Rtg Mining, Inc. · TSX:RTG
Rtg Mining — Investor Presentation (April 2016)
32 slides from Rtg Mining's investor presentation, April 2016
Slide 1: Corporate Presentation April 2016
Corporate Presentation April 2016
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward looking statements within the meaning of applicable securities laws including, among others, statements made or implied relating to RTG’s and / or Sierra’s objectives, strategies to achieve those objectiv
Slide 3: Qualified Persons
QUALIFIED PERSONS The information in this report that relates to Exploration Results at the Mabilo Project is based upon information prepared by or under the supervision of Robert Ayres BSc (Hons), who is a Qualified Person and a Competent Person. Mr Ayres is a member of the Australian Institute of
Slide 4: Company Overview
COMPANY OVERVIEW • British Virgin Islands-incorporated company listed on the TSX (RTG) and ASX (RTG) • Focused on developing the high grade copper/gold/magnetite Mabilo Project (RTG 58-64%) in the Philippines • Mabilo Project represents a significant, near term, high- grade (copper and gold) and low
Slide 5: Corporate Overview
CORPORATE OVERVIEW* Capital Structure Share Price Share Price A$0.55 0.9 900 Volume Share Price Common Shares 134M 0.8 800 0.7 700 Options 8.8M 0.6 600 Fully Diluted 143M 0.5 500 '000 A$ 0.4 400 Market Capitalisation A$74M 0.3 300 0.2 200 Cash & Cash Equivalents A$5.3M 0.1 100 *As at 29 February 201
Slide 6: Mabilo Project Overview
MABILO PROJECT OVERVIEW • High grade gold/copper magnetite skarn deposit located in the Camarines Norte Province, Eastern Luzon, Philippines • Feasibility Study complete demonstrating a robust and financially viable new development opportunity • RTG owns 58%-64% of the project in joint venture with
Slide 7: Comparison with Other Development Projects
COMPARISON WITH OTHER DEVELOPMENT PROJECTS Significant by-product credits set the Mabilo deposit apart from its open-pit peers Source: Metals Economics / Intierra Au Eq. Grade using spot commodity prices TSX: TSX:RTG//ASX: RTG//ASX:RTG//RTGMINING.COM RTG//RTGMINING.COM 7
Slide 8: Two Stage Development of Mabilo
TWO STAGE DEVELOPMENT OF MABILO • High grade shallow oxide mineralisation will be prioritised for initial exploitation in Stage 1 Stage 1 DSO • Early start up strategy that will enable Operation early cashflows, with nominal capital expenditure requirements • Stage 2 will focus on concentrate produc
Slide 9: Mabilo Resources
MABILO RESOURCES 2015 Updated Mabilo Resource Estimate Gold equivalent* Copper equivalent* Indicated and Inferred 1.97 Moz @ 4.8 g/t Au Eq 472 kt @ 3.70% Cu Eq JORC (2012) Cu Au Resource** 12.76Mt 1.80% 1.9g/t *Equivalent calcs at US$5000/t Cu and US$1200/oz Au and calculated before recoveries Conta
Slide 10: Mabilo Probable Mineral Reserve
MABILO PROBABLE MINERAL RESERVE Ore Waste Strip Ratio Class Type Mt Fe % Au g/t Cu % Ag g/t Mt Gold Cap 0.351 40.1 3.11 0.38 3.26 Supergene 0.104 36.5 2.20 20.7 11.9 Probable Oxide 0.182 43.6 2.52 4.17 19.9 77.713 10.0 Skarn Fresh 7.155 45.9 1.97 1.70 8.73 Total Probable Ore 7.792 45.5 2.04 1.95 8.7
Slide 11: Current Defined Mineralised Zones at Mabilo
CURRENT DEFINED MINERALISED ZONES AT MABILO Showing Copper Grade Shells and Drilling TSX: TSX:RTG//ASX: RTG//ASX:RTG//RTGMINING.COM RTG//RTGMINING.COM 11
Slide 12: Stage 1 – Direct Shipping Ore Operation
STAGE 1 – DIRECT SHIPPING ORE OPERATION Stage 1 Overview • Stage 1 consists of DSO operation providing early cash flow • Within 4–5 months of permitting, DSO generates cashflows • 3 key oxide products: • oxide gold cap (3.28 g/t Au) • oxide skarn (3.51 g/t Au and 4.74% Cu) • chalcocite supergene cop
Slide 13: Mabilo Stage 1 DSO - A Robust Project
MABILO STAGE 1 DSO - A ROBUST PROJECT SUMMARY OF DFS Capex US$17.4M Net Operating Cashflow after Tax US$68M* Production Equivalent Cu produced 25,300 t 35,000 t Au produced 39,000 oz 144,000 oz Average Costs Per tonne US$61.91 Per Cu eq US$0.42/lb Per Au eq US$224/oz NSR Gold cap ore 100% Copper in
Slide 14: Stage 2 – Concentrate Production
STAGE 2 – CONCENTRATE PRODUCTION • Stage 2 consists of the construction of a 1.35 mtpa process plant • 8 year project life • Low production costs • Produces 3 high quality concentrate products: • 27% Cu / 21 g/t Au copper gold con • 3 g/t Au pyrite con • 65% magnetite con • No deleterious elements,
Slide 15: Stage 2 - Process Flowsheet
STAGE 2 - PROCESS FLOWSHEET TSX: TSX:RTG//ASX: RTG//ASX:RTG//RTGMINING.COM RTG//RTGMINING.COM 15
Slide 16: Stage 2 – Concentrate Production
STAGE 2 – CONCENTRATE PRODUCTION Capex US$161M PROJECT OVERVIEW (includes US$15m of recoverable VAT) NPV* 1.35Mtpa 10% 10% Case Increase in Increase in Pre-Strip US$24.4M (includes Commodity Commodity US$2.61M of Prices Price + recoverable VAT) 2.8Mt Net Annual Operating US$52M* 0% 223M 285M 471M Ca
Slide 17: Mabilo Project Timing
MABILO PROJECT TIMING Granting of DSO Operating Permit Startup of DSO 3-4 months Potential DSO Pre-Strip 4 months commencement 2016 Processing Gold Cap 5 months Material Copper Chalcocite 6 months Permitting Stage 2 12 months Potential Primary Plant commissioned early 2018 Detailed 3-4 months Engine
Slide 18: Mabilo Joint Venture with Galeo Mining
MABILO JOINT VENTURE WITH GALEO MINING • RTG management team has had a relationship with Galeo for ~8 years (mining contractor at Masbate) • Galeo are a high net worth partner with existing successful DSO operation in the Philippines • Earning up to 42% (currently earned 36%) • Earn-in includes fund
Slide 19: Mabilo - Significant Exploration Upside
MABILO - SIGNIFICANT EXPLORATION UPSIDE Magnetic Anomalies • Drilling since maiden resource indicates strong growth potential • Significant exploration potential remains along strike, regionally and at depth • Potential for high grade copper/gold corridor • Magnetic anomalies at Venida Pit and South
Slide 20: Exploration - Nalesbitan
SIGNIFICANT PORPHYRY COPPER POTENTIAL • 1,161 hectare property area • Located 15km west of Mabilo • Nalesbitan Hill represents a large, high- sulphidation epithermal gold mineralizing system with an intense alteration halo • 7 main project areas on the tenement EXPLORATION - NALESBITAN • Associated
Slide 21: Bunawan Exploration Overview
BUNAWAN EXPLORATION OVERVIEW • Significant landing holding – 88 sq km (second only to Medusa Mining) • Similar geological setting to the high grade Co-O Mine held by Medusa Mining • Excellent exploration potential with 4 projects in prolific mining region (surrounding Medusa Mining) • High grade Au
Slide 22: Bunawan Reconnaissance Program Completed
BUNAWAN RECONAISSANCE PROGRAM COMPLETED • Substantial mineralization found within broad corridor along southern margin of the Mahunoc diatreme • 8-hole initial drill program completed (3500m) in late 2014 • Walk up targets already identified with potential for 3 types of mineralization: • Low sulphi
Slide 23: Management Expertise
MANAGEMENT EXPERTISE Proven Track Record MANAGEMENT EXPERIENCE • Developed and operated 7 gold mines in Project Location Ounces/Yr 5 different countries (including Philippines) Marymia W. Australia 75,000 • All executed on schedule & on budget Bullabulling W. Australia 100,000 • 8th Development proj
Slide 24: Board and Management
BOARD AND MANAGEMENT BOARD CHAIR Chartered Accountant with over 30 years of experience in the resources sector. Previously Chairman and CEO of CGA Michael Carrick Mining, Chairman of AGR and CEO of Resolute. He has been responsible for the development of seven major gold mines in five countries. Cha
Slide 25: Contacts
CONTACTS EXPERTISE Philippines Justine Magee New Developments President & CEO Capital Markets Tel: +61 8 6489 2900 Fax: +61 8 6489 2920 Email: [email protected] PROJECTS Low Cost Mark Turner High Grade Chief Operating Officer Major Upside Tel: +61 8 6489 2900 Infrastructure Fax: +61 8 6489 2920 E
Slide 26: Appendix
APPENDIX BUSINESS MODEL RESERVE & RESOURCE CROSS SECTION DRILLING 26
Slide 27: RTG Business Model
RTG BUSINESS MODEL UNLOCK VALUE IN DEVELOPMENT PROJECTS AND CREATE A LIQUIDITY EVENT FOR ALL SHAREHOLDERS • Focused on high grade, low operating cost gold projects • Targeting projects with low technical and project risk • Goal of delineating substantial in-ground resources & reserves • Significant
Slide 28: 2015 Resource Estimate
2015 RESOURCE ESTIMATE Mabilo Deposit – South and North Zones Million Contained Au Contained Cu Contained Fe Au Equivalent* Weathering State Classification Cu% Au g/t Ag g/t Fe% Tonnes (‘000s oz) (‘000s t) (‘000s t) (‘000s oz) Indicated 0.78 4.1 2.7 9.7 41.2 67.1 32.1 320.8 197.0 Oxide & Inferred 0.
Slide 29: 2015 Oxide Resource Estimate
2015 OXIDE RESOURCE ESTIMATE Contained Au Contained Cu Contained Fe South Mineralized Zone MillionTonnes Au g/t Cu% Fe% (‘000s oz) (‘000s t) (‘000s t) Oxide Gold Cap 0.33 3.1 0.2 42.6 33.3 0.7 142.2 Oxide Copper/Gold 0.28 2.4 2.6 44.0 21.6 7.1 121.4 Indicated Supergene Chalcocite 0.10 2.3 23.2 38.4
Slide 30: South Body Cross Sections
SOUTH BODY CROSS SECTIONS TSX: TSX:RTG//ASX: RTG//ASX:RTG//RTGMINING.COM RTG//RTGMINING.COM 30
Slide 31: North Body Cross Sections
NORTH BODY CROSS SECTIONS TSX: TSX:RTG//ASX: RTG//ASX:RTG//RTGMINING.COM RTG//RTGMINING.COM 31
Slide 32: Significant Drill Results
SIGNIFICANT DRILL RESULTS Hole Interval Metres AU g/t Cu% Ag g/t Fe% Au Equivalent Grades MDH-01 26-86 60 2.28 3.28 11.8 49.05 8.16 g/t MDH-05 51-113 62 2.66 2.76 10.3 48.82 7.75 g/t MDH-07 39-136 97 2.25 2.22 7.1 50.26 6.53 g/t MDH-10 59-123.4 64.4 2.25 2.28 10.2 45.25 6.57 g/t Consistent widths of