RESOURCE DEVELOPMENT AND NEAR TERM PRODUCTION … · “goal”, “plan”, “intent”,...
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RESOURCE DEVELOPMENT AND NEAR TERM PRODUCTION POTENTIAL IN FINLAND October 2017 TSXV : RUP
Transcript of RESOURCE DEVELOPMENT AND NEAR TERM PRODUCTION … · “goal”, “plan”, “intent”,...
RESOURCEDEVELOPMENTANDNEARTERMPRODUCTIONPOTENTIALINFINLAND
October2017TSXV:RUP
CAUTIONARYSTATEMENT
CautionaryNoteRegardingForward-LookingInformationThisdocumentcontainscertainforward-lookingstatementsor“forwardlookinginformation”withinthemeaningofapplicablesecuritieslaws,relatingbutnotlimitedtoRupertResourceLtd.(“TheCompany”)’sexpectations,intentions,plansandbeliefs.Forward-lookinginformationcanoftenbeidentifiedbyforward-lookingwordssuchas“anticipate”,“believe”,“expect”,“goal”,“plan”,“intent”,“estimate”,“may”and“will”orsimilarwordssuggestingfutureoutcomesorotherexpectations,beliefs,plans,objectives,assumptions,intentionsorstatementsaboutfutureeventsorperformance.Forward-lookinginformationmayincludereserveandresourceestimates,estimatesoffutureproduction,unitcosts,costsofcapitalprojectsandtimingofcommencementofoperations,andisbasedoncurrentexpectationsthatinvolveanumberofbusinessrisksanduncertainties.Factorsthatcouldcauseactualresultstodiffermateriallyfromanyforward-lookingstatementinclude,butarenotlimitedto,failuretoestablishestimatedresourcesandreserves,thegradeandrecoveryofminedorevaryingfromestimates,capitalandoperatingcostsvaryingsignificantlyfromestimates,delaysinobtainingorfailurestoobtainrequiredgovernmental,environmentalorotherprojectapprovals,inflation,changesinexchangerates,fluctuationsincommodityprices,delaysinthedevelopmentofprojectsandotherfactors.Forward-lookingstatementsaresubjecttorisks,uncertaintiesandotherfactorsthatcouldcauseactualresultstodiffermateriallyfromexpectedresults.
Potentialshareholdersandprospectiveinvestorsshouldbeawarethatthesestatementsaresubjecttoknownandunknownrisks,uncertaintiesandotherfactorsthatcouldcauseactualresultstodiffermateriallyfromthosesuggestedbytheforward-lookingstatements.Investorsarecautionednottoplaceunduerelianceonforward-lookinginformation.Byitsnature,forward-lookinginformationinvolvesnumerousassumptions,inherentrisksanduncertainties,bothgeneralandspecific,thatcontributetothepossibilitythatthepredictions,forecasts,projectionsandvariousfutureeventswillnotoccur.TheCompanyundertakesnoobligationtoupdatepubliclyorotherwisereviseanyforward-lookinginformationwhetherasaresultofnewinformation,futureeventsorothersuchfactorswhichaffectthisinformation,exceptasrequiredbylaw.
ThisinformationisqualifiedinitsentiretybycautionarystatementsandriskfactordisclosurecontainedinfilingsmadebytheCompany,includingtheCompany’sfinancialstatementsandrelatedMD&AfortheyearendedFebruary28,2017filedwiththesecuritiesregulatoryauthoritiesincertainprovincesofCanadaandavailableatwww.sedar.com.
CautionaryNotetoU.S.InvestorsConcerningResourceEstimateTheresourceestimatesinthisdocumentwerepreparedinaccordancewithNationalInstrument43-101,adoptedbytheCanadianSecuritiesAdministrators.TherequirementsofNationalInstrument43-101differsignificantlyfromtherequirementsoftheUnitedStatesSecuritiesandExchangeCommission(the“SEC”).Weusetheterms“measured”,“indicated”and“inferred”resources.AlthoughthesetermsarerecognizedandrequiredinCanada,theSECdoesnotrecognizethem.TheSECpermitsU.S.miningcompanies,intheirfilingswiththeSEC,todiscloseonlythosemineraldepositsthatconstitute“reserves”.UnderUnitedStatesstandards,mineralizationmaynotbeclassifiedasareserveunlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyextractedatthetimethedeterminationismade.UnitedStatesinvestorsshouldnotassumethatalloranyportionofameasuredorindicatedresourcewilleverbeconvertedinto“reserves”.Further,“inferredresources”haveagreatamountofuncertaintyastotheirexistenceandwhethertheycanbeminedeconomicallyorlegally,andUnitedStatesinvestorsshouldnotassumethat“inferredresources”existorcanbelegallyoreconomicallymined,orthattheywilleverbeupgradedtoahighercategory.
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ABOUTRUPERT
CORNERSTONEASSETINTHECENTRALLAPLANDGREENSTONEBELT
3(1) Refer to page 1, forward looking “Cautionary Statement”.
Neartermproductionpotential• Mine,1500tpdmillandtailingsdam(1)
• Trackrecordoflowoperatingcosts(EUR30/tmilled)• Initialproductiontargetof35,000oz/a• Improvedgradepotentialtodrivehigheroz/annum(1)
Resourcedevelopment• Historicalaverageof1000oz/verticalmeterdespitepoor
understandingofgeologicalcontrols• Newgeologicalmodelandapproachtoresource
definition
Regionalexplorationupside• 225km2 landpositioninhighprofilenewjurisdiction• Nearmineandregionalopportunities• ExtensivedatapackagefromGTKandpreviousowners• 2017fieldworkhasgeneratedseveraldrilltargets
CapitalStructure(asat31May2017)
SharesonIssue 101,114,992
Options&Warrants 6,542,777
FullyDilutedShares* 117,843,149
MarketCapitalisation(atCAD1.00/shr)
CAD101mln
Cash CAD11mln
Convertible(5%CouponExC$0.95)
CAD8mln
Ticker TSXV:RUP
ISIN CA78165J1057
LEADERSHIP
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BrianHinchcliffe - Executive ChairmanBrianwasco-founderofKirklandLakeGoldandRamblerMetalsandMining,producingminesinOntarioandNewfoundlandrespectively.PriortothisBrianco-foundedbasemetalproducerAmericanPacificMiningandjointventuredtheconstructionoftheLomadeHierro nickelmineinVenezuela.
JukkaNeiminen–MDRupertFinlandOyJukkawasinstrumentalintheacquisitionofthePahtavaaraProjectfortheCompanyandis ageologistwithover20yearsofexperienceintheminingindustry.HestartedhiscareerwithOutokumpuattheForrestaniaNickelminesinWesternAustraliabeforereturningtoFinlandtoworkasaminegeologistatthePahtavaaraandtheOrivesiGoldmines.LatterlyhewasGeneralManagerofBelvedereMining’sHituranickelmineandCEOoftheBelvedere’sFinnishoperatingsubsidiary.
JariYlinen- SeniorGeologistJarijoinedRupertResourcesinJune2016andhasover10yearsexperienceinexplorationandmining.HeworkedpreviouslyasSeniorGeologistatFirstQuantumMineralsLtd.HehasalsoworkedwithseveralgreenfieldsexplorationprojectsandmineswithOutokumpuMiningOy.
EXPERIENCEDMANAGEMENTTEAMLEADINGTHECOMPANYJamesWithall- ChiefExecutiveOfficerJameshasover20years’experienceinmining.HewaspreviouslyaManagingPartnerandFundManageratBakerSteelCapitalManagersresponsiblefortheirgoldequitiesfund. Jamesworkedformorethansevenyearsasageologist,workinginWesternAustraliafornumberofminingcompaniesinexploration,projectandminegeologistroles.
MichaelSutton- P.Geo.,Non-ExecutiveDirectorMikeisageologistwhohasworkedinsomeofthemostprolificproducingCanadiangoldcamps,includingTimminsandKirklandLake.MikehasbeenawardedProspectoroftheYearbytheOntarioProspectorsAssociationandcreditedwiththediscoveryoftheSouthMineComplexatKirklandLakeGold
ThomasCredland– HeadofCorporateDevelopmentAgeologistwithover15yearsexperienceinmining,ThomasbeganhiscareerasageologistinWesternAustraliabeforereturningtotheUnitedKingdomtoworkasamininganalyst.HethenmovedintoaninstitutionalsalesroleatCanaccordbeforespendingfiveyearsinaseniorcorporaterole.ThomascontributedtotheidentificationandacquisitionofthePahtavaaraminebyRupert.
MININGINFINLAND
NEWGENERATIONOFLARGERPROJECTSBEINGDEVELOPEDINLAPLAND
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GoldminingisnewinFinland• StateownedminingcompanyOutokumpu focussedon
basemetals• Noforeigninvestmentpriortomid-1990s• LimitedfundingfromNordicfinancialmarkets• Only30yearsgoldexplorationonCentralLapland
(>100inAbitibi,NorsemanWiluna)• 8MozKittila mineonlycommencedproductionin2009
Finnishminesoftenoperatewithlowgradeores• Lowpowercosts(US$0.075/kwh)• Technologicallyadvanced• Highproductivitiesandwelleducatedworkforce• Largevolumebutoftennofocusongrade
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MinesofFinland
Gold1.Kittila (Agnico Eagle)2.Pahtavaara (RupertResources)3.Laiva (NordicMines)4.Pampalo (Endomines)5.Orivesi (DragonMining)6.Jokisivu (DragonMining)
Polymetallic(Ni,Cu,PGM)7.Kevitsa (Boliden)8.SakattiProject(AngloAmerican)
Chrome9.Kemi(Outokumpu)
Copper10.Pyhasalmi (FirstQuantum)11.Kylylahti (Boliden)
Nickel12.Talvivaara (FinnishState)
Pahtavaara (RupertResources)• AcquiredbyRUPinSept2016• 45,000mdrilled,25kmofIP
KevitsaMine(Boliden)• BoughtfromFQMforUSD712mln
KittilaMine(Agnico Eagle)• Productionexpandedto200koz/a• Europe’slargestgoldmine(8Moz)
Sakatti Project(AngloAmerican)• Resourceof44Mt@4%Cueq.
Kutuvuoma (AurionResources/B2)• USD15millionJVsignedwithB2• FormerPahtavaara satellitepit
Risti (AurionResources)• Potentialbonanzadiscovery• CAD15mlninvestmentbyKinross
ACTIVITYINCENTRALLAPLAND,FINLAND
SIXSIGNIFICANTRECENTDEVELOPMENTSWITHIN50KMRADIUSOFPAHTAVAARA
Activity highlights sourced from company information
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THEPAHTAVAARA PROJECT
ACQUISITIONCOSTUSD2.5MLN/REPLACEMENTVALUEUSD120MLN(1)
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30,000mofUGdevelopmentTailingspond1500tpdmill Openpit1 2 3 4
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(1) Refer to page 1, forward looking “Cautionary Statement”.
FIRSTWORLDINFRASTRUCTURE,LOWHISTORICOPERATINGCOSTS
AFULLYESTABLISHEDMININGPROJECT
500ktpaProcessingPlantandTailingsFacility• Planthashistoricallyproducedover350koz• Freemillingorewith80to90%recoveries(1)
• Reagentcostsminimal,givenuseofphysicalprocessing(spirals,shakingtables,flashflotation)
• Lowcostgridhydropower• Environmentallyuncomplicatedtailings(nocyanide)
FullyEstablishedUndergroundMine• 30kmof5mx5mdevelopment
• Mechanisedlongholeminingmethodused
• Goodgroundconditions
• Miningcontractorhaspreparedforfutureoperation
• Dewateringupgradeunderway
(1) Refer to page 1, forward looking “Cautionary Statement”.
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IN-MINERESOURCEDEVELOPMENT
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Previousownership• Fragmenteddatabasewith>20yearsofwork
• Nogeologicalmodel
• Minimalgradecontrol
• Butstillmanagedtomine350koz
Rupertinitiatives• Database upgrade andvalidation
• Industryexpertscomplimentingin-housework
• 47,710mdrill program todelineate potential resources
• Basemetalsulphidemineralisationidentified
Nextsteps• Newgeologicalmodeltobetestedwithfurtherdrillingin
Q42017
BUILDINGNEWUNDERSTANDINGTOUNLOCKPAHTAVAARA’SFULLPOTENTIAL
FOCUSSEDONADDINGECONOMICOUNCES
RESOURCESCLOSETOEXISTINGINFRASTRUCTURE
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350KOZHISTORICALPRODUCTIONFROMSURFACEANDUNDERGROUND(1000OZ/VM)
KAROLIINA LANSI HARPOON NFE
30KMOF5MX5MUNDERGROUNDINFRASTRUCTURE
PREVIOUSLYDEFINEDMINERALISATION
PREVIOUSLYMINEDSTOPES
OPENPITS
MINERALISATIONPOTENTIALATDEPTH,INWORKINGSANDALONGSTRIKE
SIGNIFICANTRESULTSFROMDRILLING
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Karoliina• Westernextensionofdeposit,mineralisationclose
toexistinginfrastructure• Intersectionsinclude:116005- 32g/tover5m,
117315- 23g/tover9m,11733110.3g/tover3m&19.9g/tover3m
NFE• Newhighgradezone<200mfromexisting
undergroundinfrastructure.
• Intersectionsinclude:116011- 432g/tover1mand245g/tover1m
Harpoon• 20mfromexistinginfrastructurewithpossible
openpitpushbackonnearsurfaceprojection• Intersectionsinclude:116231- 6.9g/tover12m,
116232- 34.3g/tover2.75m,116234- 4.8g/tover11.6m
Lansi• Unminedsulphide zonewithopenpitpotential
andextensiontodepth
• Intersectionsinclude:112806- 14.5g/tAuequivalentover6m
Notedrillintersectionsareuncutandareg/tAuovercorelength(nottruewidth)unlessstatedotherwise
1m @ 9.41g/t Au
1m @ 2.63g/t Au
1m @ 18.95g/t Au
KaroliinaZone– DDH117331
FOURNEARMINEEXPLORATIONTARGETS
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PROGRAMTOIDENTIFYPOTENTIALSATELLITEDEPOSITS
NEARMINETARGETS
Westernextension• LocatedinamagneticlowandcoincidentwithGTKbaseoftillcopperandgoldanomalies• AlongtrendfromaseriesofresistiveIPanomaliesfromthe2016survey.• Promisingresultsforionicleachandheavymineralsampling(goldgraincounts)
IPSouth• LargeIPresistivityanomalycoincidentwithbothcopperandgoldbaseoftillanomalies.• Elevatedionicleachrelativeresponseratioforgold• HeavymediagoldgraincountssimilartosamplingovertheknownKaroliina zone
Arthur• Targeteddueastrongrelativeresponseratioforgoldinthe2017ILprogram• Baseoftillgoldanomalyandhistoricaltrenchingactivities
IPNorth• LargeIPresistivityanomaly• GoodIonicleachresponseratioforgoldandcopper
TARGETSWITHIN5KMOFMILLGENERATEDBYGEOPHYSICSANDSOILGEOCHEMISTRY
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REGIONALEXPLORATIONTARGETS
Historicdatapackage• GTKbaseoftillsampling• 250kmin-minedrilling• Airbornemagnetics• NearmineIPandground
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RUPexploration2016/17• 48kmofdiamonddrilling• 27kmofIPgeophysics• 1012ionicleachsamples• 172geochem.samples• 200+rocksamples(results
pending)
UTILISINGEXTENSIVEHISTORICALDATAPACKAGE
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REGIONALEXPLORATION
Valimaa• Highgradeboulderfoundadjacenttoa600mlongoutcropofpossiblequartzareniteandconglomerate-
maybelongtotheKumpu Group(hasyieldedexceptionalgoldgradestothesouthofthePahtavaara)• Resultspendingfromfollowupbouldersamplingandanextensiveionicleachprogram• Furthermapping,boulder,outcropandtillgeochemicalsamplingofthisareaistobecompletedKoppelokangas• KnowngoldoccurrencepreviouslydrilledbyOutokumpu• Newinterpretationof themine Skytem survey data indicatesanumberof conductors thatcouldbe
relatedtomineralisationwithin this 2kmx1kmstructuralcorridor.
STRATEGICEXPLORATIONOF225KM2LICENCEAREAFORGOLDANDBASEMETALS
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Saitta• Minimalpreviousworkonmajorthrustzoneinsouthwestoflicence• Identifiedbytheprospectingteamearlyinthe2017fieldseason• Reinterpretationofregionalgravitydatahasidentifiedagravitybreak
thatindicatesadeepseatedstructureHookana• Knowngoldoccurrenceacquiredinnew101km2 packageofapplications• Located10kmfromPahtavaara
BoulderfoundatValimaaprospect
GOLDCENTRE- REDLAKE,ONTARIO
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STRATEGIC256HECTARELANDPOSITIONINTHE23MOZREDLAKEGOLDCAMP
RupertResourceshasaportfolioofstrategiclicenses.TheGoldCentre,RedLakepropertyis100%owned,priorexplorationhasdemonstratedthecontinuationoftheBalmerformation.
MapsourcedfromGoldcorp
GOLDCENTRESTATUSANDSTRATEGY
• Balmermaficmetavolcanicsidentifiedindrillcoreandonsurface
• DiscoveryoftheFarEastZonebyGoldcorphasprovidedfurthersupportthatthesouthwestdippingRedLakeMinetrendpotentiallyextendsthroughtheGoldCentrepropertyatdepth.
• 9anomaloustrendsinterpretedfrom2013IPsurvey
• Followupworkcouldinclude:drillingandfurtherIPsurveys
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POTENTIALTOJOINTVENTURETOACCELERATEDEVELOPMENT
COMMITTEDTODELIVERINGEXCEPTIONALSHAREHOLDERRETURNS
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Timing&AssetSelection• Bottomofcycleacquisitionofastrategicasset• Finland- lowpoliticalrisk,securetenure,skilledworkforce• Neartermproductionpotentialfromestablishedmine
ProjectDevelopmentStrategy• Buildingthein-mineresourcesbase(1)
• Identifyingnearminesatelliteprojects• ExploringthepotentialoftheregionFocusonGrowth&Returns• Demonstratehiddenvalueofpoorlyunderstoodassets• Ensureinvestmentisaccretivetovaluation• Maximise returnspershareoverallothermetrics
(1) See Company’s press re lease dated September 8, 2016 for historica l resources and reserves details disclosed in a NI 43-101 report prepa red for the previous propertyowners and effective Janua ry 1, 2013. A qualif ied person has not done sufficient work to classify these his torical estimates as current mineral resources or mineralreserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
SYSTEMATICPROJECTDEVELOPMENT
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CONTACTDETAILS
JamesWithall– ChiefExecutiveOfficerEmail- [email protected]
ThomasCredland– HeadofCorporateDevelopmentEmail- [email protected]
Address82RichmondStreetEastSuite203, Toronto,OntarioM5C1P1
Websitewww.rupertresources.com
