Building a Multi-Asset Copper-Gold Company in Ecuador - Corporate Presentation ADZN:TSX-V ADVZF:OTCQX - Adventus Mining Corporation
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Building a Multi-Asset Copper-Gold Company in Ecuador
Corporate Presentation
Q4 2020 ADZN : TSX-V ADVZF : OTCQX
1
Forward Looking Statements
ADZN : TSX-V
ADVZF : OTCQX
9.5
This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in
any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or
regulation or which would require any registration or licensing within such jurisdiction.
This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for,
underwrite or otherwise acquire, any securities of Adventus Mining Corporation (“Adventus”), nor shall it or any part of it form the basis of
or be relied on in connection with any contract or commitment whatsoever.
Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of
applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward-
looking statements. Forward-looking statements are based on the beliefs and expectations of Adventus as well as assumptions made by
and information currently available to Adventus’ management. Such statements reflect the current risks, uncertainties and assumptions
related to certain factors including but not limited to, all costs varying significantly from estimates, production rates varying from
estimates, changes in metal markets, the effects of COVID-19, changes in equity markets, the proposed use of net proceeds from private
placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision
in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations,
delays in obtaining survey results, success of future development initiatives, the completion and implementation of a preliminary
economic assessment, pre-feasibility or feasibility studies, competition, operating performance, environmental and safety risks, delays in
obtaining or failure to obtain necessary permits and approvals from local authorities, community relations, and other development and
operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect,
actual results may vary materially from those described herein. Although Adventus believes that assumptions inherent in the forward-
looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable
securities laws, Adventus disclaims any intent or obligation to update any forward-looking statement.
The technical information contained in this presentation has been reviewed and approved by Jason Dunning. Mr. Dunning is a “qualified
person” as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
All currency figures in this presentation are in US dollars unless otherwise stated.
2
ADZN : TSX-V
Why Adventus? ADVZF : OTCQX
9.5
Entrepreneurial team building a multi-asset copper-gold company in new frontier of Ecuador:
Explorer for High Grade Copper-Gold World-Class
New Discoveries in Feasibility Study Investors
Drilling for major new El Domo deposit at Curipamba: 4 strategic shareholders:
copper-gold discoveries at ~9 Mt of 5.2% copper eq. (8.3 Altius, Greenstone, Wheaton
three projects in 2020-2021 g/t gold eq.) M&I near-surface Precious & Nobis Group
Numerous new targets resources for 2.4 Moz gold eq(1) > 40 institutional investors
identified for further work IRR of 40%, cash cost: $0.96 /lb C$38M raised in 2020 –
First mover advantage for CuEq ($412 /oz AuEq) (2,3) funded to test top drill
new projects – Exploration 15 year mine life of 19,000 tpa targets & complete feasibility
Alliance with renowned CuEq or 100,000 oz pa AuEq study/EIA on El Domo
explorer Fredy Salazar ~$450M of free cashflow in
first 6 years of mine life (2)
Adventus is aggressively pursuing exploration & development success on multiple projects,
including VMS & porphyry copper-gold districts
(1) See P.11 for detailed resource. (2) See Adventus‘ May 2, 2019 news release on El Domo deposit, Curipamba project economic study (3) Co-product basis
3
Adventus – Who We Are
ADZN : TSX-V
ADVZF : OTCQX
9.5
• Curipamba copper-gold project, with El Domo deposit – earning 75% of underexplored 21,500 ha property,
underpinned by high grade El Domo VMS: feasibility study started. ~$2M left of $25M earn-in requirement by Q4 2022.
2020-2021 drilling program targeting new discoveries within district. Salazar Resources Ltd.(“Salazar”) is partner
• Pijili & Santiago exploration projects in Alliance – maiden drilling at Pijili began in June 2020, both with potential
copper-gold porphyry & epithermal vein systems. In Exploration Alliance led by Adventus (80%) & Salazar (20%)
• Distinguished Strategic Shareholders – Altius Minerals, Greenstone Resources, Wheaton Precious & Nobis Group of
Ecuador see strong growth & discovery potential in Adventus
Adventus is exploration drilling at the Curipamba & Pijili projects, with Santiago to follow in 2021
– in parallel, commenced feasibility study on El Domo copper-gold project (within Curipamba)
4
Capital Structure & Timeline
ADZN : TSX-V
ADVZF : OTCQX
9.5
Symbols: ADZN (TSXV) ADVZF (OTCQX) Equity Research
Basic Market Capitalization: C$ 123 M Shares Outstanding: 131,091,382
Cash 1 : C$ 38 M Options 2: 6,000,000
Equities (Canstar & BMEx): ~ C$ 5 M Restricted Share Units: 1,077,500
Debt: nil Warrants: Nil
Enterprise Value: ~ C$ 80 M Fully Diluted: 138,168,882
Adventus Milestones Share Performance (last 12 months)
2017
• Feb 9: IPO @ C$0.50/share Bought Deal
• Sep 14: Curipamba earn-in & Ecuador Alliance Upsized to
• Dec 21: Bought deal C$10M financing Curipamba / El C$38M
(2020 07 28)
Domo feasibility
2018 Earn-in with commences Initial Pijili
• Feb 21: Newfoundland portfolio to Canstar South32 in (2020 06 22) Results
(2020 10 26)
• Mar 29: Acquires Pijili project in Ecuador Ireland
(2020 01 13) Santiago
• May 23: Acquires Santiago project in Ecuador update
• Jul 17: Wheaton Precious led C$9.2M financing (2020 06 15)
COVID-19 Mobilization Drilling El Domo
2019 measures for drilling at Restart at Feasibility
• Feb 7: Irish projects vended to BMEx in Ecuador Pijili Curipamba Update
• Apr 5: Airborne geophysics at Pijili & Santiago (2020 03 18) (2020 06 08)
(2020 10 13) (2020 12 02)
• May 2: El Domo, Curipamba PEA results
• May 6: Nobis led C$12.1M financing
• July 16: Bought deal C$14.3M financing / upsized Insiders have acquired ~700k shares since Q4 2019
• Sep 19: Airborne geophysics at Curipamba Last 3-month average daily trading $ volume: ~C$300k/day
Notes: 1 As at Sept 30, 2020 : company Q3 2020 financial report 2 Weighted average exercise price of C$0.90 per share, 5-year term, 3-year vesting 5
Investor Base
ADZN : TSX-V
ADVZF : OTCQX
9.5
AUM /
Investor Market Cap Profiles
(US$M)
Leading global royalty company focused on base metal and bulk commodities, with its royalties on 15
$350
operating mines generating ~C$80M per annum in revenues, with successful project generation business
London-based private equity fund specializing in the mining and metals sector, with more than 80 years
$370 collective experience predominantly fulfilling senior roles within mining companies, financial institutions and
principal investing, Greenstone is able to make successful long term investments
Formerly Silver Wheaton, Wheaton Precious Metals is the world’s largest streaming company, with a
$20,900 production profile that is driven by a portfolio of high quality assets, including a gold stream on Vale’s
Salobo mine, and silver streams on Glencore’s Antamina mine and Goldcorp’s Peñasquito mine
One of Ecuador's largest and most respected private organizations, with business interests across
private agricultural, real estate, industrial, commercial, construction and tourism sectors. Nobis was founded by
Executive President Isabel Noboa Pontón in 1997 (daughter of the late Luis Noboa)
Management
& Board
Retail
Institutional Investors
Notes: chart on fully diluted basis. Wheaton retains some ROFO/ROFR rights on future precious metal streams in Ecuador 6
Management & Board
ADZN : TSX-V
ADVZF : OTCQX
9.5
CHRISTIAN Over 17 years experience in industry and banking, OLIVIA GAMACHE Over 15 years international environmental
KARGL-SIMARD, P.Eng. primarily in investment banking at Raymond James P.Eng., M.Sc. management, community relations & CSR
President, CEO Ltd. and Haywood Securities Inc. B.A.Sc. in VP Environment & experience in the mining industry in the Americas
& Director Metallurgical Engineering from UBC Community with Hatch Ltd. & Yamana. Professional
environmental engineer (water), B.A.Sc & M.Sc.
DR. ALVARO DUEÑAS Over 20 years Ecuador business experience in Chemical Engineering from University of Toronto
Ecuador Country natural resources & foreign trade. Ecuadorian,
Manager FRANCES KWONG Over 35 years experience in finance, including CFO
qualified lawyer, & former Country Manager for
VP Finance, CFO, of Vaaldiam Mining & consultant to Orion Resource
Codelco. Doctorate in Jurisprudence from the
Corporate Secretary Partners. Fellow of the Institute of CAs in England &
Pontifica Universidad Catolica del Ecuador &
Wales, and a CPA CGA, HKU graduate
negotiation program at Harvard Law School
SAM LEUNG, P.Eng. 15 years experience in industry: Director, Corporate
JASON DUNNING Over 25 years experience, most recently as mining
VP Corporate Development at Lundin Mining (>$3.7 billion in
P.Geo., M.Sc., FGAC, group manager, geology & exploration at Nyrstar,
Development transactions); due diligence/ strategy consultant &
FSEG, VP Exploration served as VP Exploration at Alamos Gold Inc., Selwyn
metallurgist for Hatch Ltd., B.A.Sc. Engineering
Resources Ltd., and Yukon Zinc Corporation, & in
Chemistry from Queen’s University
exploration roles with Hudson Bay Mining and
Smelting Co. Ltd., and Pamicon Developments Ltd. DUSTIN SMALL, P.Eng. 20 years experience in project management,
Project Director engineering & construction, including small to large
scale mining projects US$100 M to over US$4 B.
BRIAN DALTON CEO & co-founder of Altius Minerals with over 20
Recently with Hatch Ltd/Kinross in Chile & Wood
Chairman years experience in industry globally, from grassroots
(Amec Foster Wheeler). B.Sc.E. Dalhousie University
exploration to executive management
BARRY MURPHY, PE, PMP Over 30 years mining sector experience in project
ROBERTO DUNN, MBA Advisor & former Executive Director of Nobis Group – Independent Director execution for Anglo American, Yamana, Hatch, with
Director one of the largest private conglomerates in recent focus on open pit and underground mine
Ecuador, with over 30 years of multi-sector business developments in Chile, Peru, Argentina, Brazil
leadership experience in Ecuador & global markets
PAUL B. SWEENEY Over 35 years experience in financial management,
MICHAEL HAWORTH Co-founded Greenstone Resources in 2013 after a Independent Director including CFO for both Canico (acquired by Vale)
Director 16 year career in the mining sector including and Sutton Resources (acquired by Barrick), on
Managing Director at JP Morgan and Head of board of OceanaGold
Mining and Metals Corporate Finance in London
MARK WELLINGS, 25 years experience in mining and finance, including
DR. SALLY EYRE Mining industry & finance veteran including CEO of P.Eng., MBA 18 years at GMP Securities L.P., including as MD of
Independent Director Etruscan Resources Inc., PhD in Economic Geology Independent Director Investment Banking and now Principal at INFOR
from Royal School of Mines, Imperial College Financial’s investment banking team
7
Ecuador – Ascending Mining Jurisdiction
ADZN : TSX-V
ADVZF : OTCQX
9.5
• In 2019-2020, Ecuador welcomed first modern-scale open-pit & underground mining operations:
o Mirador (copper-gold, $1.4 billion) & Fruta del Norte (gold, $700 million)
Examples of Major Investments
in Ecuador’s Mining Sector
Lundin Gold with $900M project financing package, incl. $400M
Newcrest & Orion equity financing by Newcrest, Orion & Lundin Family
Trusts + $20M exploration earn-in w/ Newcrest
Ecuacorriente: $1.4 billion capital investment to build Mirador
CRCC-Tongguan copper mining complex – open pit, 60,000 tpd mill,
~100 ktpa Cu in concentrate
Newcrest +$100M earn-in with Cornerstone on porphyry district
next to Adventus’ Santiago project
Curipamba
Codelco & Enami EP Signed JV with the government to develop project
Hancock Prospecting $200M green fields exploration
BHP $82M exploration spending commitment & $ SolGold
Pijili investment / US$75M exploration commitment with
Luminex on porphyry district
Solgold PLC +$100M in equity raised, including investments by
Newcrest & BHP. $150M Franco-Nevada royalty deal
Santiago Anglo American $57.3M earn-in JV with Luminex, adjacent to
Adventus’ Curipamba project
Adventus $25M earn-in transaction on the Curipamba project
+ $5M spend on Pijili & Santiago projects
Southern Copper Advancing copper porphyry next to Adventus
Fortescue Metals Greenfields exploration in 32 concessions
Continuing improvements in fiscal regimes are Dundee Precious $10M of $15.6M private placement in INV Metals for
supporting additional investment & growth Metals & INV Metals 19.5% equity stake
Source: Company reports 8
Advancing El Domo & Curipamba Project
ADZN : TSX-V
ADVZF : OTCQX
9.5
Adventus is focused on the continuing exploration & development of the El Domo deposit and the
greater Curipamba project (215 km2) – high potential district supported by significant baseline
resource, undrilled targets & experienced local-Ecuadorian team
El Domo Mineral Resource Estimate – NI 43-101
(Roscoe Postle, RPA – May 2019)
Tonnes Cu Au Zn Ag Pb CuEq AuEq CuEq AuEq
Mt % g/t % g/t % %(1) g/t (1) Mlbs(1) koz(1)
Measured 1.4 1.92 3.75 3.52 58 0.37 6.1 9.8 190 443
Indicated 7.5 2.02 2.33 2.81 49 0.26 5.0 8.0 826 1,926
Inferred 1.3 1.52 1.83 2.25 42 0.20 3.9 6.2 112 261
• Majority of M&I resource within 40 to 80 m from surface
• Located 20 km from Pan-American highway, in low-lying hills (300 - ~900 masl),
~3 h drive from major port city of Guayaquil
• Key surface rights acquired for development, including 100% of resource areas
• Small-mines permits granted for entire district for 25 years
Aligned Partnership Structure
• Earn-in terms for 75% ownership (~US$23M of US$25M spent to date; to Q4
2022), with 95% ratio payback until all invested amounts are repaid to Adventus
• Adventus retains 100% rights to off-take, streaming & financing options
Seasoned Ecuadorian Partner – Salazar Resources Ltd.
• Led by Fredy Salazar, one of the most successful explorers in Ecuador, including
having been instrumental in Aurelian’s Fruta del Norte discovery
• Curipamba has attracted many corporate investors since 2007 discovery
Advancing El Domo & the Curipamba project continues to be Adventus’ main focus,
with exciting exploration & technical results expected in 2020 & 2021
6x drill rigs now running
(1) Calculated from Ni 43-101 El Domo PEA (May 2019) which assumed Cu $3.15/lb, Au $1,350/oz, Zn $1.15/lb, Ag $18/oz, Pb $1.00/lb 9
Curipamba – 15 New Targets for Discovery
ADZN : TSX-V
ADVZF : OTCQX
9.5
15 new regional exploration targets developed within the 215 km2 district, with the first 20 planned
drill holes ranked in priority. ~10,000 m of exploration drilling approved Drill Hole Geographic Priority
ID Area Rank
P-1 Domo Este 2
P-2 Domo Este 2
Anglo American & P-3 Domo Este 2
Luminex JV Properties
P-4 Selva Alegre 2
P-5 Selva Alegre 2
P-6 Selva Alegre 2
P-7 Selva Alegre 2
Drill Holes P-8 Domo Este 2
P-11 to P-13
P-9 Domo Este 2
P-10 Domo Este 2
P-11 La Union 3
P-12 Miraflores Alto 3
P-13 Miraflores Alto 3
P-14 Sesmo Sur 1
P-15 Sesmo Sur 1
P-16 La Vaquera 1
Drill Holes
P-1 to P-10 P-17 La Vaquera 1
Drill Holes P-18 La Vaquera 1
P-14 to P-20
Solgold & Codelco Properties P-19 La Vaquera 1
P-20 La Vaquera 1
TOTAL
10Curipamba – La Vaquera: Highest Priority Drill Target
ADZN : TSX-V
ADVZF : OTCQX
9.5
~3,000 m diamond drill program ready to go over 7 drill holes targeting ‘intrusive’ target
Historical from surface drilling highlights:
• 12 m @ 2.25 g/t Au, 31 g/t Ag
• 15 m @ 2.54 g/t Au, 50 g/t Ag
• 5.3 m @ 1.49 g/t Au, 25 g/t Ag
2007 Ground IP
Chargeability
Kaolinite mine
(Ecuadorian Company)
11El Domo – Exceptional Deposit within Curipamba
ADZN : TSX-V
ADVZF : OTCQX
9.5
El Domo is a flat-lying VMS deposit, close to surface & mineable by open-pit and/or underground
methods to produce saleable copper, zinc & lead concentrates with strong precious metals credits
60,449 m drilled at El Domo to date – highlights include (1):
• 24.02 m of 5.41% copper, 6.40 g/t gold, 2.68% zinc, 58.6 g/t silver, 0.15% lead (~11.5% CuEq) – CURI 336
• 21.10 m of 5.49% copper, 3.94 g/t gold, 2.77% zinc, 42.3 g/t silver, 0.19% lead (~9.8% CuEq), including: 8.70 m of 11.31%
copper, 7.81 g/t gold, 6.57% zinc, 90.9 g/t silver, 0.44% lead (~20.3% CuEq) – CURI 300
• 8.16 m of 2.17% copper, 19.67 g/t gold, 23.17% zinc, 229.0 g/t silver, 4.01% lead (~28.4% CuEq), including: 3.71 m of 3.00%
copper, 36.55 g/t gold, 32.17% zinc, 411.3 g/t silver, 6.80% lead (~47.0% CuEq) – CURI 285
• 32.43 m of 4.40% copper, 1.29 g/t gold, 1.84% zinc, 13.3 g/t silver, 0.09% lead (~6.2% CuEq), including: 19.41 m of 7.00%
copper, 1.61 g/t gold, 3.00% zinc, 18.4 g/t silver, 0.14% lead (~9.5% CuEq) – CURI 266
Deposit dimensions: ~800 m x 400 m,
starts ~30 m below surface, generally
flat-lying – remains open: north, east,
depth. Average drill hole spacing of
25 m centres for metallurgical
testing, 2019 resource & PEA
James Franklin (Global VMS expert):
“Such camps typically contain a
minimum of 6 deposits with
economic metal content. One of
these is normally the “giant”,
containing more than 30 Mt of ore.
The potential for additional discovery
in the Curipamba area is excellent”
(2)
Notes: (1) 2019 PEA equivalence pricing assumptions: Cu $3.25/lb, Zn $1.30/lb, Pb $1.10/lb, Ag $23/oz, Au $1,500/oz 12
(2) Observations on the Curipamba Massive Sulfide District, Ecuador, Report For Salazar Resources by James M Franklin Ph.D., P. Geo, Aug. 17, 2009El Domo – PEA Highlights / Feasibility to Confirm
ADZN : TSX-V
ADVZF : OTCQX
9.5
Project Economics – PEA (1) NI 43-101 Open Pit Constrained Resource, Years 1-14 (1)
NPV(8%, after-tax) $288M ($343 M at spot prices (2)) Tonnes Cu Au Zn Ag Pb CuEq AuEq
Mt % g/t % g/t % %(1) g/t (1)
IRR after-tax: 40%, payback in < 2 years Measured 1.4 1.92 3.75 3.52 58 0.37 6.1 9.84
(46% after-tax IRR at spot prices (2))
Indicated 5.7 1.74 2.47 2.60 51 0.28 4.7 7.59
Free cashflow: $449M in first 6 years of mine life
M&I 7.1 1.78 2.73 2.78 53 0.30 5.0 8.06
C1 co-product $0.96 /lb copper equivalent or Inferred 0.7 0.67 1.60 1.72 46 0.21 2.7 4.40
cash cost: $412 /oz gold equivalent
Capital cost: $165M NI 43-101 Underground Resource, Years 10-15 (1)
PEA Price $3.15/lb Cu, $1,350/oz Au, $1.15/lb Zn, Tonnes Cu Au Zn Ag Pb CuEq AuEq
Mt % g/t % g/t % %(1) g/t (1)
assumptions: $18/oz Ag, $1.00/lb Pb
Indicated 1.8 2.91 1.85 3.51 43 0.20 5.8 9.23
Mill throughput rate (tpd) 1,750 tpd for 15 yr mine life
Inferred 0.6 2.46 2.09 2.82 37 0.19 5.2 8.26
Net metallurgical recoveries
Copper 81% Life of Mine Payable Revenues (2) PEA Authors/Contributors
Gold 58% Improvements
Zinc 79% announced • Roscoe Postle (RPA)
Silver 69% post-PEA • Klohn Crippen Berger
Lead 38% • Knight Piesold
Gold
• Base Met Laboratories (Kamloops)
Concentrate details: Clean concentrates: 39% Silver • Independent Mining Consultants
Copper ~25% Cu with high PMs
10% (Tucson)
Zinc ~56% Zn with high PMs Lead
No penalties for deleterious Taxes & Royalties
1%
elements expected Zinc
13% • Estimated >$250M in direct
LOM operating cost (US$/t) $55/t mine gate Copper tax & royalty revenues to
38% Ecuador over mine life
LOM sustaining capital (US$) $105M • Additional multiplier effects
LOM production average: 19,000 tpa CuEq or for economic development
100,000 oz pa AuEq
Feasibility Study commenced with DRA in July 2020
Notes: (1) May 2019 PEA by Roscoe Postle & Adventus news release (2) Spot metal prices at July 31, 2020: Cu $2.92/lb, Au $1,975/oz, Zn $1.04/lb, Ag $24.07/oz, Pb $0.84/lb 13El Domo & Curipamba – Timing & Next Steps
ADZN : TSX-V
ADVZF : OTCQX
9.5
El Domo – Path to Production
2020 2021 2022 to 2024
• Announced metallurgical • Regional exploration drilling at • Receipt of final EIA approval
improvements from PEA Curipamba • Receipt of investment &
• Completed key land acquisition • Completion of feasibility study exploitation agreement with
• Continue EIA program • Submit draft EIA to government Ecuador government
• Regional exploration drilling at • Commence project financing • Complete project financing
Curipamba activities activities
• Commenced feasibility study • Commence & complete
• EIA consultation process with construction
local communities • Ramp-up to production
Projected start dates for new copper mines
2020 2021 to 2024
• Lowest capex
Gunnison El Domo, Curipamba • negative($0.20)/lb
Florence Cu ‘incentive’ price 1
Pumpkin Hollow Kamoa QB2 Timok
Khoemacau T3 Botswana
El Domo has a clear path to production while surrounding exploration at Curipamba continues
Notes: (1) Using 2019 PEA financial model & spot metal prices for 15% after-tax IRR (July 31, 2020: Au $1,975/oz, Zn $1.04/lb, Ag $24.07/oz, Pb $0.84/lb) 14Pijili & Santiago Exploration Projects
ADZN : TSX-V
ADVZF : OTCQX
9.5
In addition to Curipamba, Adventus has advanced Pijili & Santiago exploration projects for drilling in
2020-2021 – both prospective for copper-gold porphyry & epithermal gold-silver vein systems
Exploration Alliance (80% Adventus, 20% Salazar)
Adventus leads & funds Alliance activities up to
construction decision – Pijili & Santiago projects to date
2019 MMT airborne surveys completed resulted in
numerous copper-gold targets on each project
Partners continuing to evaluate new projects to add
Pijili – Drilling Commenced in 2020
3,246 ha on three concessions in Azuay province
Legal artisanal miners followed precious metal-bearing
structures via small adjacent open pits & adits
District is prospective for massive copper porphyries such
as the nearby Chaucha project (Southern Copper)
Maiden drilling began in June 2020 with 5,000 m program
Santiago – Drilling to Commence in 2021
2,350 ha on one concession in Loja province
Adjacent to Newcrest/Cornerstone +$100M earn-in deal
High-sulphidation system scout-drilled by Newmont in ‘90s
with potentially economic Cu-Au intercepts over 100-325
m intervals from surface, but did not drill deeper
Ecuador – race for minerals continues
Competitive with majors, including BHP, Newcrest,
Fortescue, Hancock, Codelco & Southern Copper
Undrilled prospective projects individually garnering
US$20-100M in spending & cash commitments
2020 drilling program in-progress at Pijili, to be followed by Santiago in 2021 – both for new discoveries
15Pijili Project – Existing Concessions
ADZN : TSX-V
ADVZF : OTCQX
9.5
Adventus is assembling a dominant land position around the large tonnage Chaucha Cu-Mo
porphyry deposit, with several potential porphyry targets identified by airborne geophysics
IN PROGRESS
IN PROGRESS
IN PROGRESS
Rosa de Oro
And Carmen
de Pijili
RTP MAG
MobileMT
Mercy RTP MAG MobileMT
16Pijili Project – Drilling Underway
ADZN : TSX-V
ADVZF : OTCQX
9.5
The valleys in the project have up to 500 m in relief. Airborne geophysics and 4,409 rock and surficial
geochemistry samples have indicated a 1.5 x 1.5 km2 Cu-Au-Mo porphyry target. Drilling program underway
includes 5,000 to 7,000 metres over collar locations that are fully permitted
Chaucha (SCC) Las Antenas
OPEN
OPEN
Alteration
MDRU Porphyry Index
Gold
Pita Ensillada Zambohuaycu Artisanal Mine
17Pijili Project – Initial Drilling Results
ADZN : TSX-V
ADVZF : OTCQX
9.5
Drill Hole From To Thickness CuEq(2)
Cu Au Mo Ag Approx. True
(%) (g/t) (%) (g/t) Thickness (m)
(m) (m) (m) (%)
MERC-001 1.40 66.00 64.60 0.11 0.20 0.03 4.1 0.44 (1)
including 13.00 22.00 9.00 0.15 1.15 0.20 21.1 2.04 (1)
MERC-002 13.85 159.07 145.22 0.22 0.04 0.01 1.0 0.30 (1)
including 61.60 110.70 49.10 0.27 0.05 0.01 1.1 0.36 (1)
MERC-003 6.00 124.10 118.10 0.08 0.03 0.00 0.3 0.12 (1)
(1). Due to the early stages of the project and limited geological information, it is impossible to accurately interpret an approximate true thickness
(2). Copper Equivalency (“CuEq”) uses LME long-term metal pricing: Cu (US$3.04/lb), Au (US$1,908/oz), Mo (US$8.90/lb), and Ag (US$24.22/oz)Pijili Project – Zambohuaycu/Zambohuaycu Norte
ADZN : TSX-V
ADVZF : OTCQX
9.5Santiago Project – Concession Map
ADZN : TSX-V
ADVZF : OTCQX
9.5
Active region in Loja, with Santiago surrounded by Newcrest-Cornerstone and Solgold (priority project)
Santiago
(2,350 ha)
Santiago RTP MAG MobileMT
Neighbouring
+US$100M
Newcrest
option deal w/
Cornerstone
(2019 02 19)
20ADZN : TSX-V
Santiago Project – Historical Drilling & Geophysics ADVZF : OTCQX
9.5
Adventus is conducting detailed geoscience work in advance of ‘twinning’ at least two historical drill
holes deep into the geophysical anomaly – initial plan of 2,000-3,000 metres
Two former operators have completed
N N drilling programs at Santiago project
Prospection Panama S.A. drilled
11 DDH (1971-1981) totaling
2,137 metres
Newmont Overseas Exploration
Historical drilling did Ltd. drilled 23 DDH (1993-1994)
not test the main totaling 4,588 m
airborne geophysical All historical drilling appears to have
anomaly stayed in more resistive rocks, such as
quartz-alunite alteration &
hydrothermal breccia units
Large apparent conductivity anomaly
coincident with large magnetic low
Hole # From (m) To (m) Width (m) Au (g/t) Cu (%) CuEq (%)
FUD-01 0.61 323.70 323.09 0.40 0.23 0.65
FUD-02 129.05 300.00 170.95 0.55 0.33 0.91
FUD-08 3.05 300.23 297.18 0.23 0.12 0.36
Drill program expected to FUD-15 1.22 72.78 71.06 0.33 0.09 0.44
cost ~$0.8M, with field work FUD-16 43.43 93.29 49.86 0.43 0.18 0.63
restarted in Q3 2020 FUD-17 53.02 150.00 96.98 0.21 0.30 0.52
FUD-18 10.97 59.26 48.29 0.62 0.06 0.71
M06 99.36 109.42 10.06 0.21
Conceptual Conceptual M07 33.53 124.97 91.44 0.16
twinning of historical twinning of historical
DDH (FUD-01) DDH (M0 8) M08 85.34 327.76 242.48 0.23
~1,500m concept ~1,500m concept M09 31.56 151.79 120.21 0.26
M10 3.66 151.17 147.21 0.36
(3D geophysical section of Apparent Conductivity voxel model, looking East)
Note: CuEq metal prices as of April 16, 2020: US$2.36/lb copper and US$1,707/oz gold 21Development-Stage Peer Benchmarking
ADZN : TSX-V
ADVZF : OTCQX
9.5
(1)
El Dom o / Premier /
Flagship Asset Las Chispas Camino Rojo Valentine Lake Cerro Blanco DeLamar
Curipam ba Red Mountain
Location Ecuador Mexico Mexico New foundland British Columbia Guatemala Idaho
Open Pit /
Mine Type Underground Open Pit Open Pit Underground Underground Open Pit
Underground
(2)
M&I Resource Contained (100%) (koz AuEq) 2,075 468 12,558 3,092 1,922 1,467 3,614
M&I Resource Grade (g/t AuEq) 7.25 14.56 1.01 1.75 8.15 10.69 0.65
Annual Production (koz AuEq) 100 113 102 145 136 117 121
AISC (US$/oz AuEq) $500 $542 $585 $739 $747 $617 $742
(3)
LOM AISC Margin / Mine Life (US$ MM, yrs) $970, 15 years $1,026, 9 years $654, 7 years $1,245, 12 years $666, 8 years $828, 8 years $985, 10 years
Initial Capital Cost (US$ MM) $165 $101 $123 $205 $111 $196 $161
After-Tax NPV 5% (100%) (US$ MM) $395 $507 $223 $430 $259 $392 $464
After-Tax IRR (%) 42.2% 91.0% 39.7% 42.7% 51.0% 49.0% 54.0%
Assum ed Metals Prices (US$/oz Au / Ag) $1,500 / $18.00 $1,450 / $19.00 $1,500 / $17.00 $1,450 $1,400 / $17.00 $1,500 / $18.00 $1,500 / $18.78
(4)
Enterprise Value (US$ MM) $95 $1,045 $608 $253 $226 $136 $150
El Domo alone is highly competitive – valuation yet to recognize exploration potential of Curipamba, Pijili & Santiago
Source: Company materials, CapitalIQ.
Note a: Priced as of July 3, 2020.
Note b: AuEq calculation assumes long-term metals prices of US$1,600/oz Au, US$17.00/oz Ag, US$3.00/lb Cu, US$1.15/lb Zn and US$1.00/lb Pb.
(1) Global resource figures include resources at secondary Cerro Quema project in Panama.
(2) M&I Resources reported inclusive of 2P Reserves.
(3) LOM AISC Margin calculated as LOM Revenue at Assumed Metals Prices less LOM AISC (sum of Operating Costs, Royalties, TC&RC and Sustaining Capital Costs).
(4) Includes proceeds from ITM options and warrants.
22ADZN : TSX-V
Looking Forward: 2020-2021 ADVZF : OTCQX
9.5
Adventus continues to execute: fully funded to continue exploration & development results & news flow
• Ongoing regional exploration drilling on new targets (10,000 m drill program into 2021)
Curipamba Exploration &
• Complete feasibility study in Q4 2021 (5,000 m drilling into 2021)
El Domo Feasibility
• Submit draft environmental assessment to government during 2021
Pijili & Santiago • Drill programs to test top copper-gold targets at Pijili & Santiago (1-2 drill rigs into 2021)
Exploration Drilling • Continue to evaluate Ecuadorian opportunities to add to portfolio (private & public)
• Work with Nobis & Salazar to continue to develop top in-country team & project portfolio
Corporate • Advance exploration projects in Ireland with partnership funding from South32
• Continue growth of investor base globally
Opportunity to invest in an exciting copper-gold company – with increasing mine development value
& strong exploration potential for new discoveries
Contacts: Christian Kargl-Simard, P.Eng. Sam Leung, P.Eng.
President, CEO & Director Vice President, Corporate Development
christian@adventusmining.com sam@adventusmining.com
Adventus Mining Corporation www.adventusmining.com
220 Bay Street, Suite 550
Toronto, Ontario, Canada M5J 2W4
23Appendix – Exploration in Ireland with South32
ADZN : TSX-V
ADVZF : OTCQX
9.5
In 2020, Adventus & South32 commenced an exploration partnership to advance projects in Ireland
with concession area of over 1,100 km2
Rathkeale
• ~250 km2 on trend & contiguous to known deposits: Pallas Green (Glencore – 45.4 Mt @ 8.4%
Zn+Pb (1)) & Stonepark (Group Eleven/Connemara – 5.1 Mt @ 11.3% Zn+Pb (2))
• Geochem, MAG & 25 line-km seismic program completed – resultant drill targets proposed
Kingscourt
Kingscourt
• ~350 km2, located 15 km north of Boliden’s Tara mine near Navan (110 Mt)
• Historical trench & drilling intersected vein and breccia mineralization (galena-marcasite-
sphalerite) hosted in shelf limestones that assayed up to 7% Pb & 1% Zn
Fermoy Rathkeale
• ~480 km2 in County Cork, Irish-type Zn-Pb & Tullacondra-type Cu-Ag (3 Mt @ 0.7% Cu, 29 g/t Ag)
• Targeted for Waulsortian-hosted, Irish-type zinc-lead & Aherlow (5.5Mt @ 0.89% Cu, 40 g/t Ag),
Tullacondra-type Cu-Ag in Lower-Carboniferous clastics & carbonates
Fermoy
South32 to fund EUR 3.5M
in exploration spending
over a 4-year period for
an option to acquire a
70% interest in the Projects
25 line-km seismic program at Rathkeale Rathkeale, west of Glencore (Pallas Green)
& Group 11/Connemara (Stonepark)
Reference: (1) Glencore Resources & Reserves as at 31 Dec. 2019 Report, Inferred Mineral Resources; (2) Group Eleven news release 17 Apr. 2018, Inferred Mineral Resources
24You can also read
