MABILO

Robust New Development Opportunity: 

  • High grade gold/copper magnetite skarn deposit located in the Camarines Norte Province, Eastern Luzon, Philippines
  • Shallow, flat-lying high grade deposit amenable to low cost, open pit mining
  • Low capital and operating costs, rapid payback and strong overall economics at $1200/oz gold and $5000/lb copper (spot at Feasibility Study)
  • Start up planned for 2016
  • Excellent exploration upside with strong copper porphyry potential

2015 MABILO MINERAL RESOURCE ESTIMATE1

Ore Type

 

Million Tonnes

 

Cu %
Au g/t

 

Ag g/t Fe %

 

Contained Au
(‘000s Oz)
Contained Cu
(‘000s t)
Contained Fe
(‘000s t)
Indicated
Oxide + Supergene 0.78 4.1 2.7 9.7 41.2 67.1 32.1 320.8
Fresh 8.08 1.7 2.0 9.8 46.0 510.5 137.7 3,713.7
Total All Materials 8.86 1.9 2.0 9.8 45.6 577.6 169.8 4,034.5
Inferred
Oxide + Supergene 0.05 7.8 2.3 9.6 26.0 3.5 3.7 12.3
Fresh 3.86 1.4 1.5 9.1 29.1 181.5 53.3 1,121.8
Total All Materials 3.91 1.5 1.5 9.1 29.0 184.9 57.0 1,134.1
2015 MINERAL RESOURCE ESTIMATE1
Indicated & Inferred Cu Au
12.76Mt 1.80% 1.9g/t
Contained Metal 226,800t 762,500oz

GOLD EQUIVALENT2

1.97 Million ounces
gold at 4.8 g/t

COPPER EQUIVALENT3

472,000 tonnes at
3.70% Copper

2016 Mabilo Feasibility
Supports Strong Financial Performance4

33.45
IRR
160
annual aueq production
18
annual cu production
67
annual au production
$52
Annual Free Cash Flow
2016
start up

10% Increase
in Commodity Prices
leads to
33% INCREASE
in Project NPV

STRONG GROSS MARGIN
provides very
high sensitivity to
commodity prices
and tonnage

PLANNED 2-STAGE DEVELOPMENT

ENABLES EARLY START-UP & CASH FLOW

Simple  |  Financeable  |  Profitable

GREAT ROCKS

Near-surface oxide mineralisation will produce 2 key high-grade products

  • Produce just under 40,000oz Gold
  • 100,000t of 23% Copper
Indicated
Resource5
Million
Tonnes
Au
g/t
Cu % Au
(‘000s Oz)
Cu
(‘000s t)
Oxide Gold Cap 0.38 2.94 0.20 36.3 0.8
Oxide Copper/Gold 0.30 2.43 2.63 23.1 7.6
Supergene Chalcocite 0.10 2.30 23.2 7.6 23.7
Total 0.78 2.70 4.10 67.1 32.1

truck-icon

DIRECT SHIPPING ORE OPERATION

18 Months
Generates significant cash flow within 4-5 months of DSO permitting
with $17.4M nominal capital requirements

hard-hat

PRIMARY CONCENTRATE PRODUCTION

Initially 8 Year Mine Life
DSO to fund majority of equity funding for plant construction
limiting future dilution from equity

chart-icon

MAJOR GROWTH POTENTIAL

Only 18,000m of Drilling to Date
Only drilled 700m of 1.6km strike length
3,000m drill program planned to explore resource growth and further regional drilling including testing porphyry potential

Start up expected in 2016
with DSO permitting in final stages

DSO PRODUCTION PARAMETERS

All amounts expressed in $US
Capex $17.4M
Average Annual Production 25,300t Cu
35,000t Cu Equivalent
39,000oz Au
140,000oz Au Equivalent
Production Costs $61.91/tonne
Cu Equivalent Production Costs $0.42/lb 
Au Equivalent Production Costs $224/oz 
Annual Free Cashflow After-Tax $68 Million

2016 Mabilo Feasibility

The feasibility study demonstrates a robust and financially viable new development opportunity even at low commodity prices. Strong gross margin provides very high sensitivity to both commodity prices and new tonnage from expected resource growth. Feasibility economics are based on $1200/oz Au & $5200/t Cu and on 100% basis. All amounts are expressed in $US.

Early cash flows at incredibly low cost

  • Oxide mining operation in first 18 months
  • Low startup capital with early access to high grade shallow gold cap ore
  • Generates cashflow within 4-5 months of DSO permitting
  • Close to paved roads, grid power, water
  • Local established plant available to process oxide gold cap
  • 100,000t at 23% Cu in the ground
  • DSO skarn & chalcocite material through port ~40km from Mabilo

probable mineral reserve6

7.79Mt at 2.04 g/t Au | 1.95% Cu | 8.79 g/t Ag | 45.5% Fe
including 511koz Gold and 152kt Copper

  • Initial 8-year project life with excellent exploration upside
    • Cu Equivalent: 4.1% containing 316Kt (before recoveries)
    • Au Equivalent: 5.2g/t containing 1.3Moz (before recoveries)
  • Initial Life of Mine production
    • 306.4kt Cu Equivalent
    • 1.28Moz Au Equivalent

PRIMARY PRODUCTION PARAMETERS

All amounts expressed in $US
Capex $161.4M ($15M is recoverable VAT)
Pre-Strip $24.4M ($2.61M is recoverable VAT)
Average Annual Throughput 1.35M tonnes
Average Annual Production 18,000t Cu
38,300t Cu Equivalent
67,000oz Au
160,000oz Au Equivalent
Production Costs $54/tonne
Cu Equivalent Production Costs $.80/lb
Au Equivalent Production Costs $425/oz
Annual Free Cash Flow $52 Million
Mabilo Exploration Potential

Mabilo Exploration Potential

aperature

112 Holes Drilled | 19,565M Drilled

MAJOR EXPLORATION POTENTIAL

Significant exploration potential remains
along strike, regionally and at depth

Potential Porphyry Targets at Depth

DSO cashflow to fund regional exploration
and growth of Mabilo Resource

Phase 1 – Mabilo Exploration

Phase 1 – Mabilo Exploration

gold-copper-exploration

Phase 1 Mabilo Exploration

3000m Infill & Extension Drilling

Targeting 1.6m tonnes of inferred material inside pit

High confidence extensions to the North within pit design

Drilling priority targeting resources within current pit design
at relatively shallow levels to come into the mining phase early

Phase 2 – Mabilo Exploration

Phase 2 – Mabilo Exploration

gold-copper-exploration

Phase 2 Mabilo Exploration

STEP-OUT TARGETS

East Mineralised Zone extension
Copper and gold increasing towards the east

3 holes planned to test porphyry target at depth

Strong magnetic anomaly south of Venida – skarn target
Magnetic survey over adjacent tenements under application
Regional stratigraphic drill holes

Phase 3 – Mabilo Exploration

Phase 3 – Mabilo Exploration

aperature

Phase 3 Mabilo Exploration

FOLLOW-UP RESOURCE DRILLING

Venida Pit resource drilling

East Mineralised Zone resource drilling

Magnetic anomalies at Venida Pit & South East

Potential for high-grade copper/gold corridor

 

Mabilo Project Footnotes

1 2015 MABILO MINERAL RESOURCE ESTIMATE
– Reporting at 0.3 g/t Au lower cut-off.
– The Mineral Resource was estimated within constraining wireframe solids based on the mineralized geological units. Differences may occur due to rounding.
– Prepared by CSA Global.
– Note: Differences may occur due to rounding. All elements reported as total estimated in‐situ for blocks above 0.3 g/t Au lower cut‐off, no recovery factors have been considered. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
– Au equivalent is calculated using the following formula, which incorporates recovery factors from metallurgical test work: Au Equivalent = (75.2%*Au Oz)*$1,200)+((92.8%Cu Tonnes)*$5,200)+((88.4%*Fe Tonnes)*$65)+((60%*Ag Oz)*$16))/$1,200

Gold Equivalent calculations at US$1200/oz Au and calculated before recoveries

Copper Equivalent calculations at US$5000/t Cu and calculated before recoveries

2016 MABILO FEASIBILITY STUDY
– The FS is based on a treatment rate of 1Mtpa. A treatment rate of 1.35Mtpa was also considered in an upside case. Factored indicative capital and operating cost estimates were developed for a planned throughput of 1.35 Mtpa, which is presented here as the more likely production scenario.
– All economics, including calculations of equivalent estimates referred in reference to the 2016 Mabilo Feasibility are based on the following commodity price assumptions: US$5000/t Cu, US$1200/oz Au and US$50/t 62% Fe.
– All $ amounts are in $US
– Copper equivalent tonnes produced is based on the following formula – CuEq = (Cu produced/contained*$5000) + (Au produced/contained*$1200+ (Any Contained Fe metal produced* $50))/$5000
– Au Equivalent produced = (75.2%*Au Oz)*$1,200)+((92.8%Cu Tonnes)*$5,200)+((88.4%*Fe Tonnes)*$65)+((60%*Ag Oz)*$16))/$1,200

NEAR SURFACE OXIDE RESOURCE
– Contained within the 2015 Mabilo Mineral Resource Estimate
– Reporting at 0.3 g/t Au lower cut-off
– The Mineral Resource was estimated within constraining wireframe solids based on the mineralized geological units. Differences may occur due to rounding.
– Prepared by CSA Global

2016 MABILO MINERAL RESERVE
– The copper equivalent grade is based on the following formula – CuEq=((((AuOz*$1,200)+(CuMetal*$5,000)+(FeMetal*$50)+ (AgOz*$14)) / $5,000)/Total ore tonnes)
– The 2016 Mabilo Reserve is a subset of the Mineral Resource Estimate.

 

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This website includes certain “forward‐looking statements” within the meaning of Canadian securities legislation. Statement regarding interpretation of exploration results, plans for further exploration and accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forward‐looking statements. Forward‐ looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG’s expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG’s mineral projects; the need to obtain additional financing to develop RTG’s mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG’s mineral projects and other risks and uncertainties disclosed under the heading “Risk Factors” in RTG’s Annual Information Form for the year ended 31 December 2015 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.

QUALIFIED PERSONS STATEMENT
The information on this website that relates to exploration results at the Mabilo Project is based upon information prepared by or under the supervision of Robert Ayres BSc (Hons), who is a Qualified Person and a Competent Person. Mr Ayres is a member of the Australian Institute of Geoscientists and a full‐time employee of Mt Labo Exploration and Development Company, a Philippine mining company, an associate company of RTG Mining Limited. Mr Ayres has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and to qualify as a “Qualified Person” under National Instrument 43‐101 – Standards of Disclosure for Mineral Projects (“NI 43‐101”). Mr. Ayres has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr. Ayres consents to the inclusion in the release of the matters based on his information in the form and the context in which it appears.

The information on this website that relates to Mineral Resources is based on information prepared by or under the supervision of Mr Aaron Green, who is a Qualified Person and Competent Person. Mr Green is a Member of the Australian Institute of Geoscientists and is employed by CSA Global Pty Ltd, an independent consulting company. Mr Green has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and to qualify as a “Qualified Person” under National Instrument 43‐101 – Standards of Disclosure for Mineral Projects (“NI 43‐101”). Mr. Green has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr Green consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

The information on this website that relates to Mineral Reserves and Mining is based on information prepared by or under the supervision of Mr Carel Moormann, who is a Qualified Person and Competent Person. Mr Moormann is a Fellow of the AusIMM and is employed by Orelogy, an independent consulting company. Mr Moormann has sufficient experience that is relevant to the  type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and to qualify as a “Qualified Person” under National Instrument 43‐101 – Standards of Disclosure for Mineral Projects (“NI 43‐101”). Mr Moormann has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr Moormann consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

MABILO TECHNICAL REPORT

2015
Resource Estimate

RESERVES & RESOURCES

2017
Company Summary

MABILO TECHNICAL REPORT

2016
Feasibility Study