resource development and near term...
TRANSCRIPT
RESOURCEDEVELOPMENTANDNEARTERMPRODUCTIONPOTENTIALINFINLAND
December2017TSXV:RUP
CAUTIONARYSTATEMENT
CautionaryNoteRegardingForward-LookingInformationThisdocumentcontainscertainforward-lookingstatementsor“forwardlookinginformation”withinthemeaningofapplicablesecuritieslaws,relatingbutnotlimitedtoRupertResourceLtd.(“TheCompany”)’sexpectations,intentions,plansandbeliefs.Forward-lookinginformationcanoftenbeidentifiedbyforward-lookingwordssuchas“anticipate”,“believe”,“expect”,“goal”,“plan”,“intent”,“estimate”,“may”and“will”orsimilarwordssuggestingfutureoutcomesorotherexpectations,beliefs,plans,objectives,assumptions,intentionsorstatementsaboutfutureeventsorperformance.Forward-lookinginformationmayincludereserveandresourceestimates,estimatesoffutureproduction,unitcosts,costsofcapitalprojectsandtimingofcommencementofoperations,andisbasedoncurrentexpectationsthatinvolveanumberofbusinessrisksanduncertainties.Factorsthatcouldcauseactualresultstodiffermateriallyfromanyforward-lookingstatementinclude,butarenotlimitedto,failuretoestablishestimatedresourcesandreserves,thegradeandrecoveryofminedorevaryingfromestimates,capitalandoperatingcostsvaryingsignificantlyfromestimates,delaysinobtainingorfailurestoobtainrequiredgovernmental,environmentalorotherprojectapprovals,inflation,changesinexchangerates,fluctuationsincommodityprices,delaysinthedevelopmentofprojectsandotherfactors.Forward-lookingstatementsaresubjecttorisks,uncertaintiesandotherfactorsthatcouldcauseactualresultstodiffermateriallyfromexpectedresults.
Potentialshareholdersandprospectiveinvestorsshouldbeawarethatthesestatementsaresubjecttoknownandunknownrisks,uncertaintiesandotherfactorsthatcouldcauseactualresultstodiffermateriallyfromthosesuggestedbytheforward-lookingstatements.Investorsarecautionednottoplaceunduerelianceonforward-lookinginformation.Byitsnature,forward-lookinginformationinvolvesnumerousassumptions,inherentrisksanduncertainties,bothgeneralandspecific,thatcontributetothepossibilitythatthepredictions,forecasts,projectionsandvariousfutureeventswillnotoccur.TheCompanyundertakesnoobligationtoupdatepubliclyorotherwisereviseanyforward-lookinginformationwhetherasaresultofnewinformation,futureeventsorothersuchfactorswhichaffectthisinformation,exceptasrequiredbylaw.
ThisinformationisqualifiedinitsentiretybycautionarystatementsandriskfactordisclosurecontainedinfilingsmadebytheCompany,includingtheCompany’sfinancialstatementsandrelatedMD&AfortheyearendedFebruary28,2017filedwiththesecuritiesregulatoryauthoritiesincertainprovincesofCanadaandavailableatwww.sedar.com.
CautionaryNotetoU.S.InvestorsConcerningResourceEstimateTheresourceestimatesinthisdocumentwerepreparedinaccordancewithNationalInstrument43-101,adoptedbytheCanadianSecuritiesAdministrators.TherequirementsofNationalInstrument43-101differsignificantlyfromtherequirementsoftheUnitedStatesSecuritiesandExchangeCommission(the“SEC”).Weusetheterms“measured”,“indicated”and“inferred”resources.AlthoughthesetermsarerecognizedandrequiredinCanada,theSECdoesnotrecognizethem.TheSECpermitsU.S.miningcompanies,intheirfilingswiththeSEC,todiscloseonlythosemineraldepositsthatconstitute“reserves”.UnderUnitedStatesstandards,mineralizationmaynotbeclassifiedasareserveunlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyextractedatthetimethedeterminationismade.UnitedStatesinvestorsshouldnotassumethatalloranyportionofameasuredorindicatedresourcewilleverbeconvertedinto“reserves”.Further,“inferredresources”haveagreatamountofuncertaintyastotheirexistenceandwhethertheycanbeminedeconomicallyorlegally,andUnitedStatesinvestorsshouldnotassumethat“inferredresources”existorcanbelegallyoreconomicallymined,orthattheywilleverbeupgradedtoahighercategory.
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ABOUTRUPERT
CORNERSTONEASSETINTHECENTRALLAPLANDGREENSTONEBELT
3(1) Refer to page 1, forward looking “Cautionary Statement”.
Neartermproductionpotential• Mine,1500tpdmillandtailingsdam(1)
• Trackrecordoflowoperatingcosts(EUR30/tmilled)• Initialproductiontargetof35,000oz/a• Improvedgradepotentialtodrivehigheroz/annum(1)
Resourcedevelopment• Historicalaverageof1000oz/verticalmeterdespitepoor
understandingofgeologicalcontrols• Newgeologicalmodelandapproachtoresource
definition
Regionalexplorationupside
• 225km2 landpositioninhighprofilenewjurisdiction• Nearmineandregionalopportunities• ExtensivedatapackagefromGTKandpreviousowners• 2017fieldworkhasgeneratedseveraldrilltargets
CapitalStructure(asat31August2017)
SharesonIssue 101,114,992
Options&Warrants 6,542,777
FullyDilutedShares* 117,843,149
MarketCapitalisation(atCAD1.00/shr)
CAD101mln
Cash CAD7mln
Convertible(5%CouponExC$0.95)
CAD8mln
Ticker TSXV:RUP
ISIN CA78165J1057
LEADERSHIP
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BrianHinchcliffe - Executive ChairmanBrianwasco-founderofKirklandLakeGoldandRamblerMetalsandMining,producingminesinOntarioandNewfoundlandrespectively.PriortothisBrianco-foundedbasemetalproducerAmericanPacificMiningandjointventuredtheconstructionoftheLomadeHierro nickelmineinVenezuela.
Jukka Nieminen – MDRupertFinlandOyJukkawasinstrumentalintheacquisitionofthePahtavaaraProjectfortheCompanyandis ageologistwithover20yearsofexperienceintheminingindustry.HestartedhiscareerwithOutokumpu attheForrestania NickelminesinWesternAustraliabeforereturningtoFinlandtoworkasaminegeologistatthePahtavaara andtheOrivesi Goldmines.LatterlyhewasGeneralManagerofBelvedereMining’sHituranickelmineandCEOoftheBelvedere’sFinnishoperatingsubsidiary.
JariYlinen- SeniorGeologistJarijoinedRupertResourcesinJune2016andhasover10yearsexperienceinexplorationandmining.HeworkedpreviouslyasSeniorGeologistatFirstQuantumMineralsLtd.HehasalsoworkedwithseveralgreenfieldsexplorationprojectsandmineswithOutokumpu MiningOy.
EXPERIENCEDMANAGEMENTTEAMLEADINGTHECOMPANYJamesWithall- ChiefExecutiveOfficerJameshasover20years’experienceinmining.HewaspreviouslyaManagingPartnerandFund ManageratBakerSteelCapitalManagersresponsiblefortheirgoldequitiesfund. Jamesworkedformorethansevenyearsasageologist,workinginWesternAustraliafornumberofminingcompaniesinexploration,projectandminegeologistroles.
MichaelSutton- P.Geo.,Non-ExecutiveDirectorMikeisageologistwhohasworkedinsomeofthemostprolificproducingCanadiangoldcamps,includingTimminsandKirklandLake.MikehasbeenawardedProspectoroftheYearbytheOntarioProspectorsAssociationandcreditedwiththediscoveryoftheSouthMineComplexatKirklandLakeGold
ThomasCredland – HeadofCorporateDevelopmentAgeologistwithover15yearsexperienceinmining,ThomasbeganhiscareerasageologistinWesternAustraliabeforereturningtotheUnitedKingdomtoworkasamininganalyst.HethenmovedintoaninstitutionalsalesroleatCanaccordbeforespendingfiveyearsinaseniorcorporaterole.ThomascontributedtotheidentificationandacquisitionofthePahtavaara minebyRupert.
MININGINFINLAND
NEWGENERATIONOFLARGERPROJECTSBEINGDEVELOPEDINLAPLAND
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GoldminingisnewinFinland• StateownedminingcompanyOutokumpu focussedon
basemetals• Noforeigninvestmentpriortomid-1990s• LimitedfundingfromNordicfinancialmarkets• Only30yearsgoldexplorationonCentralLapland
(>100inAbitibi,NorsemanWiluna)• 8MozKittila mineonlycommencedproductionin2009
Finnishminesoftenoperatewithlowgradeores• Lowpowercosts(US$0.075/kwh)• Technologicallyadvanced• Highproductivitiesandwelleducatedworkforce• Largevolumebutoftennofocusongrade
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MinesofFinland
Gold1.Kittila (Agnico Eagle)2.Pahtavaara (RupertResources)3.Laiva (NordicMines)4.Pampalo (Endomines)5.Orivesi (DragonMining)6.Jokisivu (DragonMining)
Polymetallic(Ni,Cu,PGM)7.Kevitsa (Boliden)8.Sakatti Project(AngloAmerican)
Chrome9.Kemi(Outokumpu)
Copper10.Pyhasalmi (FirstQuantum)11.Kylylahti (Boliden)
Nickel12.Talvivaara (FinnishState)
Pahtavaara (RupertResources)• AcquiredbyRUPinSept2016• 45,000mdrilled,25kmofIP
Kevitsa Mine(Boliden)• BoughtfromFQMforUSD712mln
Kittila Mine(Agnico Eagle)• Productionexpandedto200koz/a• Europe’slargestgoldmine(8Moz)
Sakatti Project(AngloAmerican)• Resourceof44Mt@4%Cueq.
Kutuvuoma (Aurion Resources/B2)• USD15millionJVsignedwithB2• FormerPahtavaara satellitepit
Risti (Aurion Resources)• Potentialbonanzadiscovery• CAD15mlninvestmentbyKinross
ACTIVITYINCENTRALLAPLAND,FINLAND
SIXSIGNIFICANTRECENTDEVELOPMENTSWITHIN50KMRADIUSOFPAHTAVAARA
Activityhighlightssourcedfromcompanyinformation
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THEPAHTAVAARA PROJECT
ACQUISITIONCOSTUSD2.5MLN/REPLACEMENTVALUEUSD120MLN(1)
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30,000mofUGdevelopmentTailingspond1500tpd mill Openpit1 2 3 4
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(1) Refer to page 1, forward looking “Cautionary Statement”.
FIRSTWORLDINFRASTRUCTURE,LOWHISTORICOPERATINGCOSTS
AFULLYESTABLISHEDMININGPROJECT
500ktpaProcessingPlantandTailingsFacility• Planthashistoricallyproducedover350koz• Freemillingorewith80to90%recoveries(1)
• Reagentcostsminimal,givenuseofphysicalprocessing(spirals,shakingtables,flashflotation)
• Lowcostgridhydropower• Environmentallyuncomplicatedtailings(nocyanide)
FullyEstablishedUndergroundMine• 30kmof5mx5mdevelopment
• Mechanisedlongholeminingmethodused
• Goodgroundconditions
• Miningcontractorhaspreparedforfutureoperation
• Dewateringupgradeunderway
(1) Refer to page 1, forward looking “Cautionary Statement”.
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RESOURCEDEVELOPMENT
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Past20yearsofownership• 300,000mofpreviousdrilling
• Fragmenteddatabase
• Nogeologicalmodel&Minimalgradecontrol
• Butstillmanagedtoproduce350koz
Rupertinitiatives• Databaseupgradeandvalidation
• Industryexpertscomplimentingin-housework
• Developinglithologicalandstructuralmodels
• Basemetalsulphidemineralisationidentified
Systemappearstohavescale• 1400mstrikex400mwidthx450mdepth
• Remainsunconstrained.
Nextsteps• NewmodeltobedrilltestedinQ42017
PREVIOUSWORKCOULDHAVEUNDERESTIMATEDSCALEOFPAHTAVAARA
RESOURCESCLOSETOEXISTINGINFRASTRUCTURE
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350KOZHISTORICALPRODUCTIONFROMSURFACEANDUNDERGROUND(1000OZ/VM)
KAROLIINA LANSI HARPOON NFE
30KMOF5MX5MUNDERGROUNDINFRASTRUCTURE
PREVIOUSLYDEFINEDMINERALISATION
PREVIOUSLYMINEDSTOPES
OPENPITS
MINERALISATIONPOTENTIALATDEPTH,INWORKINGSANDALONGSTRIKE
SIGNIFICANTRESULTSFROMDRILLING
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Karoliina• Westernextensionofdeposit,mineralisationclose
toexistinginfrastructure• Intersectionsinclude:116005- 32g/tover5m,
117315- 23g/tover9m,11733110.3g/tover3m&19.9g/tover3m
NFE• Newhighgradezone<200mfromexisting
undergroundinfrastructure.
• Intersectionsinclude:116011- 432g/tover1mand245g/tover1m
Harpoon• 20mfromexistinginfrastructurewithpossible
openpitpushbackonnearsurfaceprojection• Intersectionsinclude:116231- 6.9g/tover12m,
116232- 34.3g/tover2.75m,116234- 4.8g/tover11.6m
Lansi• Unminedsulphide zonewithopenpitpotential
andextensiontodepth
• Intersectionsinclude:112806- 14.5g/tAuequivalentover6m
Notedrillintersectionsareuncutandareg/tAuovercorelength(nottruewidth)unlessstatedotherwise
1m @ 9.41g/t Au
1m @ 2.63g/t Au
1m @ 18.95g/t Au
KaroliinaZone– DDH117331
FOURNEARMINEEXPLORATIONTARGETS
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PROGRAMTOIDENTIFYPOTENTIALSATELLITEDEPOSITS
NEARMINETARGETS
Westernextension• LocatedinamagneticlowandcoincidentwithGTKbaseoftillcopperandgoldanomalies• AlongtrendfromaseriesofresistiveIPanomaliesfromthe2016survey.• Promisingresultsforionicleachandheavymineralsampling(goldgraincounts)
IPSouth• LargeIPresistivityanomalycoincidentwithbothcopperandgoldbaseoftillanomalies.• Elevatedionicleachrelativeresponseratioforgold• HeavymediagoldgraincountssimilartosamplingovertheknownKaroliina zone
Arthur• Targeteddueastrongrelativeresponseratioforgoldinthe2017ILprogram• Baseoftillgoldanomalyandhistoricaltrenchingactivities
IPNorth• LargeIPresistivityanomaly• GoodIonicleachresponseratioforgoldandcopper
TARGETSWITHIN5KMOFMILLGENERATEDBYGEOPHYSICSANDSOILGEOCHEMISTRY
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REGIONALEXPLORATIONTARGETS
Historicdatapackage• GTKbaseoftillsampling• 300kmin-minedrilling• Airbornemagnetics• 27kmofIPgeophysics• Nearminegroundmag• 300kmofdiamonddrilling
RUPexploration2017• 1012ionicleachsamples• 172geochem.samples• 200+rocksamples(results
pending)
UTILISINGEXTENSIVEHISTORICALDATAPACKAGE
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EXPLORATION- REGIONAL
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STRUCTURALLYCOMPLEXANDHIGHLYPROSPECTIVE
GOLDCENTRE- REDLAKE,ONTARIO
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STRATEGIC256HECTARELANDPOSITIONINTHE23MOZREDLAKEGOLDCAMP
RupertResourceshasaportfolioofstrategiclicenses.TheGoldCentre,RedLakepropertyis100%owned,priorexplorationhasdemonstratedthecontinuationoftheBalmerformation.
MapsourcedfromGoldcorp
GOLDCENTRESTATUSANDSTRATEGY
• Balmer maficmetavolcanics identifiedindrillcoreandonsurface
• DiscoveryoftheFarEastZonebyGoldcorphasprovidedfurthersupportthatthesouthwestdippingRedLakeMinetrendpotentiallyextendsthroughtheGoldCentrepropertyatdepth.
• 9anomaloustrendsinterpretedfrom2013IPsurvey
• Followupworkcouldinclude:drillingandfurtherIPsurveys
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POTENTIALTOJOINTVENTURETOACCELERATEDEVELOPMENT
COMMITTEDTODELIVERINGEXCEPTIONALSHAREHOLDERRETURNS
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Timing&AssetSelection• Bottomofcycleacquisitionofastrategicasset• Finland- lowpoliticalrisk,securetenure,skilledworkforce• Neartermproductionpotentialfromestablishedmine
ProjectDevelopmentStrategy• Buildingthein-mineresourcesbase(1)
• Identifyingnearminesatelliteprojects• ExploringthepotentialoftheregionFocusonGrowth&Returns• Demonstratehiddenvalueofpoorlyunderstoodassets• Ensureinvestmentisaccretivetovaluation• Maximise returnspershareoverallothermetrics
(1) See Company’s press release dated September 8, 2016 for historical resources and reserves details disclosed in a NI 43-101 report prepared for the previous propertyowners and effective January 1, 2013. A qualified person has not done sufficient work to classify these historical estimates as current mineral resources or mineralreserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
SYSTEMATICPROJECTDEVELOPMENT
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CONTACTDETAILS
JamesWithall– ChiefExecutiveOfficerEmail- [email protected]
ThomasCredland– HeadofCorporateDevelopmentEmail- [email protected]
Address82RichmondStreetEastSuite203, Toronto,OntarioM5C1P1
Websitewww.rupertresources.com