high-grade gold production development in colombia · • general manager for cori puno that...

High-grade Gold Production

Development in Colombia

TSX-V: AGD OTCQX: AGDFX www.antioquiagoldinc.com

July 2015

DISCLAIMER

This presentation may contain forward-looking

statements concerning the Company’s plans for

its properties, operations and other matters.

These statements refer to analyses and other

information that are based on forecasts of future

results, estimates of amounts not yet

determinable and assumptions of management.

Statements concerning reserves and mineral

resource estimates may also be deemed to be

forward-looking statements to the extent that

they involve estimates of the mineralization that

will be encountered if the property is developed

and in the case of mineral reserves, such

statements reflect the conclusion based on

certain assumptions that the mineral deposit can

be economically exploited. Any statements that

express or involve discussions with respect to

predictions, expectations, beliefs, plans,

projections, objectives, assumptions or future

events or performance are not statements of

historical fact and may be “forward-looking

statements”. Should one or more of these risks

and uncertainties materialize, or should

underlying assumptions prove incorrect, actual

results may vary materially from those described

in forward-looking statements. Forward-looking

statements are made based on management’s

beliefs, estimates and opinions on the date the

statements are made and the Company

undertakes no obligation to update forward-

looking statements if these beliefs, estimates

and opinions or other circumstances change.

Investors are cautioned against attributing undue

certainty to forward-looking statements. Some

information provided is of a confidential nature

and cannot be divulged or used for gain until it is

made public.13


July 2015

Why Antioquia Gold?

• High-grade gold deposit with 270,000 oz resource

• 30,000 oz/yr production from late 2016

• Strategic partner with significant experience mining similar deposits in Peru

• Funding by strategic partner minimizes share dilution

• Experienced management

• Exploration targets provide signifcant production growth potential


July 2015

Strategy

Advance Cisneros into near term production

• 30,000 oz/yr Au production from Guayabito and Guaico

• 270,000 oz Au resource

• Planned start-up September 2016

• Modest capex US$40M; from partner loan and cash flow

• Simple process with proven technology

• Strategic partner experience mining similar deposits mitigates execution risk

• Cash flow generation of US$3M/month from 2,500 oz/m production from late 2016

Use cash flow to prove up more resources

Visible gold from panning drill core cuttings


July 2015

Strategy

“We made a corporate decision that 270,000 oz Au was sufficient to get a mine of this size started, because to double

that resource would have required spending another US$3–5M on exploration, and it probably would have taken another two

years to get to that”

Jim Decker, Executive VP & Director


July 2015

Management Team

Julián Villarruel

President and CEO

• Colombian mining and metallurgical engineer, lawyer and international economics specialist

• 30 years experience in senior management positions in mining

• Former General Director of the Colombian Institute of Geology and Mining (Ingeominas)

• Previously held senior management positions with mining companies in Colombia

Rodger Roden

Chief Financial Officer

• Chartered Accountant with more than 25 years of industry experience

• Former VP Finance/CFO with public and private companies in a broad range of industries

• Currently CFO to several public companies

James (Jim) Decker, P. Eng.

Director and Executive Vice President

• B.Sc. in Mining Engineering from Queen's University

• More than 40 years in the mining business

• President and principal partner of mining consulting firm Jim Decker & Associates with clients including Barrick, Kinross, Teck and Xstrata

• Director of TSXV companies Cava Resources and Braveheart Resources


July 2015

Board of Directors

Felipe Ferraro

Director and Chairman of the Board

• B.Sc in agricultural engineering and MA in business administration from the University ESAN-Stanford University

• Experience in industries including mining, enterprise, metal-working and heavy equipment

• General manager for Cori Puno that operates the 30,000 oz/y Au Untuca open-pit and underground mine in Peru (owned by the principals of Consorcio Minero Horizonte)

• Director of another TSXV-listed issuer

James (Jim) Decker, P. Eng.

Director and Executive Vice President

• B.Sc. in Mining Engineering from Queen's University

• More than 40 years in the mining business

• President and principal partner of mining consulting firm Jim Decker & Associates with clients including Barrick, Kinross, Teck and Xstrata

• Director of TSXV companies Cava Resources, Nebu Resources and Rainbow Resources

Fernando Jaramillo

Director

• Colombian civil engineer with more than thirty-five years of experience in oil and gas, mining and engineering industries

• Held senior regional and corporate roles with BP

• Prior to BP, held senior roles with Billiton and Shell in Colombia and the Netherlands

Ernesto Bendezu Flores

Director

• Lawyer in Peru with more than 20 years of mining experience

• Legal manager for Consorcio Minero Horizonte

Michael Cannock

Director

• Businessman with expertise in the hospitality and marketing sectors

• Director of hospitality at PI Fine Art in Toronto, Ontario


July 2015

Strategic Partner

Experienced partner reduces execution risk

Antioquia Gold backed by Peruvian mining group Consorcio Minero Horizonte

+ = Value creation Reduced risk

• Its subsidiary Infinita Prosperidad Minera owns 57% of AGD shares

• Infinita has 30+ years underground mining experience

• Infinita produced >250,000 oz Au in 2014, mostly from its Parcoy mine

• Parcoy very similar geologically to Cisneros

• AGD receives strong technical support (geology, mining and processing)

• www.cmh.com.pe


July 2015

Santa Rosa Red Eagle

Gramalote Anglo/B2Gold

Cisneros Antioquia Gold

Cisneros location

• Paved highway, 2 hours from Medellin

• Good infrastructure such as high tension power lines

• Proximity to other notable gold projects


July 2015

Cisneros Mineral Resource Estimate


July 2015

Cisneros High-grade Drill Core

216 g/t Au over 0.7 m


July 2015

Guayabito Plan View

• Multi-zone, en-echelon style deposit

• Individual zones with strike lengths of 180m, depths of 300m and localized true thickness up to 5.0m

• Drill intercepts include 4.0m @ 14.7 g/t Au in hole GYB11-052 and 5.1m @ 9.3 g/t Au in hole PC10-026


July 2015

Guayabito Cross Section

~1m

Guayabito Mine


July 2015

Guayabito Long Section

B B’ C C’ Key

+1.0 g/t Au

0.1-1.0 g/t Au

GYB2

Structure

El Bolo Structure


July 2015

Guaico Plan View


July 2015

Guaico Cross Section

Drill sample showing >75 g/t

• Drilling proves continuity of veins to depth

• Veins tested over 450m depth


July 2015

Guaico Long Section

GCO Structure

GCFW5 Structure

Key

+1.0 g/t Au

0.1-1.0 g/t Au


July 2015

Cisneros Metallurgy/Flotation Testing

Metallurgical tests indicate >95% gold recovery

Unit Guaico Guayabito

Mineral weight g 1,000 1,000

Au head grade analyzed

g/t 5.3 6.7

Au head grade calculated

g/t 5.7 6.6

Granulometry -200 mesh

% 60 60

Density Kg/L 1.3 1.3

Conditioning time Min 5 5

Initial pH of flotation 8.8 8.4

Final pH of flotation 8.4 8.1

Flotation time Min 16 16

Xanthate Z-6 consumption

g/t 60.0 60.1

ER-350 consumption g/t 22.4 22.4

MIBC consumption 15.2 15.2

0

20

40

60

80

100

0 2 4 6 8 10 12 14 16 18

% R

eco

very

Time, minutes

Flotation Without Gravimetrics, Guaico


July 2015

Cisneros Mine Development

• Mechanised underground mining with trackless equipment (30t trucks, 3m3 scoops, jumbo drills)

• 500 tpd mine and process plant

• 2km mineral transport tunnel to deliver ore from Guayabito and Guaico to plant

• Processing circuit with gravity, flotation, carbon-in-leach, dry tailings filtration process, and cyanide destruction

• Dry tailings disposal/rock

• Initial 5-7 year mine life

Guaico tunnel cross section


July 2015

GUAYABITO

GUAICO

PAPI

SECTOR NUS

U

D

FALLA NUS

FALLA CISNEROS

FALLA BAREÑO

MANUELA CHAMUELA

SOROMA CHAPULIN

Guaico Tunnel Plan View


July 2015

Guaico Tunnel Section View


July 2015

Mine Development Renders

Guaico Guayabito


July 2015

Process Plant Flow Sheet

ORE FEED ORE FEED

JAW

CRUSHER

SCREEN SCREEN

BALL MILL

HYDROCYCLONE

REGRIND

BALL MILL

GRAVITY

SEPARATION

DEWATERING

GOLD BULLION GOLD BULLION

FLOTATION

CIRCUIT

GOLD

PRECIPITATION

DRY TAILINGS

DISPOSAL

SMELTING

FILTRATION

GOLD BULLION GOLD BULLION

THICKENERS

GOLD

CONCENTRATE

CN DESTRUCTION

REACTORS CONTAINMENT

LEACHING

FILTER

PRESS

FILTER

PRESS


July 2015

Guayabito – Plant & Portal Locations

Guayabito Portal

48 m

53 m

59 m

56 m


July 2015

Guayabito Plant & Infrastructure Layout

Guayabito Portal

Plant Site

Shop

Warehouse

Office/Dry Comples

Cafeteria

Hydraulic Backfill Plant


July 2015

Mine development timeline

Tunnel, mine development, civil

works and infrastructure

begin

Civil works and infrastructure

complete

Tunnel and mine development

complete

Environmental & mining permit

Civil works and Infrastructure

complete

Tunnel and mine development

complete

Final basic engineering and design

Commissioning

Guayabito

Guaico

2015 July Aug Sept Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept 2016

Plant


July 2015

Project Finance

• Capex US$40M

• Infinita unsecured US$20M loan

• 7.1% loan interest

• Two-year grace period

• US$3M drawn to date

• US$5M budgeted draw by year end

• US$15M to draw down in 2016

• US$20M from cash flow from 3Q16

+ = Value creation Reduced risk


July 2015

Capital structure

• Shares outstanding 212.8M

• Fully diluted 247.7M

• Cash US$3M

• Options/warrants 34.9M

• Insider ownership 57%

Contact

Jim Decker

Tel: 403-701-6313

[email protected]

high-grade gold production development in colombia · • general manager for cori puno that...

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