Gold producer in Mexico MXOM - OTCBB

1. 1

2. The
Quiet
Gold
Rush
–
Sierra
Madre
Gold
belt
Mexico
Gold
has
been
geHng
harder
to
find
and
produce
nearly
everywhere
in
the
world.
Mexico's
Sierra
Madres
have
been
experiencing
a
boom
in
gold
discoveries
and
producCon.
And
yet
not
even
half
of
the
area
has
been
explored.
The
last
10
years
-­‐
new
mines
of
the
Sierra
Madre:
Dolores
-­‐Minefinders,
Mulatos
-­‐Alamos
Gold,
Pinos
Altos
-­‐
Agnico
Eagle,
Ocampo-­‐Gamon
Lake,
Palmarejo
-­‐Cour
d'Alene,
Monterde
-­‐
Kimber
Resources,
El
Sauzal
-­‐
Goldcorp,
and
now
Pan
American
Goldfields
2

3. Pan
American
Core
Project
Sierra
Madre
Occidental
Gold-­‐
LocaCon
Silver
Belt:
• Over
40
million
ounces
of
gold
and
more
than
2
billion
ounces
of
silver
has
been
produced
• More
than
20
million
ounces
of
gold
have
been
Dropped --- _ discovered
since
1992
Sold for $3.7 • The
largest
epithermal
precious
metal
province
Exploration --- million)
inventory in
the
world
and
host
a
majority
of
Mexico’s
In production
gold
and
silver
deposits
AcquisiCons
targeted
in
South
and
LaCn
America
3

4. ExecuCve:
experCse
and
a
history
of
success
•
Director,
Chairman
Former
President
of
the
NaConal
Mining
AssociaCon
of
Mexico,
he
is
a
Mario
Ayub
metallurgist,
with
an
extensive
track
record
in
mine
exploraCon
&
development,
his
family
has
operated
mines
and
other
businesses
in
the
region
for
generaCons
and
he
has
discovered
and
placed
into
producCon
eight
mines
(including
the
Cieneguita)
in
Mexico.
• President,
Director,
A
Corporate
lawyer
and
metallurgical
engineer
he
co-­‐founded
MAG
Silver
George
Young
Corp.
and
InternaConal
Royalty
Corp.
He
was
also
the
president
of
gold
junior,
Oro
Belle
Resources,
and
was
responsible
for
acquiring
and
iniCaCng
development
of
the
now
11
million
ounce
Au
Guacamayo
project
which
Viceroy
Resources
acquired
by
taking
over
Oro
Belle.
Yamana
Gold
recently
bought
Viceroy
principally
to
acquire
the
Guacamayo
project.
IRC
was
recently
taken
over
by
Royal
Gold.
Penoles
abempted
a
hosCle
take
over
of
Mag
Silver.
• Director,
A
business
administraCon
and
finance
expert.
Mr.
Buchamer
was
the
Randy
Buchamer,
Managing
Director,
OperaCons
for
The
$5
billion
revenues,
25,000
employee,
Jim
Paberson
Group.
Prior
to
this
Mr.
Buchamer
was
first
the
CIO
and
later
the
COO
of
Mohawk
Oil
Company
Ltd.
during
its
restructuring,
corporate
turnaround
and
lisCng
on
the
Toronto
Stock
Exchange.
At
the
Cme
Mohawk
was
one
of
Canada's
largest
independent
petroleum
and
convenience
store
retailers.
4

5. ExecuCve:
experCse
and
a
history
of
success
• Independent
An
accomplished
geologist
and
project
manager
with
diverse
experCse
Director,
Gary
regarding
the
exploraCon
and
development
of
base
and
precious
metals,
Parkison
industrial
minerals,
and
uranium
projects.
Mr.
Parkison
was
former
Vice
President-­‐ExploraCon
and
Development
for
ConstellaCon
Copper
CorporaCon
and
Chief
Geologist
for
Cambior
USA,
Inc.
Managed
various
mine
feasibility
studies
and
development
projects
most
recently
the
PEA
for
Chesapeake
Gold’s
Metates
deposit,
one
of
the
largest
undeveloped,
disseminated
gold
deposits
in
the
world.
He
is
also
credited
with
the
Terrazas
discovery
–
now
Mexico’s
largest
silver-­‐zinc
deposit,
and
he
idenCfied
and
outlined
the
Cerro
de
Marcado
the
largest
iron
oxide
copper
gold
deposit
ever
found
in
Mexico.
• Director,
Mr.
Neil
Maedel
is
a
SE
Asia
-­‐based
financier
specializing
in
internaConal
Neil
Maedel,
resource
projects.
Formerly
the
Director,
Business
Development
of
Manas
Petroleum.
Mr.
Maedel
is
the
editor
of
Switzerland
based
fincial
leber
Maedel’s.
Mr.
Maedel
worked
as
a
professional
stock
trader
and
researcher
in
Canada
during
the
1980s
and
has
assisted
in
financing
resource
companies
such
as
(Ultra
Petroleum,
Velvet
ExploraCon,
Manas
Petroleum)
for
the
past
two
decades.
5

6. Unique
Opportunity
• Completely
carried
to
producCon
with
immediate
cash
flow
at
its
flagship
gold
property
–
Cieneguita
• Limited
ProducCon
commenced
April
2010
ramped
up
to
950
OPM
exit
Dec
2010
1460
OPM
(Au
Eq.)
• ExploraCon
upside
from
2
projects
in
Mexico's
Sierra
Madre
gold
trend
• Current
market
capitalizaCon
<
US
$20
MM
• A
classic
“mine
discovery-­‐producCon
cycle”
opportunity
• ExcepConal
seven
fold
upside
from
upgrade
of
Cieneguita’s
drill
indicated
to
proven-­‐
probable
reserves
($30
per
ounce
to
$210
per
ounce
P&P
industry
average)
from
43-­‐101
Drilled
Resources
1.1
million
ounces
Au
eq.
• AcquisiCons
targeted
(producing
gold
mines
with
excellent
exploraCon
potenCal)
in
South
and
LaCn
America.
6

7. Our
Growth
Strategy
•
Increase
cash
flow
and
producCon
to
100,000
Au
annually
at
Cieneguita
•
Upgrade
drill
indicated
resources
to
proven
probable
thus
increase
reserve
value
from
current
$30
per
ounce
to
current
PP
industry
average
of
$210
per
ounce.
•
AcquisiCon
of
producing
properCes
with
significant
growth
potenCal
in
the
Americas
Strategic
Mine
Development
Joint
Venture
–
Mexico
•
Fully
funded
$8
million
JV
agreement
in
place
for
the
future
development
of
Cieneguita
•
First
stage
build
mill
develop
pit
and
begin
producCon
at
Cieneguita
-­‐
completed
•
Four
million
dollar
second
stage
carried
feasibility
study
to
expand
producCon
100%
funded
underway
•
Partner
Minera
Rio
Tinto
(MRT)
–
Local
advantage
and
experCse
7

8.
Corporate
Developments
New
Chairman
Board
of
Directors
• Pan
American
was
taken
over
by
a
new
investor
and
group
and
execuCve
beginning
late
2009
• Its
Corporate
reorganizaCon
and
the
filing
of
a
disclosure
document
(S1)
outlining
the
changes
was
executed
under
the
direcCon
of
John
Clair
a
private
Investment
Banker,
and
former
Goldman
Sachs
ExecuCve
and
Law
firm
DLA
Piper.
• Restructured
balance
sheet
eliminated
80%
of
of
outstanding
debt
and
liabiliCes
• Commenced
processing,
shipping
and
selling
gold
copper
silver
concentrate
from
Cieneguita
project.
• CNQ
lisCng
TSX
.V
applicaCon
under
way
8

9. Share
Structure
Cash On Hand : $ 0.5 Million
Burn rate (monthly): $120,000
Cash flow (MRT monthly: start Sept 2010 exit December 2010) $100,000 $194,000
Capital Structure:
• Trading Symbol: OTCBB: MXOM & FRANKFURT: 0YA1
• Issued and Outstanding: 54,378,826
• Fully Diluted 89,378,826
• Warrants to expire December 31, 2010 1.454,000
• Warrants and options @ $0.50 or greater 11,113,000
• Corporate
• CUSIP#: 6978 44 108
• State of Incorporation: Delaware , USA
• Auditors: Myler & Company LLC
• Transfer Agent: Corporate Stock Transfer
• Legal Counsel DLA Piper (USA).
• Management & Executive ownership of shares +14.4% including warrants/options 22.8%
9

10. Flagship
Project
-­‐
Cieneguita
Cieneguita, a new Au and polymetallic
discovery in the Sierra Madre Occidental
• Cieneguita Deposit In Situ Resource estimate within optimized Pit Shell @ 0.8 g/t AuEq Cut- off
Measured Au eq.186,690 and Indicated 920,900 Total M&I 1,107,500 oz Au eq.
• Hole CI-30 intersected 94.0 m of 1.21 g/t Au, 79.81 g/t Ag, 0.0.78% Pb and 1.19% Zn
• Fully funded $9 million JV agreement with Minera Rio Tinto (MRT)
• Production commenced Q2, 2010 by partner MRT
10

11. Cieneguita
Gold-­‐Silver
Project
Key
Project
CharacterisCcs:
• Located
~20
km
from
Gold
Corp’s
El
Sauzal
mine
(2.1
Moz
Au)
• MineralizaCon
extends
900
meters
along
strike,
is
up
to
300
meters
wide
and
sCll
remains
open
to
the
southwest
and
to
depth
• 100
holes
completed
for
a
total
of
20,215.01
meters
of
drilling
• Analysis
results
completed
and
received
for
54
holes
(CI-­‐01
to
CI-­‐54)
• Broad
mineralizaCon
intercepts
including:
 CI-­‐21:
111.5m
with
1.2
g/t
Au,
99.6
g/t
Ag,
0.45%
Pb
&
0.73%
Zn
 CI-­‐30:
94m
with
1.21
g/t
Au,
79.81
g/t
Ag,
0.7%
Pb
&
1.19%
Zn
 CI-­‐34:
55m
with
3.99
g/t
Au,
75.36
g/t
Ag
 CI-­‐35:
31m
with
1.72
g/t
Au,
67.36
g/t
Ag,
0.56%
Pb
&
0.72%
Zn
 CI-­‐46:
23m
with
8.93
g/t
Au
&
63.39
g/t
Ag
 CI-­‐47:
48.8m
with
0.86
g/t
Au,
166.9
g/t
Ag,
0.52%
Pb
&
1.1%
Zn

CI-­‐67*:
24.0m
with
1.53
g/t
Au
and
107.36
g/t
Ag

CI-­‐69*:
15.0m
with
0.95
g/t
Au
and
510.2
g/t
Ag,
including:
4.5m
@
1.41
g/t
Au
and
1,072
g/t
Ag
• ExploraCon
ongoing;
infill
drilling
program
has
been
designed
to
expand
inferred
resources
11

12. Cieneguita
Gold-­‐Silver
Project
Resource
and
PotenCal:
• Large,
outcropping
and
near-­‐surface
open
pit
gold-­‐silver
resource
with
upside
laterally
and
with
depth
• Infill
drilling
displays
excellent
conCnuity
of
mineralizaCon
and
overall
grades
• Excellent
infrastructure:
highway
and
power,
located
close
to
a
town
site
in
a
mining-­‐friendly
state
• PotenCal
porphyry
system
and
for
addiConal
discoveries:
Piedras
Blancas
12

13. Cieneguita
Project
–
Mexoro
&
MRT
• Mexoro-­‐MRT
JV
Agreement
• 20:75
partnership
to
mine
first
15
meters
• $2,600,000
placement
by
new
control
group/execuCve
• $4,000,000
investment
to
put
Cieneguita
into
ProducCon
(done)
• $4,000,000
investment
to
take
Cieneguita
through
the
Feasibility
stage
• 60:40
Partnership
to
mine
the
complete
Cieneguita
deposit
ayer
bankable
feasibility
study
completed
•
Exit
2010
at
$190,000
monthly
cash
flow
to
Pan
American
13

14. Cieneguita
Gold-­‐Silver
Project
ExploraCon
and
Future
PotenCal
Piedra
Blanca
Target:
• New
idenCfied
area
500
meters
to
the
south
of
the
Cieneguita
deposit
• It
is
exhibiCng
intense
alteraCon
characterized
by
quartz-­‐
sericite-­‐pyrite
assemblages.
Areas
with
intense
fracturing
and
stockworks
where
limonites
dominated
by
goethite
and
hemaCte
are
common
• Assay
results
from
surface
sampling
have
returned
values
ranging
from
0.30
to
4.04
g/t
Au
and
100
to
8900
ppm
Cu
• MineralizaCon
extends
at
least
700
x
300
meters
and
is
located
in
the
intersecCon
of
main
structures
14

15. Lab facilities at
Cieneguita
Gold-­‐Silver
Project
15

16. Encino
Gordo
Project
Main
Features:
• Geology
shows
porphyries
intruding
volcanic
rocks
(dacite
and
andesite)
• AlteraCon
zones
exhibit
potassic
alteraCon
assemblages
grading
outward
to
quartz-­‐sericite
and
propyliCc
alteraCon
• MulCple
events
of
veining
including:
quarzt+chalcopyrite,
quartz+pyrite,
quartz+chalcopyrite+pyrite
veins
• Coincident
copper
and
gold
geochemical
anomalies
spaCally
associated
to
a
potassic
alteraCon
core
• Geology,
mineralizaCon
and
alteraCon
assemblages
suggest
the
presence
of
a
porphyry-­‐style
mineralizaCon
system
16

17. Encino
Gordo
Project
ExploraCon:
No
exploraCon
planned
• Geological
mapping
and
geochemical
sampling
has
idenCfied:
 Anomaly
N
(similar
environment
to
Coeur
d’Alene’s
Palmarejo
which
has
+3
million
ounces
of
gold
equivalent
and
is
only
4-­‐
5
km
away)
 Elyka
Structure
(mineralized
over
2
km
long)
17

18. Acquisition Target #1
• Produced 37,000 oz/au 2009
• High grade (7 grams per ton) Au/equ.
• Approximately 200,000 oz reserves (6 years production) in area
currently being mined.
• Property covers approximately 200 square Km.
• Significant potential to expand reserves and production
18

19. Pan
American
Goldfields
Summary
• has just made the leap from explorer to gold producer – mine cycle opportunity
• upgrade from indicated to proven probable reserves = potential 7 fold upside
• bankable feasibility study for Cieneguita Mine expansion fully funded
• accelerate growth through acquisition of producing gold mines
• executive has proven track record of acquiring and developing major projects in
North and South America
19

20. www.panamericangoldfields.org
OTCBB: MXOM
DISCLAIMER
This
presentaCon
contains
projecCons
and
forward
looking
informaCon
that
involve
risks
and
uncertainCes
regarding
future
events.
Such
forward-­‐looking
informaCon
can
include
without
limitaCon
statements
based
on
current
expectaCons
involving
a
number
of
risks
and
uncertainCes
and
are
not
guarantees
of
future
performance
of
the
CorporaCon.
These
risks
and
uncertainCes
could
cause
actual
results
and
the
CorporaCon’s
plans
and
objecCves
to
differ
materially
from
those
expressed
in
the
forward-­‐looking
informaCon.
Actual
results
and
future
events
could
differ
materially
from
anCcipated
in
such
informaCon.
These
and
all
subsequent
wriben
and
oral
forward-­‐looking
informaCon
are
based
on
esCmates
and
opinions
of
management
on
the
dates
they
are
made
and
expressly
qualified
in
their
enCrety
by
this
noCce.
The
CorporaCon
assumes
no
obligaCon
to
update
forward-­‐looking
informaCon
should
circumstances
or
management’s
esCmates
or
opinions
change.
20