Altius

Chapada Mine Copper Stream

Location
Goiás State, Brazil

Operator
Yamana Gold, although a pending sale of Chapada to Lundin Mining is expected to close early in Q3 2019 www.yamana.com/English/Home/default.aspx

Copper Stream Agreement (Rate & Structure)

  • Base Rate: 3.7% referenced to copper production from the Chapada mine reducing to 1.5% for remaining life of mine after 75 million pounds delivered

  • Expansion Incentive Rate: Rate decreases to 2.65% in the event of a Chapada mine expansion

  • Acquired through a 100% Altius owned Canadian subsidiary

  • Payment guarantees at parent company and mine holding levels

Commodity
Copper

Asset Profile
Annual stream revenue C$17 million 2018
Annual production capacity 21-22 mt
Estimated Mine Life Remaining >20 years

The Chapada mine is located in Goias state, Brazil and is a copper‐gold mine that began production in 2007. Copper production for 2018 was 129 million pounds of copper at cash costs of $1.74 per pound of copper on a co‐product basis. Guidance for 2019 is 120 million pounds expected to be produced.

Significant mine life and throughput expansion potential exists at Chapada through resource conversion to reserves as well as ongoing exploration success. The operator, Yamana is undergoing a phased development plan for Chapada. Phase 1 of this expansion plan is targeting plant optimization for further recovery increases in the range of 2% with commissioning targeted for mid-2019. The feasibility study on Phase 2, which involves a plant expansion to achieve a throughput capacity of up to 32 million tonnes per annum (a 39% increase), is also progressing. Phase 3, which contemplates a pit wall pushback to access higher grade Sucupira ore, advanced with infill drilling completed in June with the results expected to support the ongoing feasibility study.

Lawrence Winter, P.Geo., Vice President Exploration, is the qualified person as defined by NI 43-101 guidelines responsible for the technical data presented herein.

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