Developing America's Next High Grade District - CORPORATE PRESENTATION | AUGUST 2021 - Aquila Resources
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Developing
America’s Next
High Grade
District
TSX AQA
OTCQB AQARF
CORPORATE PRESENTATION | AUGUST 2021
Disclaimer
This presentation contains certain forward‐looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward‐looking
statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" and similar expressions suggesting future
outcomes or statements regarding an outlook.
Forward‐looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results
and events which will or may occur in the future, without limitation, statements with respect to additional upside potential of the Project and the potential for
underground mining activities at the Project and benefits associated therewith, statements with respect to the expected project economics for the Project, such as
estimates of life of mine, total production and average production, metal production and recoveries, C1 cash costs, AISC, capital and operating costs, pre- and post-tax
IRR, pre- and post-tax NPV and cash flows, the potential conversion of Inferred Mineral Resources into Indicated Mineral Resources, any projections outlined in the
Feasibility Study in respect of the Project, the permitting status of the Project and Aquila’s future exploration and development plans and associated timelines.
These and other forward‐looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of
Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and
are developed based on assumptions about such risks, uncertainties and other factors set out herein. These risks include those described under the heading “Risk
Factors” in Aquila’s most recent annual information form and its other public filings, copies of which can be under Aquila’s profile at www.sedar.com. Aquila expressly
disclaims any obligation to update forward‐looking information except as required by applicable law. Such forward‐looking information represents Aquila’s best
judgment based on information currently available. No forward‐looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers
are advised not to place undue reliance on forward‐looking statements or information. The PEA is preliminary in nature, includes Inferred Mineral Resources that are
considered too speculative geologically to have the economic considerations applied to them that would enable them to be classified as Mineral Reserves, and there is
no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
None of EBITDA, C1 cash costs, or all-in sustaining costs (“AISC”) have a standardized meaning under IFRS. See “Non-IFRS Measures” in the Company’s news
release dated August 5, 2020. Financial evaluation includes financial impacts of the Company’s gold and silver streams with Osisko Gold Royalties. See the
Company’s news release dated June 18, 2020 for additional details.
Andrew Boushy, Technical Advisor to Aquila Resources, is the Qualified Person for the Company as described in National Instrument 43-101 and is responsible for the
technical contents of this presentation.
2 TSX: AQA
OTCQB: AQARF
WHY INVEST
Flagship Back Forty Project Strong stakeholder base
• +100,000 oz Au Eq/year at negative cash • Orion Mine Finance, Ruffer,
costs for 12 years
Hudbay, and Osisko
• Michigan a top 10 mining state Gold Royalties
• De-risking and simplifying an already very
profitable project
• Advancing through permitting
Attractive Relative Valuation
• Trading at an EV of US$0.007/lb zinc equivalent (ZnEq) versus a peer
average of US$0.015/lb ZnEq*
• Trading at a Price / After-tax NPV of 0.05x1
• Zero value for upside potential at Back Forty
Portfolio of high grade, New district opportunity
polymetallic projects in with first mover advantage
the Upper Midwest, USA
• Underexplored Penokean VMS Belt –
• Three projects in a Tier 1 jurisdiction over 24 known mineral occurrences
underpinned by gold with exposure and only 1 past producer
to key metals including zinc and copper
3 *Source: FactSet, Company filings, Paradigm Capital Inc. TSX: AQA
1 See the technical report, titled “Preliminary Economic Assessment of the Back Forty Project, Menominee County, Michigan, USA” prepared by P&E
OTCQB: AQARF
Mining Consultants Inc. filed on SEDAR on Sept. 16, 2020. Spot price deck: $1,907/oz Au; $28.13/oz Ag; $1.38/lb Zn; $4.56/lb Cu; $1.00/lb Pb.
AQUILA Capital Structure
52-WEEK STOCK CHART (C$)
Current Capital Structure Major Institutional Shareholders
Share Price (As of August 16, 2021) C$0.065 Orion 28.6%
Avg. daily vol. (3-mth) (TSX + OTCQB) 150,000 Ruffer 12.7%
52-week range C$0.06 – $0.175 Hudbay 10.5%
Shares O/S 339M
Market Cap. C$22M Analyst Coverage
Year End December 31 Cormark Securities Stefan Ioannou
Cash position @ June 30, 2021 US$0.9M
4 TSX: AQA
OTCQB: AQARF
BACK FORTY PROJECT Michigan, USA
BACK FORTY 2020 PEA Results
PEA Summary1
Highlights
Base Case August 2020 Spot
• Expanded upon 2018 open pit Metal Prices1 Metal Prices2
Feasibility Study NPV6% (After-tax) US$176.3M US$316.3M
• Incorporated known IRR (After-tax) 26.1% 37.8%
underground resources Payback (After-tax) 2.4 years 1.6 years
• Sulphide plant throughput Pre-production Capital US$250.4M
reduced from 4,000 tpd to Net of By-Products: ($82)/oz Au1
2,800 tpd LOM C1 Cash Costs
Co-product: $733/oz Au Eq1
• Oxide plant throughput LOM AISC
Net of By-Products: $397/oz Au1
Co-product: $926/oz Au Eq1
reduced from 800 tpd to
350 tpd Project Life 12 years
Throughput (nominal) 2,800 tpd sulphide + 350 tpd oxide
• Mine life increased from
7 to 12 years Average Annual
128 koz Au Eq (58 koz Au)1
Production
• Updated capital and operating LOM Production 1,543 koz Au Eq (692 koz Au)1
costs: CAPEX reduced by
Mill Head Grade 4.2g/t Au Eq1
US$44M
Open Pit Strip Ratio 5.1:1
• Opportunities identified
1Base Case: $1,485/oz Au; $18.20/oz Ag; $1.08/lb Zn; $3.05/lb Cu; $0.91/lb Pb.
including increased gold recovery 2At Aug. 4, 2020: $1,998/oz Au; $25.00/oz Ag; $1.04/lb Zn; $2.92/lb Cu; $0.83/lb Pb.
6 1 Seethe technical report, titled “Preliminary Economic Assessment of the Back Forty Project, Menominee County, Michigan, USA – NI 43-
TSX: AQA
101 & 43-101-F1 Technical Report”, prepared by P&E Mining Consultants Inc. dated and filed on SEDAR on September 16, 2020. OTCQB: AQARF
BACK FORTY Resource & Production Highlights
18 MT M&I RESOURCE M&I Grade 4.3 g/t Au Eq
11 MT open pit, 7 MT U/G Inferred Grade 5.7 g/t Au Eq
GROSS REVENUE BY METAL1
Payable Production
Metal Life of Project Average Annual
Gold (K oz) 692 58 38%
Zinc (M lbs) 801 67 45%
Copper (M lbs) 86 7
Silver (K oz) 6,260 522
1%
Lead (M lbs) 26 2
11% 5%
Sensitivity to Gold Price Gold Silver Copper Lead Zinc
Gold Price After-tax NPV After-tax Gold % of GROSS REVENUE BY PRODUCT1
(US$/oz) (US$M) IRR Gross Revenue
13%
$1,200 $83 16.9% 40%
6% 38%
$1,400 $149 23.6% 43%
$1,600 $213 29.3% 47%
$1,800 $277 34.6% 50%
$2,000 $341 39.6% 52%
43%
$2,200 $401 44.1% 55%
$2,400 $460 48.5% 57%
Copper Concentrate Zinc Concentrate
7 1 Base TSX: AQA
Case Metal Prices: US$1,485/oz Au; US$18.20/oz Ag; US$1.08/lb Zn;
US$3.05/lb Cu; US$0.91/lb Pb. See Technical Disclosure on slide 25.
Lead Concentrate Dore OTCQB: AQARF
BACK FORTY Project Status
Back Forty previously granted all four key State permits for an
open pit operation Strong support from U.P. lawmakers
Mining has been a critical component of
Jan. 2021: Administrative Law Judge overturns Wetlands Permit
the Upper Peninsula way of life for
• Found application administratively incomplete due to lack generations. Our state has enacted some
of agreed upon groundwater model at permit issuance of the most stringent mining and
(2018) environmental regulations in the world…
Through a rigorous process with EGLE,
• Significant progress has since been made, including this permit was rightly approved, and we
collection of required site-specific data remain hopeful that the department will
work with Aquila to address this wrongful
Focused on completing an optimized Feasibility Study that:
rejection of the permit…. We vow to work
• Includes the underground mine plan, minimizes surface together in stressing the importance of
impact, and avoids direct impact to wetlands this project and reasonable regulations
overall, as one U.P…. Our communities
• Simplifies project execution, operations, flowsheet want and support mining in the U.P. now
as in the past generations.
• Leverages Osisko Technical Services
Joint statement by Sens. Ed McBroom
and Wayne Schmidt, and Reps. Greg
Following FS, submit consolidated permit applications
Markkanen, Beau LaFave, and Sara
• Mining Permit Cambensy. January 25, 2021.
8
• If required: Wetlands Permit and Dam Safety Permit TSX: AQA
OTCQB: AQARF
BACK FORTY Future Drill Program Targets
~130,000 Metres Drilled – Deposit Open at Depth
MAJOR INTERCEPTS IN THIS AREA
LK-479
69.7m @ 1.12 g/t Au, 27 g/t Ag 0.4% Cu, 1.3% Zn
MAJOR INTERCEPTS Including
6.2m @ 6.4 g/t Au, 94 g/t Ag
IN THIS AREA
LK-484
LK-479 31m @ 6.32 g/t Au, 34 g/t Ag, 0.47% Pb, 1.8% Zn
8.7m @ 6.0 g/t Au, Including
245 g/t, Ag 5.9% Zn 17m @ 13.8 g/t Au, 69 g/t Ag
LK-504 LK-502
7.4m @ 7.3 g/t Au, 54m @ 0.86 g/t Au, 51 g/t Ag, 0.78% Pb, 1.86% Zn
190 g/t Ag, 1.5% Zn Including
22.5m @ 1.49 g/t Au, 49 g/t Ag, 0.77% Pb, 2.0% Zn
9 TSX: AQA
OTCQB: AQARF
ATTRACTIVE Relative Valuation
ZINC COMPARABLES – POUNDS-IN-THE-GROUND VALUATION COMPARISON
9.3x to avg. Developer take-out
4.4x to avg. FS take-out
2.9x to avg. exploration take-out
2.1x to current avg.
10 Source: FactSet, Company filings, Paradigm Capital Inc. TSX: AQA
OTCQB: AQARFDISTRICT SCALE POTENTIAL Penokean VMS Belt - Wisconsin, USA
DEVELOPING AMERICA’S NEXT
High Grade District
Attractive Pipeline of Projects in
Highly Prospective District
Michigan
Back Forty: Gold-Zinc-Copper
Permitted 3 projects in the
last 14 years
2020: Top 10 mineral
producing state (USGS)
Wisconsin
Reef: Gold-Copper
Exploration
Bend: Copper-Gold
Exploration
Monetizing Non-Core Wisconsin Properties: LOI announced June 1, 2021 to sell Bend
and Reef for C$3M in cash and C$4M in shares in a new exploration focused company
TSX: AQA
12 OTCQB: AQARFREEF GOLD-COPPER PROJECT
Marathon County, Wisconsin
High-grade gold mineralization Historic drilling by INCO and Noranda
potentially amenable to delineated a non-43-101 compliant
low-cost, open-pit mining resource1 of 140,564 contained gold
ounces
Resource extends from surface
to 450 feet, open in all directions • 455,000 tonnes @ 10.6 g/t Au
with significant copper
Private land In 2011/2012, Aquila completed
42 drill holes, totaling 4,400 meters
Boulder sampling at Reef
KEY INTERCEPTS FROM 2011/2012 DRILL PROGRAM2
Returned an assay of 379 g/t gold
R12-38: 65.23 meters of 2.80 g/t Au
• Including 8.88 meters of 13.14 g/t Au and 0.44% Cu
R12-40: 94.56 meters of 1.53 g/t Au
• Including 3.90 meters of 14.89 g/t Au
R11-11: 14.76 meters of 14.41 g/t Au and 0.30% Cu
• Including 9.26 meters of 21.28 g/t Au and 0.33% Cu
1 The Company is not treating the historical estimates as current mineral resources or mineral reserves and the historical estimates should not be
13 TSX: AQA
relied upon or understood to indicate the existence of reserves or resources.
2 Reported intervals are drill thickness and do not necessarily represent true thickness OTCQB: AQARFBEND COPPER-GOLD PROJECT
Taylor County, Wisconsin
VMS deposit with underground potential Federal Land
+14,000 meters of historical drilling In 2012, Aquila completed 12 drill holes
delineating a Non-43-101 compliant totaling 5,800m
resource1
• 3.0M tonnes grading 2.4% copper, In 2019, Aquila strengthened its land
1.4 g/t gold and 13.7 g/t silver in position by securing the mineral rights to
copper zone the remaining portion of the deposit
• 1.2M tonnes grading 4.7 g/t gold
and 0.31% copper in gold zone
KEY INTERCEPTS FROM 2012 DRILL PROGRAM2
B12-06: 71.68 meters of 1.68 g/t Au
• Including 2.9 meters of 27.06 g/t Au
B12-04: 13.26 meters of 0.70 g/t Au and 1.5% Cu and
74.5 meters of 1.04 g/t Au
B12-03: 6.29 meters of 4.26 g/t Au
B12-01: 2.66 meters of 2.85% Cu
1 The Company is not treating the historical estimates as current mineral resources or mineral reserves and the historical estimates should not be
14 TSX: AQA
relied upon or understood to indicate the existence of reserves or resources.
2 Reported intervals are drill thickness and do not necessarily represent true thickness OTCQB: AQARFLEADERSHIP TEAM
MANAGEMENT TEAM
Experienced and Committed
Committed to
Unlocking Aquila’s Potential
GUY LE BEL, Ing., MSc, MBA, CEO & Director DAVID ANDERSON, General Manager
35+ years of experience in business / project 25 years of experience in environmental monitoring,
development and permitting in the Americas. regulatory affairs and permitting. Most recently served
Previously CEO and CFO of Golden Queen (sold to as the Director of Environment for Highland Copper’s
Falco), VP Evaluations at Capstone, VP Business Copperwood project.
Development at Quadra/FNX.
BOB MAHIN, MSc, CPG, SEGF, Director of Exploration
STEPHANIE MALEC, CFO 30 years of progressive experience guiding mineral
15+ years of experience combining accounting, exploration programs including most recently as Senior
financial reporting, public markets and mining sector Manager, Exploration at Lundin Mining’s Eagle Mine.
work. Previously with Malbex Resources, Starfield
MIKE FOLEY, P.E., Director of Env. & Infrastructure
Resources, Dundee Precious Metals, Falconbridge
and PriceWaterhouseCoopers. 32 years of experience as a Civil Engineer in the Upper
Peninsula of Michigan and northern Wisconsin.
DAVE CAREW, VP, Corporate Development
ANDREW BOUSHY, P.Eng., Technical Advisor
and Investor Relations
More than 25 years of experience including senior roles
Former VP Corporate Development and Investor
with Ausenco Canada and Xstrata Nickel.
Relations at a TSX-V listed developer and previously
a mining industry-focused investment banker.
13 years of capital markets experience.
16 TSX: AQA
OTCQB: AQARFLEADERSHIP TEAM Strong Board
Directors Include Experienced Mining Veterans
With Development and Operations Experience
BARRY HILDRED, Executive Chair EDWARD MUNDEN, Lead Director
Currently a director and Past-Chair of The Children's Currently a Director and Co-Founder of a private
Aid Foundation of Canada. Founder and Former investment company and a Director of Mustang
President of TMX Equicom. 25+ years of capital Minerals. Co-founded a NASDAQ-traded energy
markets experience. company and held senior positions until it was sold in
2001. 35+ years of experience in energy, mining and
GUY LE BEL, ING., MSC, MBA, CEO & Director technology industry.
35+ years of experience in business / project
development and permitting in the Americas (see IAN PRITCHARD
Management Team). Currently Chief Operating Officer of Belo Sun Mining
and SVP Technical Services at Troilus Gold. Brings
ANDREW W. DUNN more than 30 years of industry experience with a
Currently Managing Partner of Canadian Shield particular focus on project and operations
Capital. Previously spent 27 years at Deloitte and management.
served as Vice Chair of Deloitte Canada and Chair of
its Client Cabinet. PAMELA SAXTON
Business executive with over 35 years of experience
PAUL JOHNSON in public company finance roles, primarily in mining,
Mining engineer with close to 40 years of experience. software and oil and gas and most recently as EVP
He joined Osisko Gold Royalties in August 2017 as and CFO of Thompson Creek. Currently serves as a
Open Pit Project Evaluation Manager until his Trustee and Vice President of the Viola Vestal Coulter
retirement in January 2020. Previous experience Foundation, which provides scholarships to colleges
includes serving as Manager Mining and General and universities with a focus on mining. Past Chair for
Manager of Technical Services at Osisko Mining for the Colorado Association of Commerce and Industry.
their Canadian Malartic project.
17 TSX: AQA
OTCQB: AQARFCONTACT Information
GUY LE BEL BARRY HILDRED
President & CEO, Director Executive Chair
450.582.6789 647.943.5672
Glebel@aquilaresources.com Bhildred@aquilaresources.com
DAVE CAREW
VP Corporate Development & IR
647.943.5677
Dcarew@aquilaresources.com
18 TSX: AQA
OTCQB: AQARFAPPENDIX
BACK FORTY Site Plan
Active Project Area: 556 acres Total mineral rights controlled: +3,200 acres
LEGEND River Road N
20 TSX: AQA
OTCQB: AQARFBACK FORTY Production Profile
Production Profile 1
$1,162 $1,137
$1,086
$1,055
$1,018 $996
$917 $919
$730
$701 $690
$661
206
177 183
99 148
136
84 118
110 117 115
107
94 79 88
80
51 66 68 73
64
46
107 43 38
93
58 66 54 57
49 50 43 42 37 34
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
Gold Production (koz) Non-Gold Production (koz AuEq) AISC (US$/oz AuEq)
Source: Back Forty PEA – See press release dated August 5, 2020.
1 Gold equivalent calculation based on LT street consensus pricing of US$1,485/oz Au; US$18.20/oz Ag; US$1.08/lb Zn; US$3.05/lb Cu; US$0.91/lb Pb.
21 TSX: AQA
OTCQB: AQARFPROCESS Flowsheet
Sulphide Ore Processing (2,800 tpd) Copper, Lead & Zinc
Concentrates
Ore from Mine Primary SAG/ Flotation Au 68.9% Recovery
or Stockpile Crushing Ball Mill Plant Ag 83.1% Recovery
Cu 81.2% Recovery
Zn 91.9% Recovery
Pb 83.7% Recovery
Oxide Ore Processing (350 tpd)
Ore from Mine 3 Stage Ball Mill Leach Au/Ag Doré
or Stockpile Crushing Plant / Gold
Au 93.3% Recovery
Room (SART)
Ag 70.5% Recovery
22 TSX: AQA
OTCQB: AQARFBACK FORTY Capital and Operating Costs
Prepared With Support From Globally Recognized Experts
Incorporates Best Practices in all Environmentally Sensitive Areas
CAPITAL COSTS SUMMARY OPERATING COSTS SUMMARY
Area $M Life of Project Unit Cost
Construction Indirects 11.4 ($M) ($/t)
Oxide Process Plant 24.1 Gross Revenue 2,095 132
Sulphide Process Plant 57.5 Realization Charges 310 19
TMF/WRF 42.6 NSR (Base Case) 1,785 113
Infrastructure 34.2
Mining 23.6
Open pit mining 178 11
EPCM 15.7
Underground mining 288 18
Owner costs 11.4
Subtotal 220.6 Process plant 310 20
Contingency (14%) 29.9 G&A 46 3
Total 250.4 Total Site Opex 821 52
Sustaining Capital LOM C1 Cash Costs LOM AISC
• Open pit: $46M • Co-product: $733/oz Au Eq • Co-product: $926/oz Au Eq
• Underground: $99M • Net of By-Products: ($82)/oz Au • Net of By-Products: $397/oz Au
• Project (TMF+WRD): $69M
Mine Closure: $75M
23 TSX: AQA
OTCQB: AQARFBACK FORTY Mineral Resource Estimate
BACK FORTY MINERAL RESOURCE ESTIMATE AS OF OCTOBER 14, 2019 1
Tonnes Au Au Ag Ag Cu Cu Pb Pb Zn Zn
Category
(1,000) (g/t) (koz) (g/t) (koz) (%) (Mlb) (%) (Mlb) (%) (Mlb)
Open Pit
Measured 7,062 1.94 440.1 18.95 4,302.0 0.34 53.51 0.14 22.1 3.02 470.1
Indicated 4,341 1.75 244.7 29.67 4,140.1 0.14 13.55 0.35 33.8 1.97 188.1
M&I 11,403 1.87 684.8 23.03 8,442.0 0.27 67.05 0.22 55.9 2.62 658.2
Inferred 264 3.13 26.6 42.32 359.4 0.06 0.35 0.56 3.3 0.62 3.6
Underground
Measured 1,382 2.21 98.0 25.37 1,127.7 0.30 9.1 0.32 9.7 4.43 134.9
Indicated 5,486 1.86 327.7 25.98 4,582.8 0.42 51.2 0.32 38.2 3.53 427.3
M&I 6,868 1.93 425.7 25.86 5,710.6 0.40 60.3 0.32 47.9 3.71 562.2
Inferred 930 3.88 116.0 51.21 1,531.8 0.47 9.7 0.45 9.2 1.40 28.7
Total
Measured 8,444 1.98 538.1 20.00 5,429.7 0.34 62.6 0.17 31.8 3.25 605.0
Indicated 9,827 1.81 572.4 27.61 8,722.9 0.30 64.7 0.33 72.0 2.84 615.4
M&I 18,271 1.89 1,110.4 24.09 14,152.6 0.32 127.3 0.26 103.8 3.03 1,220.5
Inferred 1,194 3.71 142.5 49.24 1,891.2 0.38 10.1 0.47 12.5 1.23 32.3
1 See Technical Disclosure on Slide 25.
24 TSX: AQA
OTCQB: AQARFTECHNICAL Disclosure
1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues.
3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an
Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected
that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource
with continued exploration.
4. The Mineral Resources in this Technical Report were estimated using the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM
Council.
5. The Mineral Resource Estimate was based on metal prices of $1,375/oz gold, $22.27/oz silver, $1.10/lb
zinc, $3.19/lb copper and $1.15/lb lead.
6. Open pit Mineral Resources were defined within the constraining pit design as per the 2018 Feasibility
Study.
7. NSR cut-off values were established for each metallurgical type. Refer to the Technical Report for full
details.
25 TSX: AQA
OTCQB: AQARFATTRACTIVE Grade & Relative Valuation (AuEq)
M&I RESOURCE GRADE (g/t AuEq)1,2,3
7.6
4.3
3.3
1.8
0.9 0.9 0.8 0.7 0.6 0.5 0.5
Adventus Aquila Osisko Probe Filo Mining Troilus Gold Integra Liberty Western Corvus
Mining Resources Metals Metals Gold Standard Resources Gold Copper and Gold
Ventures Gold
EV / M&I RESOURCES (US$/oz AuEq)1,2 $228
$149
$130
$78
Peer Median: $42 $20 $31 $42 $43
$4 $10 $11
Western Filo Mining Aquila Troilus Osisko Integra Adventus Corvus Gold Probe Liberty
Copper and Resources Gold Metals Resources Mining Gold Standard Metals Gold
Gold Ventures
PRICE/NAV 0.6x
0.6x
0.5x 0.5x
Peer Median: 0.4x 0.4x 0.4x 0.4x
0.3x
0.3x 0.3x 0.3x
Troilus Osisko Aquila Filo Mining Gold Integra Liberty Adventus Western Probe Corvus
Gold Metals Resources Standard Resources Gold Mining Copper and Metals Gold
Ventures Gold
Source: Company filings, S&P Capital IQ, street research.
Note: NAV based on current capital structure, excluding future financing assumptions. Peer medians exclude Aquila.
26 1 Gold equivalent calculation based on LT street consensus pricing of US$1,485/oz Au; US$18.20/oz Ag; US$1.08/lb Zn; US$3.05/lb Cu; US$0.91/lb Pb. TSX: AQA
2 Includes reserves and M&I resources, excludes inferred resources. OTCQB: AQARF
3 Grade calculation based on gold equivalent precious metal reserves and M&I resources divided by total tonnesBACK FORTY Geologic Cross Section
CROSS SECTION GEOLOGICAL EXTENSIONS
Idealized Pit Outline
Tuff Zone Massive
Pinwheel Zone
Sulfide Sp+Gn
Gossan
TUFF ZONE Tuff Zone massive
sulfide 2016
Main QFP ZONE
EXTENSION
EXTENSION PINWHEEL
NORTH
50-150m 50-150m Pinwheel massive sulfide and
gossan
100-200m
Main
Zone
R3
Rhyolite
Tuffaceous
DEEP ZONE sediments
TARGETS 100-200m
Deep
Zone Tuff
R2
R2.1
Future Drill Target Areas Tuff
R1
200-700m Tuff
R0
27
LOOKING WEST TSX: AQA
OTCQB: AQARFBACK FORTY Stratigraphy and Host Rock
Rhyolite 3
Quartz-Feldspar
Porphyry
Tuff Zone
Massive
Sulfides
Siliceous
Sediments
Rhyolite 2
Main Zone Quartz
Massive Crystal Tuff
Sulfide
Rhyolite 1
Deep Zone
Massive
Sulfide
Rhyolite
Rhyolite 0 Fragmental
28 TSX: AQA
OTCQB: AQARFMILESTONE PAYMENTS to Hudbay Minerals
Based on Purchase of Hudbay’s
51% Interest in Back Forty
AMOUNT TIMELINE
C$3 Million Payable upon completion of financing tied to start of
construction at Back Forty
Up to 50% payable in Aquila shares
C$2 Million Payable 90 days after start of commercial production
C$2 Million Payable 270 days after start of commercial production
C$2 Million Payable 450 days after start of commercial production
First milestone payment due by January 2024
1% NSR was repurchased from Hudbay in April 2015
concurrent with Orion transaction
29 TSX: AQA
OTCQB: AQARFUS$50M Gold Stream with Osisko Gold Royalties
FUNDS A SIGNIFICANT PORTION of Pre-Construction Activities
and Project Capital
US$50M gold stream (Back Forty only)
with staged payments:
• US$7.5 million on closing
(received Nov. 10, 2017)
• US$7.5 million on receipt of all material KEY GOLD STREAM TERMS
permits & open pit FS completion
(received Oct. 5, 2018) Osisko will purchase 18.5% of
the refined gold from Back Forty
• US$2.5 million on execution of until 105,000 ounces of gold
amended streaming agreements have been delivered
(received June 18, 2020)
• Thereafter the percentage
• US$7.5 million in three tranches: will be reduced to 9.25%
• $100K on March 2021 amendments of the refined gold
• $2.4M (August 2021) Ongoing payment: Osisko will
• $5M on US$6M Equity Financing, FS pay the Company 30% of the
and permitting process completion spot price of gold on the day of
• US$25 million on drawdown of a project delivery, subject to a maximum
debt facility payment of US$600 per ounce.
30 TSX: AQA
OTCQB: AQARFWISCONSIN Open for Business
“Our state has a rich mining history
that predates our statehood, yet for
the last 20 years the miner on our
flag has been stuck in the
unemployment line. With the signing
of the Mining for America Act into
law, a multi billion-dollar industry has
been invited to come back to
northern Wisconsin.”
Sen. Tom Tiffany
(now a Member of the U.S.
House of Representatives)
Mining will bring back “Knowing that we can do mining
to Wisconsin “good- well here in Wisconsin, especially
paying, family- in northern Wisconsin, where we
sustaining, blue-collar know a significant amount of
jobs” to northern resources are, we should at least
Wisconsin. be able to entertain, ‘Why not
Eric Bott, mining in our state.’”
Americans for Rep. Rob Hutton
Prosperity-Wisconsin
31 TSX: AQA
OTCQB: AQARFLIFE CYCLE of a Miner
Life Cycle of a Junior Miner
Typical value from discovery through production
32 TSX: AQA
OTCQB: AQARFYou can also read
