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ATAC Resources Ltd. Corporate Presentation May 2022
- 1. TSX-V: ATC OTCQB: ATADF May2022 Exploring for Copper and Gold in Yukon, BC and Nevada
- 2. TSX-V:ATC Forward-Looking Statements 2 FORWARD-LOOKING STATEMENTS Thispresentation 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 Copper and Gold in Yukon, BC and Nevada
- 3. TSX-V:ATC Corporate Overview 3 Share Structure* SharesOutstanding 209,813,641 Fully Diluted 247,127,778 Options ($0.17 - $0.55) 11,675,000 Warrants ($0.23 - $0.28) 25,639,137 Working Capital C$9.0M 52-Week Range 0.09 – 0.20 200-Day Moving Average 0.13 * Share Structure as at April 7, 2022 Recent Financings Shares Issued* Proceeds April 2022 25,000,000 @ $0.16/share (FT) ~$4.0M 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 Significant Holders Barrick Gold Corporation 13.3%* Konwave Gold Equity Fund 2.7%** Strategic Metals Ltd. 2.1%** LF Ruffer Gold Fund 1.0%*** * As at April 7, 2022 ** As at September 30, 2021 **** As at December 31, 2021 Exploring for Copper and Gold in Yukon, BC 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 Jasmine Lau, CPA, CFO – Charted Professional Accountant with extensive resource sector experience 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 – 10 years of exploration experience Andrew Carne, P.Eng., VP Corporate & Project Development – 10 years of exploration experience * FT = Flow-Through Shares
- 4. TSX-V:ATC 100%-owned High-Grade Resourcesin 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)* PIL Property in BC hosts multiple untested Cu-Au- Mo porphyry and epithermal Au-Ag targets. Located in the heart of the Toodoggone, one of BC’s hottest exploration districts. 2021 work at the road-accessible Connaught Property identified significant Cu-Mo±Au porphyry potential over a 13 km trend 100%-owned, 185-km long, district-scale Rackla Gold Property in Yukon with no underlying royalties 4 Strategic Assets in Top Tier Jurisdictions *Please see appendix for 43-101 compliant mineral resources. Exploring for Copper and Gold in Yukon, BC and Nevada 2022 exploration plans provide multiple paths to value creation. Multi-commodity exploration pipeline includes work from grassroots to discovery to resource expansion drilling.
- 5. TSX-V:ATC 2022 Exploration Plans 5 YukonExploration BC Exploration Catch Property • Systematic evaluation of gold-copper targets PIL Property • Evaluate undrilled 1,300 x 750 m Copper Ridge anomaly • Phase 1: 20 km IP survey • Phase 2: Maiden diamond drill program • Property wide prospecting, mapping and soil sampling 7,000 m of Drilling in 2022 Exploring for Copper and Gold in Yukon, BC and Nevada Connaught Property • 5,000 m maiden RC drill program on porphyry targets • Trench 3 additional Cu-Mo ± Au porphyry targets Rackla Gold Property • Resume work at Osiris Deposit, Nadaleen Project • 2,000 m resource expansion diamond drill program • Step out on OS-18-273: 26.70 m of 12.95 g/t Au
- 6. TSX-V:ATC ESG 6 Exploring for Goldin Yukon and Nevada
- 7. TSX-V:ATC The Rau Projecthosts the advanced-stage Tiger Gold Deposit with a PEA pre-tax NPV(5%) of $118.2 M and IRR of 54.5% Rackla Gold Property 7 The Nadaleen 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 Rackla Gold Property is ~1,700 km² and is comprised of two separate projects: Nadaleen and Rau. Exploring for Copper and Gold in Yukon, BC and Nevada Both projects have significant exploration potential, with numerous targets open to expansion and others not yet drill tested Yukon
- 8. TSX-V:ATC Nadaleen Trend 8 Exploring forCopper and Gold in Yukon, BC and Nevada Yukon 2022 Exploration • 2,000m of expansion diamond drilling at the Osiris Deposit
- 9. TSX-V:ATC Osiris Deposit –Carlin-Style Gold Resources 9 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) Nadaleen Project Exploring for Copper and Gold in Yukon, BC and Nevada Source: http://www.visualcapitalist.com/company-spotlight/atac-resources/
- 10. TSX-V:ATC Osiris Deposit –2022 Drilling Area 10 Exploring for Copper and Gold in Yukon, BC and Nevada Nadaleen Project 2022 Exploration • Step-out and expansion drilling at Conrad, Sunrise and Osiris
- 11. TSX-V:ATC Connaught Property Overview 11 Exploringfor Copper and Gold in Yukon, BC and Nevada 137 km2 road-accessible property, 65 km west of Dawson City, in the headwaters of the Sixtymile placer gold (>560,000 oz Au) No historic exploration for porphyry potential 2021 trenching returned broad areas of highly elevated copper and molybdenum in Target Area A with extensive phyllic alteration Surface copper grades are expected to be depleted due to leaching, and are in line with Casino Deposit leached cap grades 5,000 m maiden RC drill program in 2022 to evaluate porphyry potential in Target Areas A and C Regional trenching and prospecting to evaluate Target Areas B and D Yukon Outcrop in 2021 Trench: 1.38% Cu
- 12. TSX-V:ATC Connaught Project –Copper in Soil 12 Exploring for Copper and Gold in Yukon, BC and Nevada Yukon 2022 Exploration • 5,000m RC drill program will evaluate Target Areas A and C
- 13. TSX-V:ATC Connaught Project –2021 Trenching 13 Exploring for Copper and Gold in Yukon, BC and Nevada Yukon Note this is an unglaciated environment, where copper grades are depleted due to surface leaching.
- 14. TSX-V:ATC PIL Property Overview 14 Exploringfor Copper and Gold in Yukon, BC and Nevada BC Large, underexplored land package with numerous highly prospective copper-gold porphyry and epithermal gold-silver targets Located in a prolific and highly active part of BC’s Golden Horseshoe, amongst multiple past producing mines and advanced exploration projects Recently identified Copper Ridge Zone hosts a 1300 x 750 m copper-gold-molybdenum soil anomaly which has not been drill tested Composite talus sampling in 2015 at the Copper Cliff discovery returned 25 m of 1.04% copper and has not been evaluated by drilling Atlas East grab sampling returned 489.71 g/t gold with 6,514 g/t silver from a brecciated bedrock source and 72.47 g/t gold with 2,187 g/t silver from quartz vein float material
- 15. TSX-V:ATC PIL Property –Copper 15 Exploring for Copper and Gold in Yukon, BC and Nevada BC 2022 Exploration – Phase 1 • IP Survey at Copper Ridge • Property-wide prospecting and mapping 2022 Exploration – Phase 2 • Diamond Drilling at Copper Ridge
- 16. TSX-V:ATC Catch Property Overview 16 •New gold-copper discovery in underexplored extension of the Quesnel and Stikine terrane • 800 x 400 m of >400 ppm copper and >100 ppb gold in soil • Weighted average of all 2021 hand trenches: 0.34 g/t gold and 0.22% copper • Rock samples have peak values of 52.4 g/t gold, 1.60% copper, 228 ppm molybdenum and 41.7 g/t silver Exploring for Copper and Gold in Yukon, BC and Nevada Sample 3853101: 1.57% copper and 7.45 g/t gold Yukon
- 17. TSX-V:ATC Catch Property –Copper 17 Exploring for Copper and Gold in Yukon, BC and Nevada Yukon 2022 Exploration • Systematic property-wide exploration • Follow up on 2021 trench discoveries
- 18. TSX-V:ATC Catch Property –Copper 18 Exploring for Copper and Gold in Yukon, BC and Nevada Yukon
- 19. TSX-V:ATC 2022 – ATransformational Year for ATAC 19 Exploring for Copper and Gold in Yukon, BC and Nevada Well positioned to embark on a transformational year and build momentum for the company Strong exploration plan, with property pipeline from grassroots through resource delineation Re-rate opportunity with significant value gap between assets and current market capitalization Project Pipeline Grassroots Discovery Resource Definition Economics Connaught, YK Catch, YK Rosy, YK PIL, BC Rau Project, YK (NPV @ $1,550/oz = $161.4M) Nadaleen Project, YK (1.7 Moz @ 4.2 g/t Au)
- 20. TSX-V:ATC Why Invest inATAC? 20 Robust pipeline with projects from grassroots to economic-stage in multiple jurisdictions, with 7,000 m drilling in 2022 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 Compelling road-accessible copper-molybdenum±gold porphyry potential in Yukon along a 13 km trend 100% ownership of two high-grade open-pit gold deposits in Yukon, both open for expansion Experienced team with a track of discovery and rapid advancement Exploring for Copper and Gold in Yukon, BC and Nevada Well-financed, with over $9M in treasury to start 2022
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- 22. TSX-V:ATC APPENDIX 22 ATAC Mineral Inventory 23 24 25 26 27 28 OsirisResource Sensitivity Tiger Resource and PEA Gold Price Sensitivity Tiger Capital and Operating Costs Management & Directors 2020 Tiger Resource & PEA Exploring for Copper and Gold in Yukon, BC and Nevada
- 23. TSX-V:ATC Management & Directors 23 GrahamDowns, 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 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 Jasmine Lau, Chief Financial Officer Chartered Professional Accountant with extensive resource sector experience 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 James Gray, Director Managing partner of De Visser Gray LLP with extensive experience in accounting and auditing for junior resource companies Exploring for Copper and Gold in Yukon, BC and Nevada
- 24. TSX-V:ATC Total ATAC MineralInventory 24 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 Copper and Gold in Yukon, BC and Nevada
- 25. TSX-V:ATC Osiris Resource Sensitivity* 25 InferredGold 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 Nadaleen Project Exploring for Copper and Gold in Yukon, BC and Nevada
- 26. TSX-V:ATC 2020 Updated TigerResource & PEA 26 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 Copper and Gold in Yukon, BC and Nevada
- 27. TSX-V:ATC Tiger Resources andPEA Gold Price Sensitivity 27 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 Copper and Gold in Yukon, BC and Nevada
- 28. TSX-V:ATC Tiger Capital andOperating Costs 28 * 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 Copper and Gold in Yukon, BC and Nevada