PARTNERING WITH BARRICK TO DEVELOP CANADA S ONLY CARLIN-TYPE GOLD DISTRICT TSX-V: ATC

Transcription

1 PARTNERING WITH BARRICK TO DEVELOP CANADA S ONLY CARLIN-TYPE GOLD DISTRICT TSX-V: ATC June 2017

2 FORWARD LOOKING STATEMENTS 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. PEA 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 May 31, 2016 technical report titled Technical Report and Preliminary Economic Assessment for the Tiger Deposit, Rackla Gold Project, Yukon, Canada which can be viewed at under the ATAC profile or on the ATAC website at QUALIFIED PERSON Julia Lane, B.Sc., P.Geo., the Vice President of Exploration of ATAC, is a qualified person for the purposes of National Instrument All technical information contained in this presentation has been approved by Julia Lane. TRUE WIDTHS True widths for all Conrad, Osiris, Sunrise, Ibis, Anubis, Tiger and Ocelot highlight diamond drill holes are estimated to be 30% - 100% of intersected widths. RAB drill hole intersections are drilled thicknesses and true widths are unknown. Orion diamond drilling true thicknesses are also unknown at this time. 1

3 MANAGEMENT & DIRECTORS MANAGEMENT Graham Downs Julia Lane, B.Sc., P.Geo. Ian Talbot, B.Sc., LLB. Larry Donaldson, C.A. Vanessa Pickering DIRECTORS AND TECHNICAL COMMITTEE Douglas Goss, B.Comm., LLB. Rob Carne, M.Sc., P.Geo. Bruce Youngman, B.Sc. President & CEO - 23 Years of Yukon mineral exploration experience VP, Exploration - Partner of Archer, Cathro & Associates COO - Formerly internal counsel with BHP Billiton World Exploration Inc. CFO - 30 years of accounting, auditing and tax experience Manager, Corporate Communications - 13 years Yukon experience Chairman & Director - Queen Elizabeth II Golden and Diamond Jubilee Medals, Alberta Order of Excellence Director, Executive Chairman of Technical Committee - Former President of ATAC - Carlin-type gold discovery team for Rackla Gold Property Director & Technical Committee - Former COO of Canplats Resources Corp. - former VP and director of Northern Dynasty Minerals Glenn Yeadon, B.Comm., LLB. Don Poirier, B.Sc. Bruce Kenway, C.A. Ed Cope, M.Sc. Bill Wengzynowski, P.Eng. Secretary & Director - Over 30 years practicing securities law Director - Former VP, Corporate Development of Hecla Mining Director - Founding member of chartered accounting firm Kenway Mack Slusarchuk Stewart LLP Technical Committee - Former VP of Exploration, North America for Barrick Gold Corporation Technical Committee - Former partner in Archer, Cathro - Carlin-type gold discovery team for Rackla Gold Property 2

4 CAPITAL STRUCTURE SHARE STRUCTURE SHARES OUTSTANDING 139,556,877 FULLY DILUTED 151,031,877 OPTIONS ($ $1.80) 11,475,000 WARRANTS 0 WORKING CAPITAL ~$22M Share Structure as at June 1, 2017 Past 12 month trading pattern FINANCINGS SIGNIFICANT HOLDERS FLOW- THROUGH HARD DOLLARS PROCEEDS BARRICK ~27,771, % May 2017 Barrick Apr Mar $0.50/share $0.65/share $1.80/share ~$8.3 M ~$3.3 M ~$6.8 M TOCQUEVILLE 11,717,291* 8.4% STRATEGIC METALS 10,144, % *As at January 31, 2017 Mar Agnico Eagle $1.35/share ~$13.0 M 3

5 THE RACKLA GOLD PROPERTY, YUKON 4

6 THE RACKLA GOLD PROPERTY The Rackla Gold Property is ~1,700 km² and is comprised of three separate projects: the Osiris (100% ATAC), the Orion (ATAC-Barrick partnership) and the Rau (100% ATAC) The Osiris Project is host to Canada s first Carlin-type gold discoveries within the 12 km² Osiris Cluster at the Conrad, Osiris, Sunrise and Ibis zones The Orion Project is subject to an earn-in agreement with Barrick Gold Corporation whereby Barrick can earn up to 70% interest in Orion by spending $55 million in exploration The Rau Project hosts the economic Tiger Gold Deposit and 15 other underexplored targets 5

7 RACKLA GOLD PROPERTY HIGHLIGHTS Canada s only Carlin-type gold district discovered by ATAC in 2010 at the Osiris Project Drilled ~79,000 m and outlined 6 zones of significant, high-grade, Carlin-type gold mineralization at Conrad, Osiris, Sunrise, Ibis, Anubis and Orion between April 10, 2017: Barrick and ATAC enter partnership to explore the Orion Project transaction valued at ~$63 million May 3, 2017: initial regulatory approval to proceed with constructing a 65 km tote road to the Tiger Gold Deposit Well-funded with ~$22 million in cash and drilling has commenced on the $10 million exploration program for the Osiris and Rau Projects 6

8 THE BARRICK TRANSACTIONS The transactions consist of a potential total investment by Barrick of approximately $63.3 million, which includes a private placement of $8.3 million (completed), and a two-staged, $55 million exploration earn-in option to acquire 70% of the Orion Project: Stage 1 earn-in: $35 million expenditures for 60% of Orion Guaranteed $10 million expenditures in the first 3 years One or more senior Barrick exploration team members seconded to Orion Stage 2 earn-in: further $20 million expenditures for an additional 10% of Orion (70% total) Post earn-in: joint venture formed If either party s interest in the JV is reduced to 10% or less, their interest in Orion converts to a sliding scale NSR on gold between 1% - 3% with no buyout Barrick participated in a flow-through financing in ATAC for approximately $8.3 million Barrick s shareholding in ATAC post financing increased from 9.2% to 19.99% 7

9 OSIRIS AND ORION PROJECTS OSIRIS PROJECT First discoveries of Carlin-type mineralization found at the Osiris Project in discovery hole OS intersected m of 4.65 g/t gold ATAC will spend ~$8 million in exploration at the Osiris Project in 2017 ORION PROJECT The Orion Project is subject to an earn-in agreement with Barrick Gold Corporation whereby Barrick can earn up to 70% interest in Orion by expending $55 million in exploration Barrick will spend ~$5 million in exploration at the Orion Project in km tote road initial regulatory approval granted 8

10 CARLIN-TYPE GOLD DISCOVERIES ~5,000 m diamond drilling ~74,000 m diamond drilling

11 OSIRIS & ORION PROJECTS HIGHLIGHT DIAMOND DRILL RESULTS ZONE HOLE FROM (m) TO (m) INTERVAL (m) Au (g/t) CONRAD OS OS OS OS OS OSIRIS OS OS OS SUNRISE OS OS OS IBIS OS OS OS ANUBIS AN AN ORION AN True widths for all highlight drill holes on this slide are estimated to be 30% - 100% of intersected widths 10

12 THE OSIRIS PROJECT 2017 Exploration Plans - ATAC ~8,000 m of diamond drilling has commenced on the Osiris Project and is focusing on expanding high-grade gold mineralization at the Conrad and Osiris Zones Conrad Zone diamond drilling near the 350 Fault where OS intersected m of 8.03 g/t gold and the 650 Fault where OS intersected m of 4.05 g/t gold Shallow diamond and RAB drilling along the Sunrise Zone mineralized corridor where OS intersected m of 2.64 g/t gold Diamond drilling the Osiris Zone along strike of OS and OS which intersected m of 5.07 g/t gold and of 4.41 g/t gold, respectively 10

13 OSIRIS CLUSTER PLAN MAP 2017 diamond drilling has commenced on the Conrad Zone 12

14 THE ORION PROJECT Hosts the 18 km² Anubis Cluster with the drillconfirmed Carlin-type Orion and Anubis gold zones Subject to an earn-in agreement with Barrick, whereby Barrick can earn up to 70% of Orion by spending $55 million in exploration 2017 Exploration Plans - Barrick ~$5 million exploration program to commence mid-june Grassroots target delineation through detailed mapping, prospecting and trenching along with rock, soil and stream sediment sampling RAB drilling with possible follow-up diamond drilling Regional scale HeliFALCON airborne gravity gradiometry and magnetic geophysical surveys Anubis Cluster 13

15 ORION PROJECT - ANUBIS CLUSTER GEOLOGY 14

16 Hosts the Tiger Gold Deposit, Airstrip Gold Anomaly, and numerous other early-stage carbonate-replacement style gold and base metal targets 2017 Exploration Plans - ATAC THE RAU PROJECT Updated 2016 Tiger Deposit PEA doubled the pre-tax NPV to over $100 million* and improved on every metric from the 2014 PEA Diamond drilling of the Tiger East anomaly where 10 of 21 composite float grab samples returned between g/t gold in 2016 Diamond drilling to expand upon Tiger Gold Deposit sulphide mineralization such as RAU which intersected m of 5.11 g/t gold ATAC received initial regulatory approval from YESAB to proceed with constructing a 65 km tote road to the Tiger Deposit Prospecting, mapping and potential RAB drilling of four oxide gold targets along strike of the Tiger Gold Deposit * Please see page 1 of this presentation for Tiger PEA disclosure 20

17 RAU PROJECT GOLD GEOCHEMISTRY 16

18 TIGER DEPOSIT & TIGER EAST ANOMALY 20

19 2014 vs 2016 TIGER PEA 2014 PEA 2016 PEA Gold Price (US$/oz) $1250 $1250 Exchange Rate (US$:CA$) Pre-tax NPV (5%) (millions) $52.15 $106.6 Pre-tax IRR 30.0% 34.8% Post-tax NPV (5%) (millions) $33.67 $75.71 Post-tax IRR 21.5% 28.2% Recovered Gold 221,558 oz 302,307 oz Average Gold Grade 3.72 g/t 3.81 g/t Average Oxide Recovery 89.8% 90.3% Average Sulphide Recovery 0% 57.7% Pre-production Capital (millions) $92.3 $109.4 Sustaining Capital (millions) $26.5 $8.3 Payback (pre-tax) 2.2 years 1.85 years Payback (post-tax) 2.6 years 1.92 years Pre-production Period 1 year 1 year Mine life 4 years 6.2 years Closure Period 2 years 2 years Project life 7 years 9.2 years Process Hybrid CIL/Heap Leach CIP Production Rate 3,300 tpd 1,500 tpd Operational Period Seasonal (158 days) Year-round (365 days) Strip Ratio 5.6:1 4.9:1 Access Method Winter Road Tote Road Please see page 1 of this presentation for Tiger PEA disclosure 18

20 SUMMARY Commenced $10 million exploration program at the Osiris and Rau Projects diamond drilling at Conrad Zone underway ATAC maintains 100% ownership of its highest grade cluster of Carlin-type gold zones at the Osiris Project ATAC and Barrick to work collaboratively to advance the understanding of Carlin-type mineralization at the Orion Project Potential to add additional ounces to the Tiger Gold Deposit by drilling known sulphide zones and adjacent oxide targets 150 m away from the 2016 proposed PEA pit Aggressive 2017 exploration program and increased news-flow 19

21 APPENDIX 21. The Barrick Transactions 22. Osiris and Orion Projects highlight diamond drill results 23. Osiris Cluster plan map 24. Conrad Zone figure 25. Conrad Zone 2017 exploration plans 26. Osiris Zone figure 27. Osiris Zone 2017 exploration plans 28. Sunrise Zone figure 29. Ibis Zone figure 30. Sunrise and Ibis 2017 exploration plans 31. Tiger 2016 PEA Resources and Price Sensitivity 32. Tiger 2016 PEA Pre-Production and Operating Capital 33. Arcus Development Group Inc. deal 20

22 THE BARRICK TRANSACTIONS The transactions consist of a potential total investment by Barrick of approximately $63.3 million, which includes a private placement of $8.3 million (completed), and a two-staged, $55 million exploration earn-in option to acquire 70% of the Orion Project: Stage one earn-in requires Barrick to spend $35 million in exploration to acquire 60% of the Orion Project Stage one expenditures include a $10 million guaranteed exploration commitment over 3 years Stage two earn-in requires Barrick to spend an additional $20 million in exploration to acquire an additional 10% of the Orion Project (aggregate of 70%) One or more of Barrick s senior exploration team members will be appointed to the Orion Project Post earn-in, if either parties joint venture interest is reduced to 10% or less, their interest in the Orion Project converts to a sliding-scale Net Smelter Return Royalty (NSR) on gold which ranges between 1% to 3% with no buyout provision: Each stand-alone gold deposit within the Orion Project will be subject to the same sliding-scale NSR Silver will be subject to a 2% fixed NSR and all other commodities will be subject to a 1% fixed NSR neither NSR will have a buyout Barrick participated in a flow-through financing in ATAC for approximately $8.3 million and Barrick s shareholding in ATAC increases from 9.2% to 19.99% 21

23 OSIRIS & ORION PROJECTS HIGHLIGHT DIAMOND DRILL RESULTS ZONE HOLE FROM (m) TO (m) INTERVAL (m) Au (g/t) CONRAD OS OS OS OS OS OSIRIS OS OS OS SUNRISE OS OS OS IBIS OS OS OS ANUBIS AN AN ORION AN True widths for all highlight drill holes on this slide are estimated to be 30% - 100% of intersected widths 22

24 OSIRIS CLUSTER PLAN MAP 23

25 CONRAD ZONE

26 CONRAD ZONE Previous Exploration Conrad is the most advanced zone in the Nadaleen Trend and received 43,433 m of diamond drilling in 108 holes between Previous shallow drilling focused on developing the Conrad Upper Zone along the crest of an anticlinal fold where a strike length of 800 m has been defined Limited drilling beneath the Upper Zone has defined an area of mineralization proximal to a laterally extensive, near vertical siltstonelimestone contact at the Conrad Middle Zone only 300 m of the 800 m long favourable contact has been tested 2017 Exploration Plans Diamond drilling will focus on crosscutting faults thought to be associated with highgrade gold mineralization intersected in proximity to the 350 and 650 faults Only limited drilling has tested the 350 and 650 faults due to their near parallel orientation to previous drilling Diamond drilling will also test the Conrad Lower Zone along strike of OS which intersected m of 3.03 g/t gold and m of 3.15 g/t gold OS : m of g/t gold Limited drilling has tested for mineralization at the Conrad Lower Zone, opening up an entirely new area for exploration The average grade of all reported intersections at Conrad is 4.75 g/t gold* Out of 148 released Conrad intersections, the minimum intersection grade was 1.01 g/t gold and the maximum was g/t gold. The minimum interval width of intersections was 2.20 m and the maximum was m 25

27 OSIRIS ZONE 26

28 OSIRIS ZONE Previous Exploration The Osiris Zone was ATAC s first discovery of Carlin-type gold mineralization and hole OS intersected m of 4.65 g/t gold Osiris received 14,220 m of diamond drilling in 59 holes between Previous diamond drilling focused on the hinge of an anticline fold and along strike where shallow drilling traced mineralization over a 900 m strike length 2017 Exploration Plans Diamond drilling will focus on the northern extension of Osiris along strike of OS and OS which intersected m of 5.07 g/t gold and m of 4.41 g/t gold, respectively RAB drilling will test additional high-grade mineralized structures similar to the North Osiris Trench which returned values up to g/t gold over 1.8 m** The average grade of all reported Osiris intersections is 3.62 g/t gold* Out of 55 released Osiris intersections, the minimum intersection grade was 1.36 g/t gold and the maximum was 8.37 g/t gold. The minimum interval width of intersections was 3.05 m and the maximum was m ** See ATAC news release dated August 30, 2011 for further details 27

29 SUNRISE ZONE 14

30 IBIS ZONE

31 SUNRISE & IBIS ZONES Previous Exploration Sunrise is located 300 m east of the Osiris anticline and received 4,328 m in 19 holes between Mineralization at Sunrise occurs as subparallel tabular bodies that dip steeply south and drilling to date outlined a 215 m strike length that is open along strike and past a depth of 350 m The average grade of all reported Sunrise intersections is 6.25 g/t gold* Ibis is located 550 m southwest of the Sunrise Zone and received 6,574 m in 26 holes between Exploration Plans Shallow RAB and diamond drilling at Sunrise will focus on following the mineralized corridor along strike to the west where OS intersected m of 2.64 g/t gold There are 3 untested gold-in-soil anomalies to the north and east of where previous drilling intersected the main Ibis zone select rock samples within these anomalous areas grade: 1.30 g/t gold, 1.81 g/t gold, 2.46 g/t gold, and 3.15 g/t gold these anomalies will be tested by RAB drilling in 2017 Sunrise OS : m of 6.76 g/t gold Much like at Osiris and the Conrad Upper Zone, mineralization at Ibis is best developed in the crest of an anticline where mineralization has been traced through drilling for an unfolded strike length of 230 m The average grade of all reported Ibis intersections is 3.10 g/t gold** Out of 17 released Sunrise intersections, the minimum intersection grade was 2.03 g/t gold and the maximum was g/t gold. The minimum interval width of intersections was 1.05 m and the maximum was m ** Out of 18 released Ibis intersections, the minimum intersection grade was 1.02 g/t gold and the maximum was 6.28 g/t gold The minimum intersection width of intersections was 3.32 m and the maximum was m 30

32 Type Oxides TIGER RESOURCES AND GOLD PRICE SENSITIVITY Gold Price $US/oz $1,200 $1,250 $1,300 Pre-Tax Cumulative Net Cash Flow $M $130.1 $149.4 $168.7 Pre-Tax NPV (5% discount rate) $M $90.8 $106.6 $122.3 Pre-Tax IRR 30.8% 34.8% 38.8% 0.78 $US/CA$ Classification Au Cut-off (g/t) Tonnes > Cut-off Grade>Cut-off Contained Metal Au (g/t) Ag (g/t) Au (oz) Ag (oz) Measured ,600, , ,700 Indicated ,720, , ,700 Sulphides Indicated ,360, ,300 24,500 Total M+I 5,680, , ,900 Oxides Inferred , ,700 51,000 Sulphides Inferred ,950, ,800 44,600 Total Inferred 3,230, ,500 95,600 The Mineral Resource estimate used in the updated PEA was completed by Gary Giroux, P.Eng., M.A.Sc. (Giroux Consultants Ltd.) using 6,222 assays taken from 150 diamond drill holes, totalling 26,844 m. The effective date of this Mineral Resource estimate is October 28, A three dimensional solid model was constructed to constrain oxide and sulphide mineralization. Please see page 1 of this presentation for Tiger PEA disclosure 31

33 TIGER PRE-PRODUCTION AND OPERATING CAPITAL CAPITAL COSTS PRE PRODUCTION (millions)* SUSTAINING CAPITAL LOM Site Infrastructure $ $8.1 Tote Road $ $11.0 Open Pit Mining** $13.2 $0.03 $13.2 Materials Crushing and Handling $ $2.0 Process Plant $ $29.7 Tailings and Water Management $7.9 $6.1 $14.0 Project Indirects $ $19.8 OPERATING COSTS LOM Avg. Mining Costs ($/t mined)* $4.31 Processing ($/t processed) $26.98 G & A ($/t processed) $12.38 Surface Services ($/t processed) $3.80 Equipment Leasing ($/t processed) $1.68 * Not including capitalized pre-production mining costs Owner s Cost $ $1.2 Contingencies*** $16.5 $2.2 $18.7 TOTAL $109.4 $8.3 $117.7 * 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 Please see page 1 of this presentation for Tiger PEA disclosure 32

34 ARCUS DEAL ATAC sold its 50% interest in the Dawson Gold Joint Venture properties to Arcus Development Group Inc. in exchange for: 10,869,910 Arcus shares for a total of 11,399,910 or 15.66% of Arcus 5,000,000 warrants at $0.20 expiring on August 19, 2021 ATAC gains exposure to one of Yukon s premier exploration districts without incurring exploration expenditures or dilution On October 24, 2016 Arcus entered into a series of financings with Goldcorp Inc. whereby Goldcorp now owns 19.9% of Arcus outstanding shares Supremo Zone 33