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MINE DEVELOPMENT WITH CONFIDENCE

FEBRUARY 2011

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SAFE HARBOR STATEMENT

• Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of
1995 and Canadian securities legislation. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company, or other future events, including forecast production, earnings and cash
flows, to be materially different from any future results, performances or achievements or other events expressly or implicitly predicted by such
forward-looking statements.
• Such risks, uncertainties and other factors include, but are not limited to, factors associated with fluctuations in the market price of precious metals,
mining industry risks, recent operating losses, uncertainty of title to properties, risk associated with foreign operations, environmental risks and
hazards, proposed legislation affecting the mining industry, litigation, governmental regulation of the mining industry, properties without known
mineable reserves, uncertainty as to calculations of reserves, mineral deposits and grades, requirement of additional financing, uninsured risks, risk of
hedging strategies, competition, dependence on key management personnel, potential volatility of market price of the Company’s common shares,
dilution and certain anti-takeover effects. Such information contained herein represents management’s best judgment as of the date hereof based on
information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.
• Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially
affected by the inability to obtain required environmental and other regulatory approval, environmental or operating permits. The estimate may also
be materially affected by global economic conditions such as the price of gold and silver, the price of oil and other commodities utilized in the
production of gold and silver. Unknown geologic or hydrologic conditions or other unknown factors may materially affect the resource estimates. Net
smelter returns and metallurgical recoveries at Sinchao have not been considered.
• This document uses the terms "measured resources", 'indicated resources' and 'inferred resources'. Investors are cautioned not to assume that any
part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of
uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever
be upgraded to a higher category. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally
mineable.
• Mr. Les Tarnai, P.Eng., General Manager of Engineering, Invicta Mining Corp., is a Qualified Person as defined by National Instrument 43-101 with the
ability and authority to verify the authenticity and validity of the data herein. Victor Jaramillo, P. Geo., of Discover Geological Consultants Inc. is an
Independent Qualified Person as defined by National Instrument 43-101 and is responsible for the resource estimates. Guy Lokhorst, P. Eng., of The
Lokhorst Group, is an Independent Qualified Person as defined by NI 43-101 and is responsible for the review of the mining methodology, including the
probable reserves and life of mine, for the Invicta Feasibility Study. Deepak Malhotra, PhD., MS in Metallurgical Engineering and PhD. in Mineral
Economics, Independent Qualified Person as defined by NI 43-101, of Resource Development Inc., reviewed the metallurgy for the Invicta project and
developed the finalized process flow diagram for the Invicta Feasibility Study. Leslie F. Tarnai, P. Eng., General Manager of Engineering for Invicta
Mining Corp., is a Qualified Person as defined by NI 43-101 and is responsible for the Invicta Feasibility Study.

• All amounts are in Canadian dollars unless otherwise stated.

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CAPITAL STRUCTURE TSX:V AAG

CAPITALIZATION MAJOR SHAREHOLDERS


Market Cap at Feb 11, 2011 C$126.7 million Trafigura Beheer B.V. 19.5%
Basic Shares Outstanding 141,365,892 Richmond Capital LLP 7.4%
Options 7,870,588 Management and Insiders 6%
Warrants 5,614,368 Praetorian Capital 5.5%
Price between $0.35 - $1.25 Management LLC
expiry starting 20 Sept 2011 Sprott Asset Management 3.9%
Cash $28 million LLP
Debt At present: nil

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EXPERIENCED MANAGEMENT
• DAVID RAE – PRESIDENT AND CEO
Ten years in senior positions with Falconbridge/Xstrata, including Senior Vice President Europe & Africa, and
worldwide head of sales for all Nickel Group products. Previously he managed the Sudbury Smelter and the
Timmins Copper Operations. Prior to joining Andean American, Mr. Rae has been advising in a consulting capacity
to companies such as Kinross, Vale Inco and Iamgold on operational, productivity and strategic challenges.
• BRUCE RAMSDEN - VICE PRESIDENT AND CFO
Vice President and CFO with noted resource companies since 1996 and has received the 2006 Mining Journal
Development Funding Award for his work with Tiomin Resources Inc. He has a Bachelor of Commerce as well as a
degree from The Institute of Chartered Secretaries and Administrators. Mr. Ramsden is a member of the Institute of
Commercial and Financial Accountants of Southern Africa, the Institute of Chartered Secretaries and Administrators
in both South Africa and Canada and Financial Executives International Canada.
• MARK ZABEL – VP CORPORATE DEVELOPMENT
From 2005 - 2010 Mr. Zabel worked in equity investments at Praetorian Capital Management LLC, a highly
successful small cap long/short equity hedge fund based in Miami, Florida. Mr. Zabel has development experience
as an active shareholder across an array of industries, having worked closely with senior management teams to help
implement business expansion plans, restructure management, and define new corporate and operational strategy.
• MIGUEL HUAMAN – VP OPERATIONS
From 2004 to 2009, Mr. Huaman was the President of Minera Huallanca, where he managed the 1000tpd Pucarrajo
Zn-Pb-Ag mine and the 850tpd Contonga Zn-Pb-Ag-Cu mine, both underground operations. From 2002 to 2004, he
was General Manager of Cedimin SAC, a subsidiary of the BRGM–France and Buenaventura Mining Company
Peru. Mr. Huaman is an Engineering Graduate of the Universidad Nacional Mayor de San Marcos and a Geologist
Engineer with a Postgraduate degree in Exploration and Valuation of Mineral Resources from the University of
Nancy, France. Mr. Huaman is a former President of the Geological Society of Peru.

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ANDEAN AMERICAN HIGHLIGHTS
Near term low cost gold production
from Invicta Project in Peru

160,000 AuEq Oz per year at


US$275/Oz projected LOM

World class assets in pipeline:


Sinchao gold/copper project in Peru

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INVICTA PROJECT – KEY FACTS
• 5,000 tpd at full production from underground mine
PRODUCTION • Five year initial life of mine

• Conventional metallurgical flowsheet


METALLURGY • High recoveries, low grinding costs
• Flexible process

• Excellent access to infrastructure in well established


INFRASTRUCTURE mining region

GROWTH • Drilling planned to expand resource and extend life of


mine to 12 years
POTENTIAL

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MINE DEVELOPMENT MILESTONES
• Completed in July 2010
FEASIBILITY STUDY • Bankable Feasibility Study expected Q2 2011

COMMUNITY • Negotiations progressing well with communities


AGREEMENTS • Agreements expected Q2

CONSTRUCTION • Application being prepared


PERMIT • Subject to signed community agreements

• Company is well funded, cash balance $28 M as


FINANCING at Feb 11, 2011
• Debt financing for CAPEX in place

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INVICTA PROJECT - LOCATION
• Located in the Western Pre-Cordillera of
Peruvian Andes in the Huaura Province,
Department of Lima.
• Approx. 250 km north of Lima & 29 km
east of the town of Sayan.
Cajamarca Sinchao Metals • Sayan provides services, supplies & skilled
TSX.V:SMZ personnel to the mining industry.
Invicta AAG owns 60% • Accessible by road from Lima via the
Project Panamerican Highway, north to Huaura &
east to Sayan via Highway 16 & Huamboy,
Lima
on packed dirt road - Approx 4½ hours by
car.

INVICTA WELL LOCATED FOR ESSENTIAL


INFRASTRUCTURE & SERVICES

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READILY ACCESSIBLE INFRASTRUCTURE
POWER • Government backed 29km extension of the 220kv national grid
• Engineering completed by CESEL
• 27 towers to be erected mostly on land purchased by Invicta
CAPEX US $6M • Power cost 6c/kwh

WATER • Sourced from well drilled next to Huara River near Paran at 1100m elevation
• Requires 201 litres/second
• Well engineered & tested by CESEL & performs at 501 litres/second
• Water is pumped & stored in a pond at 2400m elevation
CAPEX US $1M • Excess water is supplied to the communities

ROADS • An existing 10m wide concentrate haul road runs 13km from the project
• A 13.8km long, 10m wide connection from 1100 masl to the plant at 2300 masl
to be constructed
• A 4km long, 3m wide access road from the plant to mine site at 3400 masl to be
CAPEX US $2M constructed

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FEASIBILITY STUDY SUMMARY1
• Average annual production of 97,931 oz gold
& 160,8572 oz gold equivalent over 5 year
initial mine life

• LOM cash cost per oz gold2


– Co-product basis: : US$451.38
– Gold-equivalent basis: US$274.80
– By-product basis: (US$126.91)

• Estimated CAPEX US$68 million

• Operating costs US$28.31 per tonne

• 1 year payback
1 Summary of July 2010 Optimized Feasibility Study. SRK are
currently upgrading this study.
2 Price deck for AuEq: Gold $900/oz, Copper $2.50/lb, Lead $0.70/lb,
Zinc $0.75/lb

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FEASIBILITY STUDY FINANCIALS
AFTER TAX FREE CASH FLOW & NPV SENSITIVITY ANALYSIS ON A PROJECT BASIS 1
GOLD PRICE TOTAL FREE CASH 5 YEAR NPV 8% NPV 10%
FLOW AVERAGE FREE
CASH FLOW
$900 $264,691,245 $52,938,249 $215,191,049 $203,542,333

$1,000 $295,525,040 $59,105,008 $249,917,929 $227,112,434

$1,100 $326,366,991 $65,273,398 $265,057,808 $250,688,663

$1,200 $357,185,186 $71,437,037 $289,974,787 $274,246,114

PROJECT REVENUE DISTRIBUTION 2


Au Ag Cu Pb Zn
Revenue % 65.5 5.9 20.3 4.5 3.8

1. Prices: $12 Ag, $2.50 Cu, $.70 Pb, $.75 Zn


2. Prices: $900 Au, $12 Ag, $2.50 Cu, $.70 Pb, $.75 Zn
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FINANCING
CAPITAL COSTS US $ MM
Project Costs $49
IGV (Refundable Tax) $9
Contingency $7
Start-up Facility $3
Total Capital Cost $68

SOURCE OF FUNDS US $ MM
Senior Secured Project Debt Facility $68

Subordinated Debt $15


Total Capital Cost & Overrun Facility $83
$15M already invested in the project by Andean American Gold
Senior Secured Project Debt Facility underwritten by international
banks Barclays Capital and West LB
Subordinated Debt Facility to be negotiated with Trafigura Beheer
B.V..

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STRATEGIC RELATIONSHIP WITH TRAFIGURA BEHEER

• Major shareholder: 19.5%


interest
• Offtake agreement for all
base metal concentrates
• World's second largest
independent non-ferrous
trading company & third
largest independent oil
trader
• Existing presence, network
and global logistics in Peru

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RESERVES AND RESOURCES
CATEGORY TONNES DENSITY GOLD SILVER COPPER LEAD ZINC GOLD
g/t g/t % % % Oz
Measured 868,000 2.77 2.71 31.26 0.69 0.73 0.61 75,724

Indicated 9,866,735 2.73 1.99 14.74 0.4 0.28 0.27 632,336

Inferred 14,224,661 2.75 0.67 11.2 0.36 0.24 0.15 306,913

MINEABLE RESERVES – FIRST FIVE YEARS


Tonnes 7,807,157
Metal Au Ag Cu Pb Zn
Grade (g/t or %) 2.14 18.76 0.52% 0.38% 0.30%

Contained Metal (oz or lb) 538,946 4,724,589 89,476,265 65,386,501 51,620,922

Metals expressed in AuEq 538,946 65,619 248,545 50,856 43,017


Ounces *

* Price deck for AuEq: Gold $900/oz, Copper $2.50/lb, Lead $0.70/lb, Zinc $0.75/lb

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INVICTA PROPERTY MAP
• Invicta project covers 28,200 hectares
• Located in a prolific mining district

Flor de Loto
past producing
Au/Ag mine

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INVICTA LONGITUDINDAL SECTION
2.7 KM MINERALIZED STRUCTURE

Measured

Indicated
Inferred

20,000 m drill program to be completed during construction to extend mine life to 12 years

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MINERAL PROCESSING FLOWSHEET

(internal)

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NEXT STEPS TOWARD PRODUCTION
ESTIMATED ACTIVITY
TARGET DATE
Q2 2011 Complete community agreements
Q2 2011 Start of construction following signed
community agreements
Q3 2011 Start exploration drilling to expand Invicta
resource & LOM
Q3 2011 Completion of independent engineering
technical report
Q3 2011 Debt financing approval, drawdown subject to
achievement of certain conditions precedent
Q4 2011 Receipt of construction permit approx. 6
months after community agreements are
signed
Q3 2012 Revised expanded resource including results
from planned definition drilling
Q2/Q3 2012 Commissioning 12 months after start of
construction
All dates are estimated and dependent on satisfactory completion of previous steps
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in the process. Please see the Safe Harbour Statement on slide 2.
ANDEAN AMERICAN ADVANTAGES
• Near term low cost
production
• Potential for resource
expansion
• Projected production
160,000 AuEq Oz p.a.
• Well funded
• Undervalued
• Production-ready
management team
• Strong strategic partners
• Located in well established
mining region

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ACTIVE COMMUNITY ENGAGEMENT
Andean American is committed to
cooperative and mutually beneficial mine
development
• We have strong community relationships
• Regular & ongoing community meetings
• Significant socio-economic contribution:

o 30,000 trees planted on 38 hectares


o Established peach plantation of 2 hectares,
including agricultural engineering
o Upgrading & maintenance of 12km of water
canals for local communities
o Creation of detailed technical engineering
project for the development of 220 hectares of
agricultural land to benefit the communities.
o Support for cultural events

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COMPARISON TABLE
COMPANY MARKET CAP EST. ANNUAL EST. BY-PRODUCT EST. ANNUAL MULTIPLE OF EST. EV/OZ
PRODUCTION CASH COST/OZ FREE CASH FLOW EST. ANNUAL AuEq GLOBAL
Oz/Au ($1,100 Au) FREE CASH RESOURCE
FLOW
Timmins Gold $290,000,000 90,000 $412 $44,100,000 6.6 $242

Brigus Gold $320,000,000 90,000 $600 $25,000,000 12.8 $69

Luna Gold Corp $330,000,000 90,000 $450 $39,000,000 8.5 $253

Gold Resource $1,230,000,000 100,000 $200 $60,000,000 20.5 n/a


Corp
Minefinders $791,000,000 85,000 $450 $35,000,000 22.6 $110

Alamos Gold $1,750,000,000 170,000 $338 $98,000,000 17.9 $273

Average $785,166,667 100,833 $408 $50,183,333 15.6 $189

Andean American $130,000,000 97,000 -$126 $65,000,000 2.0 $15*

Company comparisons are for illustrative purposes only and are based on publicly available information. Andean American Gold is not
responsible for the validity of this information. The Company’s projects are not currently in production and all estimates are based on
data from the Invicta Project Feasibility Study of July 2010. Please refer to the Safe Harbour statement on slide 2.
*Global resource includes all attributable ounces including 60% ownership in Sinchao, where title review is currently underway

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THANK YOU

For more information:

Andean American Gold

Suite 1340-1090 West Georgia


Street
Vancouver, BC V6E 3V7
Tel: 604 681 6186
Fax: 604 681 3652

www.AAGgold.com

TSX:V AAG

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