Leading the discovery and exploration of precious metal projects in South America.

Transcription

1 Leading the discovery and exploration of precious metal projects in South America. CORPORATE PRESENTATION January 2015 T S X V: AT X O T C Q B : AG X M F

2 Cautionary Statement This presentation refers to properties located in Argentina generally and in Santa Cruz Province in particular, including AngloGold- Ashanti s Cerro Vanguardia mining property located approximately 35 kilometers from our Pinguino property, that we do not own and over which we have no right to explore or mine. Investors are cautioned that the presence of mineral deposits on these properties, regardless of proximity to our own properties, is not indicative of the existence or extent of mineral deposits on our properties. This presentation presents information about our company and our properties that has been extracted from more comprehensive documents. These documents can be viewed on our website or on the SEDAR database maintained by the Canadian Securities Administrators. In order to properly evaluate our properties and our company, we recommend that you read the information available on these websites. There can be no assurance that a commercially viable mineral deposit exists on any of our properties. Further exploration is required before we can evaluate whether it would be economically and legally feasible to develop or exploit any minerals located on our properties. We will be required to spend substantial funds on further drilling and engineering studies before we could know whether any mineral deposit on our properties would constitute a reserve (a reserve is a commercially viable mineral deposit). An investment in our company would be highly speculative and involve a high degree of risk that is not suitable for all investors. Statements in this presentation that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as expects, intends, plans, may, could, should, anticipates, likely, believes and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward-looking statements in this presentation include statements our anticipation that we can continue to advance our discoveries and that our belief that our properties have significant geological potential, as well as our current plans for exploration and engineering. Actual results may differ materially from those currently anticipated due to a number of factors beyond our control. These risks and uncertainties include, among other things, competition for qualified personnel and drilling equipment and other risks that are inherent in our operations, including the risk that we may not find any minerals in commercially feasible quantity or raise enough capital to fund our exploration plans. These and other risks are described in the Company's Annual Information Form and other public disclosure documents filed on the SEDAR website maintained by the Canadian Securities Administrators and the EDGAR website maintained by the Securities and Exchange Commission. 2 T S X V: AT X O T C Q B : AG X M F

3 Introduction Vision Lead the discovery and exploration of precious metal projects in South America. Strategy Seek and evaluate strategic options, including the monetization and/or development of Pingüino Evaluate new opportunities for other mineral prospects in Latin American; focusing on Chile and northern Argentina Focus on high grade precious metal epithermal targets 3 T S X V: AT X O T C Q B : AG X M F

4 Investment Highlights Advanced Flagship Project: Pingüino (100% owned less 2% NSR) Supportive well connected Major Shareholders Experienced Management and Board Technical expertise in epithermal and precious metal exploration Strategic Land Position and Property Portfolio Updated Mineral Resource Estimate 26.7 Million Ounces Ag g/t Ag Eq. indicated 13% increase of oz Ag Eq. 7.0 Million Ounces Ag 98.0 g/t Ag Eq. inferred. 49% increase of oz Ag Eq. Argentinean owned (95%) Austral Gold Limited, ASX ( AGD ) listed company with production assets in Chile ~19.9%. International Finance Corporation, a member of the World Bank Group, ~12.1% Diversified experienced team with years of exploration, development and operational experience in South America and knowledge of North American capital markets Highly experienced and leading technical experts form core of low cost exploration expertise in Argentina 100% ownership of ~100,000+ Ha in Santa Cruz and in Rio Negro, Argentina projects in various stages of exploration Cash and short-term investments ~USD1.2m (as of Dec 18, 2014) 4 T S X V: AT X O T C Q B : AG X M F

5 Share Information (as at January 15 th, 2015) Exchange Share Price TSXV: ATX/ OTCQB 0.035CAD Issued Shares (OS) 88.94m Market Capitalisation Shares Fully Diluted - Warrants: avg. ~US$ Options: avg. ~US$ m CAD 112.5m 5 T S X V: AT X O T C Q B : AG X M F

6 Flagship Project: Pingüino Pingüino is an intermediate sulphidation epithermal vein swarm (70+ veins, 113km strike length) located in Santa Cruz, Argentina. Polymetallic deposit: earlier Ag-Zn-Pb-In overprinted by a Qtz-Ag-Au system: Only 37 of 70+ veins drill tested to date, with 12 forming current resource. High potential to increase high grade resources at depth with only one vein being reasonably drilled below 150m to date. Project is easily accessible at 400m above sea level in rolling terrain: ~70km inland from National Highway 3, near ports, exiting mines and a five hour drive from Comodoro Rividavia. The 2014 updated Resource Estimate Highlights (40g Ag Eq. cutoff for 0-130m, and 100g Ag Eq. cutoff for deeper than 130m): Ag Eq. = Ag+ 50* Au Variable cut-off Grade (g/t) Grade Ounces ('000s) Pounds (000's) Tonnes (000's) Ag Eq. Ag Au Zn (%) Pb (%) Ag Ag Eq. Au Zn Pb Indicated 6, ,877 26, ,225 74,993 Inferred 2, ,632 6, ,378 17,062 Zn, Pb and In are not included in the resource for Ag equivalent 6 T S X V: AT X O T C Q B : AG X M F

7 Management Team Michael Brown President, CEO & Director 20 years of experience in resource industries. Former VP Energy- Kinross Gold Corp. and Development Manager at Pacific Hydro. Has led exploration and resource development programs in prolific mineral regions such as Western Australia, Chile, Argentina and Indonesia (Rio Tinto, Homestake and Phelps Dodge). Currently Director of Reservoir Capital Corp and holds an MBA from the University of Melbourne, and a double Science (Hons-Geology) and Arts Degree, from the University of Melbourne. Mr. Brown is fluent in English and Spanish, and has participated in the development of multiple $100 million dollar plus projects in Latin America. He is a Member of the Australian Institute of Geoscientists. Jeff Finkelstein, CA CFO, Treasurer & Company Secretary 20 years of international executive financial experience. Experience includes mergers and acquisitions, reverse take-overs, litigation, debt and equity financings, financial reporting and regulatory compliance in both the US and Canada (including Silver Standard Resources, Golden Knight Resources, and Sierra Geothermal Power). Mr. Finkelstein holds both a B.A. (Economics) and a B.Comm. (Honors), (University of Manitoba), and has been a CA since T S X V: AT X O T C Q B : AG X M F

8 Independent Directors Patrick Downey 25 years of international experience in the resource industry. Previous roles: CEO and Director of Elgin Mining Inc, President, CEO and Director of Aura Minerals Inc., President, CEO and Director of Viceroy Exploration Ltd., President of Consolidated Trillion Resources Ltd. and Oliver Gold Corporation, and is a Director of several resource companies. Mr. Downey holds a B. Sc. (Hon.) in Engineering from Queen's University and is a registered member with the Association of Professional Engineers and Geoscientists of British Columbia. Stephen G. Hanson 15 years of finance and corporate development experience. Mr. Hanson served as co-founder, Chairman and Managing Director of Van Arbor Asset Management from 2004 until He has been President of Discovery Management Services Ltd. since 2001 providing consulting services to early stage companies on their financing and capital markets strategies. In 2009, Mr. Hanson served as President and CEO of PanAsian Petroleum, and he also serves on numerous other private and public company boards. Rob Henderson Professional engineer with an MBA, brings close to 30 years of international experience operating, building and acquiring mineral properties. Mr. Henderson is currently President & COO of Amerigo Resources Ltd, after eight years with Kinross Gold Corporation where he attained the position of Senior Vice President Technical Services responsible for energy, mine planning, mineral resources and reserves. Prior to Kinross, Mr. Henderson worked in mine operations with Rand Mines and De Beers, and then with SNC Lavalin and Hatch delivering engineering services to international mining clients. 8 T S X V: AT X O T C Q B : AG X M F

9 Independent Directors (cont d) Wayne Hubert A highly experienced and accomplished mining executive with over 20 years experience working in the South American resources sector, and currently a Director of Austral Gold Limited. From 2006 until 2010 he was the CEO of ASX-listed Andean Resources Limited, and led the team that increased Andean s value from CDN$70 million to CDN$3.6 billion in four years. Andean was developing the world-class silver and gold project Cerro Negro in Argentina with a resource of over 5 million ounces of gold when it was acquired by Goldcorp Inc. of Canada. Mr. Hubert, B.Sc. (Engineering)/ MBA, has also held executive roles for Meridian Gold with experience in operations, finance and investor relations and is currently a Director Midas Gold Corp. Don Siemens Specializes in corporate finance, cross-border transactions and mergers & acquisitions as an independent financial advisor with over 30 years of experience as a Chartered Accountant, including 8 years in public practice as a partner with major accounting firms, 8 years in senior executive positions in the industry and 18 years as a self-employed financial services executive. He currently serves as a director for five additional public companies: Hansa Resources Limited, Nikos Explorations Ltd, Goldgroup Mining Inc., Boss Power Corp and Spur Ventures Inc. Previously, Mr. Siemens was Partner-in-Charge of Thorne Ernst & Whinney's (now KPMG) Vancouver office Financial Advisory Services group. Mr. Siemens obtained a Chartered Accountant designation in 1972, and a B.A. from the University of British Columbia. Richard A. Thibault 32 years of experience in engineering, operations, management and consulting. Mr. Thibault recently held the position of President/CEO of Antioquia Gold Inc. Previous positions with High American Gold Inc., Procesadora de Boratos Argentinos S.A., and is also a director of Puma Exploration Inc.. Mr. Thibault has a B.Sc. (Hon.) in Mining Engineering from Queen's University and is fluent in English, Spanish and French. 9 T S X V: AT X O T C Q B : AG X M F

10 Technical Committee GEOLOGICAL EXPERTISE Diego Guido, PhD Geology, Private Consultant ~20 Years of Local Area Expertise Associate Professor of Geology La Plata University PhD in Deseado Massif Consultant to international mining companies in Argentina and Chile Sebastian Jovic, PhD Geology, Geological Consultant ~10 Years of Local Area Expertise Teaching Assistant of Geology, La Plata University PhD in Deseado Massif Consultant to international mining companies in Argentina and Chile MINING EXPERTISE Stabro Kasaneva, B.Sc. (Geology), COO - Austral Gold ~20 Years of mine development and exploration experience in South America 10 T S X V: AT X O T C Q B : AG X M F

11 Strategic Partners 1. Austral Gold Owns approximately 19.9% of common shares. On July 3, 2013 Austral Gold Limited ( AGD ) invested approximately $C5M. Synergies AGD has extensive local experience, access to capital, South American development and operational experience and broad business networks in Argentina. 2. International Finance Corporation (IFC) Owns approximately 12.1% of common shares. On October 27, 2010 IFC invested approximately $C7.35M. 11 T S X V: AT X O T C Q B : AG X M F

12 Pingüino Project Believed to be the largest undeveloped silvergold vein field in Patagonia 12 T S X V: AT X O T C Q B : AG X M F

13 Santa Cruz Province Prolific New Mining Camp Cerro Vanguardia AngloGold-Ashanti Manatial Espejo Pan American Silver Mina Martha Coeur Mining San Jose McEwen Mining- Hochschild DON NICOLAS Cerro Negro Goldcorp Lomada De Leiva Patagonia Gold * Cerro Moro Yamana Gold Inc. Don Nicolas *Red outlined shapes, along with Pinguino project, controlled 100% by Argentex 13 T S X V: AT X O T C Q B : AG X M F

14 Infrastructure and Access Access to major provincial highways on two sides Multiple port communities within Santa Cruz province Major port facilities in Comodoro Rivadavia (population > 200,000) and economic center of oil industry in region Gas pipeline parallel to highway from Puerto San Julian north Transmission line 50km from project Comodoro Rivadavia N Puerto Deseado Cerro Vanguardia Marta Manantial Espejo Paved All-weather Puerto San Julian 14 T S X V: AT X O T C Q B : AG X M F

15 Pingüino Project High-grade silver and gold vein-hosted mineralisation exposed on surface Polymetallic mineralisation (Zn, Pb, In) not included in Ag equivalent ounces in resource estimate provides potential for additional upside Favorable structural and ground preparation 60 km 2 vein swarm containing: 70+ individual veins 113+ line-km in strike length 66,455 m in 677 holes completed Only 37 veins drill tested to date Technical Report completed in January 31, 2013, updated August 21, T S X V: AT X O T C Q B : AG X M F

16 Pingüino Project Pingüino Project: Regional Structure 10,000 Ha >113 line-km of veins 35km 16 T S X V: AT X O T C Q B : AG X M F

17 Pingüino Project Epithermal Vein Field Large Vein System: 12 km long X 5 km wide Marta Norte Marta Oeste Marta Noroeste Marta Sur Marta Este Ivonne Marta Centro 11 km 70+ veins identified to date 37 veins drill tested to date (some veins overlap on graphic) Tranquilo Tranquilo Sur 10 km 17 T S X V: AT X O T C Q B : AG X M F

18 Pingüino Project Geological Model 18 T S X V: AT X O T C Q B : AG X M F

19 Pingüino Project Structural Interpretation Aerial Magnetometry: Regional anomaly (10-15 Km) interpreted as 1.5 km deep intrusion producing intrusionrelated doming (related with radial faulting) Minor intense anomalies represent shallow intermediate intrusions of both magmatic events: (1) diorites and related to polymetallic veins (black dashed circle) (2) andesites and related to argentiferous veins (white dashed circles) 19 T S X V: AT X O T C Q B : AG X M F

20 Pingüino Project Milestones Period Activities 2014 Results from Mineral Resource Estimate announced in August: 26.7 Million Ounces Ag g/t Ag Eq. indicated and 7.0 Million Ounces Ag 98.0 g/t Ag Eq. inferred Increase in indicated category Ag eq. ounces by 13% (3.0 million additional Ag Eq. ounces) Increase in inferred category Ag Eq. ounces by 49% (2.3 million additional Ag Eq. ounces) 2013 Results from Mineral Resource Estimate announced in January: *23.6 M oz of Ag Eq. in the indicated category at a grade of g/t Ag and 0.59 g/t Au *4.7 M oz of Ag Eq. in the inferred category at a grade of 58.0 g/t Ag and 0.74 g/t Au Preliminary results from metallurgical studies announced in February Completed 3,000 m drill program in October 2010 to 2012 Purchased surface rights to major portion of the known mineralization Q4/10 Vein system: strike length increased from ~35 to ~113 line-km; vein count increased from ~15 to 70+ ~36,500 m drilled in 408 holes in 22 veins 2004 to 2009 Acquired project in February 2004 ~30,000 m drilled in 269 holes in 15 veins *Please refer to page 23 of presentation for full disclosure on tonnes and grade of resources indicated above 20 T S X V: AT X O T C Q B : AG X M F

21 Pingüino Project Pingüino Project: 2013/2014 Resource Development Program Resource Development Drill Program (Completed): 3,003 m Reverse Circulation ( RC ) Program completed October 26 th, 2013 o Targeted higher grade known precious metals vein systems delineated in 2011/12 o Currently compiling new drilling information and data sets into geological model to assist in resource expansion ~6,600 m Trenching Program completed November 2013 o Targeted specific known vein systems and priority zones of significant interest to extend resource model to surface and to identify areas for potential additional drilling Resource Modelling completed: update Resource Estimate released August T S X V: AT X O T C Q B : AG X M F

22 Pingüino Project August Pingüino Resource Estimate* Indicated Cut Off Ag Eq. Tonnes Ag Eq. Ag Au Zn Pb Ag Ag Eq Au Zn Pb (g/t) (000's) (g/t) (g/t) (g/t) % % (000's oz) (000's oz) (000's oz) (000's lbs) (000's lbs) 20 11, ,897 32, , , , ,747 27, ,729 84,365 Reported 6, ,877 26, ,225 74, , ,102 24, ,633 63, , ,014 21, ,514 48, , ,389 19, ,862 38, , ,432 14, ,154 23, ,409 12, ,756 15,575 Inferred Cut Off Ag Eq. Tonnes Ag Eq. Ag Au Zn Pb Ag Ag Eq Au Zn Pb (g/t) (000's) (g/t) (g/t) (g/t) % % (000's oz) (000's oz) (000's oz) (000's lbs) (000's lbs) 20 6, ,631 11, ,880 38, , ,590 8, ,659 23,733 Reported 2, ,632 6, ,378 17, , ,181 6, ,083 15, , ,270 5, ,910 11, ,565 4, ,762 8, ,722 2, ,945 4, ,206 1, ,694 2, Ag equivalent grade = Ag grade + (Au grade * 50) (Rounding may cause apparent discrepancies). 2. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated Mineral Resources will be converted into Mineral Reserves. 3. All Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the Standards Committee on Reserve Definitions and adopted by the CIM Council on December 11, 2005 and updated on November 27, 2010 and on May 10, Two cutoffs are used for reporting the resources: 40g/t AgEq for elevations above 270m, and 100g/t AgEq for elevations below 270m elevation. Average surface elevations at Pingüino are around 400 metres above sea-level. 5. MDA reports resources at cutoffs that are reasonable for deposits of this nature given anticipated mining methods and plant processing costs, while also considering economic conditions. 6. For the Luna, Savary and CSV veins, resources were reported only for those that fell within a floated cone based on reasonable assumptions and prices for resource reporting for open pit mining. 7. Grades presented are in situ and have been reported to 3m by 6m by 4m (high) blocks. 8. Tonnes reported are for all veins, as are gold and silver grades and ounces, but zinc and lead pounds and grades are exclusive of Luna, Savary, Karina, and CSV veins, which did not have zinc and lead estimated. 9. All equivalent ounces for silver and gold were calculated by Argentex. *The National Instrument Technical Report, published by Mine Development Associates (MDA) from Reno, Nevada, is pending filing on SEDAR.com. 22 T S X V: AT X O T C Q B : AG X M F

23 Pingüino Project Resource* & Metallurgical Highlights Following an additional 3000m of RC drilling of oxide targets an additional four veins were added to the resource estimate as well as expanding certain veins already in the estimate million silver equivalent ounces at a silver equivalent grade of g/t in indicated category: an increase of 13% 7.0 million silver equivalent ounces at a silver equivalent grade of 98.0 g/t in indicated category: an increase of 49% Total of 12 the 36 veins drill tested to date have been used to populate the resource model Mineralisation outcrops at surface, allowing the prospect for an open pit mine operation Preliminary heap leach column test work on the oxide samples indicated silver recoveries up to 81% and gold recoveries up to 69% with leaching times of up to 45 days Bottle roll test work on oxide samples indicated recoveries up to 95% for silver and up to 94% for gold Flotation of Marta Este and Marta Centro sulphide vein materials resulted in good deportment of the lead (up to 90.5%) and zinc (up to 79.7%) to the respective concentrates *Please refer to page 22 of presentation for full disclosure on tonnes and grade of resources indicated above 23 T S X V: AT X O T C Q B : AG X M F

24 Pingüino Project Pingüino: Open Pit Concept TRANQUILO LUNA MARTA NOROESTE MARTA NORTE MARTA ESTE MARTA CENTRO SAVARY N MARTA SUR IVONNE CSV > 25 g/t Ag eq > 100 g/t Ag eq > 250 g/t Ag eq Schematic pits on the block model for illustrative purposes only: Please see Slide 22 for details regarding Resource Estimate 24 T S X V: AT X O T C Q B : AG X M F

25 Corporate and Social Responsibility Build relationships within Argentina University La Plata o Hire Locally Buy Locally Undergraduate training and sponsorships Work closely with communities creating opportunities Operate with environmental integrity and safety Operate under International Finance Corporation Guidelines 25 T S X V: AT X O T C Q B : AG X M F

26 Argentex Exploration Projects in Santa Cruz Advanced Pingüino 3 Later Stage Cerro Contreras Condor 1 Greenfields 1. Plata Leon 2. Diamante 3. Nuevo Oro 2 Argentex s Land Package in Santa Cruz: ~68,000 Ha *Red outlined shapes, along with Pinguino project, controlled 100% by Argentex 26 T S X V: AT X O T C Q B : AG X M F

27 Summary Going Forward Activity/milestone Expected Timing Announced updated Pingüino Resource Estimate Completed CDN$4.975 Million strategic financing with Austral Gold Limited at $0.2882/share with 5 year ½ warrant at $0.40 for up to ~19.9%* of ATX August 21, 2014 July 03, 2013 Complete evaluation of strategic options. Enter new early stage exploration project: Chile and/or N. Argentina (ongoing) 2015 (ongoing) * See Slide 5 (Share information) for details. Please refer to the material change report filed on on July 9 th, 2013 for full disclosure. 27 T S X V: AT X O T C Q B : AG X M F

28 For more information, please contact: Mike Brown President & CEO Vancouver Office: ext: 105 ARGENTEX MINING CORPORATION Suite 835, 1100 Melville Street Vancouver, British Columbia V6E 4A6 Toll Free (North America): T S X V: AT X O T C Q B : AG X M F