AN EMERGING NORTH AMERICAN GOLD-SILVER PRODUCER

Transcription

1 AN EMERGING NORTH AMERICAN GOLD-SILVER PRODUCER PART 2 CORCORAN CANYON SILVER-GOLD DEPOSIT, NEVADA HIGHEST-GRADE BULK TONNAGE OPEN-PITTABLE SILVER DEPOSIT IN NORTH AMERICA OCTOBER2016

2 Disclaimer This presentation contains forward-looking statements as defined or implied at common law and within the meaning of the Corporations Law. Such forward-looking statements may include, without limitation: (i) estimates of future gold, silver and copper sales; (ii) estimates of future cash costs; (iii) estimates of future capital expenditure; (iv) statements regarding the sensitivity of reserves to commodity prices; and (v) statements regarding future exploration results and the replacement of reserves. Where the Company or any of its officers or directors or representatives expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and the Company or its officers or representatives as the case may be believe to have a reasonable basis for implying such an expectation or belief. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold, copper, silver and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. The Company does not undertake any obligations to publicly release revisions to any forward looking statement, to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

3 Corcoran silver-gold project, Nevada Highest-grade bulk tonnage open-pittable silver deposit in North America Outcropping Silver Reef deposit Low strip ratio Heap leach vs. milling scenario being evaluated 3

4 Corcoran silver-gold project, Nevada Near-term cash flow from a drilled silver-gold resource; feasibility study-ready Historical resource: 30.5Moz Ag + 37,100oz Au 7 (33.3Moz Ag equivalent) with excellent potential for expansion High-grade anticipated from open pit: 3.81 g/t Au eq and 279 g/t Ag eq Grades up to 6,769 g/t Ag 8 27 mineral claims all in good standing; 226 additional claims staked covering resource expansion targets In a highly productive belt of current and past producing mines hosting 175M oz Ag and 26M oz Au Mining-friendly jurisdictions with good infrastructure Low acquisition cost; attractive earn-in terms Peer average NAV 9 per resource oz US$0.40 vs. US$0.08 earn-in valuation NORTHUMBERLAND! 4.7M oz Au GOLD HILL! 3M oz Au ROUND! MOUNTAIN! 15M+ oz Au MANHATTAN! 1.5M oz Au RANGE! FRONT! FAULT TOQUIMA! CALDERA JEFFERSON! 15M+ oz Ag BAXTER SPRING! 250K oz Au BARCELONA! Historic Ag MIDWAY! 216K oz Au RANGE! FRONT! FAULT CORCORAN! CANYON! 30M+ oz Ag BELMONT! 15M oz Ag Au dominant Ag dominant 7 RCG is not treating this resource as a current mineral resource; it is historic and for information purposes only 8 Drill hole CC-38, ft 9 Morgan Stanley, December 2015 TONOPAH! 138M oz Ag! 1.5M oz Au 10 km N 3" 4

5 High-grade resource expansion targets Resource can be expanded and optimised with further drilling and study work Mineralization open along strike to NE and SW with multiple highquality expansion targets Immediate expansion potential surrounding historical resource Lateral expansion targets relatively more Au-rich Depth expansion potential for Tonopah bonanza grade mineralization, initial intercepts already drilled CORCORAN! ALTERATION! SYSTEM WEST! TARGET R/S DRILL HOLE CC44! g/t Au! 0-24 m DRILL HOLE CC15! g/t Au! m M/N L DRILL HOLE CC42! g/t Au! 2-17 m J C B INTRUSIONS! TARGET F H MASTER! FAULT PEDIMENT! TARGET SILVER REEF! HISTORIC! Ag-Au RESOURCE SILVER REEF! EXPANSION POTENTIAL TRAIL! CANYON! CALDERA! MARGIN N 1 km 5

6 Project plan Feasibility study, construction and commissioning on a fast track Upgrade resource to standards with 2,000m drilling Complete Feasibility Study including metallurgical testwork and environmental studies Mine construction and commissioning Estimated pre-production CAPEX US$11m (heap leach scenario) US$50M (milling scenario) Forecast rate of production: 2,150 tpd 5-year initial mine life Use cash flows to expand resource 6

7 Project financial model Preliminary financial modelling, heap-leach scenario 10 Preliminary financial modelling, milling scenario 10 Production and Costs! Unit! Base Case! Tonnes per day ore! tpd" 2,150" Silver recovery! %" 50.0" Gold recovery! %" 75.0" Recovered silver-equivalent! ounces" 17,307,368" Cash cost per silver-equivalent ounce recovered! US$" 5.90" Pre-production investment! US$" 11,000,000" Production and Costs! Unit! Base Case! Tonnes per day ore! tpd" 2,150" Silver recovery! %" 80.0" Gold recovery! %" 90.0" Recovered silver-equivalent! ounces" 26,874,888" Cash cost per silver-equivalent ounce recovered! US$" 5.64" Pre-production investment! US$" 51,500,000" Earnings and Metrics! Cum. EBITDA! NPV 6! IRR! $15 Ag, $1,100 Au! US$157.4m" US$115.1m" 292%" $17 Ag, $1,200 Au! US$190.1m" US$141.1m" 353%" $20 Ag, $1,500 Au! US$243.2m" US$183.3m" 451%" Earnings and Metrics! Cum. EBITDA! NPV 6! IRR! $15 Ag, $1,100 Au! US$251.7m" US$151.9m" 96%" $17 Ag, $1,200 Au! US$302.8m" US$192.6m" 117%" $20 Ag, $1,500 Au! US$384.4m" US$257.6m" 150%" 10 Highlands Geoscience LLC, Seattle, Washington, USA. Projected economic model is for illustration purposes only; it is based on historical resource and numerous assumptions, and not on a preliminary economic assessment. 7

8 Contact Information RESOURCE CAPITAL GOLD CORP. 666 Burrard Street #500 Vancouver, BC V6C 3P6 Canada T E info@rcgcorp.ca W rcgcorp.ca DISCLAIMER This presentation contains forward-looking statements as defined or implied at common law and within the meaning of the Corporations Law. Such forwardlooking statements may include, without limitation: (i) estimates of future gold, silver and copper sales; (ii) estimates of future cash costs; (iii) estimates of future capital expenditure; (iv) statements regarding the sensitivity of reserves to commodity prices; and (v) statements regarding future exploration results and the replacement of reserves. Where the Company or any of its officers or directors or representatives expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and the Company or its officers or representatives as the case may be believe to have a reasonable basis for implying such an expectation or belief. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold, copper, silver and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. The Company does not undertake any obligations to publicly release revisions to any forward looking statement, to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. 8