COMMITTED TO CREATING SUSTAINABLE VALUE CORPORATE PRESENTATION AUGUST 2020 TSX-V: ATY | OTC: ATCMF
CAUTIONARY NOTES AND QP TSX-V: ATY | OTC: ATCMF Certain statements in this presentation constitute forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Atico Mining Corporation’s future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Atico’s mining and mine development activities, risks inherent in mineral exploration, uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Atico is active, labour relations and other risk factors. Dr. Demetrius Pohl, PhD, is the Qualified Person for Atico, as defined by National Instrument 43-101. Dr. Pohl was also responsible for ensuring that the information contained on slides 12, 13 and 19 in this presentation is an accurate summary of the original reports provided to Atico and has approved the scientific and technical content of this presentation. The technical and scientific information included on slides 5,6,7 and 20 have been reviewed and approved by Laurence Curtis, Ph.D., P. Geo., and a qualified person under National Instrument 43-101 of the Canadian Securities Administrators. NON-GAAP FINANCIAL MEASURES Cash cost per pound of payable copper produced and cash cost per tonne of processed ore are key performance measures that management uses to monitor performance. In addition, cash costs are an industry standard method of comparing certain costs on a per unit basis; however, these do not have a standardized meaning and may differ from methods used by other companies with similar descriptions. Management believes that certain investors use these non-GAAP financial measures to evaluate the Company’s performance. These performance measures have no meaning under IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies.
BUILDING ON SUCCESS TSX-V: ATY | OTC: ATCMF Proven building blocks to increase shareholder value STRATEGY Build a leading mid-tier producer through § Acquire small to medium scale organic growth and disciplined acquisitions, advanced-stage projects M&A focused on high margin operations in Latin OPPORTUNITIES § Potential to be a high margin mine America. § Stable jurisdictions § Successful track record creating shareholder value EFFECTIVE LEADERSHIP § Industry expertise and extensive regional network in Latin America OPERATING MINE § 90% ownership of producing mine and surrounding claims WITH GROWTH § El Roble has mined high grade Cu-Au material for over 30 years POTENTIAL § Focus on sustainable organic growth at current operation 3
CORPORATE OVERVIEW TSX-V: ATY | OTC: ATCMF Tight share structure OWNERSHIP TSX.V: ATY | OTC: ATCMF INSTITUTIONS RETAIL RECENT TRADING 28% 56% CLOSING PRICE 52-WEEK AVERAGE DAILY Ingalls & Snyder (08/12/2020) RANGE VOLUME (3MO) Aterra Capital $0.47 $0.16 - $0.59 145K Gold 2000 Metaform Investments MANAGEMENT/ DIRECTORS 16% CAPITAL STRUCTURE $0.80 SHARES OPTIONS FULLY $0.70 OUTSTANDING OUTSTANDING DILUTED 119 M 8.8 M 128 M $0.60 $0.50 $0.40 LIQUIDITY($USD) $0.30 WORKING AVAILABLE CREDIT CASH $0.20 CAPITAL $11.4 M $8 M $8.9 M $0.10 O N D J F M A M J J A 2020 2019 4
PROJECT LOCATIONS TSX-V: ATY | OTC: ATCMF Assets with organic growth potential LA PLATA | ECUADOR GOLD-COPPER-ZINC-SILVER VMS PROJECT EL ROBLE MINE | COLOMBIA COPPER-GOLD VMS PROJECT 5
EL ROBLE MINE, COLOMBIA TSX-V: ATY | OTC: ATCMF Flagship asset with organic growth potential LOCATION Carmen de Atrato, Colombia OWNERSHIP 90% PROPERTY 6,355 hectare land package, Mafic-type VMS COMMODITIES Cu, Au, Ag PROCESSING Standard grinding, milling and flotation circuit COPPER PRODUCTION (OOOs lbs) GOLD PRODUCTION (oz) OPERATION 6% 4% 2% 15% -2% 10% 900 tpd underground mine -8% 55% 315% -23% 33% END PRODUCT 543% 21,870 11,159 11,344 10,994 10,923 20,625 10,480 Cu (+Au, Ag) Concentrate 18,724 9,538 16,850 12,044 9,079 2,297 1,412 P&P RESERVES** * 2013 2014 2015 2016 2017 2018 2019 2020E 2013 2014 2015 2016 2017 2018 2019 2020E 1.47Mt at 3.40% Copper, 1.88g/t Gold *During the option term and up to Nov. 22, 2013, the Company was not responsible for mining or for 6 resource development and gained no income from the mining operations. **P&P Reserves as of June 30, 2018.
FINANCIAL PERFORMANCE TSX-V: ATY | OTC: ATCMF TSX-V: ATY | OTC: ATCMF Trailing 2 reported quarters Financial Highlights Operational Highlights $6.8M Cash flow from Ops Production C1 Cost 10M lbs Cu & $1.03/lbs 5.3K oz Au $1.46/lbs AISC $5.4M **Free Cash Flow Life of Mine Throughput ~4.0 Years 150K Tonnes 63% *AISC Margin *Margin is based on a realized prices of $2.39/lbs Cu and $1,667/oz Au and AISC. All figures expressed in 7 $USD. **FCF is calculated biased on cash flow from operations net of sustaining capital expenditures.
EXPLORATION PROGRAM TSX-V: ATY | OTC: ATCMF TSX-V: ATY | OTC: ATCMF Tailings dam Mine overview from Archie target Mill Administrative offices Core shack New 1886 adit El Roble Mine, Colombia 8
EXPLORATION TSX-V: ATY | OTC: ATCMF Mine Vicinity – Potential to increase resources at the mine LEGEND Massive sulphide exploited Mine workings Current Measured & 1886 Adit Indicated Resources Proposed drill holes Black Chert ZEUS N 9
EXPLORATION TSX-V: ATY | OTC: ATCMF Regional – Potential to find additional VMS Mineralization LA CALERA NORTE LEGEND • 6,355 contiguous hectare Geochemical target property with intermittent 1982-2018 drilling exploration. LA CALERA GEOLOGY LEGNED North-Eastern Anomaly Black chert • Atico has identified over A Grey chert Archie Anomaly r c h LA FAVORITA Andesitic volcanic rock i 21 perspective drill target e L o Sedimentary sequence o p areas. ARCHIE • 2020 drill program will E s t r e l l focus on the 2km trends a L o o Mine p encompassing the El Western Anomaly Central-Eastern Anomaly Roble mine. South Eastern Anomaly • 2020 drill program budget 2 Km. is set at 13,000 meters. EL CARMELO • Potential for more targets Gorgona Anomaly to be discovered during district exploration of the heavily vegetated terrain. SANTA ANITA IP-DAS / -100 m. 10
LA PLATA, ECUADOR TSX-V: ATY | OTC: ATCMF TSX-V: ATY | OTC: ATCMF Atico’s next development stage project LOCATION Near Quito, Ecuador OWNERSHIP 60% (up to 75% earn-in option) PROPERTY 2,300 hectare land package, Mafic-type VMS COMMODITIES Au, Cu, Zn, Ag EXPLORATION 9 priority exploration targets DEVELOPMENT STAGE Planned 800 tpd underground mine 11
LA PLATA GOLD-COPPER-ZINC-SILVER VMS PROJECT TSX-V: ATY | OTC: ATCMF • Ecuadorian Government expects US$7.5B in mining investment over the next few years • Ministry of Energy & Non-Renewable LA PLATA Natural Resources, Carlos Pérez Garcia, GOLD-COPPER-ZINC- SILVER VMS PROJECT consolidated Mining, Oil & Gas and E C U A D OR Electricity into one ministry • U.S. State Department 2017 included Ecuador as one of the safest countries in Latin America • Hydroelectric power available at low cost • Oil producing country, part of OPEC IN COUNTRY 12
LA PLATA VMS PROJECT, ECUADOR TSX-V: ATY | OTC: ATCMF High grade precious and base metals project 2Mt | 12.9 g/t AuEq 904,000 tons NORTH BLOCK Au 4.1 g/t Small scale mining in the late 70’s as an open pit and later some underground works Ag 50 g/t 1.1 M tons SOUTH BLOCK 3.3% Cu 4.6% Zn The underground mining sequence 1 - Upper North Block 2 - South Block 3 - Lower North Block It will use the Cut-&-Fill method on the vertical body and some Room-&-Pillar for the horizontal body 13
LA PLATA PERSPECTIVE LONG SECTION TSX-V: ATY | OTC: ATCMF High grade intercept to the north and down dip, beyond current resources 600M Guatuza zone 2.5m trenching at: 5.4 g/t Au, 71.2 g/t Ag, 2.1% Cu, 10.9% Zn 400M 6m trenching at: 2.0 g/t Au, 32.5 g/t Ag, 2.3% Cu, 2.6% Zn AuEq EXPANSION POTENTIAL 2017 Drilling reported: Fault Gouge 6.8m @ 7.0% Cu & 1.0g/t Au CMLP 17-93 = 14m @ 3.5g/t Au, 64.2g/t, 0,6% Cu, 4.1% Zn EXPANSION POTENTIAL 14
SIGNIFICANT EXPLORATION POTENTIAL TSX-V: ATY | OTC: ATCMF § VMS deposits tend to form in clusters which reinforces the prospect of further nearby deposits § +9 km of favorable geology along strike § Q. Romero: Drilled in 1965 - 1967 by Dr. Duncan R. Derry (Canadian Mining Hall of Fame) – 22m at 1.8% Cu § Guatuza target 150 m N of La Plata with intersection of: 6.8m at 7.0% Cu & 1.0g/t Au § Resource of 1.9M tons @ 13 g/t AuEq § Potential deposit extensions at depth and to the north § Numerous defined Au-Cu-Ag-Zn exploration targets § Regional targets defined by coincident geology, geochemistry, geophysics and surface mineralization § Regional detailed gravity ground geophysics completed 15
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