THE YARAMOKO GOLD PROJECT ROBIN MILLS, Roxgold Non-Executive Director & Sr. Operating Partner of Appian Capital Advisory

Transcription

1 THE YARAMOKO GOLD PROJECT ROBIN MILLS, Rxgld Nn-Executive Directr & Sr. Operating Partner f Appian Capital Advisry The Jburg Indaba 6 TH, Octber, 2016

2 CAUTIONARY STATEMENT This presentatin cntains frward-lking infrmatin. Frward lking infrmatin cntained in this new release includes, but is nt limited t, statements with respect t: (i) the estimatin f measured, inferred and indicated mineral resurces and prbable mineral reserves including, withut limitatin, statements with respect t the ptential establishment f new mineral resurces and the expansin ptential f existing mineral resurces/reserves; and (ii) the success f explratin and develpment activities; and (iii) the technical reprt entitled Technical Reprt fr the Yaramk Gld Prject, Burkina Fas dated June 4, 2014 (the Feasibility Study ) These statements are based n infrmatin currently available t the Cmpany and the Cmpany prvides n assurance that actual results will meet management's expectatins. In certain cases, frward-lking infrmatin may be identified by such terms as "anticipates", "believes", "culd", "estimates", "expects", "may", "shall", "will", r "wuld". Frward-lking infrmatin cntained in this news release is based n certain factrs and assumptins regarding, amng ther things, the estimatin f mineral resurces and mineral reserves (and ptential establishment and increases in respect theref), the realizatin f resurce estimates and reserve estimates, gld metal prices, the timing and amunt f future explratin and develpment expenditures, and materials t cntinue t explre and develp the Yaramk prject in the shrt and lng-term, the prgress f explratin and develpment activities, the receipt f necessary regulatry apprvals, and assumptins with respect t currency fluctuatins, envirnmental risks, title disputes r claims, and ther similar matters. While the Cmpany cnsiders these assumptins t be reasnable based n infrmatin currently available t it, they may prve t be incrrect. Frward lking infrmatin invlves knwn and unknwn risks, uncertainties and ther factrs which may cause the actual results, perfrmance r achievements f the Cmpany t be materially different frm any future results, perfrmance r achievements expressed r implied by the frward-lking infrmatin. Such factrs include risks inherent in the explratin, risks relating t variatins in mineral resurces and mineral reserves, grade r recvery rates resulting frm current explratin and develpment activities (including risks that new mineral resurces may nt be established, r the anticipated expansin ptential f existing mineral resurces/reserves may nt be realized), risks relating t changes in gld prices and the wrldwide demand fr and supply f gld, risks related t increased cmpetitin in the mining industry generally, risks related t current glbal financial cnditins, uncertainties inherent in the estimatin f mineral resurces and mineral reserves, access and supply risks, reliance n key persnnel, peratinal risks inherent in the cnduct f mining activities including the risk f accidents, labur disputes, increases in capital and perating csts and the risk f delays r regulatry risks, including risks relating t the acquisitin f the necessary licenses and permits, capitalizatin and liquidity risks, risks related t disputes cncerning prperty titles and interest, and envirnmental risks. Please refer t the Cmpany's Annual Infrmatin Frm dated April 15, 2016 filed n SEDAR at fr plitical, envirnmental r ther risks that culd materially affect the develpment f mineral resurces and mineral reserves. This list is nt exhaustive f the factrs that may affect any f the Cmpany's frward-lking infrmatin. These and ther factrs shuld be cnsidered carefully and readers shuld nt place undue reliance n the Cmpany's frward-lking infrmatin. The Cmpany des nt undertake t update any frward-lking infrmatin that may be made frm time t time by the Cmpany r n its behalf, except in accrdance with applicable securities laws. The fllwing Independent Qualified Persns, as defined in Natinal Instrument , have prepared r supervised the preparatin f the scientific r technical infrmatin presented in this presentatin: Jean Françis Cuture, PGe (SRK Cnsulting Canada Inc.), Ken Reipas, P. Eng (SRK Cnsulting Canada Inc.), Ian Kerr (Mintrex Pty Ltd.), David Mrgan (Knight Piésld), Geff Bailey (Cardn BEC). 2

3 ROXGOLD SNAPSHOT Canadian Based Gld Prducer Experienced Management Team and Bard Prven Track Recrd f Meeting r Exceeding Expectatins May 16 - Pured First Gld at Yaramk Prject in Burkina Fas Lw Cst, High Grade Undergrund Mine High Grade 15.8 grams per tnne ( gpt ) indicated at 5.0gpt cut-ff September 12 Prductin t Date Annunced 35,753 unces f gld prduced Cash and Gld Psitin f ~US$63.5 Millin (as at Aug 31, 2016) Includes: Cash balance f ~US$49.4 millin Receivables frm gld sales f apprximately US$7.7 millin Gld bullin inventry at a market value f ~US$6.4 millin Prject Debt f $75 Millin Pictured Left t Right: His Excellency Prf. Alfa Oumar Dissa, Burkina Fas Minister f Mines; Jhn Drward, Rxgld President & CEO; His Excellency Paul Kaba Thieba, Burkina Fas Prime Minister; Oliver Lennx-King, Rxgld Chairman Market Cap f ~$540 Millin (as at September 9, 2016) Strng Analyst Cverage and Institutinal Supprt 3

4 YARAMOKO 5 YEARS DISCOVERY TO PRODUCTION Discvery 5 Years Gld Pur Feb 2011 Initial Discvery August 2012 Maiden Resurce Annunced June 2014 Feasibility Study Filed May 16, 2016 First Gld Pur Occurred Lw Cst & High Grade LOM Average Head Grade 11.6 gpt Au LOM AISC US$590/z Indicated 810,000 z 15.8 gpt Inferred 278,000 z gpt August 2012 Discvery f satellite zne 1.8 km suth f the 55 Zne Apprximately 15,000 metres f planned drilling t cmmence Q4 QV1 & QV May 2015 Maiden Resurce Inferred mineral resurce estimated at 563,000 tnnes at gpt f gld fr 220,000 unces f gld at a cut-ff grade f 5.0 gpt Au (1) Further Drilling t cmmence in Q4 THE 55 ZONE Targeting dwn plunge extensin at depth (1) Refer t News Release dated April 27, 2016 fr QP Infrmatin and further details. 4

5 YARAMOKO AT AUGUST 31, 2016 Yaramk brught int prductin six weeks ahead f schedule and ~US$4 Millin under budget Excellent perfrmance f prcessing facility and cntinued ramp up f undergrund peratins 99.10% Gld Recvery in August 35,753 unces f Gld Pured at August 31, 2016 YRM-16-DD gpt gld ver 6.2m YRM-16-DD gpt gld ver 6.3m YRM-16-DD gpt gld ver 2.8m YRM-16-DD gpt gld ver 5.7m Indicated Resurces Inferred Resurces YRM-12-DD gpt gld ver 11.2m YRM-12-DD gpt gld ver 14.2m YRM-12-DD gpt gld ver 6.9m YRM-12-DD gpt gld ver 5.6m Targeted Drilling Area Q

6 YARAMOKO MINE DEVELOPMENT EOM DECEMBER 2016 West Decline Mining Stpe East vent shaft Prtal Mining Stpe Mining Stpe East Decline 6

7 BURKINA FASO THE RIGHT ADDRESS BURKINA FASO: THE RIGHT ADDRESS Fastest grwing gld prducer in Africa 4th largest gld prducer in Africa 8 new mines cmmissined ver the past 6 years Excellent gelgical ptential Underexplred cmpared t mature greenstne belts 7

8 ENABLING AN INVESTMENT IN BURKINA FASO Apprximately US$185 Millin has been spent by Rxgld in Burkina Fas including prject cnstructin and pre-sunk csts Rxgld is prud t bast an excellent wrking relatinship with the Gvernment f Burkina Fas The Yaramk Prject was built in thirteen mnths, further highlighting the efficiency f all parties wh cllabrated n building the prject Mining activities are regulated by the fllwing 7 main decrees: Law N /CNT f 16 June 16, 2015 which abrgated and replaced Law N /AN f May 8, 2003 (Mining Cde) Jint Executive Order N MCE/MEF f January 9, 2008 n the cnditins fr exprtatin f gld prduced industrially in Burkina Fas Decree N /PRES/PM/MCE f February 3, 2005 n the management f authrizatins and mining titles Decree N PRES/PM/MEF f December 31, 2010 prescribing tax and mining ryalties Decree N /PRES/PM/MCE f February 3, 2005 setting the standard frm f a mining cnventin Decree N /PRES/PM/MME/MEF f March 10, 2014 stating the creatin, rle, members & functining f the Natinal Cmmissin f Mines Decree N /PRES/PM/MCE/MEF f December 26, 2007 regarding mine clsure 8

9 OPERATING IN BURKINA FASO RESPONSIBLY Rxgld recgnizes the imprtance f Scial Respnsibility while perating in Burkina Fas Scial prjects initiated in 2015: Training f 20 yuth at the Ziniaré Prfessinal Training Centre (tertiary technical diplma) and 15 thers in re treatment by the UI2M Institute (certificate level) Installatin f phtvltaic panels and cnstructin f hspital ward at Bagassi CSPS clinic Dnatin f Generatr t Brm hspital Financial and technical supprt fr Bagassi wmen assciatin fr prductin f sap and sumbala spice Repairs t brehles Rehabilitatin f irrigatin dam at Siphin Cnversin f 12 hectares f land fr agricultural use Cnstructin f a multipurpse cultural rm fr the yuth f Bagassi Rxgld launched a campaign planting 25,000 trees in ur ftprint area. This figure is in additin t 7,000 already planted in Bagassi since

10 SIMPLIFIED FLOW SHEET Excellent Metallurgy ROM Pad Crushing Circuit SAG Mill Thrughput % Ave Grind Size (P80) 90 micrn Gravity Cncentratin Design Bnd Ball Wrk Index Gravity Gld Recvery 17.5 kwh/t Testwrk Range 55-90% ICC (Intensive Cyanidatin Circuit) CIL (Carbn In Leach) Whle Ore Leach Recvery Ttal Metallurgical Gld Recvery Design: 50% Testwrk Range 95-98% 96.90% Dré Gld Rm Tailings 10

11 YARAMOKO PRE-PRODUCTION CAPITAL COSTS Pre-Prductin Capex Cntingency Detailed Design & Prject Management Other $4.5 M $5.3 M Bulk Earthwrks $8.1 M $5.4 M $34.9 M Prcessing Plant (fixed price) Pre-prductin Wrking Capital $10.2 M Ttal Capital Csts f $110 Millin Infrastructure (including Pwer Supply) $17.9 M $24.5 M Undergrund Develpment 11

12 Tania Shaw Directr, Investr Relatins & Cmmunicatins 360 Bay Street, Suite 500 Trnt, ON M5H 2V