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Corporate PresentationMay 2019
Creating a Premier High Grade Gold & Copper Company
Forward Looking Statements
2
This document contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are
not limited to, statements with respect to the development potential and timetable of the Toachi project; the timing and amount of
estimated future development and exploration; costs of future activities; capital and operating expenditures; success of exploration
activities; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and
phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable
terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt
and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans
continue to be refined; future prices of metals; failure of plant, equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry. Altho ugh management of the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking
statements except in accordance with applicable securities laws.
The technical and scientific information included herein has been reviewed and approved by Laurence Curtis, Ph.D., P. Geo., a
director of the Company and a qualified person under National Instrument 43-101 of the Canadian Securities Administrators.
Capital Structure
As of May 22, 2019 Shares (M)
Shares Issued and Outstanding 81,480,185
Convertible Debentures 23,333,332(1)
Options/ RSUs 7,783,250(2)
Warrants 10,558,749(3)
Fully Diluted Shares Outstanding 123,155,516
Share Price (as of May 22, 2019) CAD$0.045
Market Cap (CAD) ~$3.5M
52 week high/low (CAD) $0.185 / $0.055
(1) Convertible Debentures conversion price of $0.12 per share. Maturity is 12 months from
January 7 & 24, March 15, 2019
(2) Options exercise between $0.10 - $0.44 to 2018 - 2024
(3) Warrants exercise between $0.17 - $0.40 to June 14, 2019 and April 16, 2020
Top Shareholders Shares %
Metaform Investments (Jonathan Goodman) 13,801,334 17%
U.S. Global Investors, Inc. 6,000,000 7.4%
Earth Resource Investment Group AG 3,855,948 4.8%
Company Share Structure
3
12%
61%RETAIL
27%BOARD &
MANAGEMENT
Sell-Side Coverage City RatingTarget Price
($C)
Ryan Walker Toronto Speculative Buy $0.95
*Actively working to increasing our analyst coverage
Shareholder Value
Carolina VargasDirector
4
Ebe ScherkusDirector
Ramiro CrespoDirector
Jonathan GoodmanChairman
Peter NixonDirector
Joe FazziniCFO
• Professional engineer with over 25 years of leadership in project management, LatinAmerica
• Former President & CEO of Pershimco Resources (Acquired by Orla Mining in 2016)
• Expertise in advanced stage project and development of projects in Latin America
• Chairman & CEO of Dundee Corp. and majority shareholder of ToachiMining
• Founded and built Dundee Precious Metals into a leading intermediateproducer
• One of Canada’s leading mining and resource investors
• Principal, Analytica Investments, President & CEO, Analytica Securities, & Analytica Funds Management
• Renowned economic and financial advisor
• Currently a director at the Quito Stock Exchange
• Career in the Canadian investment banking industry
• Substantial experience in the Latin American markets
• Leading analyst in Brendan Wood International rankings from2009-2011
• More than 30 years in the Canadian investment industry including Dundee Securities
• Extensive relationships in the resources sector including directorship at Dundee Precious Metals
• 10+ years advising and auditing global gold and base metal producers through PwC & Dundee Capital
• In-depth background in financial statement analysis, project finance, and investment valuation
Alain BureauPresident & CEO
• Mining engineer with more than 27 years building Agnico Eagle Mines
• Previously Agnico Eagle’s President & COO
• Chairman of Stornoway Diamond Corporation
Management & BoardWorld-class discoveries & operational experience
Strong Internal Capacity & Scientific Partners
4
Metallurgy
&
Processing
Engineering
&
Development
Resource
Calculation
&
Modeling
Environment
Health
&
Safety
Pierre Bureau, P.Eng, PMP
5
Former Vice President, Construction
for Agnico-Eagle Mines
Juan de Dios Saavedra
Former Project Manager
for GlencoreDr. Mike Druecker, Ph.D., CPG
Former BHP Exploration Director
for Central America & Caribbean
Dr. Simon Meik, B.Sc,Ph.D.
Former Corporate Director,
Processing Department
at Dundee Precious Metals
Andrea Chavez
Former National Environmental
Supervisor for the Ecuadorian
National Mining Company
(ENAMI)
Dr. Laurie Curtis, Ph.D., P.Geo.
Co-Founder, Geologist,
entrepreneur, mine builder
Renown for numerous discoveries
● Ecuador aims to more than double mining value to GDP by 2021*
● Significant public infrastructure investment in airports, roads, and ports
● Policy shift towards increasing foreign investment
● Fiscal stabilitycontracts
● VAT refund and accelerated depreciation
● Enhanced exploration regulation allows expedited permits for “Scout Drilling”
● Elimination of Windfall Tax, removing import tariffs on mining products
● “Best Country Award” at Mines and Money London in November 2017
The Right Time in Ecuador
6
*Aecon Group Inc. built Quito airport*Source MINING.com - November 1, 2018
7
”The development of Legal
Mining is desirable for
Ecuador and possibly
means a complete change
of the country’s economic
model for better“
Otto Sonnenholzner
Vice-President of
Ecuador
”From 2017 to 2020, this
strategic sector will generate
US $10 Billions which is around
4% of our GDP“
Richard Martinez
Minister of Economy &
Finance
”The commitment of the National
Government is to keep supporting Mining“
Carlos Perez
Minister of Energy and Non-renewable
Natural Resources
The Right Time in Ecuador
Ministry of Energy &
Non-Renewable
Natural Resources
Carlos Pérez Garcia
Consolidated Mining,
Oil & Gas, and Electricity
into one ministry
Ecuadorian Government
expects US$7.5B in
mining investment over
the next few years
La Plata Gold-Copper-Zinc-Silver VMS Project
MAP SOURCE: Ministry of Mining, Ecuador
U.S. State Department 2017 included Ecuador
as one of the safest countries inLatin America
LA PLATA
Population
of Ecuador
~16.4M (2016)
8
Population of Quito
(capital of Ecuador)
~2.7 M (2014)
Hydroelectric Power Available at Low Cost
Oil Producing Country Part of OPEC
IN COUNTRY
Located 100 km South-West of Quito (capital of Ecuador)
85 km on paved highway
Low elevation 1,600 m (Quito 2,850 m)
TIM Location
9
Power lines run across
the concession
Hydroelectric power
plant 5 km away
La Mina VMS Deposit – Updated Inferred Mineral Resource Estimate as of March 31st, 2019 Ordinary Kriging Estimate
Cut Off
AuEq gt/t MtAuEq
(g/t)
Au
(g/t)
Ag
(g/t)
Cu
(%)
Pb
(%)
Zn
(%)
AuEq
(koz)Au
(koz)
Ag
(koz)
Cu
(Kt)
Pb
(Kt)
Zn
(Kt)
0 2,553 10.0 3.2 39.8 2.5 0.5 3.5 820 263 3,264 65 13 90
1 2,528 10.1 3.2 40.1 2.6 0.5 3.6 820 263 3,262 65 13 90
2 2,373 10.6 3.4 42.4 2.7 0.5 3.8 812 260 3,238 64 13 89
3 2,055 11.9 3.8 46.9 3.0 0.6 4.2 787 251 3,097 62 12 87
4 1,846 12.9 4.1 50.0 3.3 0.6 4.6 763 244 2,966 61 12 84
5 1,655 13.8 4.4 53.7 3.5 0.7 4.9 736 236 2,860 59 11 80
6 1,461 14.9 4.8 58.5 3.8 0.7 5.2 701 225 2,747 56 11 75
7 1,320 15.8 5.1 62.4 4.1 0.8 5.5 672 217 2,647 54 10 72
8 1,195 16.7 5.4 66.0 4.3 0.8 5.8 642 208 2,535 51 10 69
9 1,111 17.3 5.7 68.6 4.4 0.9 5.9 619 202 2,449 49 10 66
10 1,019 18.0 5.9 71.4 4.6 0.9 6.1 591 194 2,340 47 9 63
Note: 3 years trailing average (US) dollar metal prices Au US$1,264/oz, Ag US$16.64/oz, Cu US$2.68/lb, Zn US$1.21/lb
La Mina VMS DepositUnique Inferred Mineral Resource Estimate
10
7
904,000 tons
NORTH BLOCK
1.1 M tons
SOUTH BLOCK
4.1 g/t
50 g/t
3.3%
4.6%
2Mt of Ore | 12.9 g/t AuEq
The underground mining sequence1- Upper North Block
2- South Block
3- Lower North Block
It will use the Cut-&-Fill method on the
vertical body and some Room-&-Pillar for
the horizontal body
11
La Mina VMS DepositHigh grades in the precious and base metals
La Mina Perspective Long SectionSection Looking West
10
AuEq
400M
EXPANSION POTENTIAL
EXPANSION POTENTIAL
CMLP 17-93 = 14m @ 3.5g/t Au, 64.2g/t, 0,6% Cu, 4.1% Zn
2.5m trenching at:
5.4 g/t Au, 71.2 g/t Ag,
2.1% Cu, 10.9% Zn
6m trenching at:
2.0 g/t Au, 32.5 g/t Ag,
2.3% Cu, 2.6% Zn
2017 Drilling reported:
6.8m @ 7.0% Cu &
1.0g/t Au
12
3 years trailing average: Au= $1,264/oz, Ag= $16.64/oz, Cu= 2.68/lb, Zn= 1.21/lb
PEA Results Summary
3.5 years
7.1 years
$101 /t milled
$ 70 Million
$ 48 Million
Payback ( After tax )
Estimated Mine Life
All-In Sustaining Cost (AISC)
Initial Capital Cost
Sustaining and Closure costs
IRR Pre-Tax / After-Tax
NPV @ 5% - Pre-Tax / After Tax
3 yr trailing average
NPV @ 5% - Pre-Tax / After Tax
World Bank commodities forecast
38% / 24%
$100 M / $ 52M
$149M / $ 78M
13
14
Underground mine
800 tpd processing plant
Cut & Fill methods for vertical
Some Room & Pillar on the top portion
Copper Concentrate
Zinc Concentrate
Metal revenues Au | Cu | Zn | Ag
Grind size 65 microns, Cu flotation
Regrind at 20 micros, Zn flotation
LOM Gold production = 112,000 oz
LOM Silver production = 1,228,000 oz
Copper production 92M lbsZinc production 76M lbs
PEA & Flow Sheet
PEA Concentrates
15
Grade Recovery
20 - 23% 88 - 90%
4 - 5% 70 - 72%
10 - 13 g/t 41 - 43%
140 - 145 g/t 45 - 50%
Grade Recovery
50 - 52% 70 - 72%
11 - 13 g/t 25 - 27%
114 - 125 g/t 25 - 27%
COPPER-LEAD CONCENTRATE ZINC CONCENTRATE
When you need to be sure.
Gravity testing were performed & showed very positive
results reaching gold recoveries up to 40 % into the Knelson
circuit & 14% to 30% into the Mozley concentrate
• VMS deposits tend to form in clusters which reinforces
the prospect of further nearbydeposits
• +9 km of favorable geology along strike
• Q. Romero: Drilled in 1965 - 1967 by Dr. Duncan R.
Derry (Canadian Mining Hall of Fame) - 22m at 1.8% Cu
• Guatuza target 150 m N of La Plata with intersection of:
• 6.8m at 7.0% Cu & 1.0g/t Au
• Resource of 1.9M tons @ 13 g/t AuEq
• Potential deposit extensions at depth and to the north
• Numerous defined Au-Cu-Ag-Zn exploration targets
• Regional targets defined by coincident geology,
geochemistry, geophysics and surface mineralization
• Regional detailed gravity ground geophysics completed
Significant Exploration Potential
16
• GUATUZA ZONE: The footprint covered by positive results
(exploration drilling & trenching) is as big as the LaMina
South & North blocs.
• Mapping observations taken & plotted building a solid
mineralized North – South corridor
• Rock chip samples collected & assayed reinforcing the
model and confirming the geophysics
• Trench samples show similar polymetallic high-grade
mineralization to VMS mineralization in the La Mina south
and north block
Latest Exploration Results
17
2.5 meters of trenching at:
5.4 g/t Au, 71.2 g/t Ag, 2.1% Cu, 10.9% Zn
6 meters of trenching at:
2.0 g/t Au, 32.5 g/t Ag, 2.3% Cu, 2.6% Zn
2017 Drilling, close to surface reported
6.8m at 7.0% Cu & 1.0g/t Au
Why Invest in Toachi?
THE TOACHI ADVANTAGE● Proven Board and Management who have historically delivered value to shareholders
● Focused on advanced stage projects with track record of historical production
● La Plata is a shallow, high grade project which results in reduced exploration and
development costs
● Experienced of highly skilled professionals allows for lower cost development
● La Plata deposit is simple, compact and easy to mine by conventional mining methods
● All infrastructure already at site; 15 km from the highway, power lines run across the
concession, skilled workers for construction, water available
● Prospective geology; the deposit is open at depth and VMS systems normally come in
clusters
● Ecuador is a booming jurisdiction; some of the largest mining companies are arriving into
Ecuador (Anglo, Codelco, Newcrest, Southern Copper, BHP)
18
Ownership to 65%
● TIM produces Feasibility Study
Ownership to 75%
● TIM raises required financing
● If project financing is less than US$60 million
or more than US$60 million is arranged, Toachi earns
an additional 5% and 10% respectively
LOW COST OWNERSHIP
AGREEMENT
Partnership with
Compañia Minera La Plata and
Principal Allen Brown Hidalgo,
established in Ecuador
OW
NE
RS
HIP
Requirements to
acquire 60% ownership
● Expenditures of US$4M (Completed)
● Payment of US $650k (Completed)
● Payment of US $350k (Completed)
● Payment of US $1M (November 2019)
In Country Partnership and Deal Terms
19
● Our vision is to create strong and longstanding relationships with the local communities and all levels of government
● Executed CSR program with support from the local community
● Local community, municipality of Palo Quemadofavourable tomining
● No existing indigenous landclaims
Community Involvement
20
CELEC EP Hidrotoapi welcoming the Toachi team at the Toachi-Pilaton damTogether in Support of CSR Initiatives
SUMMARY
21
Toachi Mining
High Grade
Development & Exploration
The Right Time in Ecuador
• Positive PEA shows after tax NPV 5% of US$52M & IRR of 24%
• High grades in a gold-rich VMS project
• Inaugural NI 43-101 delivered Q3 2017
• Positive exploration results recently defined 1.1 km VMS corridor
footprint towards the north
• Excellent exploration potential to add to current resource
• Preliminary metallurgy indicates good metal recoveries
• Good community relations and social operating license
• The right time to be in a resurgent Ecuador
Appendix
AuEq Grade – VMS Peers
October 2018Based on NI 43-101 calculation -Metal price assumptionsZn: US$1.30/lb, Cu: US$2.85/lb,Pb: US$1.05/lb, Au: US$1,280/oz, Ag: US$17.00/oz
A-1
Tonnage vs Rock Value – VMS Peers
A-2
October 2018Based on NI 43-101 calculation -Metal price assumptionsZn: US$1.30/lb, Cu: US$2.85/lb,Pb: US$1.05/lb, Au: US$1,280/oz, Ag: US$17.00/oz
Tonnage vs AuEq Grade – VMS Peers
A-3
October 2018Based on NI 43-101 calculation -Metal price assumptionsZn: US$1.30/lb, Cu: US$2.85/lb,Pb: US$1.05/lb, Au: US$1,280/oz, Ag: US$17.00/oz
For More Information,
please contact
Candace Di VitoManager, Investor Relations
Ecuador Office
SiteCenter Tower 2, Office #101
Cumbaya sector, Quito, Ecuador
Head Office1 Adelaide Street East, 20th Floor
Toronto, Ontario M5C 2V9
