Rathdowney Resources Ltd. · TSXV:RTH

Rathdowney Resources — Investor Presentation (February 2016)

38 slides from Rathdowney Resources's investor presentation, February 2016

  1. Slide 1: Rathdowney Resources Ltd. - An Exciting Zinc Development Opportunity

    Rathdowney Resources Ltd. An Exciting Zinc Development Opportunity Corporate Presentation February 2016 TSXV: RTH

  2. Slide 2: Cautionary & Forward Looking Information

    Cautionary & Forward Looking Information This presentation includes certain statements that may be deemed "forward-looking statements". All information contained in this presentation relating to the contents of the Preliminary Economic Assessment (PEA) of the Olza zinc-lead project (Project Olza) in

  3. Slide 3: Rathdowney Strengths: Investment Highlights

    Rathdowney Strengths An Exciting Zinc Development Opportunity Investment Highlights:  Rathdowney owns 100% of Project Olza in the Silesian MVT District, Poland  Exciting Zinc-Lead project with considerable resource expansion potential  Poland – stable jurisdiction – well-codified mining tradition

  4. Slide 4: Poland – A Great Place to Be

    Rathdowney Strengths Poland – A Great Place to Be  8th largest economy in the European Union (EU)  Industrial base – coal, textile, chemical, machinery, iron and steel sectors  Well established mining industry with a long history of operating mines  Mining the Silesian District since the 12th Ce

  5. Slide 5: Poland – A Great Place to Be (Continued)

    Rathdowney Strengths Poland – A Great Place to Be (Continued)  Zn-Pb mining in Poland since the 12th century  Clear, concise and legislated process to obtain a mining extraction license  Highly skilled mining workforce in Poland  Keen interest for clean concentrate from off- take groups and smel

  6. Slide 6: Geologic Setting – An Ability to Deliver

    Rathdowney Strengths Geologic Setting – An Ability to Deliver  100% ownership of three exploration concessions in the world’s most prolific Zinc-Lead district  Upper Silesia Mining District, area of world-class Mississippi Valley Type Zinc- Lead deposits1  Under-explored for 30 years prior to Rat

  7. Slide 7: An Ability to Deliver

    Rathdowney Strengths An Ability to Deliver  100% ownership of three exploration concessions in the world’s most prolific Zinc-Lead district  Resource – 24.4 MT at 5.53% Zn, 1.49% Pb – 7.02% Combined1  Project Olza has excellent potential for resource expansion  World class Pomorzany Mine (20 km

  8. Slide 8: Olza Opportunity

    Rathdowney Strengths Olza Opportunity  Long Life Mines with Excellent Operating Characteristics (e.g. Pomorzany Mine, located 20 km south of Project Olza has operated for 40 years and produced 90+MT  Well-Developed Mining Infrastructure  Extensive Project Database: 180,000 m historical drilling i

  9. Slide 9: Project Olza – Expandable Resource Base

    Rathdowney Strengths Project Olza – Expandable Resource Base  Rathdowney drilling confirms exceptional upside in Project Olza resource potential Legend Rathdowney 2014 Inferred Resource 24.4 Mt @ 7.02% Zn+Pb (2.0% Zn COG)1 Polish State Geological Institute (PSGI)2 2008 Historical Estimate Outline 2

  10. Slide 10: 43-101 Mineral Resource

    Rathdowney Strengths 43-101 Mineral Resource  Inferred mineral resource at 2% Zn cut-off  24.4 MT at 5.53% Zn, 1.49% Pb – 7.02% Combined  Important Ag content yet to be quantified Rathdowney Project Olza Inferred Mineral Resources1 Cutoff Tonnes Zn Pb Zn+Pb Contained Zn Contained Pb Zn% (millions

  11. Slide 11: Excellent Infrastructure Optionality

    Rathdowney Strengths Excellent Infrastructure Optionality  Quality infrastructure – power, water, roads, rail lines and ports to target markets  Dramatic positive effect on CAPEX and OPEX February 2016 February 2016 | TSXV: RTH Page 11

  12. Slide 12: European Zinc Smelters at Project Olza's Doorstep

    Rathdowney Strengths European Zinc Smelters at Project Olza’s Doorstep  Significant interest from smelters for Olza concentrate  Clean concentrate characterized by very low iron  Project timeline coincides with under supplied smelters February 2016 Page 12

  13. Slide 13: Preliminary Economic Assessment

    Rathdowney Strengths Preliminary Economic Assessment Key Results1 (US dollars and metric units)  Robust returns and low production costs  $227M initial capital cost  $51M sustaining capital  $47.42/t on-site operating cost  Conventional 6,000 tpd bulk room & pillar mine with decline access  St

  14. Slide 14: PEA – Annual Production Summary

    Rathdowney Strengths PEA – Annual Production Summary Based on a 24.4 million tonne resource ANNUAL (Avg)1 Total Mineralized Material Mined 2,013,000 t Total Mineralized Material Processed 2,013,000 t Zinc Grade, Processed 4.98 % Lead Grade, Processed 1.50 % Average Recovery, Zinc 89.0 % Average Reco

  15. Slide 15: PEA – Projected Operating Costs

    Rathdowney Strengths PEA – Projected Operating Costs Operating Cost1 ($/t) Mining 26.88 Milling 11.46 Environmental/Tailings Storage Total cost to produce metal1 5.15 Facility Site General & Administration 3.93 $0.63/lb Zn TOTAL ON-SITE COSTS 47.42 or Refining & Smelting Cost1 TC / RC ($/t) 22.01 $6

  16. Slide 16: PEA – Projected Capital Costs

    Rathdowney Strengths PEA – Projected Capital Costs  Post-tax payback 2.4 years (8% discount rate) Initial Sustaining Total LOM Capital Cost ($M) ($M) ($M) Mining 82.3 36.6 118.9 Processing 59.7 - 59.7 Tailings Management & Water 33.1 14.5 47.6 Treatment Facilities Surface Facilities 15.7 - 15.7 Con

  17. Slide 17: De-risking Project Advancement

    Rathdowney Strengths De-risking Project Advancement Advancing Engineering and Environmental Studies to Support Mine Development  Engineering data collection progressing  Preliminary Economic Assessment returns positive results  Engineering drilling and additional deposit drilling ongoing – initia

  18. Slide 18: Proactive Stakeholder Engagement

    Rathdowney Strengths Proactive Stakeholder Engagement  Active engagement with all governments  Community outreach:  Door to door visits  Local events  Open houses  Community meetings  Site visits  Early meetings with local officials  Project Olza enjoys positive relations with local communi

  19. Slide 19: Milestones – Completed & Projected

    Rathdowney Strengths Milestones – Completed & Projected ACQUISITION & PLANNING 2010 to 2015 RESOURCE EVALUATION ENGINEERING & ENVIRONMENTAL DATA GEOLOGICAL DOCUMENTATION & PEA  Completed MINE PLANNING & PERMITTING  Complete Project Description 2015  Integrate modern mine plan with Land Use Plan t

  20. Slide 20: Successfully Managing the Opportunity

    Rathdowney Strengths Successfully Managing the Opportunity        Political Social Environmental Project Cost Infrastructure Market Good rapport Over 2,000 Well Experienced Low CAPEX High quality Mine closures & working town hall documented development US$234M infrastructure tightening zinc r

  21. Slide 21: Strategically Positioned in a Tightening Zinc Market

    Rathdowney Strengths Strategically Positioned in a Tightening Zinc Market  Projected Zinc market deficit  Substantial mine closures and production cuts  Century (500,000 t)  Lisheen (175,000 tpy)  Glencore (500,000 t)  Upward trend in Zinc pricing1  2018 – US$1.04/lb, 2019 – US$1.00/lb, 2020

  22. Slide 22: Executive & Professional Team

    Rathdowney Strengths Executive & Professional Team MANAGEMENT David J. Copeland Chairman Robert Konski President & CEO Dave Copeland is a professional engineer and mining executive with over Robert Konski has over 25 years’ experience as an executive and strategic advisor 30 years' experience in adv

  23. Slide 23: Investment Conclusions

    Rathdowney Strengths Investment Conclusions Key Points:  Substantial economic resource  Proven mining jurisdiction  Structured permitting process with legislated timelines  Project opportunity delivered by experienced team  Importantly positioned in a tightening Zinc market  Significant projec

  24. Slide 24: Contact Information

    Contact Information Rathdowney Resources Ltd. 15th Floor 1040 W. Georgia St. Vancouver, BC Canada V6E 4H1 Investor Relations TF: 800.667.2114 Ph: 1.604.684.6365 Email: info@hdimining.com February 2016 Page 24

  25. Slide 25: Appendices

    Appendices February 2016 Page 25

  26. Slide 26: Share Capital

    Share Capital  Listed March 2011 on TSX:V ticker RTH C$34 million initial public offering  118.08 million common shares outstanding  4.58 million options outstanding  1.97 million warrants February 2016 Page 26

  27. Slide 27: Preliminary Economic Assessment (PEA) Qualified Persons

    Preliminary Economic Assessment (PEA) Qualified Persons Qualified Person Company Professional Designation Sections of the Report Project Management and Christopher Bray BEng, MAusIMM(CP) Mining BSc (Hons), MSc, PhD, MAusIMM Dr Lucy Roberts Mineral Resource (CP) Dr Christopher Bonson PhD EurGeol, P.G

  28. Slide 28: PEA Conceptual UG Mine Layout & Stope Access

    PEA Conceptual UG Mine Layout & Stope Access February 2016 Page 28

  29. Slide 29: PEA Metallurgy & Process Design

    PEA Metallurgy & Process Design  Standard flotation results in marketable zinc and lead concentrates, recoveries of  89% LOM zinc recovery producing 56% zinc concentrate  88.5% LOM lead recovery producing 70% lead concentrate February 2016 Page 29

  30. Slide 30: Expandable Resource Base

    Expandable Resource Base February 2016 Page 30

  31. Slide 31: Drilling 2015 – Highlights

    Rathdowney Drilling 2015 – Highlights  Results from new drilling is adding key engineering data and confirming potential to increase resources Highlights include:  Hole OLZ-241: 3.3 m of 16.0% Zn+Pb incl 1.3 m of 36.9% Zn+Pb  Hole OLZ-232: 8.5 m of 4.77% Zn+Pb, 12.8 g/t Ag incl 2.1 m of 17.9% Zn+

  32. Slide 32: Drilling 2015 – Highlights

    Rathdowney Drilling 2015 – Highlights Drill Hole From (m) To (m) Length (m) Zn+Pb* (%) Zn (%) Pb (%) Ag (g/t) Number 99.00 99.50 0.50 1.32 0.61 0.71 3.4 OLZ-226 102.70 106.30 3.60 1.76 0.95 0.81 2.4 incl 102.70 104.00 1.30 2.71 1.12 1.59 4.0 97.90 103.90 6.00 2.77 2.56 0.21 9.0 OLZ-228 incl 97.90 10

  33. Slide 33: Historical Estimates for Zawiercie Property

    Historical Estimates for Zawiercie Property Zawiercie Historical Estimates by PGI Year of Number of Metres Period of Deposit Category Mt % Zn % Pb Estimate Holes Drilled Drilling 2008 C-1 + C-2 17.0 5.80 2.32 1994 C-1 16.3 6.00 2.50 Most Zawiercie I 1990 510 Unknown C-1 34.5 4.92 1.98 pre-1975 1977

  34. Slide 34: Environmental Data Collection

    Environmental Data Collection Designed to advance mine planning and permitting  Extensive hydrology & hydrogeology studies (600 km2 area)  Comprehensive flora and fauna data collection (250 km2 area)  Land use assessments complete  Engineering, drilling and mine planning studies to support Feasi

  35. Slide 35: Pathway to an Exploitation License

    Rathdowney Strengths Pathway to an Exploitation License STEP 1 • Prepare / submission / approval of geological documentation  Completed STEP 2 • Changing spatial plan and local land use plan Grant • Preparation / submission / of Mining STEP 3 approval of EIA Exploitation Ongoing License1 STEP 4 • P

  36. Slide 36: Project Timeline

    Rathdowney Strengths Project Timeline 2013 2014 2015 2016 2017 PROJECTED TIMELINE 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Geological Documentation Local Planning Changes Environmental Impact Assessment (EIA) Deposit Devel

  37. Slide 37: February 2016 Notes

    February 2016 Notes RATHDOWNEY,

  38. Slide 38: FRATHDOWNEY,

    FRATHDOWNEY,

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