Slide 1: The Pahtavaara Gold Project
The Pahtavaara Gold Project - Camp Revitalization of 20 Year Producer - New Focus on Central Lapland Gold Belt - Permitted Gold Mine To Be Focus of Exploration and Development June 2016 1
Slide 2: Cautionary statement
Cautionary statement Cautionary Note Regarding Forward-Looking Information This document contains certain forward-looking statements relating but not limited to the Company’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words suc
Slide 3: Central Lapland Gold Belt
Central Lapland Gold Belt Opportunities to build a significant new gold producer § Pahtavaara - 15 Year Gold Producer -35,000oz Pahtavaara – Prior owners Swedish; cash flow to Swedish projects – Limited exploration ; "No sampling"; Heavy dilution – First open pit (1-2 g/t Au) ; then U/G (2-3 g/t Au)
Slide 4: Central Lapland Greenstone Belt
Central Lapland Greenstone Belt § No direct correlation between the size of the belt and total gold endowment § There appears to be a fractal pattern in size distribution of the orogenic gold districts with prolonged exploration history § CLGB data is very skewed compared to the other belts due to S
Slide 5: Prospective 124km2 land position in Central Lapland
Prospective 124km2 land position in Central Lapland Kittila Mine Agnico Eagle Sakatti Project Gold Anglo American 8Moz deposit Polymetallic 200koz/a >4g/t Kevitsa Mine Boliden Polymetallic Pahtavaara Mine Rupert Resources Gold +0.5Moz deposit 35koz/a 2 to 3g/t 5
Slide 6: Rupert's Pahtavaara 6 Month Option Contract
Rupert’s Pahtavaara 6 Month Option Contract § Total purchase price $2.5 million – $500,000 at conclusion of option period Mid-September – EUR600,000 environmental bond required on completion – $2 million upon production resumption basis 1.5% royalty – Site maintenance costs become Rupert’s responsib
Slide 7: Pahtavaara – Existing Mineralized Boundary Area – 3km
Pahtavaara – Existing Mineralized Boundary Area – 3km Potential ore block Open pit target (red) (yellow) 7
Slide 8: Pahtavaara long section - south
Pahtavaara long section - south 8
Slide 9: Phased approach to 100koz/a
Phased approach to 100koz/a Disciplined strategy focused on margin and low capital intensity § Phase 1 - Pahtavaara start-up 35koz/a and 5 year reserve – Near mine open pit potential – Karoliina infill drilling – Down plunge extension of existing orebody § Phase 2 – Pahtavaara expansion to >50koz/a
Slide 10: Good ground conditions
Good ground conditions Low mining costs of EUR23/t milled Highly mechanised 4-—10m stope size Intention to move to performance based mining contract
Slide 11: Pahtavaara long hole open stoping mining method
Pahtavaara long hole open stoping mining method 11
Slide 12: Pahtavaara mill
Pahtavaara mill Plant has produced 350koz gold over 15 years at cost of EUR 6 – 7 /t Plant § 0.5Mtpa capacity § Low reagent costs as uses physical processing (spirals, shaking tables, flash flotation) § Minimal reagent costs § Historical recoveries of over 85 to 90% § Plant has produced 350koz of go
Slide 13: Simple Process - Pahtavaara flow sheet
Simple Process - Pahtavaara flow sheet 13
Slide 14: Multiple drill targets on 124km2 claim area – 21km EW
Multiple drill targets on 124km2 claim area – 21km EW 14
Slide 15: Expanded Mineralized Target Area – 7km EW
Expanded Mineralized Target Area – 7km EW 15
Slide 16: Karoliina – exisiting drill holes
Karoliina – exisiting drill holes 50m K I L O J G H N F C B D 4.6/3.0 A E 5.7/3.0 4.6/6.0 M 7.2/6.0 8.1/5.0 P Q NOTE-TARGET HOLES TO DRILL NORTH 16 ZONE TOO
Slide 17: Karoliina – deeper exploration
Karoliina – deeper exploration OPEN P Q R S F OPEN T 16.2/2.0 E OPEN 17
Slide 18: Pahtavaara long section – north flank
Pahtavaara long section – north flank 7.5/3.0 1.1/10.0 4.6/5.0 295.00/1.65 + 0.62/5.0 10.5/4.0 7.6/4.0 20.0/2.0 9.8/4.0 25.5/5.0 21.9/2.0 8.9/7.0 41.8/2.0 20.0/2.0 + 6.4/1.0 430m 12.6/1.0 11.3/2.0 52.0/1.0 7.9/2.0 13.0/1.0 18