BUILDING THE NEXT PROFITABLE GOLD MINE IN BRAZIL - TSX.V: AGC OTCQB: AGCBF - Amarillo Gold Corp.
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TSX.V: AGC
OTCQB: AGCBF
BUILDING THE NEXT
PROFITABLE GOLD MINE IN BRAZIL
Corporate Presentation
January 2019
1
FORWARD-LOOKING STATEMENTS
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 offer to any
person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction, 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 on the information or opinions
contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising 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 of the laws of any such
other jurisdictions.
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 of assumptions which may
prove to be incorrect, and accordingly, actual results may vary.
The Qualified Persons for Amarillo are Frank Baker, M. IOM3 and MAusIMM., and Mr. Mike Mutchler, FAusiMM.
2
AMARILLO GOLD OVERVIEW
3
MARA ROSA DEVELOPMENT PROJECT GOIAS STATE
1.1 M oz. in pit gold reserves at 1.42g/t Outstanding Project Economics: NPV 5% US$244M;
A/T IRR of 51%; 2.6 yr Payback at $1,300/oz gold
2K hectares of mining concessions on 8 km trend
Overwhelming central government and local
Located near Chapada (Yamana), Pilar (Leagold), community support: received the Preliminary
and Crixás (AngloGold) gold mines License (LP) which is the environmental and social
15K meter drilling program underway - potential license
to increase the reserve and resource down dip Will apply for License to Install (LI) mid 2019
and along trend
Fast track to production - first gold expected in 2021
4
LAVRAS DO SUL EXPLORATION PROJECT RIO GRANDE DO SUL STATE
Numerous 17th century gold producing workings
Pursuing 22 targets along a 100 km trend
22,000 Hectares of exploration concessions
523,000 oz. resource defined on Butia target
5
SIGNIFICANTLY UNDERVALUED
NAV MULTIPLE VS PEERS
0.52x 0.52x 0.50x 0.49x 0.48x 0.48x
0.43x
Average: 0.41x
0.29x
0.23x
0.15x
0.10x
Orla West African Sabina Victoria Continental Equinox Dalradian GoldQuest Belo Sun INV Metals Amarillo
EV/OZ OF RESERVE VS PEERS
$380
$161
$143
$129
$110
$68 Average: $95/oz
$46
$26 $25 $24 $19 $18 $12
Equinox West African Continental Dalradian Sabina Orla Condor GoldQuest Amarillo Victoria Belo Sun African Gold INV Metals
Source: Capital IQ; Street research as at May 14, 2018 6
IDEAL PLACE & TIME TO BUILD A MINE
RECORD GOLD PRICES IN BRAZILIAN REALS 20 YEAR CYCLE FROM DISCOVERY
TO PRODUCTION
Chart courtesy of GoldCorp Amarillo
Commences
Production
7
MARA ROSA RESERVES AND RESOURCES
CATEGORY TONNES Mt GRADE g/t OUNCES OF Au
Measured 12 1.40 560,000
Indicated 19 1.20 710,000
Resource M&I 31 1.30 1,270,000
Inferred 11 0.92 330,000
Notes
1. Posse Deposit Resource @ 0.20 g/t cut-off
2. Source: Keith Whitehouse Member of the AUSMIM Qualified person Australian Exploration Field Services; 43-101 Technical Report: prepared by SRK Consulting, September 2018 titled
“Technical Update on the Posse Gold Project, Brazil, September 2018”
CATEGORY TONNES Mt GRADE g/t OUNCES OF Au
Proven 9.6 1.65 513,000
Probable 14.2 1.26 574,000
P&P Total 23.8 1.42 1,087,000
Notes
1. SRK applied a variable g/t Au cut-off to the block model
2. Dilution: 3% mining & 3% handling
3. All Mineral Reserves prepared by Anthony Stepcich, FAusIMM(CP), of SRK Consulting (Australasia) Pty Ltd have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”)
definitions, as required under National Instrument 43-101 (“NI43-101”).The 43-101 Technical Report prepared by SRK September 2018 titled “Technical Update on the Posse Gold Project, Brazil, September 2018”
4. Due to rounding all numbers may not sum
8
MARA ROSA POSSE CROSS SECTION (LOOKING NORTH)
HIGHLY CONSISTENT GRADES WITHIN PIT
9
LOW CAPEX AND OPERATING COSTS
CAPITAL ALLOCATION (M USD) September 2018 PFS (US $1,300/oz Au)
Mine Contractor 3 Upfront Capex (USD) 123M
Sustaining Capex (USD) 17M
Plant, Equipment & Facilities 84
Years 1-4 Average Production (oz) 144,000
Tailings Dam 9
Average Annual Production (oz) 123,000
Infrastructure & Buildings 11
Initial Mine Life (years) 8
Contingencies 9
Operating Cost per Ounce (USD/oz) 545
Working Capital 8 AISC per Ounce (USD/oz) 655
Total Upfront Capex 123 Mineable Reserve (oz) 1,087,000
Due to rounding all numbers may not sum
10MARA ROSA ROBUST PFS ECONOMICS
DISCOUNTED CASH FLOW SENSITIVITIES
USD/Au oz $1,000 $1,100 $1,200 $1,300 $1,400 $1,500
A/T IRR 23% 33% 42% 51% 59% 68%
NPV 5% (After-Tax M USD) $91 $144 $194 $244 $295 $345
NPV 5% / Share (CAD)* $0.89 $1.41 $1.89 $2.38 $2.88 $3.37
Payback (Years) 4.2 3.3 2.8 2.6 2.4 2.3
* CAD/USD FX of 1.3; Fully diluted shares 133.1M
11MAJOR PERMITTING MILESTONES
Public hearing held in 2016 demonstrated
overwhelming community support
The main Preliminary License (LP)
granted in May 2016
STEP 1 STEP 2 STEP 3
APPROVED IN PROGRESS
))((999999 FINAL INSPECTION
PRELIMINARY LICENSE (LP) INSTALLATION LICENSE (LI) OPERATION LICENSE (LO)
• Most important part of the permitting process • Provides authorization to initiate • Granted after commissioning
• Entails environmental baseline studies, construction • Requires inspection of the constructed
social and environmental approval with • Expect to apply after feasibility study mine and plant to ensure compliance
public hearings in mid 2019 with codes and provisions of LP, LI
• Awarded by the EPA and the Judicial Ministry • Allows for construction and
commissioning
12MARA ROSA DEVELOPMENT SCHEDULE
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021
Whittle Optimization
Study / Update PFS
Infill & Exploration Drilling
Resource Update
Feasibility Study
Basic Engineering
Installation License
Construction
Commissioning & Ramp Up
Commercial Production
13MARA ROSA UPSIDE BEYOND RESERVES
14MARA ROSA SIGNIFICANT EXPLORATION POTENTIAL
Strong Anomalies over an 8 km trend POSSE TREND
Magnetic
Radiometric
15MARA ROSA AREA EXPLORATION CONCESSIONS
16LAVRAS DO SUL PROJECT
100 km trend along granite OVER 22 ADVANCED TARGETS
intrusion perimeter (with highlighted Au drill results)
Rio Tinto and IAMGOLD both Old Gold Workings
have back in agreements if
Amarillo reaches 7M & 3M oz
CERRITO
respectively on grounds 135.5m @ 0.85 g/t
optioned from both 113m @ 1.02 g/t
CANELEIRA 210m @1.04 g/t
Ongoing soil sampling and 37m @ 1.17 g/t
geological mapping on several
properties
PAREDAO
Conducting an airborne 12m @ 4.54 g/t
magnetic survey on Butia, BUTIA
Caneleria and Zeca Souza targets 120 m @ 3.23 g/t
232 m @1.95 g/t
Initiating Environmental baseline
I&I 523K/oz
study at Butia
Digital elevation in grey, roads in black. Colour image: airborne magnetics showing geology and structure.
17CORPORATE SUMMARY
SHORT TERM GOAL LONG TERM GOAL
To fully permit and build Mara Rosa into a To use the cash flow from Mara Rosa to grow our
profitable gold mine with minimal shareholder resources through exploration in Mara Rosa and
dilution Lavras do Sul areas
NEW LEADERSHIP
History of success in project development, operations management and
business turnaround in Canada and Latin America
• Invested over $4M CAD in 2018
Near Term Timelines / Catalysts
• 15K meter exploration drilling program is nearly complete • Beginning of Definitive Feasibility Study late January
> In-fill drilling to convert Inferred Resources into Measured 2019
or Indicated Resource to extend mine life to 10+ years • Resource Update in February 2019
> Step out drilling along trend and down dip to further • Application for License to Install (LI) mid-2019
expand the resource • Receipt of LI late 2019 to early 2020
18CAPITAL STRUCTURE – SHARE INFORMATION
CAPITAL STRUCTURE MAJOR SHAREHOLDERS
TSX.V – AGC Board & Management 11%
Stock Listings
OTC - AGCBF Institutions
Mackenzie
Current Share Price (C$)* $0.28
Gabelli 46%
Shares Outstanding 114.5M Manulife
IG Investment Management
Warrants (C$0.38) 9.8M
High Net Worth 23%
Options (C$0.29) 8.8M
Retail 20%
Market Cap. (c$)* $32M
No Debt ANALYST COVERAGE
Cash @ December 31, 2018 (C$) $2.2M Mackie Research Capital
Stuart McDougall Initiated Coverage August 16, 2018 with one
* As of January 7, 2019 year Target Price of $0.80
NEWSLETTER WRITER COVERAGE
Jay Taylor – Gold, Energy and Tech Stocks
Mark Turner – The IKN Report
19MANAGEMENT TEAM
ROLLY ULOTH MIKE MUTCHLER HEMDAT SAWH
Executive Chairman President and Chief Executive Officer Chief Financial Officer
Mr. Uloth is President of Rosedale Transport Limited, Mr. Mutchler, a fifth generation miner, was previously Mr. Sawh is a CPA, and holds an MBA, a BSc in Geology
which he co-founded in 1969, and was the President & a Partner at Whittle Consulting Pty. Prior to Whittle, and a graduate diploma in Geology.
CEO of Wesdome Gold Mines from May 2007 - he was COO for Largo Resources where he was Mr. Sawh has over 16 years of experience at Grant
December 2009 and from August 2013 - August 2016. He responsible for successfully building a Vanadium Mine Thornton LLP, where he acted as lead supervisor for
has been a Director of Wesdome from 1999 to 2009, and Mill in Brazil. Mike was COO of Rainy River Resources auditing teams. Mr. Sawh has over 13 years’ experience
serving as Chairman from 2006 to 2009, and from August concluding with the sale to New Gold.; V.P. Project serving as CFO of Wesdome Gold, Scorpio Mining,
2013 to present. Development for Kinross Gold, Mine Manager for Crystallex and Goldbelt Resources.
Kinross’s Cerro Casale project in Chile, Project Director for
Kinross’s Paracatu Mine in Brazil, and held managerial
positions at Kinross and ASARCO. Mike holds a BSc
(Mining Engineering); MBA, Executive Juris Doctorate
degree, and Chartered Directors Certificate.
ARAO PORTUGAL LUIS DA SILVA FRANK BAKER
Director of Government Relations General Manager Project Manager
Mr. Portugal was instrumental in securing the main Mr. da Silva has over 20 years of administration and Mr. Baker has a Masters in Metallurgy and over 40 years
Preliminary License (LP) for Mara Rosa. He has held exploration experience in Brazil. He was responsible for of experience in the mining industry. He has successfully
various administrative roles including Country Manager the discovery of Pilar, Zone A, Zone B and Serra Paraíso of designed, built and commissioned five gold plants,
for Yamana Gold. Jaguar Mining’s Brazilian gold deposits. including two in Brazil.
20BOARD OF DIRECTORS
COLIN SUTHERLAND ROSTY RAYKOV DAVID BIRKETT
Director Director Director
Mr. Sutherland is a CPA with over 20 years financial and Mr. Raykov has served as a director of Fennec Pharma Mr. Birkett is Pres. & CEO of Stratus Aeronautics,
operational experience. He last served as President of and CEO since 2009. He has also served on Board of dedicated to UAV development. Mr. Birkett was the
McEwen Mining. As a former CEO of Archipelago Wesdome Gold Mines from 2013-2016. President of Alton Natural Gas Storage LP and Alton
Resources, he led the privatization and delivered He was the co-founder of Alchem Investment Partners Natural Gas Storage Ltd . Mr. Birkett was President of
significant returns for shareholders. and prior to that a portfolio manager for Purchase Landis Energy Inc., a publicly traded company, until it
Mr. Sutherland has also held senior financial and Associates fund at John Levin & Co. and analyst for was acquired by Alta Gas in 2010. He served as a Director
executive roles with Timmins Gold, Capital Gold, Nayarit Arbitrage Associates, LP at Tiedemann Investment of Moss Lake Gold Mines until it was acquired by
Gold and AuRico Gold. Group. He began his career as a financial analyst in the Wesdome Gold . He has over 25 years experience with
natural resources group at Bear Stearns. public companies in the areas of corporate development,
management, finance and exploration.
STEPHEN STOW ROLLY ULOTH MIKE MUTCHLER
Director Executive Chairman President and Chief Executive Officer
Mt. Stow was former President & CEO of Odin Mining & See previous page for description. See previous page for description.
Exploration. Currently Principal of Zen Capital & Mergers
Ltd since 1996, 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.
21WHY BUY AMARILLO NOW?
New management team has restructured the balance sheet
• $5.2M CAD raise March / April 2018
• USD $10.8M NSR sold to Royal Gold in June
> Royal Gold due diligence is a strong endorsement for the project
• Retired the gold loan in July 2018
• Debt free
• $2.2M in treasury
Advancing the project
> 15K meter drilling program ongoing
> New resource in February 2019
> Feasibility Study started in January 2019
> Applying for License to Install (LI) mid-year 2019
Expect a re-rating to occur soon
• Currently trading at .10x to NPV5% @$1,300 Au (.13 @$1,200) & $23 per ounce of Reserve
• Peers trade at .41x and $95 per ounce
• AGC share price can triple or quadruple and still be in range of our peer group
22CONTACTS
MICHAEL MUTCHLER KAREN MATE
President and CEO Director of Communications
Tel: 1-416-294-0736 Tel: 1-416-230-6454
mike.mutchler@amarillogold.com karen.mate@amarillogold.com
TSX-V: AGC
OTCQB: AGCBF
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