2018 rubicon capital markets site visit: operations and...
TRANSCRIPT
TSX : RMX | OTCQX : RBYCF
2018 Rubicon Capital Markets Site Visit:
Operations and Exploration Review
TSX : RMX | OTCQX : RBYCF
Cautionary Statement regarding Forward-Looking Statements and other Cautionary NotesThis corporate presentation contains statements that constitute “forward-looking statements” and “forward looking information” (collectively, “forward-looking statements”) within the meaning of applicableCanadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “intends”, “may”, “will”, “should”,“plans”, “anticipates”, “potential”, “expects”, “estimates”, “forecasts”, “budget”, “likely”, “goal” and similar expressions or statements that certain actions, events or results may or may not be achieved oroccur in the future. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect.Forward-looking statements reflect our current expectations and assumptions, and are subject to a number of known and unknown risks, uncertainties and other factors which may cause our actual results,performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statementsinclude, but are not limited to statements regarding the anticipated timing of the filing of the NI 43-101 Technical Report, observations from the 2018 infill drilling and underground development samples fromtest mining, impact of the data from the 5,000 m of drilling completed in the fourth quarter of 2017 and activities from the 2018 Exploration Program on the 2018 Mineral Resource Estimate, the potentialadvancement of the Phoenix Gold Project to a viable commercial operation, the potential value of the Company’s tax loss pools, the potential to improve the quantities and classification of the 2018 MineralResource Estimate, the impact of the new 2018 geological model and information on the Company’s understanding of the F2 Gold Deposit and evaluation of mining methods for the Phoenix Gold Project, theadditional exploration work required to further improve and reconcile the geological model for the F2 Gold Deposit, the anticipated timing of the reactivation of the Phoenix Gold Project’s mill, the furthersteps necessary to potentially improve upon the 2018 Mineral Resource Estimates, including targeted infill and step-out drilling to potentially convert Inferred Resources to Indicated Resources, using the resultsfrom the bulk sampling program for reconciliation and validation purposes, the evaluation of the McFinley Deposit and other close proximity targets for potential inclusion in a future Mineral ResourcesEstimate, and follow-up drilling of the F2 Gold Deposit at depth and along strike.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and represent management’s best judgment based on facts and assumptions thatmanagement considers reasonable. If such opinions and estimates prove to be incorrect, actual and future results may be materially different than expressed in the forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rubicon to be materially different from anyfuture results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: possible variations in mineralization, grade or recovery or throughputrates; uncertainty of mineral resources, inability to realize exploration potential, mineral grades and mineral recovery estimates; actual results of current exploration activities; actual results of reclamationactivities; uncertainty of future operations, delays in completion of exploration plans for any reason including insufficient capital, delays in permitting, and labour issues; conclusions of future economic orgeological evaluations; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; accidents and other risks of the mining industry; delays andother risks related to operations; timing and receipt of regulatory approvals; the ability of Rubicon and other relevant parties to satisfy regulatory requirements; the ability of Rubicon to comply with itsobligations under material agreements including financing agreements; the availability of financing for proposed programs and working capital requirements on reasonable terms; the ability of third-party serviceproviders to deliver services on reasonable terms and in a timely manner; risks associated with the ability to retain key executives and key operating personnel; cost of environmental expenditures andpotential environmental liabilities; dissatisfaction or disputes with local communities or First Nations or Aboriginal Communities; failure of plant, equipment or processes to operate as anticipated; marketconditions and general business, economic, competitive, political and social conditions; our ability to generate sufficient cash flow from operations or obtain adequate financing to fund our capital expendituresand working capital needs and meet our other obligations; the volatility of our stock price, and the ability of our common stock to remain listed and traded on the TSX.
Cautionary Statements Regarding Forward-Looking Statements and Cautionary Notes
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Forward-looking statements contained herein are made as of the date of this corporate presentation and Rubicon disclaims any obligation to update any forward-looking statements, whether as a result ofnew information, future events or results or otherwise, except as required by applicable securities laws. Readers are advised to carefully review and consider the risk factors identified in the Company’sannual information form dated March 22, 2018 under the heading “Risk Factors” and in other continuous disclosure documents of the Company filed at www.sedar.com for a discussion of the factors thatcould cause Rubicon’s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-lookingstatements. Readers are further cautioned that the foregoing list of assumptions and risk factors is not exhaustive and it is recommended that prospective investors consult the more complete discussion ofRubicon’s business, financial condition and prospects that is included in this corporate presentation. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Qualified PersonThe content of this corporate presentation relating to geology and exploration has been read and approved by George Ogilvie, P.Eng., President, CEO, and Director, who is a Qualified Person as defined byNI 43-101.Cautionary Note to U.S. Readers Regarding Estimates of Measured, Indicated and Inferred ResourcesThis corporate presentation uses the terms “Measured” and “Indicated” Mineral Resources and “Inferred” Mineral Resources. The Company advises U.S. investors that while these terms are recognized andrequired by Canadian securities administrators, they are not recognized by the SEC. The estimation of “Measured” and “Indicated” Mineral Resources involves greater uncertainty as to their existence andeconomic feasibility than the estimation of Proven and Probable Reserves. The estimation of “Inferred” resources involves far greater uncertainty as to their existence and economic viability than theestimation of other categories of resources. It cannot be assumed that all or any part of a “Measured”, “Inferred” or “Indicated” mineral resource will ever be upgraded to a higher category.Under Canadian rules, estimates of “inferred mineral resources” may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in apreliminary economic assessment under certain circumstances. The SEC normally only permits issuers to report mineralization that does not constitute “reserves” as in-place tonnage and grade withoutreference to unit measures. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legallyproduced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that any part or all of a “measured”, “indicated” or “inferred” mineral resource exists oris economically or legally mineable. Information concerning descriptions of mineralization and resources contained herein may not be comparable to information made public by U.S. companies subject tothe reporting and disclosure requirements of the SEC.
Cautionary Statements Regarding Forward-Looking Statements and Cautionary Notes
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Health and Safety Stats 2015-2017, 2018 YTD Injury Summary
Note: Currently there has been two reportable injuries (Contractor and Rubicon) YTD for 2018
* Includes company and contractor injuries** One of these injuries was a hearing loss claim
2015* 2016 2017 18-Jan 18-Feb 18-Mar 18-Apr 18-May
No Lost Time Injuries (NLTI) (Medical Aids) 13 2** 1 1 0 1 0 0
Lost Time Injuries (LTI) 2 1 0 0 0 0 0 0
Total Injuries (NLTI + LTI) 15 3 1 1 1 2 2 2
WSN Rate Group 110 Injury Frequency (LTFR+MAFR) 4.24 3.87 3.6 3.6 1.87 1.87 2.99
__
WSN Rubicon Injury Frequency (LTFR+MAFR) 3.19 7 0 0 0 4.3 2.71 2.51
Rubicon+Contractors Injury Frequency (LTFR+MAFR)
__ __1.9 14.4 6.7 8.67 6.44 5.02
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Surface Infrastructure
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Phoenix Gold Project Site:>C$770 million in sunk capital
Mill building areaWater treatment
Hoist and headframe
Tailings management facility
200-person camp
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Phoenix Gold Project: Mill overview
• 1,250 tpd mill (permit limit): potential to operate at 1,800 tpd at current configuration and permit amendment
• Large mill building interior: additional room for extra ball mill, pebble crusher, concentrators, etc.
• Achieved recoveries of 91.5% (2015 test mining) prior to care and maintenance (PEA design 92.5%)
• 2013 PEA contemplated expansion to 2,500 tpd processing throughput for bulk mining
• Approximately C$150M capital sunk
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Phoenix Gold Project: Mill overview – Simplified flow sheet
Mineralized material
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Phoenix Gold Project: Effluent Treatment and Tailings Management Facility (TMF)
• Based on the 2013 PEA, TMF designed to handle approximately 9.1Mt of mineralized material (assuming 50% paste backfill and dam raises). Feasibility study required to further understand TMF capacity
• Previous studies conducted to determine other alternative sites if current TMF doesn’t have enough capacity
• Water treatment plant (ACTIFLO) upgraded
• Main requirements to get full operating permits (which will be included in a future feasibility study):
• Ammonia Reactor• Septic field beds
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2017/2018 ACTIFLO Upgrade & Metals Treatment
ACTIFLO system - current (Phase 1)ACTIFLO system - (Phase 2) Metals Treatment Actiflo system - (Phase 3) Ammonia/Cyanates oxidation
Actiflo system - (Phase 2) Sludge ContainmentActiflo system - (Phase 3) Sludge thickening
New Actiflo metals reactor (Phase 2) on site and installed To be commissioned on June 19th.
• Drawings and sludge management plan approval under review by MOECC• Minimum 6 month process – currently assigned and under review
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Phoenix Gold Project: Other surface infrastructure
• Modern hoist and headframe• Ore storage bin• Compressors• Back-up generators• Burners• Electric substation• 200-person camp
(Surface Tour Commences)
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2018 Exploration, Test Mining and Grade Control
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2018 Exploration ProgramConceptual underground section diagram looking north
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Surface
Fresh air raise
337-metre loading pocket
685-metre loading pocket
Shaft
610-metre haulage level
305-metre haulage level
Diagram looking north (not to scale)
Conveyer system
Ore and waste passes
Main F2 Gold Deposit
Completed development Drilling platforms
More than 9km of U/G development
Conceptual rampto surface
25,000-30,000t of test mining between the 122-and 244-metre levels; up to 4,000 m of bazooka drilling at the stope faces
20,000 m of infill/step-out drilling at the 305-, 610- and 685-metre levels;Building exploration drift at 610-metre level
Planned development
200-metre exploration drift, parallel to the strike of the F2 Gold Deposit
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Zone 2 Long Section - Looking East (3.0 g/t Au MSO shapes)
46mL
305 m L
610 m L
1586mL
1285mL
1098mL
976 mL
854 mL
720 mL
793 mL
488mL
366mL
2018 Exploration ProgramTarget area for mineral resource conversion
Focus area for 20,000 m of infill and step-out drilling
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122-metre level
244-metre level
305-metre level
183-metre level
161 test stope
977 test stope
015 test stope
Existing underground development
60 m
2018 planned test stopes
Previously mined test stopes
997 mined test stope
030 mined test stope
994 mined test stope
2018 Test Mining – Conceptual DiagramBetween 25,000-30,000 tonnes planned starting mid-2018
Long section looking west
• Three test stopes, each stope will be test mined and stockpiled sequentially
• ~15,000 tonnes of mineralized material currently on surface
• Test stopes are previously well developed and drilled, allowing the Company to take advantage of sunk capital for reduced costs and timelines
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Sublevel Longhole StopingBulk mining method
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New Development
977 Stope
015 Stope
Historic Development N
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Underground Development244 m level sublevel development (plan view)
Not to scale
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Test Stopes977 Stope
Not to scale
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Test Stopes977 Stope – CMS shapes (Isometric view)
Not to scale
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Test Stopes977 Stope – CMS shapes (Isometric view)
Overbreak
Underbreak
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Test Stopes015 Stope
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Underground Development183 m level sublevel development (plan view)
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Test Stopes161 Stope development
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Upper Stope
183 m level
18 Holes, 15-112m length
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Isometric ViewLooking N/NW
Waste Block
Lower Block
Test Stopes161 Stope development and production drilling
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Grade Control and Model Reconciliation Between 25,000-30,000 tonnes planned starting mid-2018
Stope shape(Rubicon/Golder)
Stope Development
Bazooka drilling (4-metre centres)
Sample point
Drill assays
Longhole drilling & Blasting
Mucking & Haulage
Skipping &3 separate
stockpiles on surface
Mill processing
Mill partial clean out for each test stope
Mill full cleanout Sample tailings
CMS of empty stope
Sample point
Sample point
Sample point
Potential gold produced
Mill Results Block model reconciliation
Potential validation of existing and future mineral
resource estimate
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2018 Exploration Program:
20,000 m of infill and step-out drilling
Structural Interpretation
Exploratory development in the main F2 Gold Deposit
Test mining, bulk sampling, and bazooka drilling
2018 Mineral Resource Estimate
Results from bulk sampling; Decision on feasibility study
2018
H1 H2
Anticipated 2018 Exploration Program Timeline
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Structural Interpretation will continue to be refined with data from test stoping and drilling
~15,000t of material stockpiled on surface
Significant expansion of Mineral Resources; potential for further expansion and improvement in classifications
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McFinley and Close Proximity Targets(Optional)
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1000 m
244-metre levelexploration drift
Shaft
Island ZoneCARZNorthern
Peninsula
F2 Gold Deposit
McFinleyCampF2 North
• 5-6 close proximity targets within 2 km of the Phoenix Gold Project
• All are potentially accessible from underground
• In-house modelling of the mineralized zones and generate conceptual tonnes and grade for the zones; rank each zone as to potential to fit in pipeline
• Build “Rubicon Red Lake” model to look at bigger picture (structural and lithological model)
• Evaluating the resource potential of Historic McFinley, Northern Peninsula, CARZ, and Island Zone
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Close Proximity TargetsPotential LOM incremental feed of the Phoenix Gold Project
Long section looking north west
McFinley Deep
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Main F2 Gold Deposit
Shaft
Historic McFinley Deposit
“B Zone” Structure
“C Zone” Structure
244-17-C02:2.66 g/t Au over 0.5 m1.05 g/t Au over 0.6 m
244-17-C03:4.87 g/t Au over 0.4 m2.31 g/t Au over 0.5 m
244-17-C03:3.60 g/t Au over 0.5 m1.53 g/t Au over 0.9 m
Scale: 200 m
Drill hole
U/G development
Close Proximity Targets – McFinley Deep Plan View
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Historic McFinley Deposit (2002)1
Inferred: 66,801 oz Au(303,006 tonnes grading 6.86 g/t Au)
1Not compiled according to NI 43-101
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Close Proximity Targets – McFinley Deep Cross Sections of “B” and “C” Zone Structures
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244-17-C02:2.66 g/t Au over 0.5 m1.05 g/t Au over 0.6 m
244-17-C03:3.60 g/t Au over 0.5 m1.53 g/t Au over 0.9 m
Historic McFinley Deposit
122-metre level
183-metre level
244-metre level
305-metre level
122-metre level
183-metre level
244-metre level
305-metre level
244-17-C03:4.87 g/t Au over 0.4 m2.31 g/t Au over 0.5 m
Drill hole
U/G development
Potential gold-bearing structure
Historic McFinley Deposit (2002)1
Inferred: 66,801 oz Au(303,006 tonnes grading 6.86 g/t Au)
1Not compiled according to NI 43-101
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685-17-C04:3.66 g/t Au over 0.4 m2.93 g/t Au over 0.7 m3.48 g/t Au over 1.0 m5.55 g/t Au over 0.7 m
More than 550 m deep from the bottom of the historic McFinley Deposit mineral resource
Scale: 200 m
Drill hole
U/G development
122-metre level
183-metre level
244-metre level
305-metre level
610-metre level
685-metre level
Main F2 Gold
Deposit
Shaft
Close Proximity Targets – McFinley DeepPotential LOM incremental feed of the Phoenix Gold Project
Historic McFinley Deposit (2002)Inferred: 66,801 oz Au(303,006 tonnes grading 6.86 g/t Au)
• Drilling intersected gold-bearing quartz veins and sulphides through four zones, similar to the lithological sequence in the historic McFinley Deposit
• Drill hole ended in HiTi basalts, suggesting that mineralization remains open to the west (mine grid)
Isometric view looking northwest
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Close Proximity TargetsNorthern Peninsula, CARZ & Island Zone
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• Historical high-grade intercepts along strike and adjacent to the F2 Gold Deposit warrant follow up drilling
• Compiling dataset and evaluating mineral resource potential for eventual drill program
Select historical high-grade intercepts:
Island Zone (not true widths) • PZ-23: 70.1 g/t Au over 3.1 m• PZ-12: 28.7 g/t Au over 1.4 m• PZ-47: 22.2 g/t Au over 1.7 m• PZ-25: 15.8 g/t Au over 3.5 m• PZ-03: 15.5 g/t Au over 4.8 m• PZ-02: 15.0 g/t Au over 2.8 m
Carbonate Zone (“CARZ”)(not true widths)• PR-15-11: 24.17 g/t Au over 2.00 m• PR-15-11: 4.88 g/t Au over 10.50 m (incl. 6.43 g/t Au over 7.00 m) • PR-15-16: 8.48 g/t Au over 3.25 m (incl. 11.10 g/t Au over 2.25 m)• PR-15-19: 8.43 g/t Au over 1.05 m• PR-15-19: 2.30 g/t Au over 12.00 m (incl. 5.76 g/t Au over 2.00 m)• PR-15-06: 10.77 g/t Au over 2.65 m• PR-15-09: 7.84 g/t Au over 1.50 m
Plan view
F2 North