Download pdf - Alder Presentation October 2014

1

TSX-V: ALR

Extracting Value Early Via Staged Project

Development

October 2014

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 Rosita 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. Although 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 Don Dudek, P.Geo , President and CEO of the

Company, and a qualified person under National Instrument 43-101 of the Canadian Securities Administrators.

2

Forward Looking Statements

3 3

Staged Development

• Determine metallurgy of 8 million tonne on surface stockpile1,3

and 2 million tonne target tailings tonnage

• $150,000 – 3 months – initial studies commenced Aug 2014

• Define additional supergene mineralization – targeting 2-5

million tonnes at 1.5% Cu equivalent2, cost $500,000 – 6 months

• Initial production of stockpile and supergene, cost determined

by metallurgy and PEA – production potentially by late 2016

• Test obvious larger scale porphyry and skarn Cu-Au-Ag targets,

2017-2018 or sooner if funding permits

1

2

5

6

1. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR.

2. Assumes a long term copper price of US$3.00/lb, gold price of US$1,300/oz and silver price of US$20/oz.

3. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag

with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag.

3 • Complete PEA at a cost of ~ $250,000 – 4 months

• Complete infill drill program of stockpiles and near surface

zones that have been defined - 2015 4

4 4

Investment Highlights

• Option to earn a 65% interest

• Open ended mineralized zones : historic production of 245 million lbs

Copper, 160,000 oz Gold and 2.6 million oz Silver

• Located in Nicaragua - stable, pro-mining government , competitive tax

code: 3% NSR, 30% Net Profits Tax all in

• Proven and experienced management team and Board of Directors

• Stockpiles inferred resource of 8 million tonnes containing 1.00% Copper

Equivalent grade1,2,3

• Supergene and oxide targets exhibit potential for 2-5 million tonnes at 1.0

– 2.0% copper equivalent

• Cu-Au-Ag porphyry mineralization discovered at Tipispan and Santa Rita

areas and Cu-Au-Ag skarn deposit extends below Santa Rita pit

Past producing

Rosita Project in

Nicaragua

Strategic Location

High grade

resource

Obvious

exploration upside

Experienced

Management





Processing of

stockpiles/tailings • Potential path to near term cash flow – metallurgical studies commenced

5

• 3,356 hectare concession in the prolific Mining Triangle 275 km northeast of the capital city of

Managua, Nicaragua

• 7 km north of the Primavera, porphyry style, Au-Cu prospect – 261.7m grading 0.78 g/t Au and

0.30% Cu (Calibre Mining/B2Gold)

Rosita Project Location

Cobre Panama

605 M tonnes Cu

Cerro Colorado

1,445 M tonnes Cu

• Rated the safest country in Central

America with a long mining history

• Modern infrastructure and easily

accessible

• Mining unimpeded by socialist

politics

• Competitive tax code : 3% NSR,

30% Net Profits Tax all in

• Three producing gold mines:

– La Libertad and El Limon Mines

(B2Gold)

– Bonanza Mine (Hemco)

– No. 2 Latin Jurisdiction (Curtis @

Dundee)

Prolific, underexplored mining district with a stable, pro-mining government

6

*See data in NI43-101 Technical Report entitled “Technical Report on the Copper-

Gold-Silver Porphyry/Skarn Project at the Rosita D Concession dated January 5,

2012 which is filed on SEDAR.

6

Managua

Puerto

Cabezas

Siuna

2.3M ozs Au production*

Rosita 108M lbs Cu, 118K ozs Au,

2.4M ozs Ag resource

Primavera B2Gold/Calibre Discovery

261.7M @ 0.78 g/t Au, 0.30% Cu

Forest Reserve

Bonanza

3.0M ozs Au

production*

Alder

Calibre

Calibre-B2Gold

Hemco

Nicaragua – An Emerging Porphyry District

8 million oz Au and 305 million lbs Cu produced in Mining Triangle of Nicaragua

Minnesota

New Au

Discovery

Riscos de Oro

22K Inferred Au

Resources

7

Project Geology, Targets and Prospects

8

Porphyry Targets

9

Santa Rita Targets

Stockpiles include a NI 43-101 compliant inferred resource of

8 million tonnes containing 1.0% Copper Equivalent grade1,2,3

North Stockpile East Stockpile

South Stockpile





NE Stockpile

10 10

Broken Rock Resource at Surface

South Stockpile

North Stockpile

• Large broken rock

stockpiles at surface

• No excavation required

for processing

North East Stockpile

11 11

Santa Rita Stockpile RC Drilling

Large Broken Rock Stockpiles with existing 43-101 Compliant Inferred Resource

0.54 % Cu, 3.69 g/t

Au, 5.2 g/t

Ag/10.5m

0.29 % Cu, 0.10 g/t

Au, 5.7 g/t

Ag/12.0m

1.25 % Cu, 0.47 g/t

Au, 11.8 g/t

Ag/19.5m 2.21 % Cu, 0.14g/t

Au, 15.3 g/t

Ag/4.5m

0.54 % Cu, 0.51

g/t Au, 5.1 g/t

Ag/10.5m

• Stockpiles include a NI 43-101 compliant inferred resource of 8 million tonnes containing

108.5 million lbs Cu, 118,500 oz Au and 2.4 million oz Ag (1.01% Cu Eq. grade1)2,3

• Stockpiles were created in early 1970’s when copper and gold prices were low. In today’s

market they are likely economic





12 12

STOCKPILE TONNES

(Mt)

Cu

(%)

Au

(g/t)

Ag

(g/t)

CuEq

(%)

Cu

(M lbs)

Au

(oz)

Ag

(oz)

NORTH 3.33 0.78 0.58 10.3 1.25 56.99 62,100 1,100,900

SOUTH 2.20 0.33 0.49 5.1 0.69 16.16 34,700 360,000

NE 0.55 0.50 0.22 9.6 0.75 6.06 3,800 168,300

EAST 1.88 0.71 0.30 12.0 1.03 29.33 17,900 725,100

TOTALS 7.95 0.62 0.46 9.2 1.00 108.54 118,500 2,354,300

Notes on Mineral Resource Estimation


2. The mineral resource estimate base case is reported at a 0.15% copper equivalent cut-off grade; this cut-off incorporates consideration of mining and processing cost,

recoveries, commodity prices and selling cost.

3. The mineral resource estimate is reported on an undiluted basis.

4. The mineral resource estimate assumes a long term copper price of US$3.00/lb, a gold price of US$1,300/oz and a silver price of US$20/oz.

5. Rounding as required by NI 43-101 reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.

6. Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as troy ounces, contained copper pounds as imperial pounds.

7. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by

environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

8. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred

mineral resources as indicated or measured mineral resources and it is uncertain if further exploration will result in upgrading them to indicated or measured mineral

resources.

Santa Rita Inferred Stockpile Mineral Resource

Robust resource base at low resource discovery cost of $0.01/lb Cu1

1. Based on the inferred copper mineral resource and total exploration expenditures of $900,000

Effective Date: June 22, 2012

13

Tailings sampling

• Detailed area in

yellow dots with core

samples to tailings

base collected every

50 metres

• Outside area sample

to an average depth

of 2.76 metres with

average grades of

0.16% Cu, 0.21 g/t Au

and 5.56 g/t Ag and a

surface area of

454,155 square

metres – not all cores

went to base

• Average SG is 1.818

tonnes/m3

14 14

Tailing TONNES

(Mt)

Cu

(%)

Au

(g/t)

Ag

(g/t)

CuEq

(%)

Area A 1.75 – 2.25 0.14-0.30 0.52-0.57 6.37-12.55 0.51-0.75

Inc. Area B 0.4-0.5 0.38-0.41 0.70-1.00 6.37-10.65 0.88-1.14

Santa Rita Tailings Mineral Resource Target

15

Project Geology, Targets and Prospects

16

R13 and R13 West Targets

Open

Open

Open

Open

• Zones modeled from a plan map

that presented Cu% over width

• A small 20 m deep pit was

excavated in highest grade

section

• Target of 1.0 to 3.5 million tonnes

of 1.3-1.7% Cu equivalent*

• Zones open along northwest

trends

• Mineralization outside of known

trends indicates potential for

additional zones

• Target can be tested with 39 to

45 holes on 50 metre centres

averaging from 30 to 35 metres

deep, having an estimated cost

of approximately US$200,000 to

US$250,000

*0.90% copper to 0.95% copper with estimated gold and silver grades of approximately 0.5 g/t Au to 1.0 g/t Au and 10 g/t Ag to 20 g/t Ag

17

Tipispan Target Area

Inferred extension of

Tipispan mineralized

Zone

• 500 m by 250 m Cu-in-soil

anomaly overlies a Cu-Au-

Ag mineralized monzonite

porphyry that is cut by

northwest-trending high

grade structures

• Supergene Cu-Au-Ag

mineralization developed

over Cu-Au-Ag porphyry

• Artisanal miners actively

mining western-most

structure

• Target is approximately 0.5

to 1 million tonnes grading

1.0% to 1.8% Cu

equivalent*

• Target can be tested by 25,

25 m deep holes at a cost

of approximately $150,000

NW

*0.7% - 1% copper, 0.25 g/t Au to 1 g/t Au and 10 g/t Ag - 20 g/t Ag

18

Tipispan Target Area – Obvious porphyry

target

• Porphyry Style

Mineralization at

western edge of

Tipispan return up to

4.46% Cu, 10.84 g/t

Au

• Strong potassic

alteration

19

T3 Target Area

250,000 to 300,000 tonne target at 1.0 –

2.0% Cu equivalent* that can be tested

with $40,000 m program

*1.0% Cu to 1.5% Cu, 0.25 g/t Au to 0.5 g/t Au and 10.0 g/t Ag to 15.0 g/t Ag

20 20

Santa Rita and R-13 Deposits & Targets

Potential to add additional tonnage to an already robust stockpile resource

29.54Au/8m

0.87Cu, 0.81Au,

7.96Ag/14m

Refer to press release dated Nov 1, 2012

6.90Au/8.0

and

1.76/4m

1.42Cu, 0.18Au,

20.45Ag/10m

0.80Cu, 10.45Au,

21.83Ag/3m

0.49Cu, 1.15Au,

4.4Ag/4m 3.26Cu, 0.15Au,

55.82Ag/8m

0.96Cu, 1.06Au,

9.33Ag/12m

IP Anomaly

Gold Zone

0.8% Cu, 0.31 Au,

14.66 Ag/30 m

3.26% Cu, 0.15 Au,

55.82 Ag/8 m

21 21

Management and Board of Directors

Don Dudek | President and CEO

• Held various roles with junior and senior exploration

and mining companies over the past 28 years

• Recently served as Senior VP Technical Services for

Endeavour Mining Corp., prior to that he served as

SVP Exploration for Avion Gold Corp. and Exploration

Manager for Aur Resources Inc.

Ryan Ptolemy | CFO

• Certified General Accountant and CFA charter holder

• Currently CFO of Rodinia Lithium Inc. and Belo Sun

Mining Corp.

Josh van Deurzen | Corporate Secretary

• Corporate and securities lawyer, working as a legal

consultant to various public and private companies in

the resource-based sector

Don Dudek | Chairman

Rene Bharti | Director

• Has held roles in several public and private companies,

including experience in the mining sector

Alan Polk| Director

• Mining engineer with over 22 years of experience in mine

operations, consulting, feasibility studies, and construction

projects for both underground and open pit mines

Hon. Pierre Pettigrew | Director

• Former Minister of Foreign Affairs and currently Executive

Advisor, Deloitte Touche LLP

• Current board member of several public companies

Will Randall | Director

• Professional Geologist with extensive experience in

mineral exploration and production in South America. He is

currently President and CEO of Rodinia Lithium Inc.

Keith Stein| Director

• Currently counsel to Dentons. Previous to that he was

counsel for Heenan Blaikie and a senior executive with

Magna International Inc. reporting to the Chairman

22 22

Share Capital and Share Performance

TSX Venture Symbol ALR

Share Price (October 1, 2014) $0.02

Share Price (52-week range) $0.05- $0.01

Issued and Outstanding 81.7 million

Fully Diluted1,2 104.5 million

Cash3 $196,526

Market Capitalization (Basic) ~$1.6 million

Insider/Institutional Holders 25%

1. 8,157,000 options outstanding with a weighted average exercise price of $0.18

2. 4,367,500 warrants outstanding with an exercise price of $0.10 expiring on March 21, 2015 and 2,900,000

warrants outstanding with an exercise price of $0.07 expiring on May 30, 2017.

3. As reported on Aug 25, 2014 per the interim financial statements for the period ending June 30, 2014

23

TSX-V: ALR

65 Queen Street West, Suite 800

Toronto, ON, M5H 2M5

[email protected]

Follow us:

Don Dudek

President & CEO

(416) 861-2261

[email protected]

Michael McAllister

Manager, Investor Relations

(416) 309-2134

[email protected]

24 24

Appendix

25 25

Project History & Overview

• Option agreement with Calibre Mining to earn a 65% interest in the Rosita D concession by

making the following payments:

– Project expenditures of C$4.0 million (~C$3.5 million already spent)

– Issuance of 1,000,000 shares over a four year period (400,000 shares have been issued)

• Completed an initial 5,900 m drill program centered on the past producing Santa Rita and

R-13 deposits

• Mineralization below the Santa Rita pit is open along strike to the east, west and down dip

with porphyry Au-Cu zone to west

• Exploration upside from the Tipispan prospect located 4 km northwest of Santa Rita

– Supergene zone overyling porphyry Cu-Au-Ag zone

• Concession hosts the historic open-pit Santa Rita copper-gold-silver deposit

– Historic production of 245 million lbs Cu, 160,000 oz Au and 2.61 million oz Ag or a billion

dollars worth of metal at current metal prices

– Reported mill recoveries of 60 – 80%

• First gold recovery during the last five years of production

• Mine closed in 1975 due to low copper prices

• Management believes that a substantial amount of Cu-Au-Ag mineralization lies both below

and adjacent to the Santa Rita pit and in other nearby targets

26 26

Historic Tonnage and Copper

1. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDA

2. Disclosure of Historical Estimates.

3. Despite section 2, an issuer may disclose an historical estimate, using the original terminology, if the disclosure: (a) identifies the source and date of the historical estimate, including any existing technical report; (b) comments on the relevance and

reliability of the historical estimate; (c) to the extent known, provides the key assumptions, parameters, and methods used to prepare the historical estimate; (d) states whether the historical estimate uses categories other than the ones set out in sections

1.2 and 1.3 of 43-101 (i.e. inferred, indicated, etc.) and, if so, includes an explanation of the differences; (e) includes any more recent estimates or data available to the issuer; (f) comments on what work needs to be done to upgrade or verify the historical

estimate as current mineral resources or mineral reserves; and; (g) states with equal prominence that; (i) a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and; (ii) the issuer

is not treating the historical estimate as current mineral resources or mineral reserves. or mineral reserves.

AREA TONNES (Mt) Cu (%)

Stockpile1 7.95 0.62

Zopilote2 0.28 0.92

Magnetite Hill (R-9)2 1.54 0.45

Santa Rita Pit2 1.17 0.83

R-132 0.60 1.68

R-13 West2 0.52 1.12

TOTALS 12.06 0.70

7.95

0.28

1.54

1.17

0.6 0.52

Stockpile Zopilote Magnetite Hill (R-9) Santa Rita Pit R-13 R-13 West

66%

2%

13%

10%

5% 4%

Tonnage by Prospect (Mt) % of 12 Million Tonne Total