ATAC Resources Ltd. Corporate Presentation September 2021
- 1. TSX-V: ATC September 2021 Exploring for Gold and Copper in Yukon and Nevada
- 2. TSX-V:ATC Forward-Looking Statements 2 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of inferred and indicated mineral resources; (ii) the success of exploration activities; (iii) the results of the PEA including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, and production timelines for the Tiger Deposit. These statements are based on information currently available to ATAC Resources Ltd. (“ATAC”) and ATAC provides no assurance that actual results will meet management’s expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this presentation is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of resource estimate, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Tiger Deposit in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While ATAC considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ATAC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Tiger Deposit, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Tiger Deposit may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, and environmental risks. This list is not exhaustive of the factors that may affect any of ATAC's forward- looking information. These and other factors should be considered carefully and readers should not place undue reliance on ATAC's forward-looking information. ATAC does not undertake to update any forward-looking information that may be made from time to time by ATAC or on its behalf, except in accordance with applicable securities laws. TECHNICAL DISCLOSURE It should be noted that the Tiger Deposit PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecast will be realized or that any of the resources will ever be upgraded to reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Additional information about the Tiger Deposit PEA is summarized in ATAC’s February 27, 2020 technical report titled “Technical Report and Preliminary Economic Assessment for the Tiger Deposit, Rackla Gold Project, Yukon, Canada”, which can be viewed at www.sedar.com under the ATAC profile or on the ATAC website at www.atacresources.com. Additional information about the Osiris Resource Estimate is summarized in ATAC’s July 2, 2018 technical report titled “Technical Report and Estimate of Mineral Resources for the Osiris Project, Yukon, Canada,” which can be viewed at www.sedar.com under the ATAC profile or on the ATAC website at www.atacresources.com. Historical information for East Goldfield and the Val Target rely on disclosure from previous operators and have not been independently verified. QUALIFIED PERSON Adam Coulter, M.Sc., P.Geo., ATAC’s Vice President of Exploration, is a qualified person for the purposes of National Instrument 43-101. All technical information contained in this presentation has been approved by Adam Coulter. TRUE WIDTHS True widths for diamond drill holes are estimated to be 30% - 100% of intersected widths. RAB drill hole intersections are drilled thicknesses and true widths are unknown. Exploring for Gold and Copper in Yukon and Nevada
- 3. TSX-V:ATC 100%-owned High-Grade Resources in Yukon: Osiris: 1,685,000 oz. Au at 4.23 g/t (Inferred)* Tiger: 464,000 oz. Au at 3.19 g/t (M&I)* East Goldfield Property in Nevada hosts multiple drill-ready targets and strong historical results, with 4,000 m+ of RC drilling underway 2021 work at the road-accessible Connaught Property is evaluating significant Cu-Mo±Au porphyry potential 100%-owned, 185-km long, district-scale Rackla Gold Property in Yukon with no underlying royalties 3 2021 exploration plans include drilling in Nevada, and copper porphyry exploration and grassroots regional gold programs in Yukon Strategic Assets in Top Tier Jurisdictions *Please see appendix for 43-101 compliant mineral resources. Exploring for Gold and Copper in Yukon and Nevada
- 4. TSX-V:ATC Corporate Overview 4 Share Structure* Shares Outstanding 184,338,547 Fully Diluted 211,566,381 Options ($0.17 - $0.55) 13,280,000 Warrants ($0.23 - $0.28) 13,947,834 Working Capital** C$8.3M 52-Week Range 0.125 – 0.365 200-Day Moving Average 0.18 * Share Structure as at August 26, 2021 ** Working Capital as at August 1, 2021 Recent Financings Shares Issued* Proceeds June 2021 14,400,000 @ $0.175/share (non-FT) 2,400,000 @ $0.21/share (FT) ~$2.5M ~$0.5M April 2021 4,800,000 @ $0.21/share (FT) ~$1.0 M June 2020 4,347,827 @ $0.23/share (FT) ~$1.0 M Significant Holders Barrick Gold Corporation 15.1%* Konwave Gold Equity Fund 3.0%** Strategic Metals Ltd. 2.1%*** LF Ruffer Gold Fund 1.9%**** * As at July 7, 2021 ** As at February 28, 2021 *** As at April 7, 2021 **** As at February 26, 2021 Exploring for Gold and Copper in Yukon and Nevada Experienced Management Graham Downs, President & CEO – Over 25 years in the junior mining sector Ian Talbot, COO – Geologist & lawyer, formerly internal counsel with BHP Billiton World Exploration Rob Carne, P.Geo, Executive Chairman of Technical Committee – Former President of ATAC Ed Cope, Technical Advisor – Formerly VP Exploration, North America for Barrick Gold Corporation Adam Coulter, P.Geo., VP Exploration – 9 years of exploration experience Andrew Carne, P.Eng., Interim CFO, VP Corp. & Project Development – 9 years of exploration experience * FT = Flow-Through Shares
- 5. TSX-V:ATC 2021 Exploration Plans 5 Yukon Exploration Nevada Exploration Connaught Property • Geochemistry and geophysics • Evaluate Cu-Mo±Au porphyry to prepare for drilling • Continue to assess epithermal Au-Ag-Pb-Zn-Cu veins Rackla Gold Property • Evaluate historical Val target (20.12 m of 703 g/t Ag, 15.3% Pb, 22.1% Zn) • Re-log and re-sample Tiger drill core Regional • Evaluate Rosy and grassroots regional gold targets East Goldfield • Prospecting, mapping and drill targeting • Drill program permitting • +4,000m reverse circulation drill program: • Step-out on historical holes (22.86 m of 2.88 g/t Au) • Drill newly identified gold anomalies Fully-Funded Exploration Program Exploring for Gold and Copper in Yukon and Nevada
- 6. TSX-V:ATC Nevada 6 Top mining jurisdiction in the world – Fraser Institute 2020 Investment Attractiveness rankings Extensive history of mining, with numerous currently operating mines Well developed infrastructure Strong community support for exploration and development Low-relief, road-accessible terrain and straightforward permitting processes Exploring for Gold and Copper in Yukon and Nevada Historical Tom Keane Mine
- 7. TSX-V:ATC East Goldfield Project 7 +4,000 m RC drill program underway 7.8 km2 road-accessible property, located within the Goldfield Mining District in Nevada 8 km east of the past producing Goldfield Main Deposit (historic production of 4.2 million ounces at 18.55 g/t gold*) 2021 chip sampling results of 7.87 g/t gold over 3 m at a new outcrop discovery Adjacent to Waterton’s Gemfield project (47.3 million tonnes of Measured and Indicated at 1.03 g/t gold, totaling 1,574,000 ounces of gold) Hosts the historical Tom Keane mine, where 2003 RC drilling returned 22.86 m of 2.88 g/t gold Extensive west-northwest trending high- sulphidation epithermal alteration in favourable volcanic stratigraphy Drilling Underway – August 2021 2021 Chip Sampling: 4.16 g/t Au over 8 m Nevada Exploring for Gold and Copper in Yukon and Nevada
- 8. TSX-V:ATC East Goldfield Mineral Alteration 8 Nevada Exploring for Gold and Copper in Yukon and Nevada
- 9. TSX-V:ATC East Goldfield Highlights 9 Exploring for Gold and Copper in Yukon and Nevada East Goldfield Drilling Underway • Step-out on historical Tom Keane holes • Drill newly identified northwest gold anomalies Nevada
- 10. TSX-V:ATC East Goldfield – Focus Area 10 Exploring for Gold and Copper in Yukon and Nevada East Goldfield Drilling Underway • Step-out on historical Tom Keane holes • Drill newly identified northwest gold anomalies Nevada
- 11. TSX-V:ATC Yukon Territory 11 5 of the world’s top gold producers have invested in Yukon projects since 2016 Three producing mines: Eagle Gold, Keno Hill Silver District, and Minto Stable tax/royalty regime Yukon general corporate tax rate cut from 15% to 12% in 2017 Yukon Resource Gateway Project: Over $360 million in combined federal/territorial funding to improve road access Mining accounts for 20% of Yukon GDP Exploring for Gold and Copper in Yukon and Nevada
- 12. TSX-V:ATC Connaught Property 12 Exploring for Gold and Copper in Yukon and Nevada 137 km2 road-accessible property, located 65 km west of Dawson City, YK. Compelling early-stage copper-molybdenum- gold porphyry potential Strong and extensive Cu- Mo soil anomalies, overlying Prospector Mountain Suite intrusive rocks 26 distinct sub- epithermal Ag-Pb-Zn-Au- Cu veins. Rock samples grade up to 4,050 g/t silver, 79.41% lead, 10.90 g/t gold, 7.24% zinc and 1.98% copper. Preparing for porphyry target drilling in 2022. Yukon
- 13. TSX-V:ATC Connaught Project – 2021 Exploration Overview 13 Exploring for Gold and Copper in Yukon and Nevada Yukon Connaught 2021 Exploration • 1,100 m of trenching • > 2,000 soil samples, plus prospecting and mapping • 39 km of IP, 113 km of ground magnetics • 350 m of historical core re-sampled
- 14. TSX-V:ATC Connaught Project – 2021 Trenching 14 Exploring for Gold and Copper in Yukon and Nevada Yukon Pending Assays: • 831 m of trenches • 350 m of historical core • 2,229 soil samples
- 15. TSX-V:ATC The Rau Project hosts the advanced-stage Tiger Gold Deposit with a PEA pre-tax NPV(5%) of $118.2 M and IRR of 54.5% The Rackla Gold Property 15 The Osiris Project hosts Canada’s first Carlin-type gold discoveries with an inferred resource of 1,685,000 ounces at 4.23 g/t Au at the Osiris Deposit The Orion Project hosts Carlin-type gold mineralization over a 2.5 km strike length, along the regional-scale Anubis Fault The Rackla Gold Property is ~1,700 km² and is comprised of three separate projects: Osiris, Orion and Rau. Exploring for Gold and Copper in Yukon and Nevada
- 16. TSX-V:ATC 16 Rau Project Rau Project – Gold and Polymetallic Targets Exploring for Gold and Copper in Yukon and Nevada
- 17. TSX-V:ATC Osiris Project – Carlin-Style Gold Resources 17 Inferred Mineral Resource: 1,685,000 ounces gold at an average grade of 4.23 g/t (12.4Mt) Includes the Conrad, Sunrise, Osiris, and Ibis Zones Based on ~79,000m drilling 238 holes at an average depth of 330m Pit-Constrained Resource: 1,055,000 ounces gold at an average grade of 4.08 g/t (8.0Mt) Osiris Project Exploring for Gold and Copper in Yukon and Nevada Source: http://www.visualcapitalist.com/company-spotlight/atac-resources/
- 18. TSX-V:ATC 2021 Work Summary 18 Exploring for Gold and Copper in Yukon in Nevada +4,000m of RC drilling at East Goldfield in Nevada Prepare a road-accessible Cu-Mo±Au porphyry target for drilling Gold-copper focus, with silver and base metal upside January February March April May June July August September October November December Geochem & Geophysics EG Prospecting Assays RC Drilling Permitting East Goldfield Connaught Rackla Gold Rosy Regional Fieldwork Historical Data Digitization Historical Data Digitization Resampling Mapping & Targeting Preliminary Timeline
- 19. TSX-V:ATC Why Invest in ATAC? 19 Nevada exploration at the East Goldfield Property provides opportunities for year-round results and news flow Economic Tiger Deposit Updated Tiger Deposit PEA demonstrates a pre-tax NPV(5%) of $118.2M with an IRR of 54.5% at US$1,400/oz gold Gold mineralization along 2.5 km strike at the Orion Project, including: 19.85 g/t gold over 8.51 m (AN-12-001), and 2.75 g/t gold over 61.29 m (AN-16-010) 100% ownership of two high-grade open-pit gold deposits in Yukon, both open for expansion Fully-funded 2021 exploration program in Yukon and Nevada Exploring for Gold and Copper in Yukon and Nevada Compelling early-stage copper porphyry potential at the road- accessible Connaught Property
- 20. Thank you
- 21. TSX-V:ATC APPENDIX 21 ATAC Mineral Inventory 22 23 24 25 26 27 28 29 Osiris Resource Sensitivity Tiger Resource and PEA Gold Price Sensitivity Tiger Capital and Operating Costs Management & Directors 2020 Tiger Resource & PEA Tiger Gold Deposit & PEA Pit Shell Tiger Long Section Exploring for Gold and Copper in Yukon and Nevada
- 22. TSX-V:ATC Management & Directors 22 Graham Downs, President & CEO 23 years of Yukon mineral exploration experience Director of Trifecta Gold Adam Coulter, VP Exploration Professional Geologist, working in mineral exploration and development since 2012 Andrew Carne, VP Corporate & Project Development, Interim CFO Professional Engineer, working in mineral exploration and development since 2012 Vice President of the Yukon Chamber of Mines Ian Talbot, Chief Operating Officer Formerly internal counsel with BHP Billiton World Exploration Ed Cope, Technical Advisor 21 years with Barrick Gold Corporation; retired as VP Exploration for North America in 2016 Bill Wengzynowski, Geological Consultant 30+ years of Yukon-focused exploration experience Two-time recipient of Yukon Prospector of the Year award Douglas Goss, Chairman & Director Queen Elizabeth II Golden and Diamond Jubilee Medals Alberta Order of Excellence General Counsel & Corporate Secretary to Premium Brands since 1999 Rob Carne, Executive Chairman, Technical Committee & Director Former President of ATAC and part of the Rackla Gold Project discovery team Bruce Youngman, Director President and COO of Canplats Resources; acquired by Goldcorp Former VP and director of Northern Dynasty Minerals Don Poirier, Director Former VP Corporate Development for Hecla Mining Glenn Yeadon, Secretary & Director 34 years as a partner or associate of Tupper, Jonsson & Yeadon Bruce Kenway, Director Founding member of chartered accounting firm Kenway Mack Slusarchuk Stewart LLP Exploring for Gold and Copper in Yukon and Nevada
- 23. TSX-V:ATC Total ATAC Mineral Inventory 23 Zone Tonnes Grade (Au g/t) Gold (oz) Conrad 6,487,000 4.00 835,000 Osiris 474,000 4.61 70,000 Sunrise 309,000 4.23 42,000 Ibis 775,000 4.35 108,000 Total 8,045,000 4.08 1,055,000 Zone Tonnes Grade (Au g/t) Gold (oz) Conrad 3,174,000 4.46 455,000 Osiris 427,000 3.79 52,000 Sunrise 531,000 5.53 95,000 Ibis 203,000 4.27 28,000 Total 4,335,000 4.52 630,000 Osiris Inferred Pit-Constrained Resources (1.30 g/t gold cut-off)* Osiris Inferred Underground Resources (2.60 g/t gold cut-off)* Tiger Measured and Indicated Resources (0.75 g/t gold open pit cut-off | 1.50 g/t gold underground cut-off)* Zone Constraint Classification Tonnes Grade (Au g/t) Gold (oz) Oxides Open Pit Indicated 1,980,000 3.74 238,000 Underground Indicated 165,000 3.09 16,000 Sulphides Open Pit Measured 799,000 2.92 75,000 Open Pit Indicated 847,000 2.68 73,000 Underground Measured 29,000 2.06 2,000 Underground Indicated 706,000 2.64 60,000 Total M+I 4,526,000 3.19 464,000 *See page 2 for 43-101 Technical Report disclosure Exploring for Gold and Copper in Yukon and Nevada
- 24. TSX-V:ATC Osiris Resource Sensitivity* 24 Inferred Gold Cut-Off Tonnes Grade (Au g/t) Gold (oz) Pit-Constrained 1.30 g/t 8,045,000 4.08 1,055,000 Underground 2.60 g/t 4,335,000 4.52 630,000 TOTAL 12,380,000 4.23 1,685,000 Gold Cut-Off (g/t) Tonnes Grade (Au g/t) Gold (oz) 1 9,091,000 3.74 1,094,000 1.2 8,370,000 3.97 1,069,000 1.3 8,045,000 4.08 1,055,000 1.4 7,740,000 4.19 1,043,000 1.6 7,115,000 4.42 1,012,000 2 6,030,000 4.9 949,000 2.5 4,885,000 5.53 868,000 Gold Cut-Off (g/t) Tonnes Grade (Au g/t) Gold (oz) 2 6,337,000 3.81 776,000 2.3 5,223,000 4.16 699,000 2.5 4,612,000 4.4 652,000 2.6 4,335,000 4.52 630,000 2.7 4,076,000 4.63 607,000 3 3,392,000 4.99 545,000 Pit Constrained Cut-Off Sensitivity Underground Cut-Off Sensitivity *See page 2 for 43-101 Technical Report disclosure Osiris Project Exploring for Gold and Copper in Yukon and Nevada
- 25. TSX-V:ATC 2020 Updated Tiger Resource & PEA 25 Parameter Value Gold Price (US$/oz) $1400 Exchange Rate (US$:CA$) 0.77 Pre-tax NPV(5%) (millions) $118.2 Pre-tax IRR 54.5% Post-tax NPV(5%) (millions) $85.4 Post-tax IRR 42.6% Recovered Gold 267,090 oz Average Gold Grade 3.82 g/t Average Oxide Recovery 90.5% Average Sulphide Recovery 61.1% Pre-production Capital (millions) $110.1 Sustaining Capital (millions) $9.3 Payback (pre-tax) 1.24 years Payback (post-tax) 1.40 years Pre-production Period 1 year Mine life 6 years Process Carbon-in-Pulp Leach Production Rate 1,500 tpd Operational Period Year-round (365 days) Strip Ratio 5.3:1 Access Method Tote Road: ~$11 million *See page 2 for 43-101 Technical Report disclosure • Measured and Indicated Resources of 464,000 ounces of gold at 3.19 g/t • Pre-Tax NPV of $118.2 M with an IRR of 54.5% and a 1.24 year payback period • PEA envisions a small, high-grade, conventional open pit operation • At US$1,550/oz gold price the NPV increases to $161.4 M with an IRR of 69.2% • The deposit remains open for expansion along strike and at depth Rau Project Exploring for Gold and Copper in Yukon and Nevada
- 26. TSX-V:ATC Tiger Resources and PEA Gold Price Sensitivity 26 Type Constraint Classification Au Cut-off (g/t) Tonnes > Cut-off Grade > Cut-off Contained Metal Au (g/t) Au (oz) Oxide Open Pit Indicated 0.75 1,980,000 3.74 238,000 Underground Indicated 1.5 165,000 3.09 16,000 Sulphide Open Pit Measured 0.75 799,000 2.92 75,000 Open Pit Indicated 0.75 847,000 2.68 73,000 Underground Measured 1.5 29,000 2.06 2,000 Underground Indicated 1.5 706,000 2.64 60,000 Total M+I Variable 4,526,000 3.19 464,000 Oxide Open Pit Inferred 0.75 20,000 1.54 1,000 Underground Inferred 1.5 41,000 2.62 3,000 Sulphide Open Pit Inferred 0.75 7,000 2.41 500 Underground Inferred 1.5 97,000 2.26 7,000 Total Inferred Variable 165,000 2.17 11,500 Gold Price $US/oz (0.77 $US/CA$) $1,250 $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 Pre-Tax NPV (5% discount rate) $M $74.9 $89.4 $103.8 $118.2 $132.6 $147.0 $161.4 Pre-Tax IRR 38.7% 44.1% 49.4% 54.5% 59.4% 64.3% 69.2% The Mineral Resource estimate used in the updated PEA was completed by Steven Ristorcelli, C.P.G. (Mine Development Associates). The effective date of this Mineral Resource estimate is January 3, 2020. Three dimensional polygonal models were constructed to constrain oxide and sulphide mineralization, as well as model rock types and grade corridors. See page 2 for Technical Report disclosure. Rau Project Exploring for Gold and Copper in Yukon and Nevada
- 27. TSX-V:ATC Tiger Capital and Operating Costs 27 * Totals may not add exactly due to rounding ** Includes capitalized pre-production mining costs. Major mining equipment is leased *** Contingencies were factored on an area-by-area basic depending on the detail level of each estimate Capital Costs Pre Production (Millions)* Sustaining Capital LOM Site Infrastructure $8.4 - $8.4 Tote Road $11.6 - $11.6 Open Pit Mining** $10.4 - $10.4 Materials Crushing and Handling $2.0 - $2.0 Process Plant $30.4 - $30.4 Tailings and Water Management $8.0 $9.3 $17.3 Project Indirects $20.8 - $20.8 Owner’s Cost $1.3 - $1.3 Contingencies*** $17.2 - $17.2 TOTAL $110.1 $9.3 $119.4 Operating Costs LOM Avg. Mining Costs ($/t mined)* $4.28 Processing ($/t processed) $29.88 G & A ($/t processed) $15.33 Surface Services ($/t processed) $4.68 Camp & Genset Leasing ($/t processed) $0.64 Equipment Leasing ($/t processed) $1.68 * Not including capitalized pre-production mining costs *See page 2 for 43-101 Technical Report disclosure Rau Project Exploring for Gold and Copper in Yukon and Nevada
- 28. TSX-V:ATC 28 28 Tiger Deposit Resource & PEA Pit Shell Rau Project Exploring for Gold and Copper in Yukon and Nevada
- 29. TSX-V:ATC Tiger Deposit Long Section 29 Rau Project Exploring for Gold and Copper in Yukon and Nevada