Resource Capital Gold Corp · OTC:GDPEF
Resource Capital Gold — Investor Presentation (October 2016)
31 slides from Resource Capital Gold's investor presentation, October 2016
Slide 1: An Emerging North American Gold-Silver Producer
AN EMERGING NORTH AMERICAN GOLD-SILVER PRODUCER OCTOBER2016
Slide 2: Disclaimer
www.rcgcorp.ca Disclaimer This presentation contains ‘forward-looking statements’ as defined or implied at common law and within the meaning of the Corporations Law. Such forward-looking statements may include, without limitation: (i) estimates of future gold, silver and copper sales; (ii) estimates
Slide 3: Introduction
www.rcgcorp.ca Introduction Resource Capital Gold Corp. (TSXV: RCG) is an emerging precious metal (Au-Ag) developer and producer with a pipeline of late-stage exploration, development and producing assets in North America. • All projects located within prolific gold-silver regions • Targeting low CA
Slide 4: Project overview
www.rcgcorp.ca Project overview Nova Scotia Gold Fields roll-up 90% ownership of fully permitted Dufferin Gold Mine with 300 t/d gravity flotation mill and all necessary infrastructure in place; PEA and resource estimate in progress; projected C$623 cash cost per Au ounce; restart to production with
Slide 5: Leadership team
www.rcgcorp.ca Leadership team George Young Chairman and CEO: 35 years of experience acquiring, financing and developing mines in North and South America, both as a metallurgical engineer and as a lawyer. Has been instrumental in over US$600 million in financings for both major and junior mining com
Slide 6: Operations team
www.rcgcorp.ca Operations team Michael Gross Mine operator with 45+ years of experience in mine operations, management, turnarounds, and team building. Mike is an expert in narrow-vein underground mining as well as open-pit mining. He has led major improvements at multiple mines, resulting in decrea
Slide 7: Nova Scotia Gold Roll-Up Strategy
www.rcgcorp.ca Nova Scotia Gold Roll-Up Strategy • Acquired 4 historically producing gold projects • Over 500,000 ounces consolidated in high- Regional grade deposits with excellent upside • Dufferin Mine is a fully permitted, operational Tangier and gold mine Forest Hill - 90 days to resume operati
Slide 8: Nova Scotia regional consolidation
www.rcgcorp.ca Nova Scotia regional consolidation Forest Hill • 326,000 oz Au • 16.7 g/t Au • 30,000 – 55,000 oz pa Dufferin Tangier • PEA in progress • 173,000 oz Au • Potential for >30,000 oz pa • 13.3 g/t Au West Dufferin • >30,000 oz pa • Faulted offset of Dufferin • Potential for >30,000 oz pa
Slide 9: Forest Hill Gold Mine
www.rcgcorp.ca Forest Hill Gold Mine • Resource of 326,000 ounces Open to west Open to east contained1 - 608,000 t @ 16.7 g/t Au (3.5 g/t cutoff, uncut) - At 300 tpd, potential to produce 54,000 oz per year for 6 years • 1980s bulk sampling: gold recovery 94.9% (74.2% by gravity) • Veins have extens
Slide 10: Tangier Gold Mine
www.rcgcorp.ca Tangier Gold Mine • Resource of 173,000 ounces contained1 - 405,000 t @ 13.3 g/t Au (3.5 g/t cutoff, uncut) - At 225 tpd, potential to produce 32,000 oz per year for 6 years • Historic production 29,000 oz @ 17.6 g/t Au • 1,513-t bulk sample 1980s - 19.9 g/t Au - 89% recovery by gravi
Slide 11: West Dufferin extension to the west
www.rcgcorp.ca West Dufferin extension to the west West Dufferin Mine claims Dufferin Mine claims • Historical production of 41,000 oz from ore grading 11 g/t Au • Faulted western extension of Dufferin deposit • Mined only to 125m • Drilled to 400m - 18 new saddle reef structures discovered • Strike
Slide 12: Dufferin gold mine, Nova Scotia
www.rcgcorp.ca Dufferin gold mine, Nova Scotia Unlocking value in a fully permitted underground gold mine • 227 hectares (2.3 km2), 14 mineral claims all in good standing. • Preliminary Economic Assessment (PEA) and 43-101 resource calculation in progress with additional sample data4 – High-grade dr
Slide 13: Harriga
www.rcgcorp.ca West Area of grade-control sampling View to North East • 15,200 tonnes @ 34.3 g/t Au • 16,744 ounces Open on strike • Portions planned for trial mining Additional Saddles in this area as deposit plunges to the east S1 Harriga S2 n S3 Cove F S4 S5 ault S6 S7 Drill Hole Assay Au_GPT S8
Slide 14: Mine development + resource potential
www.rcgcorp.ca Mine development + resource potential Saddle Reef Vein Deposit Anticline Fold Nose Dufferin Mine Gold Quartz Vein Drill program defined for significant resource expansion • 1.4km strike; drilled only to 400m depth 20-100 meters D • Deposit open along strike and at depth Potential cont
Slide 15: Mine development + resource potential
www.rcgcorp.ca Mine development + resource potential Visible gold in vein quartz Saddle 2 vein at Dufferin • Up to 6m wide • Higher tonnage, grade averaging ~8 g/t Au 15
Slide 16: Project plan
www.rcgcorp.ca Project plan Infrastructure and Facilities Fully permitted; 90 days to begin mining operations • Last production in 2014; previous owners lacked experience in underground mining; opportunities to improve mine and mill – Forecast improvements to dilution / grade, costs, equipment avail
Slide 17: Drilling vs. UG grade-control sampling
www.rcgcorp.ca Drilling vs. UG grade-control sampling Saddle Tonnes Drill hole Drill hole ounces Control sample Control sample grade (g/t) (oz Au) grade (g/t Au) ounces (oz Au) Saddle 1 2,490 5.6 448 23.3 1,865 Saddle 2 NL 4,240 6.6 900 51.8 7,062 Saddle 2 NL W 1,980 13.4 853 33.3 2,120 Saddle 4 6,4
Slide 18: Corcoran silver-gold project, Nevada
www.rcgcorp.ca Corcoran silver-gold project, Nevada Highly Productive Mineral Belt Highest-grade bulk tonnage open-pittable • In a belt silver and of mines, resources, NORTHUMBERLAND! 4.7M oz Au deposit in North Americaadvanced projects that host over FRO GE! FAU NT! FA ONT ! E LT UL ! FR NG RAN T 1
Slide 19: High-grade resource expansion targets
www.rcgcorp.ca High-grade resource expansion targets RANGE-FRONT! Resource can be expanded and optimised with further drilling and study FAULT work • Mineralization open along strike to NE and TRAIL ! SW with multiple high- CANYON ! quality expansion CALDERA! targets PEDIMENT! MARGIN CORCORAN! • Imm
Slide 20: Highest-grade bulk tonnage open-pittable silver deposit in North America
www.rcgcorp.ca Highest-grade bulk tonnage open- pittable silver deposit in North America • Outcropping Silver Reef deposit • Low strip ratio • Heap leach vs. milling scenario being evaluated 20
Slide 21: Project plan
www.rcgcorp.ca Project plan Feasibility study, construction and commissioning on a fast track • Upgrade resource to 43-101 standards with 2,000m drilling • Complete Feasibility Study including metallurgical testwork and environmental studies • Mine construction and commissioning – Estimated pre-prod
Slide 22: Project financial model
www.rcgcorp.ca Project financial model Preliminary financial modelling, Preliminary financial modelling, heap-leach scenario10 milling scenario10 Production and Costs! Unit! Base Case! Production and Costs! Unit! Base Case! Tonnes per day ore! tpd" 2,150" Tonnes per day ore! tpd" 2,150" Silver recov
Slide 23: Near term value drivers
www.rcgcorp.ca Near term value drivers • Announce Dufferin acquisition (September 2016) – Announce new PEA and 43-101 resource calculation • Announce acquisition of Tangier and Forest Hill gold mines (September 2016) • Close of Dufferin acquisition (October 2016) • Announce acquisition of West Duffe
Slide 24: Summary
www.rcgcorp.ca Summary • Launched revitalized business plan targeting low CAPEX, late-stage exploration, development and producing precious metal assets in North America. – Acquired fully permitted, operational Nova Scotia gold mine with all necessary personnel, facilities and infrastructure in plac
Slide 25: Why Dufferin opportunity exists
www.rcgcorp.ca Why Dufferin opportunity exists • Dufferin mine on ‘care and maintenance’; secured creditor known to RCG technical team • Previous owners lacked experience in underground mining, as evidenced by: – Mine design did not develop enough faces to feed mill – No 3D model; lack of survey con
Slide 26: Dufferin turnaround plan
www.rcgcorp.ca Dufferin turnaround plan 1. Mine design did not develop enough faces to feed mill • Complete 3 months of development prior to resuming mining • Drive access ramp in waste so that ore in saddle legs will not be sterilized until end of mine life and more saddle can be developed at the s
Slide 27: Dufferin turnaround plan
www.rcgcorp.ca Dufferin turnaround plan 3. <60% average mobile equipment availability • Acquire new or rebuilt equipment to resume mining • Contract with equipment vendor for equipment maintenance which will be tied to availability • Enforce preventative maintenance schedules • Include road grader t
Slide 28: Technical Team - Consultants
www.rcgcorp.ca Technical Team - Consultants Terrence Byberg Mine operations executive with over 42 years of experience worldwide in numerous mines. He specializes in turning around troubled mining operations, gained through hands-on mine operations from shift boss to President of Silver Eagle Mines.
Slide 29: Tangier Gold Mine, Nova Scotia
www.rcgcorp.ca Tangier Gold Mine, Nova Scotia Indicated Mineral Resource Estimate • Located ~30 km SW of Dufferin Gold Grade Threshold Tonnes* Gold Grade Gold Grade (g/t) (g/t) Uncut 50 g/t Cut • 43-101 resource5 1.0 g/t 294,000 5.48 5.48 - 173,000 oz Au 2.0 g/t 206,000 7.23 7.23 indicated + inferre
Slide 30: Forest Hill Gold Mine, Nova Scotia
www.rcgcorp.ca Forest Hill Gold Mine, Nova Scotia Indicated Mineral Resource Estimate • Located ~70 km NE of Dufferin Gold Grade Threshold Tonnes* Gold Grade Gold Grade (g/t) (g/t) Uncut 50 g/t Cut • 43-101 resource6 1.0 g/t 355,000 15.96 10.19 - 326,000 oz Au 3.5 g/t 225,000 24.02 14.91 indicated +
Slide 31: Contact Information
www.rcgcorp.ca Contact Information RESOURCE CAPITAL GOLD CORP. 666 Burrard Street #500 Vancouver, BC V6C 3P6 Canada T 1-604 642 6114 E info@rcgcorp.ca W rcgcorp.ca DISCLAIMER This presentation contains ‘forward-looking statements’ as defined or implied at common law and within the meaning of the Cor
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