ThePahtavaara GoldProject
- CampRevitalizationof20YearProducer
- NewFocusonCentralLaplandGoldBelt
- PermittedGoldMineToBeFocusofExplorationandDevelopment
June2016
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Cautionarystatement
CautionaryNoteRegardingForward-LookingInformation
Thisdocumentcontainscertainforward-lookingstatementsrelatingbutnotlimitedtotheCompany’sexpectations,intentions,plansand
beliefs.Forward-lookinginformationcanoftenbeidentifiedbyforward-lookingwordssuchas“anticipate”,“believe”,“expect”, “goal”,
“plan”,“intent”,“estimate”,“may”and“will”orsimilarwordssuggestingfutureoutcomesorotherexpectations,beliefs,plans,objectives,
assumptions,intentionsorstatementsaboutfutureeventsorperformance.Forward-lookinginformationmayincludereserveandresource
estimates,estimatesoffutureproduction,unitcosts,costsofcapitalprojectsandtimingofcommencementofoperations,andisbasedon
currentexpectationsthatinvolveanumberofbusinessrisksanduncertainties.Factorsthatcouldcauseactualresultstodiffermateriallyfrom
anyforward-lookingstatementinclude,butarenotlimitedto,failuretoestablishestimatedresourcesandreserves,thegradeandrecovery
ofminedorevaryingfromestimates,capitalandoperatingcostsvaryingsignificantlyfromestimates,delaysinobtainingor failurestoobtain
requiredgovernmental,environmentalorotherprojectapprovals,inflation,changesinexchangerates,fluctuationsincommodityprices,
delaysinthedevelopmentofprojectsandotherfactors.Forward-lookingstatementsaresubjecttorisks,uncertaintiesandotherfactorsthat
couldcauseactualresultstodiffermateriallyfromexpectedresults.
Potentialshareholdersandprospectiveinvestorsshouldbeawarethatthesestatementsaresubjecttoknownandunknownrisks,
uncertaintiesandotherfactorsthatcouldcauseactualresultstodiffermateriallyfromthosesuggestedbytheforward-looking statements.
Shareholdersarecautionednottoplaceunduerelianceonforward-lookinginformation.Byitsnature,forward- lookinginformationinvolves
numerousassumptions,inherentrisksanduncertainties,bothgeneralandspecific,thatcontributetothepossibilitythatthepredictions,
forecasts,projectionsandvariousfutureeventswillnotoccur.RupertResourcesundertakesnoobligationtoupdatepubliclyorotherwise
reviseanyforward-lookinginformationwhetherasaresultofnewinformation,futureeventsorothersuchfactorswhichaffect this
information,exceptasrequiredbylaw.
CautionaryNotetoU.S.InvestorsConcerningResourceEstimate
TheresourceestimatesinthisdocumentwerepreparedinaccordancewithNationalInstrument43-101,adoptedbytheCanadianSecurities
Administrators.TherequirementsofNationalInstrument43-101differsignificantlyfromtherequirementsoftheUnitedStatesSecuritiesand
ExchangeCommission(the“SEC”).Inthisdocument,weusetheterms“measured”,“indicated”and“inferred”resources.Althoughthese
termsarerecognizedandrequiredinCanada,theSECdoesnotrecognizethem.TheSECpermitsU.S.miningcompanies,intheir filingswith
theSEC,todiscloseonlythosemineraldepositsthatconstitute“reserves”.UnderUnitedStatesstandards,mineralizationmaynotbe
classifiedasareserveunlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyextractedatthe
timethedeterminationismade.UnitedStatesinvestorsshouldnotassumethatalloranyportionofameasuredorindicatedresourcewill
everbeconvertedinto“reserves”.Further,“inferredresources”haveagreatamountofuncertaintyastotheirexistenceand whetherthey
canbeminedeconomicallyorlegally,andUnitedStatesinvestorsshouldnotassumethat“inferredresources”existorcanbe legallyor
economicallymined,orthattheywilleverbeupgradedtoahighercategory.
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CentralLaplandGoldBelt
Opportunities tobuildasignificantnewgoldproducer
§
Pahtavaara - 15YearGoldProducer-35,000oz
– PriorownersSwedish;cashflowtoSwedishprojects
– Limitedexploration;"Nosampling";Heavydilution
– Firstopenpit(1-2g/tAu);thenU/G(2-3g/tAu)
§
LowCostAcquisition,FullyPermittedMillandMine
– Numerousopenpitandunderground(4-5gram)drilling
targets
– Millcapacity1500TPD+massivetailingsdam
– 5pits+32kilometersu/gDevelopment
§ LowOperatingCoststoDriveMargin
− 2012to2014U/GminecostEUR20to23/t;MillEUR7/t
− Targetingbothopenpitandunderground
− Oresortingcouldprovideupside
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Pahtavaara
CentralLapland Greenstone Belt
§
§
§
§
§
Nodirectcorrelationbetweenthesizeofthe
beltandtotalgoldendowment
Thereappearstobeafractalpatterninsize
distributionoftheorogenicgolddistrictswith
prolongedexplorationhistory
CLGBdataisveryskewedcomparedtothe
otherbeltsduetoSuurikuusikko
Norseman-Wiluna,Abitibi andZimbabwe
craton have all had 100+years ofgold
exploration
Finland:All serious exploration done after
1995– the first generation ofAuexploration
Arctic Days,Tromsø, Norway/Tero Niiranen
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Prospective124km2landpositioninCentralLapland
Kittila Mine
Agnico Eagle
Gold
8Mozdeposit
200koz/a
>4g/t
Sakatti Project
AngloAmerican
Polymetallic
Kevitsa Mine
Boliden
Polymetallic
Pahtavaara Mine
RupertResources
Gold
+0.5Mozdeposit
35koz/a
2to3g/t
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Rupert’sPahtavaara6MonthOptionContract
§ Totalpurchaseprice$2.5million
–
–
–
–
$500,000atconclusionofoptionperiodMid-September
EUR600,000environmental bondrequiredoncompletion
$2millionuponproductionresumptionbasis1.5%royalty
SitemaintenancecostsbecomeRupert’sresponsibility
§ 3000mdrillprogramcommencedduringoptionperiod
– Karolinaorebody,New&OldOpenpitpotential,Northernflank
orebody,StepOutDrillHoles
§ Trenchingprogramme testingnewopenpitpotential
§ Geophysics(IPandmag),baseoftilldataandmappingto
enhanceunderstandingofregionalprospectivity
§ Oresortingtestwork
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Pahtavaara– ExistingMineralizedBoundaryArea– 3km
Potentialoreblock
(red)
Openpittarget
(yellow)
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Pahtavaara longsection- south
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Phasedapproachto100koz/a
Disciplinedstrategyfocusedonmarginandlowcapitalintensity
§ Phase1- Pahtavaara start-up35koz/aand5yearreserve
– Nearmineopen pitpotential
– Karoliina infill drilling
– Downplungeextensionofexistingorebody
§ Phase2– Pahtavaara expansionto>50koz/a
– ExplorationsuccessonexistingPahtavaara licence
– Satelliteorebody potential
§ Phase3– Expansionto100koz/a
− Regionalexplorationsuccess
− Acquisition
§ Managementinvestmentcritieria
– Profitable(operating margin>50%)
– Lowcapitalcost(USD/500annualoz)intensiveprojects
– Shortpaybackperiod (i.e.lessthanthreeyears)
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10
Pahtavaara longholeopenstoping miningmethod
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Pahtavaara mill
Planthasproduced350kozgoldover15yearsatcostofEUR6– 7/t
Plant
§ 0.5Mtpacapacity
§ Lowreagentcostsasusesphysicalprocessing(spirals,shakingtables,flashflotation)
§ Minimalreagentcosts
§ Historicalrecoveriesofover85to90%
§ Planthasproduced350kozofgold
§ MillingcostsofEUR6-7/t
Permits
§ Permitsintact
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SimpleProcess- Pahtavaara flowsheet
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Multipledrilltargetson124km2 claimarea– 21kmEW
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ExpandedMineralizedTargetArea– 7kmEW
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Karoliina – exisiting drillholes
50m
I
K
L
O
J
G
H
N
F
C
4.6/3.0
D
B
A
7.2/6.0
P
E
5.7/3.0
4.6/6.0
M
8.1/5.0
Q
NOTE-TARGET
HOLESTODRILL
16
NORTHZONETOO
Karoliina – deeperexploration
OPEN
P
Q
R
16.2/2.0
S
F
OPEN
T
E
OPEN
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Pahtavaara longsection– northflank
4.6/5.0
7.6/4.0
7.5/3.0
295.00/1.65
10.5/4.0
20.0/2.0
1.1/10.0
+0.62/5.0
9.8/4.0
25.5/5.0
21.9/2.0
8.9/7.0
20.0/2.0
41.8/2.0
+6.4/1.0
430m
12.6/1.0
11.3/2.0
52.0/1.0
7.9/2.0
13.0/1.0
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