets along strike of the Tiger Gold

Deposit

  • Diamond drilling to expand upon Tiger Gold

Deposit sulphide mineralization such as RAU-09- 66 which intersected 70.80 m of 5.11 g/t gold

  • Hosts the Tiger Gold Deposit, Airstrip Gold

Anomaly, and numerous other early-stage carbonate-replacement style gold and base metal targets

  • Updated 2016 Tiger Deposit PEA doubled the

pre-tax NPV to over $100 million* and improved on every metric from the 2014 PEA

  • Diamond drilling of the Tiger East anomaly

where 10 of 21 composite float grab samples returned between 1.15 – 18.30 g/t gold in 2016

2017 Exploration Plans - ATAC

* Please see page 1 of this presentation for Tiger PEA disclosure

slide-24
SLIDE 24

RAU PROJECT – GOLD GEOCHEMISTRY

23

slide-25
SLIDE 25

TIGER DEPOSIT & TIGER EAST ANOMALY

20

slide-26
SLIDE 26

2014 vs 2016 TIGER PEA

25

2014 PEA 2016 PEA

Gold Price (US$/oz) $1250 $1250 Exchange Rate (US$:CA$) 0.92 0.78 Pre-tax NPV(5%) (millions) $52.15 $106.6 Pre-tax IRR 30.0% 34.8% Post-tax NPV(5%) (millions) $33.67 $75.71 Post-tax IRR 21.5% 28.2% Recovered Gold 221,558 oz 302,307 oz Average Gold Grade 3.72 g/t 3.81 g/t Average Oxide Recovery 89.8% 90.3% Average Sulphide Recovery 0% 57.7% Pre-production Capital (millions) $92.3 $109.4 Sustaining Capital (millions) $26.5 $8.3 Payback (pre-tax) 2.2 years 1.85 years Payback (post-tax) 2.6 years 1.92 years Pre-production Period 1 year 1 year Mine life 4 years 6.2 years Closure Period 2 years 2 years Project life 7 years 9.2 years Process Hybrid CIL/Heap Leach CIP Production Rate 3,300 tpd 1,500 tpd Operational Period Seasonal (158 days) Year-round (365 days) Strip Ratio 5.6:1 4.9:1 Access Method Winter Road Tote Road

Please see page 1 of this presentation for Tiger PEA disclosure

slide-27
SLIDE 27

SUMMARY

26

Commenced $10 million exploration program at the Osiris and Rau Projects – diamond drilling at Conrad and Osiris Zones underway ATAC maintains 100% ownership of its highest grade cluster

  • f Carlin-type gold zones at the Osiris Project

ATAC and Barrick to work collaboratively to advance the understanding of Carlin-type mineralization at the Orion Project Potential to add additional ounces to the Tiger Gold Deposit by drilling known sulphide zones and adjacent oxide targets 150 m away from the 2016 proposed PEA pit Aggressive 2017 exploration program and increased news-flow

slide-28
SLIDE 28

28. The Barrick Transactions 29. Tiger 2016 PEA Resources and Price Sensitivity 30. Tiger 2016 PEA Pre-Production and Operating Capital 31. Arcus Development Group Inc. deal

APPENDIX

27

slide-29
SLIDE 29
  • Stage one earn-in requires Barrick to spend $35 million in exploration to acquire 60% of the Orion

Project

  • Stage one expenditures include a $10 million guaranteed exploration commitment over 3 years
  • Stage two earn-in requires Barrick to spend an additional $20 million in exploration to acquire an

additional 10% of the Orion Project (aggregate of 70%)

  • One or more of Barrick’s senior exploration team members were appointed to the Orion Project
  • Post earn-in, if either parties joint venture interest is reduced to 10% or less, their interest in the

Orion Project converts to a sliding-scale Net Smelter Return Royalty (NSR) on gold which ranges between 1% to 3% with no buyout provision:

  • Each stand-alone gold deposit within the Orion Project will be subject to the same sliding-scale

NSR

  • Silver will be subject to a 2% fixed NSR and all other commodities will be subject to a 1% fixed

NSR – neither NSR will have a buyout

  • Barrick participated in a flow-through financing in ATAC for approximately $8.3 million and Barrick’s

shareholding in ATAC increases from 9.2% to 19.99%

THE BARRICK TRANSACTIONS

28

The transactions consist of a potential total investment by Barrick of approximately $63.3 million, which includes a private placement of $8.3 million (completed), and a two-staged, $55 million exploration earn-in option to acquire 70% of the Orion Project:

slide-30
SLIDE 30

TIGER RESOURCES AND GOLD PRICE SENSITIVITY

29

Please see page 1 of this presentation for Tiger PEA disclosure

Type Classification Au Cut-off (g/t) Tonnes > Cut-off Grade>Cut-off Contained Metal Au (g/t) Ag (g/t) Au (oz) Ag (oz) Oxides Measured 0.50 2,600,000 3.10 4.77 259,100 398,700 Indicated 0.50 1,720,000 2.47 4.10 136,300 226,700 Sulphides Indicated 1.00 1,360,000 2.07 0.56 90,300 24,500 Total M+I 5,680,000 2.66 3.56 485,700 649,900 Oxides Inferred 0.50 280,000 1.52 5.67 13,700 51,000 Sulphides Inferred 1.00 2,950,000 1.84 0.47 174,800 44,600 Total Inferred 3,230,000 1.81 0.92 188,500 95,600

The Mineral Resource estimate used in the updated PEA was completed by Gary Giroux, P.Eng., M.A.Sc. (Giroux Consultants Ltd.) using 6,222 assays taken from 150 diamond drill holes, totalling 26,844 m. The effective date of this Mineral Resource estimate is October 28,

  • 2015. A three dimensional solid model was constructed to constrain oxide and sulphide mineralization.

Gold Price $US/oz $1,200 $1,250 $1,300

Pre-Tax Cumulative Net Cash Flow $M $130.1 $149.4 $168.7 Pre-Tax NPV (5% discount rate) $M $90.8 $106.6 $122.3 Pre-Tax IRR 30.8% 34.8% 38.8%

  • 0.78 $US/CA$
slide-31
SLIDE 31

TIGER PRE-PRODUCTION AND OPERATING CAPITAL

30

Please see page 1 of this presentation for Tiger PEA disclosure

CAPITAL COSTS PRE PRODUCTION (millions)* SUSTAINING CAPITAL LOM Site Infrastructure $8.1

  • $8.1

Tote Road $11.0

  • $11.0

Open Pit Mining** $13.2 $0.03 $13.2 Materials Crushing and Handling $2.0

  • $2.0

Process Plant $29.7

  • $29.7

Tailings and Water Management $7.9 $6.1 $14.0 Project Indirects $19.8

  • $19.8

Owner’s Cost $1.2

  • $1.2

Contingencies*** $16.5 $2.2 $18.7 TOTAL $109.4 $8.3 $117.7

* Totals may not add exactly due to rounding ** Includes capitalized pre-production mining costs. Major mining equipment is leased *** Contingencies were factored on an area-by-area basic depending on the detail level of each estimate

OPERATING COSTS LOM Avg. Mining Costs ($/t mined)* $4.31 Processing ($/t processed) $26.98 G & A ($/t processed) $12.38 Surface Services ($/t processed) $3.80 Equipment Leasing ($/t processed) $1.68

* Not including capitalized pre-production mining costs

slide-32
SLIDE 32

ARCUS DEAL

31

  • ATAC sold its 50% interest in the Dawson

Gold Joint Venture properties to Arcus Development Group Inc. in exchange for:

  • 10,869,910 Arcus shares for a total
  • f 11,399,910 or 15.66% of Arcus
  • 5,000,000 warrants at $0.20 expiring
  • n August 19, 2021
  • ATAC gains exposure to one of Yukon’s

premier exploration districts without incurring exploration expenditures or dilution

  • On October 24, 2016 Arcus entered into a

series of financings with Goldcorp Inc. whereby Goldcorp now owns 19.9% of Arcus’ outstanding shares

Supremo Zone