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Fully Permitted High Grade Gold Mine in
Arizona – Near Term Gold Producer
CORPORATE PRESENTATIONMay 2021
TSX:AZGOTCQB: AGAUFwww.arizona-gold.com
Cautionary Note Regarding Forward Looking Statements
This presentation contains forward-looking information, including statements regarding: current expectations on future exploration plans, the timing of the commencement of production, ifcommenced, receipt of permit approvals, potential changes to the mineral processing method at the Copperstone Mine as set out in the Preliminary Feasibility study dated May 18, 2018, rateof production, expected cash costs, expected increase in milling capacity, exploration potential at the Copperstone Mine, proposed debt restructuring and financing, share capitalization anddirector ownership. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-lookingstatements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in suchstatements. These uncertainties and risks include, but are not limited to, the strength of the economy; the price of gold; operational, project funding, and liquidity risks; the degree to whichmineral resource and mineral reserve estimates are reflective of actual mineral resources and mineral reserves; and the degree to which factors which would make a mineral depositcommercially viable are present; assumptions with respect to the cost and availability of labour for the restart of operations are correct,; results of exploration and validity of geologicalmodels; the risks and hazards associated with underground operations, and any specific risks or assumptions set out or referenced in this presentation. Risks and uncertainties about ArizonaGold Corp. and its business are more fully discussed in its disclosure materials, including the annual information form, technical reports, financial statements and MD&As, filed with thesecurities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Arizona Gold Corp. assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from such statements unless required by law.
This presentation includes certain non-IFRS measures, including cash costs on a per gold ounce basis. Cash costs per gold ounce are defined as costs of production (including refining costs)divided by the total number of gold equivalent ounces produced. The Company reports total cash costs on a production basis. In the gold mining industry, these are common performancemeasures but do not have any standardized meaning, and are non-GAAP measures. As such, they are unlikely to be comparable to similar measures presented by other issuers. In reportingcash costs per gold ounce, the Company follows the recommendations of the Gold Institute standard. The Company believes that, in addition to conventional measures, prepared inaccordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is intended to provide additionalinformation and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Technical information in this presentation has been reviewed and approved by Michael R. Smith P. Geo., who is a qualified person that is independent of the Company, as defined in NationalInstrument 43-101.
2 2
Investment HighlightsFocussed on Shareholder Returns
➢ Mine Life Extension
➢ Conversion, Expansion, In-Fill Drilling – Advanced and In Progress
➢ Resource Update in Q2-2021 to include 13,000 meters of drilling from 2019 to 2021
➢ Fully Permitted - All Permits in Hand
➢ Advance Detailed Engineering – Ongoing
➢ Processing & Gold Production
➢ Processing Plant Commission & Start Up – Started/ Engaged Hanlon Engineering
➢ Mine Development – Mine Contractor Bids being evaluated
➢ Several Multi-Million Ounce Drill Targets to be tested – See Slide 17
3 3
Senior Management
Giulio T. Bonifacio – President, CEO & Director
Founder, Director & CEO of Nevada Copper since its inception in 2005 until his retirement in 2018. Mr. Bonifacio has led and directed efforts at every stage from
development, permitting and construction. Mr. Bonifacio is a CPA with over 35 years of experience and knowledge of operations, capital markets and project finance. Among
his many accomplishments Mr. Bonifacio has raised a significant amount of capital for projects of merit through both equity and project debt.
David Thomas – VP Projects & Mine General Manager
Project Engineer with over 30 years of mine building and operations experience including 5 underground gold projects with Newmont, Bema Gold (Kinross), Teck and others.
EPCM Manager for Newmont (worldwide) and Nordgold (Russia and Africa). Mr. Thomas has also held key roles in constructing mines such as Kupol Mine, Fort Knox and
Kubak mines for Kinross Gold and Kensington and Palmarejo mines for Coeur Mining.
Dale Found – Chief Financial Officer
Mr. Found has more than 30 years of international accounting & finance experience. He has significant experience both in mine site operational finance and Corporately
having been part of the senior leadership team at Nevada Copper. Additionally, he was a key member of the management team that took New Gold Inc.’s New Afton Mine
through the construction phase and into commercial production delivering the mine on time and on budget. Mr. Found is a CPA, CA, FCA.
John C. Galassini – Executive Vice President, Chief Operating Officer
Mr. Galassini has extensive experience bringing both greenfield and brownfield mines into production with expertise in both open-pit and underground mining. Previous senior
roles include Senior Vice President Mining, Nyrstar Metals; Chief Operating Officer Sunshine Silver Mines; Senior Vice President, Americas Freeport-McMoRan, Various
senior roles with Phelps Dodge Mining from General Manager, Morenci to President Bagdad and Candelaria and Senior Vice President North American Operations. Mr.
Galassini holds a BS in Chemical Engineering from New Mexico State University.
Michael Smith - Senior Advisor Exploration
Previous Chief Mine Geologist, Barrick’s Goldstrike mine. Over 40 years of experience with projects in production and in the advanced development stage. Mr. Smite
previous roles include Chief Mine Geologist at Barrick’s Goldstrike’s Mine and GM of Exploration in Peru. Mr. Smith has BS Geology Arizona State & MS Geology Mackay
School of Mines.
4 4
Capital Structure
Directors & Officers - 33%
Retail Investors – 35% Funds & Family
Offices - 32%
5 5
Shares & Balance Sheet (Expressed in Millions)
Shares Outstanding 346.1
Options Outstanding 23.2
Share Purchase Warrants (Note 1) 69.2
Fully Diluted 438.5
Market Capitalization Cdn.$45
Cash, March 31, 2021 (Note 2) Cdn.$9.5
Notes:
1: Average Exercise Price $0.21 - Total Cash on Exercise Cdn.$14.4 Million
2. Project Funding of US$18 M with Star Royalties Ltd. closed Nov.'23,2020.
US$12M Received to date. An additional US$6M to be received on or
before June 30, 2021
Copperstone Gold MineHigh Grade Underground Mine Located in Arizona USA
Globally Ranked in Top 10
Mining Jurisdictions
Arizona Detachment
Fault Corridor
Fully Permitted in
Q1 -2020
CALIFORNIA
NEVADA
COPPERSTONE
ARIZONA
Phoenix
12,259 acres or 50 Square Kilometers land position
Skilled Work Force
Infrastructure In Place
6 6
Near Term Production
7 7
Permitted 600 TPD Mill PlusUS$110M of Infrastructure In Place
8 8
2019-20 Key De-risking Project Milestone Achieved
➢ Advanced metallurgical testing program with plus 95% Recovery
➢ Completed successful 5,000 meters of underground drilling in 2019
➢ Air Quality and Aquifer Protection Permits – Received 2019
➢ Federal Operating Permit - Decision of Record – Received January 23, 2020
➢ Detailed engineering of process options - advanced optimization studies
➢ Advanced cost basis for processing plant refurbishment and upgrades
➢ Lead identified for plant and mining equipment
➢ Advanced contract mining proposals under review
➢ Project Funding for US$18 million closed November 2020
9 9
2021 - Key Project Achievements
Optimization Detailed Engineering
➢ Final Engineering - Secured several key Engineering Groups to advance backfill design, geotechnical, ventilation, water
management and electrical infrastructure.
➢ Backfill & Ground Control – Geotechnical studies have indicated wider mining widths and strength of backfill using mine
development materials which will further enhance previously estimated production efficiencies.
➢ Mine Engineering – Final mine design mine design and schedules are underway. Considerations in the design and schedule
include optimizing work-flows and implementing newly identified advantages related to ore sequencing, production efficiencies
and haul profiles.
➢ Mine Operations – Initiated pre-production mine ground support rehabilitation and commenced stope definition drilling for
detailed final gold ore stope designs.
➢ Mineral Processing Plant – Engineering well advanced for final layout and design of WOL gold processing plant. Final costing
for crush and grind circuit and receipt of quotations for longer lead equipment. Final metallurgical testing nearing completion
to optimize grind size, leach kinetics and reagent consumption.
10 10
2018 Preliminary Feasibility Results
Note 1: National Instrument 43-101 Technical Report dated April 1, 2018: Preliminary Feasibility Study for Copperstone Project, La Paz County, Arizona. Assumes Whole
Ore Leach gold processing, 2% royalty and 4 year mine-life.
Note 2: Significant historical tax pools available from the predecessor company of approximately US$70 million which will offset the effective tax impact.
Note 3: Project Optimization based on Contract Mining, Whole Ore Leach gold processing, 3% royalty and 8 year mine life. Each added year of mine life increases
Operating Cash Flow by approximately US$20M to US$25M at current gold prices
Note 4: Cautionary Note: Projections of Net Present Value and IRR are based on forward-looking estimates, including current expectations on recent exploration results,
rate of production, anticipated changes to project capital costs and overall project economics. These forward-looking projections entail various risks and
uncertainties that could cause actual results to differ materially from those reflected in these forward-looking projections. Such projections are based on current
expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such projections and should
not be relied upon by the Reader.
11 11
Current Project Timeline *
12 12
* Timeline Subject to Delivery of Lead Order Items, Detailed Engineering and Final Capital Cost Estimates.
Drilling Results – 2019 to 2021
13 13
2018 Resource Estimate
* National Instrument 43-101 Technical Report dated April 1, 2018: Preliminary Feasibility Study for the Copperstone Project, La Paz County, Arizona, USA** 0.11 oz/t cut-off, $1,250/oz Au
➢ Current Resource model at US$1,250 with higher cut-off than prior resource models
➢ Does not capture up to 13,000 meters of successful drilling from 2019 to 2021
➢ Tightly defined mineralized domains which closer fit the geology of deposit
➢ Conservative gold grade capping strategy defined by mineralized domains first and by composite
second resulting in a much more conservative capping of grades
➢ Geology/Structure was used as a constraint for creating domains
➢ Classification parameters for M&I were more tightly constrained
➢ Blocks are larger and aligned with the dip and strike, however sub-blocking was used to more accurately
define volumes and tons
Conservative Resource Model with Considerable Upside
Inferred Resource*
145,700 oz @ 6.81 g/tIndicated Resource*
276,100 oz @ 7.63 g/t
Proven & Probable**
175,093 oz @ 6.79 g/t
14 14
Copperstone Mine – Long Section View M,I & I Resources Copperstone & Footwall Zones
150m=500K oz
Past Production
@ 3g/t
108m=422 oz
Published 2018
(M,I &I)
Strike Length for Measured & Indicated & Inferred 1,550m – Copperstone and Footwall Zones
Existing workings
4,300 meters
Existing open pit
OPENOPEN OPEN
A Zone B Zone C Zone D Zone
Inferred
Measured & Indicated Proven & Probable
Inferred
Footwall Zone Copperstone Zone
Pathway to Plus 1 Million Ounces with Multiple Targets
15
16
15
Detachment Fault System – Scale PotentialMultiple Parallel Zones
16 16
Source: USGS Keith R Long Preliminary Descriptive Deposit Model for
Detachment Fault Related Model
Source: Michael R. Pawlowski, P.Geo, January 2005 Schematic cross-section of
the Moon Mountain Detachment Fault and the Copperstone Listric Fault, Solid
heavy lines are observed faults; broken line and projected faults.
Detachment Fault System
Multi-Million Ounce Resource Potential Parallel Zones to the Copperstone Zone
17 17
(1) Copperstone Zone
(2) Footwall Zone: 150m from the Copperstone Zone
(3) Deep South & South Pit : Intercepts of +8 g/t
(4) South-West Targets Has same geophysical signatureas Copperstone zone and intercepts of 8 to 32 g/t
(5) Blue Pearl Targets Three Targets of same geophysical signature and size as Copperstoneorebody
(6) Deep South: Historic drill holes with high-gradegold intercepts
Several Advanced Exploration Targetshaving multi-million ounce potential
have yet to be tested
SOUTH-WEST
Targets
COPPERSTONE
ZONE
P&P, M,I&I
FOOTWALL ZONE
Inferred Resources
BLUE PEARL
Three TargetsMeasured & Indicated
Inferred
5
1
2
DEEP SOUTH &
SOUTH PIT
34
2021 Resource Expansion & In Fill Program
Optimization Expansion Delineation - In Fill
➢ Current Success driven core* and reverse circulation drilling program of up to 10,000 meters.
Assay results currently pending.
➢ Drill results to be reported up to Q1-2021.
➢ Conversion of Inferred to Measured and Indicated resources.
➢ Resource Expansion on surface to add Inferred resources for later conversion with underground
access.
➢ Resource Update in Q2-2021 to include up to 13,000 meters drilled which includes 5,000 meters
drilled in 2019
* Will allow for greater accuracy when stepping out to extend previously defined mineralized domains while providing greater granularity of gold ore contacts inclusive of
structural information.
18 18
2019 Underground Drilling Results
Future drilling programs, with the
objective of further mine life extension,
will target areas beyond the current
program affected area of 500 meters of
strike length. The ultimate goal would be
the addition of resources along all
sections encompassing the entire current
resource strike length of over 1,550
meters.
* Grades herein are reported as uncapped values.
** Estimated distance between the foot wall and hanging wall of
the mineralized zone measured perpendicularly to the edges.
*** Effective Mining Width is defined as the distance between the
foot wall and hanging wall of the mineralized zone measured
horizontally and matches the planned mining method. The
mining method used to calculate reserves will extract ore by drift
mining along strike in a defined ore stope. The Effective Mining
Width is the width that miners will be working within.
19 19
2019 Resource Expansion Highlights4,300 Meters of Underground Development and Drill Stations
Existing Underground Access
Existing Open Pit
18-0218-37
18-01
18-03
18-17
18-05
18-11
18-18
18-08A18-38
18-10
18-3618-07
18-09
18-12A
18-34
18-0418-21A
18-21
18-20
18-1318-5D
20 20
2019 Resource Expansion Highlights Drill Stations Close View Looking West
Drill Station
18-21Drill Station
18-21A
3.0m @
12.8 g/t
6.1m @
4.26 g/t
16.8m @
40.0 g/t10.7m@
17.49 g/t
Drill Station
18-20
D Zone (Inferred)*
D Zone (Inferred)*
C Zone (Inferred)*
3.0m @
3.66 g/t
6.1m @
15.02 g/t
3.0m @
8.51 g/t
18-21-09A
18-21-04
18-21A-05
18-20-11
3.0m @
2.87 g/t
18-20-02
21 21
2021 Surface Drilling Results
The Surface drilling was largely
focused on establishing continuity of
the 2018 discovery of Footwall zone
and Copperstone zone mineralization.
The initial drilling results successfully
demonstrate which remain open and
indicated further expansion of gold
mineralized zones along strike and dip
while intersecting gold mineralization
at expected or higher gold grades and
higher widths while remaining open
along strike and dip.
* Grades herein are reported as uncapped values.
** Estimated distance between the foot wall and hanging wall of
the mineralized zone measured perpendicularly to the edges.
*** Effective Mining Width is defined as the distance between the
foot wall and hanging wall of the mineralized zone measured
horizontally and matches the planned mining method. The
mining method used to calculate reserves will extract ore by drift
mining along strike in a defined ore stope. The Effective Mining
Width is the width that miners will be working within.
22 22
2021 Surface Expansion Highlights Gold Intercepts Relative to Representative Ore Domains
23 23
2021 Underground Drilling Results
24 24
2021 Underground Expansion Highlights Hole Locations- Results with Representative Ore Domains Shown- Plan View
25 25
TSX: AZG | OTCQB: AGAUF www.arizona-gold.com
26 26