Chanach Gold & Copper

A Highly Prospective Project in a World Class Geological Setting
  • Acquired October 2019 for US$3.65/oz Au and US$0.0063/lb Cu
  • 484Koz Au at 5.1g/t & 64Kt Cu at 0.37% (inferred)*
  • Western Kyrgyzstan, an emerging strong new mining jurisdiction
  • Management team has in-country experience
In Support of Development Potential

Highly Attractive Deal Terms

Value Accretive Position

  • Acquisition cost of US$3.65/oz Au & US$0.0035/lb Cu
  • Exceptionally low discovery cost of US$11.80/oz
  • Highly prospective in mining-friendly jurisdiction
  • Strong 10% local JV partner – 2 local geologists
  • RTG Management have previous in-country experience
  • Excellent infrastructure & uninhabited project area
Chanach Gold & Copper

Mineral
Resource
Estimates*

Significant Exploration Potential

484,000 Ounces Au @ 5.1g/t

  • Outcropping at surface with visible gold present
  • Multiple high grade veins
  • 95% of veins untested by drilling

64,000 Tonnes Cu @ .37%

  • Outcropping skarn mineralization along 2km strike length
  • Multiple porphyry copper targets
  • Open to north and east

727,000 Ounces AuEq

  • Only 19,516 metres drilled between gold & copper projects
  • Drill ready
  • Rapidly scaleable

*JORC 2012 | Equivalent calculations at $5,700/t Cu & $1,500/oz Au Before Recoveries |1.0g/t Au & 0.25% Cu Cutoff Grade |Not reviewed by QP

Extensive Mineralized System

Highly Prospective
& Target Rich

95% of veins as yet untested by drilling
over the existing 3km strike length, and
recent mapping programs likely to
extend the mineralised strike length by 4km

Potential for Large-Scale Copper/Gold at Chanach

CURRENT STATUS

  • 64Kt Cu inferred resource
    (17.2Mt at 0.37%)
  • Outcrops at surface
  • Open to north & east

GROWTH POTENTIAL

  • Multiple porphyry targets and
    strong Cu soil anomaly north &
    east outside drilled area
  • Copper-skarn mineralisation
    occurs on porphyry-limestone
    contacts over a 2 km trend

Significant intervals from the Quartz Gold Zone:

  • UGZ-15-35 – 8m @ 57.08 g/t Au from 75m including 1m @ 85.53 g/t Au from 76m, 1m @ 89.34 g/t Au from 80m followed by 1m @ 73.28 g/t Au from 81m
  • ERC16-035 – 7m @ 23.52 g/t Au from 45m including 1m @ 149.41 g/t Au from 45m
  • ERC16-036 – 12m @ 15.65 g/t Au including 1m @ 63.24 g/t Au from 82m followed by 1m @ 95.12 g/t Au from 83m

Significant intervals from the Sandstone Gold Zone:

  • UGZ-15-33 – 4m @ 99.15 g/t Au from 65m including 1m @ 348.48 g/t Au from 67m
  • UGZ-15-32A – 3m @ 41.45 g/t Au including 1m @ 71.58 g/t Au from 53m

Significant intervals from the Lower & Upper Gold Zone:

  • LGZ-15-29A – 6m @ 38.40 g/t Au from 26m with 4m @ 56.46 g/t Au from 26m including 1m @ 49.79 g/t Au from 26m, 1m @ 23.55 g/t Au from 27m, 1m @ 95.22 g/t Au from 28m and 1m @ 57.29 g/t Au from 29m
  • CH14-18 – 4m @ 23.83 g/t Au from 85m including 1m @ 30.19 g/t Au from 86m

GOLD RECOVERY

  • 98% overall recovery @ 75┬Ám*
  • 88.6% gravity gold recovery**
  • 278 samples from mineralised intersections across deposit

INDICATIONS

  • Moderate hardness
  • Free milling (easily liberated)
  • Low energy consumption
  • Amenable to standard processing methods
  • Low capital cost
*Metallurgical test work is based on 278 mineralised one metre 3kg samples combined into 83 composites representing mineralised intervals intersected in 2014 -2016 drill programs.
**Test work on 182 samples 69 composites from 2014-2015 consisted of gravity concentration using a Knelson concentrator and intensively leaching the concentrate to extract all cyanide soluble gold.

The geology of the Chanach project area is prospective for epithermal gold deposits, porphyry copper deposits and polymetallic skarn deposits

The project area has extensive outcropping geology seen as multiple high-grade epithermal veins as well as skarn, which in turn have generated numerous porphyry targets

Identified mineralised faults and veins extend along 3km of strike length with <5% of the identified mineralised faults drilled to date to a relatively shallow average depth of 120m

Gold mineralisation occurs within multiple NNW shear zones and quartz veins 1-10 meters wide, within sandstone, limestone and conglomerate units associated with granodiorite porphyry intrusions

Zones of strongest mineralisation occur where the NNW shear zones flex and dilate around small porphyry intrusions

Some porphyries are also mineralised suggesting that gold deposition is post porphyry intrusion

PROLIFIC GOLD ENDOWMENT

Major deposits within 100km of Chanach Gold Project contain up to 93 million ounces Au & 25 million tonnes Cu

DESTINED FOR GROWTH

World’s largest gold mine, Muruntau (175Moz & ~2Moz/year production), Kumtor (19Moz) and Zarmitan (10Moz)

KYRGYZSTAN ON THE MAP

Gold industry contributes 60% of country’s export earnings – 4 new mines in last 5 years, 1 under construction

World Class Geological Setting

Highly Prolific Tien Shan Gold Belt

More than 1500km, Tien-Shan Gold Belt spans Uzbekistan, across Kyrgyzstan into Inner Mongolia and China

GOOD INFRASTRUCTURE

  • Excellent access roads
  • Within 200km of rail
  • Low cost of skilled labour
  • Grid power (~US$0.04/kwh)

MAJOR MINES IN PRODUCTION

  • Kuru Tegarek (2017)
  • Bozymchak (2015)
  • Taldy Black L. (2015)
  • Ishtamberdy (2014)
  • Kumtor (1997)

REGIONAL MINING HUBS

  • Taraz (175km)
  • Namagan (200km)
  • 30km from Ishtamberdy Mine
  • 60km from Bozymchak Mine

Kyrgyzstan is Strong New

Mining-Friendly Jurisdiction

  • Competitive mining law & secure licence tenure
  • No government/local ownership requirements
  • New US$2 Billion railway expansion planned
    to link China to Kyrgyzstan and Uzbekistan
  • No artisanal mining culture