Rtg Mining, Inc. · TSX:RTG
Rtg Mining — Investor Presentation (May 2018)
40 slides from Rtg Mining's investor presentation, May 2018
Slide 1: Presentation May 2018
y__N MINING INC. PRESENTATION MAY 2018
Slide 2: Forward Looking Statements
2 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 object
Slide 3: Qualified Persons
3 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 o
Slide 4: Contents
4 Contents 5 Corporate Overview 7 Track Record 8 Meet the Team 11 Mabilo Development 21 Bunawan Exploration 25 Panguna Opportunity 36 Value Drivers 38 Appendix TSX: RTG // ASX: RTG // RTGMINING.COM
Slide 5: Corporate Overview
5 Corporate Overview CAPITAL MARKETS* CURRENT SIGNIFICANT SHAREHOLDERS Share Price A$0.13 Hains Family 15% Common Shares 478M Franklin Resources 12% Fully Diluted 490M Carpe Diem Asset Management 9% Market Capitalization A$60M B2 Gold 3% Cash & Cash Equivalents A$40M Cash & Cash Equivalents after al
Slide 6: RTG Business Model
6 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 value
Slide 7: Expertise With a Global Track Record
7 Expertise With a Global Track Record* 7 Gold Mines Developed & Operated /// 5 Different Countries including Philippines /// On Time On Budget 6 PROJECT OZ/YR COMPANY 1 Marymia 75,000 Resolute 7 4 2 Bullabulling 100,000 5 3 Chalice 150,000 4 Obotan 150,000 5 Golden Pride 200,000 1 3 6 Boroo 250,000
Slide 8: Management Proven Track Record
8 Management Proven Track Record 7 mines in 5 different countries around the world specializing in emerging markets Well-established relationships in Philippines and Landowners at Panguna 8 years experience in-country in Philippines Most recent mine acquired by B2Gold for US$1.1 billion in 2013 Orig
Slide 9: RTG Share Price History
9 RTG SHARE PRICE HISTORY Deep Discount Traded 80c / $1 pre Philippine changes and commodity prices 20 August 2014 have now doubled NPV to US$307M Bunawan EL announcement 1.6 3.5 $1.31 New Administration 1.4 RTG 3 Copper US/lb 1.2 2.5 1 2 11 July 2016 MOA announcement 0.8 Copper US/lb 13 March 2016
Slide 10: Highly Prospective Geology and Many Successful Mines
10 Highly Prospective Geology and Many Philippines Successful Mines Start-Up DEVELOPMENT • ECC and EP Renewal Issued July 2016 • Satisfying final conditions of permitting MABILO • Requires resolution of JV partner disputes High grade gold/copper magnetite skarn (~5g/t AuEq) MABILO Excellent economic
Slide 11: Mabilo Project
11 M Mabilo Project High Grade Copper – Gold TSX: RTG // ASX: RTG // RTGMINING.COM
Slide 12: 2015 Mabilo Resource and Reserve Estimate
12 2015 Mabilo Resource and Reserve Estimate Resources Reserves Resources Reserves Major 472 Kt 316 Kt 1.97 Moz 1.3Moz @ @ 4.8 g/t 5.2g/t Upside (1.03B lb) (695.2M lb) @ 3.70% @ 4.1% AuEq* AuEq* Potential CuEq* CuEq* Only 18,000 Metres Drilled to Date Resources - Indicated and Inferred Million Conta
Slide 13: Mineralised Zones
13 Mineralised Zones Open along strike, down plunge and regionally OXIDE RESOURCE TSX: RTG // ASX: RTG // RTGMINING.COM
Slide 14: Stage 1 Direct Shipping Ore Operation
14 STAGE 1 Direct Shipping Ore Operation Runs Approximately 18 Months Average Costs $61.91/t Exceptional Startup Stats* Production CuEq $0.42/lb Equivalent Cu 25,300t 35,000t CAPEX $17.4M (55.66Mlb) (77Mlb) Net Operating Cash Flow $99M AuEq $224/oz Planned Debt $26M Au 39,000oz 144,000oz Net Free Ca
Slide 15: Stage 2 Primary Concentrate Production
15 STAGE 2 Primary Concentrate Production Average Costs $54/t All-around Robust Feasibility Results Annual Production CuEq $0.80/lb Equivalent Cu 18,300t 38,300t CAPEX $161M1 (40.26Mlb) (84.26Mlb) Pre-Strip $24.4M2 AuEq $425/oz Net Operating Cash Flow $71M3 Au 67,000oz 160,000oz Payables Copper in c
Slide 16: Mabilo – Highly Profitable
16 Mabilo – Highly Profitable Project NPV at Mabilo Economics Current Metal $330 Prices $280 $307M $230 $180 $ Millions $130 Current $7,000/t Cu $3.18/lb $80 $99M $71M All US$ $30 Project NPV (5%) $307M $(20) NPV Plant Net DSO Net Cashflow Annual Cashflow Plant net annual cashflow $71M (after tax) *
Slide 17: High Quality & Clean Concentrates
17 3 High Quality & Clean Concentrates Average Concentrates Produced/Year Copper-Gold 27% Cu & 21 g/t Au 65,000t Pyrite 3 g/t Au (46% Sulphur) 220,000t Magnetite 65% Magnetite 535,000t Recoveries Cu 83.7% Au 84.9% Fe 61% • Low technical risk in plant • No deleterious elements, sulphur 1.35 Mt/Year F
Slide 18: Significant Upside Potential at Mabilo
18 Significant Upside Potential at Mabilo Only 18,000M of drilling to date Drilling since 2014 Maiden Resource indicates strong growth potential Significant exploration potential remains along strike, regionally and at depth Potential for high grade copper/gold corridor Potential Porphyry Magnetic A
Slide 19: Growing Confidence in Porphyry Potential
19 Growing Confidence in Porphyry Potential Game Changer in Terms of Tonnes RARE VISIBLE GOLD PORPHYRY STYLE VEINS MDH-94 bornite-molybdenite chalcopyrite Chlorite alteration intensity increasing in with rare visible gold around 150m proximity to the porphyry target Re-log of MDH-03 at 120m showed F
Slide 20: Update on Ex-JV Partner Proceedings
20 Update on Ex-JV Partner Proceedings Mt. Labo terminated joint venture with Galeo Arbitration Equipment Corporation Right to buy out Galeo Philippines Court commenced in 31 January 2017 for interest for 10% confirmed matters Singapore unremedied breaches of discount to book value should be referre
Slide 21: Bunawan Project
21 B Bunawan Project Potential for 2-3 Million Ounce New Gold Discovery TSX: RTG // ASX: RTG // RTGMINING.COM
Slide 22: The Right Zip Code
22 Bunawan Project THE RIGHT ZIP CODE 4 Projects in Prolific Mining Region (surrounding Medusa Mining) Significant land holding 2nd only to 88km2 Medusa Mining Similar geological setting to the high grade Co-O Mine held by Medusa Mining Highly prospective NW trending splay fault runs through permit
Slide 23: Bunawan Project Regional Geology
23 Bunawan Bunawan Project Regional Geology EXCELLENT POTENTIAL ON DECK Substantial mineralisation found within broad corridor along southern margin of the Mahunoc Diatreme Shear structures identified with high grade soil anomalies (+200ppb) 1.5km gold in soil anomaly (+100ppb) overlying a major str
Slide 24: Second Phase Drilling Program Complete
24 Second Phase Drilling Program Complete Hole From To Metres Au g/t Host Lithology 2nd 6 BDH-10 62 64 2 2.94 Diatreme Breccia Drill holes and 163.40 167 3.60 4.58 Diatreme Breccia Program BDH-12 108 111 3 1.05 Diatreme/Andesite 1799 BDH-14 262 264.15 2.15 2.16 Andesite metres BDH-15 39 48 9 2.02 Da
Slide 25: Panguna Opportunity
25 P Panguna Opportunity TSX: RTG // ASX: RTG // RTGMINING.COM
Slide 26: Opportunity Overview
26 Opportunity Overview RTG Nominated as Landowner’s Developer of Choice Panguna Mine was the largest operating copper and gold mine in the world prior to closure. The mine operated for 17 years and produced 3Mt or 6.6Blb of Cu and 9.3Moz of Au Joint Venture established between the Special Mining Le
Slide 27: Old Panguna Mine Announced Resources
27 Old Panguna Mine Announced Resources 2015 Resource Estimate ** Indicated and Inferred Resource** Cu Au 1.8Bt 0.3% 0.34g/t Contained Metal 5.3Mt (11.66Blb) 19.3Moz Billion Contained Contained Dec 2015** Tonnes Au g/t Cu% Au (Moz) Cu (Mt) Indicated 1.54 0.33 0.3 16.1 4.6 (10.12Blb) Inferred 0.3 0.4
Slide 28: Largest Undeveloped Copper-Gold Projects
28 Largest Undeveloped Copper-Gold Projects CONTAINED GOLD OUNCES COPPER -G OL D EQUIVAL EN T S PEBBLE PEBBLE KSM REKO DIQ REKO DIQ KSM SNOWFIELD TAMPAKAN CERRO CASALE NUEVAUNION WAFI-GOLPU FRIEDA RIVER LOS AZULES CASPICHE Copper-Gold Projects TACA TACA Copper-Gold Projects CUA LAMA WAFI-GOLPU FRIED
Slide 29: Regional Deposits in Ring of Fire
29 Regional Deposits in “Ring of Fire” Panguna – 1,838 Bt @ 0.30% Cu, 0.34g/t Au Metaworei Au Simberi 45 Mt @ 1.1g/t Au Porgera 198 Mt @ 4.8g/t Au Ramu New Hanover Au Lihir Frieda River 143 Mt @ 552 Mt @ 2.6g/t Au 1,347 Mt @ 1.0% Ni & 0.1% 0.37% Cu & 0.55g/t Co Au OK Tedi Wafi Siniurt 632 Mt @ 72 Mt
Slide 30: Bougainville Ripe for Development
30 Bougainville was granted independence from PNG in 1975 and is now governed by the Autonomous Bougainville Government (“ABG”) Bougainville Bougainville was home to the then largest copper/gold mine in the world, the Panguna Mine which operated until 1989 Landowner concerns with their treatment whe
Slide 31: Landowner Initiatives to Support Their Proposal
31 Landowner Initiatives to Support Their Proposal The SMLOLA has demonstrated overwhelming support of their landowner group (who own the minerals) through a petition lodged with the ABG signed by around 2000 members all saying they will not support BCL as the developer. The SMLOLA has been supporte
Slide 32: Joint Venture with SMLOLA
32 Joint Venture with SMLOLA BOUGAINVILLE RTG is the Nominated Development Partner for the Landowner Proposal for the Redevelopment Strong ABG and Landowner support for recommencement of mining to drive both financial and ultimately full independence for Bougainville 50/50 joint venture signed with
Slide 33: Geological Setting
33 Geological Setting Bougainville and the Solomon chain rise from a submarine ridge bounded on both sides by deep sea trenches Three successive cycles of volcanic activity created the Solomon Island Ridge resulting in repeated accumulations of volcanic rocks from 45 million years ago and until the
Slide 34: Panguna Historical Production
34 Panguna Historical Production 1988 - 1983 1988 1987 1986 Average Ore milled (Mt) 48.02 47.69 48.20 47.89 Milled Grade (% Cu) 0.42 0.41 0.41 0.42 Milled Grade (g/t Au) 0.46 0.41 0.43 0.48 Concentrate tonnes produced (‘0000dt) 580.85 552 585.5 586.6 Concentrate grades (%Cu) 30.0 30.1 30.4 30.5 Conc
Slide 35: RTG Mining & Bougainville
35 RTG Mining & Bougainville World Class Historical Mine at Panguna with Current In-Ground Resources Valued at US$54.4B* Only group who has secured the necessary Landowner Consent for the granting of exploration licences in the Panguna and Seven Sisters Areas of Bougainville Access to the technical
Slide 36: Contacts
36 Contacts EXPERTISE Justine Magee New Developments President & CEO Capital Markets Tel: +61 8 6489 2900 Fax: +61 8 6489 2920 Email: jmagee@rtgmining.com PROJECTS Low Cost High Grade Mark Turner Major Upside Chief Operating Officer Infrastructure Tel: +61 8 6489 2900 Fax: +61 8 6489 2920 Email: mtu
Slide 37: Appendix
37 APPENDIX TSX: RTG // ASX: RTG // RTGMINING.COM
Slide 38: Board & Management
38 Board & Management BOARD 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 Chairman five countries.
Slide 39: 2015 Mabilo Mineral Resource Estimate
39 2015 Mabilo Mineral Resource Estimate Mabilo Deposit – South and North Zones Weathering Million Contained Au Contained Cu Contained Cu Contained Fe Classification Cu% Au g/t Ag g/t Fe% State Tonnes (‘000s oz) (‘000s t) (‘M lb) (‘000s t) Indicated 0.78 4.1 2.7 9.7 41.2 67.1 32.1 70.62 320.8 Oxide
Slide 40: 2015 Oxide Resource Estimate
40 2015 Oxide Resource Estimate Contained Au Contained Cu Contained Cu Contained Fe South Mineralized Zone MillionTonnes Au g/t Cu% Fe% (‘000s oz) (‘000s t) (‘M lb) (‘000s t) Oxide Gold Cap 0.33 3.1 0.2 42.6 33.3 0.7 1.6 142.2 Oxide Copper/Gold 0.28 2.4 2.6 44.0 21.6 7.1 15.6 121.4 Indicated Superge