Almaden Updates Stakeholders on Permitting Progress for the Ixtaca Project, Mexico
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NEWS RELEASE
September 10th, 2019
Trading Symbols:
TSX: AMM; NYSE American: AAU
www.almadenminerals.com
Almaden Updates Stakeholders on Permitting Progress for the Ixtaca Project, Mexico
VANCOUVER, B.C. Almaden Minerals Ltd. (“Almaden" or the "Company"; TSX: AMM; NYSE American: AAU)
is pleased to be able to provide an update on its progress and milestones achieved towards building a modern
precious metals mine in Mexico. Almaden is committed to interna tional environmental and social standards and
best available technologies. We believe Ixtaca will, long after final closure, make meaningful and enduring
positive contributions to surrounding communities and beyond. I n December 2018 Almaden announced results
of a Feasibility Study (“FS”; see news release dated December 11th, 2018) and based on this study submitted its
environmental impact statement for mining operation (MIA in Mex ico) in early 2019. As part of the MIA process
a public consultation meeting has been conducted locally by Mex ican authorities and was well attended and
peaceful. In addition, the Compan y has recently submitted answe rs to formal questions posed by the
environmental authority, SEMARNAT, as part of the standard MIA review process.
We wish here to update and remind stakeholders of the unique as pects which distinguish Ixtaca as a showcase
of modern resource development. Key summary points which are expanded below include:
The limestone “waste” rock and flotation tailings are neutrali sing and have low potential for
metal leaching. As reported in the FS, testing shows both produ cts can have commercial uses
such as aggregate and cement feed;
The mine plan has a dry stack filtered tailings facility, and co disposal with waste rock with no
tailings dam, eliminating the risk of a tailings dam failure;
The mine plan includes a fresh water storage dam for mine and community use, enhancing
community access to a fresh water reservoir beyond closure;
The Company has received a letter from the Mexican archaeology authority (INAH) clearing the
area for development;
The Company has received a letter from the environmental enfor cement agency (PROFEPA)
confirming that the Company’s exploration program has been conducted in accordance with the
environmental code;
The surface ownership over the mine development area is privat ely owned and the property
acquired by the Company in this area has been by voluntary agreements;
The Company commissioned and has received an independent Socia l Impact Assessment
(EVIS in Mexico) by a recognised expert consultancy to provide social, ethnology and economic
mapping and to help develop a Social Investment Plan with local communities for the life of the
mine;
The Company has received a letter from the authority responsib le for indigenous affairs
(formerly the CDI now the INPI) confirming that no indigenous c ommunities are located in the
mine impact area;
Local community members have publicly expressed their support of the project. Recently over
800 people signed a declaration of support for the project whic h they delivered to the
environmental authorities, and a Memorandum of Understanding ha s been signed with local
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water users. The Municipality has included mining as one of its accepted investment and
development activities;
The project would employ over 400 people during an 11-year min e life and would also provide
updated infrastructure to a highly marginalised region;
Based on the FS, an initial inve stment of US$174 Million is re quired to generate an after-tax
internal rate of return of 42% and net present value of US$310 million, using a discount rate of
5% and precious metals prices of US$1,275/oz gold and US$17.00/oz silver.
Project Background, Milestones and Achievements:
General Location and Access : the proposed mine is located in the Municipality of Ixtacamaxt itlán,
Puebla, about 30 kilometres from a large industrial park with s ignificant manufacturing investment, with
paved road access to the area of the proposed mine. Further awa y, about a two-hour drive, are large
Volkswagen and Audi plants. Despite these investments, Ixtacama xtitlán is a highly marginalised
municipality with a lack of employment opportunities. The Municipality has added mining to its formal list
of accepted business activities;
Geography and Geology: The project is located between 2,300 to 2,800 metres above sea level in a dry
area with a distinct rainy season. There are no parks, reserves or zones restricted to development in the
area, for which the regional ecological designation mentions an d allows mining as an accepted activity
for human development. The gold and silver occur in quartz vei ns with low amounts of accompanying
sulphides and the rock in which these veins occur is largely ma de up of limestone, a rock type with high
buffering capacity from which lime is produced;
Stakeholder Engagement and Transparency: The Company taken an open approach to informed
consent in the form of 46 community dialogue and technical sessions held locally with access to outside
experts and opportunities to tour active mines for around 500 l ocal stakeholders to see the realities of
modern mining head on. The Company has had over 20,000 recorded interactions and has visited 35
communities with a mobile information module while holding nine large information meeting attended by
over 4,100 people since 2012. The Company has invited outside o bservers to the Ixtaca project and its
community engagement events. Outside groups that have come to I xtaca include members of the
media individually and for open media events, members of the Mu nicipal, State and Federal
governments of Mexico, representatives of the Federal government of Canada, outside third party social
and environmental due diligence teams and various non-governmental organisations. For more detailed
information please review our 2019 Report on Corporate Social R esponsibility, and the Company’s
press release of March 19, 2019;
Mining Tailings and Waste: Exten sive geochemical studies have evaluated the potential for acid rock
drainage and metal leaching from the waste rock and tailings us ing globally accepted standardised
methods of laboratory testing and in compliance with Mexican re gulations. Most of the waste rock at
Ixtaca is limestone, and the studies of both waste rock and tailings have consistently shown that there is
more than enough buffering potential present in the waste rock to neutralise any acid generated.
Testing to date also indicates low potential for metal leaching . In consideration of these findings, the
preferences expressed by local communities, and the hydrologic conditions at Ixtaca, Almaden and its
consultants reviewed Best Available Technology and Best Applica ble Practice in the design and
planning of tailings management as well as the recommendations of the 2017 United Nations
Environment Programme report, Mine Tailings Storage: Safety is No Accident. This resulted in selecting
a dry-stack tailings facility which eliminates the risk of a tailings dam failure and would co-dispose waste
with filtered tailings resulting in a mine plan that uses less water than traditional facilities, allows for
better dust control, and is more stable and reduces the potenti al of environmental impacts to
groundwater. The use of dry-stack tailings will also allow more effective and earlie r rehabilitation of the
tailing and waste disposal areas;
Water: The Ixtaca mine plan includes a water storage dam for m ine and community use that would be
handed over to authorities at mi ne closure. Since 2014 Almaden with independent engineering
oversight has maintained a detailed water monitoring program in the Ixtaca project area to measure the
pre-mining water quality conditions and to establish a baseline against which potential future impacts to
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surface water and groundwater from mining activity can be evalu ated. The program includes 8
groundwater monitoring wells and 12 surface water monitoring st ations. Rainfall in the Ixtaca vicinity
falls primarily during a relatively short rainy season. With no local water storage facilities, the flash flows
of water are currently lost to the local communities. The plann ed water storage dam provides a
permanent and consistent long-term supply of water for resident s. This plan evolved through the open
dialogue between the Company and residents over the past number of years and was a focus of
detailed independent engineering studies in the FS;
Independent Social, Demography and Community Study: In 2017 Al maden arranged for an independent
third-party social impact assessment (“EVIS” in Mexico) of the area surrounding the Ixtaca Project. The
purpose of this social mapping was to better understand the cul tural, economic and social priorities of
the people living in the area of impact of the project, to asse ss the potential positive and negative
consequences of project development and to assist in the develo pment of mitigation measures and the
formation of a Social Investm ent Plan (“SIP”). The SIP has been focussed on the development of
sustainable community based small business investment opportuni ties. The EVIS identified twelve
communities which collectively comprise about 2,000 people with in the area of impact of the Ixtaca
project. These communities are located outside the immediate ar ea of the Ixtaca mine development, so
none of them need to be relocated;
Indigenous Communities: While indigenous consultation is the r esponsibility of the government under
the UN Instrument ILO 169, the Company has made significant eff ort to understand the demography of
the communities in the area of impact so as to conduct its own consultation in a culturally appropriate
and respectful manner. Publicly accessible government data resu lting from 2010 census records
indicate that although Ixtacamaxtitlán is a municipality with “ indigenous presence”, there are no
indigenous communities in the municipality. In order to ensure that it is consulting in a culturally
appropriate manner with people in the area of impact of the pro ject, the Company contracted the EVIS
which included a fully documented and confidential professional sociological process in the area of
impact, including the right to self-identify, which confirmed t he more regional finding of the government
census that no indigenous communities exist in the area of impa ct. This data was submitted to the
government authorities. The federal authority responsible for i ndigenous affairs (INPI, formally the CDI)
provided a confirmation in September, 2018 that there are no in digenous communities in the area of
proposed impact;
Archaeological Compliance and Respect for the Cultural Heritag e of Mexico: Almaden respects the
cultural heritage of Mexico and it s preservation for future gen erations. In March 29, 2017, Almaden
requested that the Mexican authority in charge of cultural heri tage, INAH, investigate the impact area in
order to identify cultural artefacts and ensure that any found are cared for. INAH conducted a nine-
month survey and has provided the Company a clearance for the m ining operation on October 18,
2018;
Community Expressions of Interest: Recently over 800 community members signed a declaration in
support of the Ixtaca development and submitted this declaratio n to the offices of SEMARNAT. This
document also included a repudiation of certain organisations t hat purport to represent community
interests. The Company has also recently signed a memorandum of understanding with an official
community water authority in the impact area for the developmen t of community water facilities as part
of the mining operation;
Environmental Record: The Company has requested and received a letter from PROFEPA, the
environmental enforcement agency, affirming that no fines have been laid and the Company’s
exploration activities have complied with environmental regulat ions. The Company has supported a
large tree planting effort in the region and outside of any reh abilitation requirement, as part of an
environmental stewardship program with local communities and ha s supported a female managed PET
recycling program;
Economic and Employment Possi bilities: Based on the FS, an ini tial investment of US$174 Million is
required to employ over 400 people, and will generate an after-tax internal rate of return of 42% and net
present value of US$310 million, u sing a discount rate of 5% an d precious metals prices of
US$1,275/oz gold and US$17.00/oz silver. THE FS showed that dur ing operation, Ixtaca would
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generate approximately US$130 million in Federal taxes, US$50 m illion in State taxes, and US$30
million in Municipal taxes. Thes e figures demonstrate that the Ixtaca deposit can be an economically
robust project that could provide the basis for further growth and investment in the area;
Circular Economy: The Company is committed to reducing and re- using, where possible, waste
products at Ixtaca. As previously reported, a key waste product from Ixtaca will be limestone, which
preliminary tests of rock waste and tailings have shown is suit able for many types of concrete use and
other applications such as shotcrete, subgrade, asphalt aggregate or railroad ballast with little effort and
processing. In particular, concr ete produced with Ixtaca limest one performed very well in initial test
work. Ixtaca is located in the growing industrial state of Pueb la, and Almaden is excited to explore the
potential of Ixtaca’s “waste” products;
Legal Challenges involving the Ixtaca Project: Certain organis ations have supported legal challenges
against the Government of Mexico using the Company’s mineral cl aims and past exploration permits as
a basis for the challenges. One of these challenges has concluded and the other remains in court:
Environmental Lawsuit: This lawsuit, now concluded, has been f ully dismissed and was not
appealed by the complainants. This lawsuit against the environm ental authorities
(SEMARNAT) in Puebla State cont ended that SEMARNAT should not h ave issued
exploration drilling permits. The Company was never issued a cease work order and always
had full access to the property. As part of the court case an e nvironmental expert witness
was sent to Ixtaca to review the actual surface impact of the e xploration program and
concluded that the work was conducted in compliance with the law;
Mineral Title Lawsuit: This lawsuit against the Government of Mexico (see Almaden news
release of April 15 th, 2019) contends that the issuance of Almaden’s original minera l titles,
which were issued in the same manner as all existing mineral ti tles in Mexico, violates
human rights and did not respect M exico’s commitment to United Nations Instrument ILO
169 (“ILO169”). This ruling of the Lower Court has now been app ealed by the Mexican
Congress, Senate, Secretary of Economy and Mining authorities. The complainant in this
lawsuit is a community of about 150 people which is located wel l outside of the Ixtaca
project impact area and the Company’s current mineral claims. T he Company has never
explored in the area of this community. The Company filed to ab andon its mineral
concessions in the area of this community in 2015, and they wer e formally cancelled in
2017.
Summary and Statement of Company’s Objectives
In the recent United Nations Environment Assembly of the United Nations Environment Programme on Mineral
Resource Governance in March 2019 it was expressed in article 5 . that it “Encourages governments,
businesses, non-governmental org anisations, academia and intern ational institutions, within their different
competencies, to promote “Awareness of how the extractive indust ries can contribute to the sustainable
development of countries and the wellbei ng of their populations, as well as of the possible negative impacts on
human health and the environment when these activities are improperly managed”.
Almaden hereby acknowledges this statement in full. We have tak en into consideration best practices including
ILO 169, the reports “Mineral Resource Governance in the 21st C entury: Gearing extractive industries towards
sustainable development (IRP 2019) and “Mine Tailings Storage: Safety is No Accident” (UNEP–GRID
ARENDAL, 2017) and have incorpora ted the observations and recom mendations therein into our efforts as a
company despite our small size.
Almaden and its affiliates are among the few companies that are engaged in the discovery of new resources
and we believe that resource development is integral to human w ell-being. We humbly submit our view that in
the context of sustainability, m etals are unique. While they ma y be extracted from one place and used another,
they are never consumed. Rather they can be recycled again and again by future generations into new and
sometimes more enlightened uses to serve as yet unknown needs. Indeed, human progress has always been
measured by the earth products we use from the stone age throug h to our special metal age of today. Mining is
not an activity that depends on a particular political organisa tional structure. Furthermore, as stated in UNEP-
GRID ARENDAL 2017, “Developing the green technologies needed to achieve the 2030 Sustainable
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Development Goals means the demand for large quantities of minerals and metals will continue to grow for the
foreseeable future. Safer, cleaner and less wastef ul extraction and production is paramount to ensuring
resource availability, but also community well-being and ecosystem resilience.”
The Ixtaca deposit has excellent geology and geography with buf fering limestone host rocks that allow for the
utilisation of dry-stack filtered tailing co-mingled with waste rock. At the same time studies show that our unused
rock and tailing products have the potential to be of use to so ciety and can enhance the circularity of the
potential mine economy.
We are very grateful to the constructive feedback we have recei ved from local stakeholders, independent
consultants and engineers, civil society organisations and individuals further afield that have improved the Ixtaca
project over the past number of years. Our stakeholder engageme nt has focussed not only on supporters but
has opened its doors to those known to have concerns. Our month ly technical sessions are open to all, have
provided a safe environment for discussion and have made availa ble experts in all aspects of the mining
process. Our sponsorship of trips to operating mines elsewhere in Mexico have provided nearly 500 local
stakeholders first-hand experience of the realities of mining.
Nevertheless, we recognise that some people and organisations d o not share our vision of the importance and
value of mining. To these people we wish to state that we accep t and respect their opinions as different from
ours. To all stakeholders we pledge our commitment to build as beneficial and low negative impact a mine that
we possibly can.
John A. Thomas, P. Eng., VP Project Development of Almaden, and a Qualified Person as defined by National
Instrument 43-101 ("NI 43-101" ), has reviewed and approved the scientific and technical contents of this news
release. For further information on the Ixtaca Project, see the Technical Report entitled “Ixtaca Gold-Silver
Project, Puebla State, Mexico, NI 43-101 Technical Report on th e Feasibility Study”, with an effective date of
January 24, 2019, which is available on SEDAR.
About Almaden
Almaden Minerals Ltd. owns 100% of the Ixtaca project in Puebla State, Mexico, subject to a 2.0% NSR royalty
held by Almadex Minerals Ltd. The Ixtaca Gold-Silver Deposit was discovered by Almaden in 2010.
On Behalf of the Board of Directors
“Morgan Poliquin”
Morgan J. Poliquin, Ph.D., P.Eng.
President, CEO and Director
Almaden Minerals Ltd.
Forward Looking Statements
Neither the Toronto Stock Exchange (T SX) nor the NYSE American have reviewed or accepted responsibility for the
adequacy or accuracy of the contents of this news release which has been prepared by management. Statements contained
in this news release that are not hi storical facts are “forward-looking info rmation” or “forward-looking statements”
(collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United
States Private Securities Litigation Re form Act of 1995. Forward Looking Information includes, but is not limited to,
disclosure regarding possible events, cond itions or financial performance that is based on assumptions about future
economic conditions and courses of action; success of exploration, development and environmental protection and
remediation activities; the Company’s belief that Ixtaca will, long after final clos ure, make meaningful and enduring positive
contributions to surrounding communities and beyond, disclos ure regarding the Company’s expectation that the project
would employ over 400 people over an 11-year mine life and would also provi de updated infrastructure to the region,
disclosure regarding the impact of the pr oposed dry-stack tailing facilities, the Comp any’s belief that the Ixtaca deposit can
be an economically robust project that c ould provide the basis for further investm ent in the area, disclosure regarding the
outcome of legal actions, disclosure regarding the Ixtaca pr oject permitting process, and is based on assumptions about
future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties,
including but not limited to development and operating costs in the event that a production decision is made; success of
exploration, development and environmental protection and rem ediation activities; permitting time lines and requirements;
requirements for additional capital; the potential effect of proposed notices of environmental conditions relating to mineral
claims; planned exploration and development of properties and the results thereof; planned ex penditures and budgets and
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the execution thereof. In certain cases, in preparing the Forwar d-Looking Information in this news release, the Company has
applied several material assumptions, including, but not limited to , that the Government of Mexi co will continue to take the
same positions with respect to mineral tenure in any appeal as it did before the lower court, any additional financing needed
will be available on reasonable terms; the exchange rates for t he U.S., Canadian, and Mexican currencies will be consistent
with the Company’s expectations; the taxation policies which will apply to the Ixtaca Project will be consistent with the
Company’s expectations, that the current exploration, development, environmental and other objectives concerning the
Ixtaca Project can be achieved and that it s other corporate activities will proceed as expected; that the current price and
demand for gold and silver will be sustained or will improve; that general business and economic conditions will not change
in a materially adverse manner, that th ird party contractors and equipment, includ ing the Rock Creek mill, will be available
and operate as anticipated, and th at all necessary governmental approvals fo r the planned exploration, development and
environmental protection activities on the Ixtaca Project wi ll be obtained in a timely manner and on acceptable terms; the
continuity of the price of gold and silver, economic and political conditio ns and operations. Forward-Looking Information
involves known and unknown risks, uncertainties and other fact ors which may cause the act ual results, performance or
achievements of the Company to be materially different from any future results, performance or achievements expressed or
implied by the Forward-Looking Information. Such risks and other factors include, among others, risks related to the
availability of financing on commercially reasonable terms and the expected use of proceeds ; operations and contractual
obligations; changes in exploration programs based upon results of exploration; changes in estimated mineral reserves or
mineral resources; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment
to operate as anticipated; failure of the Rock Creek Mill to arrive on site or operate as expected; accidents, effects of weather
and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks, including
environmental matters under Mexican rules and regulations; im pact of environmental impact assessment requirements on
the Company’s planned exploration and development activities on the Ixtaca Project; certainty of mineral title and the
outcome of litigation; community relations ; delays in obtaining governmental approval s or financing; fluctuations in mineral
prices; the Company’s dependence on one mineral project; t he nature of mineral exploration and mining and the uncertain
commercial viability of certain mineral d eposits; the Company’s lack of operating reve nues; governmental regulations and
the ability to obtain necessary licences an d permits; risks related to mineral proper ties being subject to prior unregistered
agreements, transfers or claims and other defects in title; currency fluctuatio ns; changes in environmental laws and
regulations and changes in the application of standards pursua nt to existing laws and regulations which may increase costs
of doing business and restrict operations; risks related to dependence on key personnel; estimates used in financial
statements proving to be incorrect; as we ll as those factors discussed the sect ion entitled "Risk Factors" in Almaden's
Annual Information Form and Almaden's latest Form 20-F on file with the United States Securities and Exchange
Commission in Washington, D.C. Although t he Company has attempted to identify important factor s that could affect the
Company and may cause actual actions, events or results to differ materially from those described in Forward-Looking
Information, there may be other factors that cause actions, event s or results not to be as anticipated, estimated or intended.
There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events
could differ materially from those anticipat ed in such statements. Accordingly, r eaders should not place undue reliance on
Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly
any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Contact Information:
Almaden Minerals Ltd.
Tel. 604.689.7644
Email: [email protected]
http://www.almadenminerals.com/