Mining High Grade Gold in Burkina Faso TSX: ROXG Macquarie Canada Event | October 2017 Disruptive Discoveries – Top Precious Metals Picks TSX: ROXG 1
Cautionary Statement This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of measured, inferred and indicated mineral resources and proven and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral resources and the expansion potential of existing mineral resources/reserves; and (ii) the success of exploration and development activities; (iii) production and cost guidance, and (iv) statements that are not of historical fact. For further details regarding the Yaramoko project, please refer to the technical report entitled “Technical Report for the Yaramoko Gold Project, Burkina Faso” dated June 4, 2014 (the “Feasibility Study”) as well as the press release of Roxgold (the “Company”) dated April 18, 2017. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves (and potential establishment and increases in respect thereof), the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration, risks relating to variations in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities (including risks that new mineral resources may not be established, or the anticipated expansion potential of existing mineral resources/reserves may not be realized), risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, capitalization and liquidity risks, risks related to disputes concerning property titles and interest, and environmental risks. Please refer to the 2017 second quarter Management’s Discussion and Analysis filed on SEDAR at www.sedar.com on August 14, 2017 for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws. Slides 6 and 8 contain production guidance for 2017 as previously disclosed in the press release of the Company dated January 17, 2017 and September 20, 2017. The following Qualified Persons, as defined in National Instrument 43-101, have prepared or supervised the preparation of the scientific or technical information presented in this presentation: Jean François Couture, PGeo (SRK Consulting Canada Inc.), Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Sebastien Bernier (SRK Consulting Canada Inc.), Paul Criddle, Chief Operating Officer (Roxgold), and Yan Bourassa (Roxgold). All dollars are in US currency unless otherwise stated. TSX: ROXG 2
Roxgold – Compelling Investment in the Gold Sector Canadian Based – Best in Class West African Gold Miner High-Grade, Low-Cost Underground Gold Producer with Near-Term Expansion Potential ▪ High-grade at 17.1 grams per tonne 1 compared to average grade of gold mines in Burkina Faso at 1.5 g/t Au Mauritania Mali ▪ Strong cash flow generation from 55 Zone FLAGSHIP ASSET: ▪ Expansion plan in place at high-grade Bagassi South Yaramoko Project Niger in mining-friendly ▪ Regional targets on large land package Senegal jurisdiction Gambia Burkina ▪ 55 Zone – Extension at depth Faso Guinea Benin Led by Proven Management Team and Board Nigeria Sierra Togo ▪ Discovery to production in 5 years; completed early and Côte Leoné Ghana d’Ivoire under-budget Liberia ▪ Only operating underground gold mine in Burkina Faso AFRICA ▪ Company has healthy balance sheet with: Atlantic ▪ ~US$50M cash balance Ocean ▪ ~US$54M long-term debt TSX: ROXG 3 Measured & Indicated Resources at 738,000 oz at 17.1 grams per tonne (“g/t”) Au at 5.0 g/t 1. cut-off as of December 31, 1016. See appendix for Mineral Resource Statement – 55 Zone.
Roxgold – Why Invest? Operations Expansion Team Growth ▪ Commercial production ▪ Operational Proficiency ▪ Additional new targets ▪ ~35% grade increase at declared in Oct 2016 identified in 2017 Bagassi South 1 ▪ Over 3,000,000 hours ▪ Produced ~141,000 oz Lost Time Injury Free ▪ Three drill rigs currently ▪ Bagassi South Feasibility since first gold pour in working between the 55 Study expected in Q4 ▪ Discovery to production May 2016 to Jun 2017 Zone, Bagassi South and 2017 in 5 years along the newly ▪ Feasibility Study ▪ Project completed early developed targets on assumptions exceeded and under-budget the Bagassi Corridor ▪ 99% recovery rates See appendix for Bagassi South Mineral 1. TSX: ROXG 4 Resource Statement
Operations 5
55 Zone – Currently in Production ▪ Measured & Indicated Resources 1 at 738,000 oz at 17.1 grams per tonne (“g/t”) Au at 5.0 g/t cut -off ▪ 115,000 – 125,000 ounces production guidance in 2017 ▪ Well on track with first half results at 63,564 oz produced ▪ AISC 2 guidance of $740 - $790 per ounce for 2017 ▪ Development well ahead of budget to underpin balance of 2017 and 2018 As of December 31, 2016. See appendix for Mineral Resource Statement 1. This is a non- IFRS financial performance measure with no standard definition under IFRS. See the “non -IFRS financial 2. performance measure” section of the Company’s 2017 MD&A available on www.SEDAR.com TSX: ROXG 6
Key Financial & Operational Highlights First Half Fiscal 2017 Financial Highlights – H1 2017 Operational Highlights – H1 2017 ~42M 99% 63,564 Cash flow from operations recovery rate oz produced or $0.11/share ~50M Cash on hand 15.4 g/t >3M hrs ~28% head grade Lost Time Injury free Reduction in LT debt TSX: ROXG 7
Increased 2017 Production Guidance and Tracking to Cost Estimates (oz Au) ▪ Guidance maintained for full year for Cash Operating Cost 1 and AISC 1 ▪ Significant investment in underground 125,000 development 115,000 115,000 105,000 Cash Operating Cost All-in Sustaining Cost Guidance Range Guidance Range 63,564 63,564 YTD YTD 63,564 2017 2017 $445 $490 $740 $790 $445 actual at Q2 $789 actual at Q2 Revised FY 2017 Guidance FY 2017 Guidance This is a non-IFRS financial performance measure with no standard definition under 1. IFRS. See the “non - IFRS financial performance measure” section of the Company’s 2017 MD&A available on www.SEDAR.com TSX: ROXG 8
55 Zone Developed Reserves 1 L 5270 L 5219 $740 $790 $44 L 5168 $445 $490 $740 $790 L 5117 L 5066 Block Remain % Devt Developed 2017 H2 2018 2019 Total 1 53,000 100% 53,000 29,200 22,100 1,700 53,000 2 74,000 100% 74,000 20,500 28,500 25,000 74,000 See press release dated April 18, 2017 for more information which is 1. 3 72,700 71% 51,600 6,900 17,700 27,000 51,600 available on the Company’s corporate website ( www.roxgold.com) and on SEDAR at www.sedar.com and contains details regarding data 4 69,000 2% 1,400 1,400 1,400 verification undertaken, the results and interpretation of the exploration, 180,000 56,600 68,300 55,100 180,000 details regarding location, types, depths and other details of the drill holes and QA/QC information. TSX: ROXG 9
Expansion TSX: ROXG 10
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