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Similaire à Rainy River Resources Ltd. Corporate Presentation - February 2012
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Rainy River Resources Ltd. Corporate Presentation - February 2012
- 1. 1
February 2012
Defining Canada’s Newest Gold District
“Value and Growth”
© 2011 Rainy River Resources Ltd.
- 2. 2
Forward Looking Information
This presentation contains “forward-looking information” as defined in applicable securities laws (referred to herein as “forward-looking statements”). Forward looking
statements include, but are not limited to, statements with respect to the cost and timing of the development of the Rainy River project, the other economic parameters of
the project, as set out in its preliminary economic assessment; the success and continuation of exploration activities; estimates of mineral resources; acquisitions of
additional mineral properties; the future price of gold; government regulations and permitting timelines; estimates of reclamation obligations that may be assumed in
connection with the exercise of the Mine Option; requirements for additional capital; environmental risks; and general business and economic conditions. Often, but not
always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”,
“forecasts”, “projects”, “predicts”, “intends”, “anticipates” or “believes”, or variations of, or the negatives of, such words and phrases, or statements that certain actions,
events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Inherent in forward-looking statements are risks, uncertainties and other
factors beyond the Company’s ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the assumptions underlying the
preliminary economic assessment not being realized, future gold prices, cost of labour, supplies, fuel and equipment rising, changes in equity markets, actual results of
current exploration, changes in project parameters, exchange rate fluctuations, title risks, regulatory risks and uncertainties with respect to obtaining necessary surface
rights and permits or delays in obtaining same, and other risks involved in the gold exploration and development industry, as well as those risk factors discussed in the
section entitled “ Description of Business-Risk Factors in Rainy River's 2009 annual information form and its other SEDAR filings from time to time. Forward-looking
statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the availability of financing for the Company’s exploration
and development activities; the timelines for the Company’s exploration and development activities on the Rainy River Property; the availability of certain consumables and
services; assumptions made in mineral resource estimates, including geological interpretation grade, recovery rates, and operational costs; and general business and
economic conditions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results,
performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All
forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The
Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or
otherwise, except as may be required by law.
This presentation uses the terms “measured resources”, “indicated resources” and “inferred resources”. The Company advises readers that although these terms are
recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI43-101”)), the United States
Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will
ever be converted in to reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be
assumed that all or any part of an inferred 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 or pre-feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI43-101. Investors are cautioned not
to assume that part or all of an inferred resource exists, or is economically or legally mineable.
For additional information with respect to the key assumptions, parameters, risks and other technical information underlying to the mineral resource estimates and the
preliminary economic assessment discussed in this presentation, refer to: (i) the technical report entitled “Mineral Resource Evaluation Rainy River Project, Western
Ontario Canada”, dated August 11, 2011, with respect to the mineral resource estimates; and (ii) the Rainy River press release dated November 9, 2011, with respect to
the preliminary economic assessment, both available at www.sedar.com.
© 2011 Rainy River Resources Ltd.
- 3. 3
Strong Capital Structure and Institutional Support
Basic Shares Outstanding 83.7 million
FD Shares Outstanding 94.3 million
Warrants (due Feb 26, 2012) 3.8 million @ $7.10
Cash (Sept 30, 2011) C$115 million
Debt C$0
Market Value Basic (based on $7.65 share price) C$642 million
Enterprise Value (based on $7.65 share price) C$527 million
Rated by 9 Analysts 8 “buys”, 2 “holds”
Ownership 60% Institutional
37% Retail
3% Management
Significant Institutional Shareholder Base Top 5 own 35%
© 2011 Rainy River Resources Ltd.
- 4. 4
Proven Management Team
30+ years in industry.
Former President & CEO of Western Goldfields.
Raymond Threlkeld, President and CEO Former VP Project Development of Barrick Gold Corp.
30 years in industry, including 20 with ASARCO.
Former Kinross VP, Project Development Services, Project
Mike Mutchler, VP and COO Manager Paracatu, Mining Manager Cerro Casale.
17 years in corporate finance, accounting, including as VP
Finance at Barrick Gold Corp, Regional CFO at Placer Dome.
Nick Nikolakakis, VP and CFO Former investment banker with BMO Nesbitt Burns.
22+ years experience in mineral exploration; P. Geo.
Instrumental in the discovery and delineation of the Voisey’s
Kerry Sparkes, VP Exploration Bay nickel deposit.
15+ years experience in mine engineering and operations.
Professional Engineer and MBA.
Garett Macdonald, VP Operations Previously with Placer Dome and Suncor Energy.
15+ years in mine permitting and environmental assessments.
Led environmental assessment of Galore Creek project in BC.
Kyle Stanfield, VP, Environment & Sustainability Previously Environmental Engineer with Placer Dome.
20+ years as a lawyer, advising public and private entities.
Advised on equity financings, M&A, corporate governance and
Gerry Shields, VP and General Counsel general corporate and securities law.
© 2011 Rainy River Resources Ltd.
- 5. 5
Rainy River Gold Project
• June 29 Resource: 4.41 Moz Au, 9.1 Moz Ag M+I
2.33 Moz Au, 7.0 Moz Ag Inferred
• PEA Resource: 4.12 Moz Au, 8.27 Moz Ag M+I OP+UG
0.77 Moz gold, 1.74 Moz Ag Inferred
OP+UG
• Annual Production: 329,000 ounces gold, 497,000 ounces silver
• Mine Life 13+ years
• Cash cost US$553 per ounce, life-of-mine
US$417 per ounce, first 4 years
• Initial Capex $681 million
• NPV $786 million
• IRR 19.4%
• Payback 3.4 years
© 2011 Rainy River Resources Ltd.
- 6. 6
Defining an Emerging Canadian Gold District
District Potential
Large Gold Resource
Excellent exploration
upside
“Bousquet District”
style VS and potential
VMS
© 2011 Rainy River Resources Ltd.
- 7. 7
Great Location: Infrastructure is Key
Great Location
“Mining-Friendly”
Ontario, Canada
65 km from Fort
Frances, Ontario
Power and rail within
25 km, year round
access
MINNESOTA
© 2011 Rainy River Resources Ltd.
- 8. 8
RRGP Project Metrics: Defining Value
• At $1200 Au, $25 Ag: NPV5% of $786M
IRR of 19.4%
Payback of 3.4 years
Free cash flow of $800M, first 4 years
Gold, Silver $1200 / $25 $1400 / $30 $1600 / $35 $1800 / $40
US$/ oz Base Case
NPV @ 5% $786M $1.4B $2.0B $2.7B
IRR 19.4% 28.8% 37.2% 45.0%
Free cash flow
$800M $1.0B $1.2B $1.4B
(first 4 years)
© 2011 Rainy River Resources Ltd.
- 9. 9
PEA Highlights
Open Pit Capital Expenditure
• Pre-production capital costs of $681 M
• Sustaining capital costs of $598 M
• Overburden and waste stripping represents 46% of Sustaining
Underground Capital Expenditure
• Pre-production capital costs of $67 M
• Sustaining capital costs of $110 M
Production - Combined open pit and underground
• Mine life: 13+ years
• Throughput: 30,000 tpd open pit, 2,000 tpd underground
• Average annual production: 329,000 ozs Au, 497,000 ozs Ag
• Life-of-Mine total production: 4.3 Moz Au and 6.5 Moz Ag
© 2011 Rainy River Resources Ltd.
- 10. 10
Combined Open Pit & Underground Production:
Current Design in Gold-Equivalent Ounces
© 2011 Rainy River Resources Ltd.
- 11. 11
Production and Cumulative Free Cash Flow
© 2011 Rainy River Resources Ltd.
- 12. 12
Opportunities for Growth in Value
Mining and Metallurgy
• Metallurgical testing may improve recoveries
• Steepen open pit slope: reduce waste, improve strip ratio
• Conversion of waste to mineralized material from infill drilling
• Optimization of underground design
Exploration Upside
• PEA based on Feb 27, 2011 drilling cut-off
• 2011 program of 170,000 m in Q1/12 Resource update
• Ounces, grade improvements inside pit shell from 2011 drilling
• More underground ounces: 17 Zone Eastern Extension, ODM
• Western Area, 17 ZEE discovery to add ounces
© 2011 Rainy River Resources Ltd.
- 13. 13
Growth in Value
New Resource – Q1/2012
• Incorporates 170,000 metres of new drilling
• 2 new discoveries: Western Area and 17EE
PEA Update – Q2/2012
• Potential for improved metallurgical recovery
• Potential for grade increase
• Increase in Open Pit and Underground ounces
• Conversion of waste to ore from infill drilling
© 2011 Rainy River Resources Ltd.
- 14. 14
District Potential - Growth
1 Infill
2
2 Western Area
17 Zone
3 Eastern
Extension
4 ODM deep
Untested 5
5
Western Area
6
CAP-South
deep
1 Infill
South-East
7
extensions 8 Ni-Cu-Co- 4
PGMs 6
8 Ni/Cu/PGM’s
10 VMS
9
Stratigraphic Potential 3
Targets
10 VMS potential
Legend:
Yellow: Pit outline
7
Red – in PEA
9
Blue – out of PEA
© 2011 Rainy River Resources Ltd.
- 15. 15
Deposit Cross Section
Highlight:
NR11865:
6.6 g/t Au / 16.5 m
Underground
Setting
© 2011 Rainy River Resources Ltd.
- 16. 16
Recent Drill Results:
ODM Plan View, Gold and Silver
© 2011 Rainy River Resources Ltd.
- 17. 17
Recent Drill Results:
ODM Silver
© 2011 Rainy River Resources Ltd.
- 18. 18
17 Zone Eastern Extension
Highlights:
NR10621E:
13.9 & 353.3 /
4.5
NR10627E:
69.7 & 17.7 / 1.5
NR11735:
6.9 & 112.3 / 7.0
including 30.1
& 688.0 / 1.0
including 12.2
& 61.7 / 4.5
NR11739:
7.2 & 45.7 / 4.5
NR11773:
2.0 & 17.9 / 4.6
© 2011 Rainy River Resources Ltd.
- 19. 19
Western Area – Cross Section
Highlights:
NR11750:
7.6 & 26.5 / 16.5
including
15.9 & 41.1 / 4.5
NR11731:
3.9 & 9.8 / 22.5
including
32.0 & 9.1 / 1.5
© 2011 Rainy River Resources Ltd.
- 20. 20
Rainy River Gold Project Timeline
2011 2012 2013 2014 2015
Environmental Baseline Studies
Preliminary Economic Assessment
Feasibility Study & Detailed Engineering
Mine Project Description to Agencies
Environmental Assessment (EA)
Project Permitting & Approvals
Project Construction
Project Production
© 2011 Rainy River Resources Ltd.
- 21. 21
RRGP Is Still Evolving!
1 Year Ago:
Took Risk by Being Aggressive
Going Forward:
Capitalize on
upside potential
Results
• More Ounces Nov 2011:
• Great Upside Potential 329 koz production
• Base Metal Potential
• Positive PEA
• Moving Towards Production
Feb 2010:
200-250 koz production
© 2011 Rainy River Resources Ltd.
- 22. 22
Market Capitalization vs. Production
Notes: Market Capitalization as of Jan 23, 2012. KGI based on F2012, y/e April 30. MFL, OSK, NGD based on gold-equivalent, with gold, silver and copper prices as of Jan 23, 2012.
OSK includes projected Hammond Reef production figures.
© 2011 Rainy River Resources Ltd.
- 23. 23
Canada’s Newest Gold District
Our Story
• Base Case with Excellent
Upside Potential
• “Unrealized District Potential”
• Proven Management Team
• Strong Financial Position
© 2011 Rainy River Resources Ltd.
- 24. 24
appendix
© 2011 Rainy River Resources Ltd.
- 25. 25
TPK Joint Venture Project
One of the largest gold grain
anomalies in the world
• Meadowbank: 3.5 Moz Proven and Probable
1.4 Moz Indicated
• Meliadine: 2.6 Moz Probable
1.5 Moz Indicated
• Casa Berardi: 1.5 Moz Proven and Probable
0.8 Moz Measured & Indicated
• RRGP: 4.4 Moz Measured & Indicated
2012 drilling started in January
• JV with Northern Superior Resources Inc.
• 450 km NE of Thunder Bay, Ontario
• Earn-in 51% by spending $11 m over 2.5 years
• $6 M spent to-date; approx. $3 M planned 2012
© 2011 Rainy River Resources Ltd.
- 26. 26
History
The Rainy River Gold Project has attracted exploration interest since 1967. Various companies including Noranda, International Nickel
Corporation of Canada, Hudson’s Bay Exploration and Development and Mingold Resources operated in the area centred on the Rainy River
Gold Project between 1967 and 1989. The Ontario Geological Survey undertook geological mapping in 1971 and again in 1987 to 1988 in
conjunction with a rotasonic overburden drilling program. Nuinsco undertook exploration activities between 1990 and 2004, with Rainy River
continuing from 2005 onwards.
Nuinsco drilled a series of widely spaced reverse circulation drill holes from 1994 to 1998, defining a fifteen kilometre long “gold-grains-
in-till” dispersal train emanating from a thickly overburden-covered, six square kilometre “gold-in-bedrock” anomaly. Nuinsco completed a series
of diamond drill programs to assess the mineral potential of the above anomalies which led to the initial discovery of the 17 Zone in 1994.
Nuinsco subsequently discovered the 34 Zone in 1995 and 433 Zone in 1997. Between 1994 and 1998, Nuinsco drilled 597 reverse circulation
holes and 217 diamond drill holes (49,515 metres). These were mostly in the Richardson area. The 34 Zone was further drill tested between
1999 and 2004.
In June 2005, Rainy River completed the acquisition of a 100 percent interest in the project from Nuinsco. In the same year, Rainy River
relogged key sections of the historical core drilled on the property and then input all of the data into a GIS database. Rainy River subsequently
drilled in excess of 100 reverse circulation holes in three phases to better define the gold-in-till and gold-in- bedrock” anomalies.
Between 2005 and 2007, 209 diamond drill holes for 95,340 metres were drilled. In April 2008, a mineral resource estimate was
completed by CCIC. In 2009, SRK prepared a mineral resource statement incorporating information from an additional 112 core boreholes
(59,719 metres) drilled during 2008. In early 2010, SRK prepared a revised mineral resource statement to incorporate information from 124 core
boreholes (68,453 metres) drilled on the project during 2009. In early 2011, SRK updated the mineral resource statement to incorporate
information from 163 core boreholes (84,648 metres) drilled on the project during 2010. A further 17,100 metres were included in the June 29,
2011 resource statement.
© 2011 Rainy River Resources Ltd.
- 27. 27
Geology
Regional and Local Geology
The Rainy River Gold Project falls within the 2.7 billion year Rainy River Greenstone Belt that forms part of the Wabigoon Subprovince. The
Wabigoon Subprovince is a 900 kilometre long east-west trending area of komaiitic to calc-alkaline metavolcanics that are in turn succeeded by
clastics and chemical sediments. Granitoid batholiths have intruded into these rocks, forming synformal structures in the supracrustals that often
have shear zones along their axial planes.
The Wabigoon Subprovince basement lithologies were overlain by Mesozoic (Jurassic and Cretaceous) sediments and were subjected to
deep lateritic weathering followed by Quaternary glaciation. Limited preservation of the Mesozoic cover sediments and saprolite occurs in
localized palaeo-lows.
The Wabigoon basement rocks and remnant Mesozoic cover sediments are overlain by Labradorian till of northeastern provenance. This till
has been found to contain anomalous concentrations of gold grains, auriferous pyrite and copper-zinc sulphides. It is overlain by a glaciolacustrine
clay and silt horizon and by argillaceous and calcareous Keewatin till of western provenance.
The Rainy River Gold Project is primarily underlain by a series of tholeiitic mafic rocks that are structurally overlain by calc-alkalic intermediate
to felsic metavolcanic rocks. Intermediate rocks (dacites) host most of the gold mineralization. At a regional scale, the strongest and earliest
deformation event produced a well-defined penetrative fabric. This foliation is approximately parallel to the trend of the metavolcanic rocks that
strike at approximately 120 degrees and dip fifty to seventy degrees to the south. Structural geology studies by SRK suggest that the current
geometry and plunge of the gold mineralization is the result of high strain deforming features associated with gold mineralization and rotating the
mineralization plunge parallel to the stretching direction.
Deposit Types and Mineralization
At least two stages of gold mineralization exists in the Rainy River Gold Project:
Early (low to moderate grade) gold mineralization associated with sulphide (pyrite-sphaleritechalcopyrite-galena) stringers and veins and
disseminated pyrite in quartz-phyric volcaniclastic rocks and conglomerate; and Late (high-grade) gold mineralization associated with quartz-pyrite-
chalcopyrite-gold veins and veinlets.
Both styles of gold mineralization have been progressively overprinted by deformation, The gold mineralization is interpreted as a hybrid
deposit type consisting of an early gold-rich volcanogenic sulphide mineralization overprinted by shear-hosted mesothermal gold mineralization.
In addition to the gold mineralization, the project also contains nickel, copper and platinum group metals sulphide mineralization associated
with a differentiated ultramafic-mafic intrusion. That magmatic-hydrothermal mineralization occurs within the main auriferous zones and crosscuts
the volcanogenic sulphide mineralization and the later mesothermal gold mineralization associated with the regional deformation.
© 2011 Rainy River Resources Ltd.
- 28. 28
Rainy River Resource Expansion
D
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2
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Qualified Persons – The mineral resource statement was prepared by Dorota El-Rassi, P.Eng. (APEO #100012348) and Glen Cole, P.Geo (APGO #1416), of SRK,
both “independent qualified persons” as that term is defined in National Instrument 43-101. Rainy River’s exploration program in Richardson Township is being
supervised by Kerry Sparkes, P.Geo (APEGBC #25261), Vice-President Exploration and a Qualified Person as defined by National Instrument 43-101. The
Company continues to implement a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core. The procedures of the QA/QC
program are detailed on Rainy River’s website at www.rainyriverresources.com.
© 2011 Rainy River Resources Ltd.
- 29. 29
RR Gold Project – Resources (Jun 2011)
Mineral Resource Statement, Rainy River Gold Project, SRK Consulting, June 29, 2011*
Quantity Grade Metal
‘000 t Au gpt Ag gpt Au ‘000 oz Ag ‘000 oz
Open Pit**
Measured 15,660 1.26 1.93 636 973
Indicated 99,927 1.08 2.48 3,481 7,967
Measured and Indicated 115,587 1.11 2.41 4,117 8,940
Inferred 73,813 0.79 2.78 1,884 6,590
Underground**
Measured 100 4.74 2.67 15 9
Indicated 1,775 4.83 3.10 276 177
Measured and Indicated 1,875 4.82 3.08 291 185
*Mineral resources are reported in relation to an elevation determined from conceptual pit shells, and not all of the inferred resources lie within the optimized pit shell. 448
Inferred 3,628 3.82 3.84 445
Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All assays have been
capped where appropriate. **Open pit mineral resources are reported at a cut-off of 0.35 g/t gold, underground mineral resources are reported at 2.5 g/t gold. Optimized cut-off grades are
Combined Mining US$1,100 per ounce, a silver price of $22.50 per ounce and a foreign exchange rate of 1.10 Canadian dollar to 1.0 US dollar. Metallurgical recoveries include
based on a gold price of
gold recovery of 88% for open pit resources and 90% for underground resources with silver recovery at 75%.
Qualified persons - The mineral resource statement was prepared by Dorota El-Rassi, P.Eng. (APEO #100012348) and Glen Cole, P.Geo (APGO #1416), of SRK, both "independent
Measured
qualified persons" as that term is defined in National Instrument 43-101. Rainy River’s exploration program in Richardson1.94
15,759 1.28 651 981
Township is being supervised by Kerry Sparkes, P.Geo.
(APEGBC #25261), Vice-President Exploration and a Qualified Person as defined by National Instrument 43-101. Garett Macdonald, P.Eng. (PEO #90475344), is the person responsible
for the content of this news release. The Company continues to implement a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core.
Indicated 101,702 1.15 2.49 3,757 8,144
© 2011 Rainy River Resources Ltd.
- 30. 30
RR Gold Project – Resources (Feb 2011)
Mineral Resource Statement, Rainy River Gold Project, SRK Consulting, February 4, 2011*
Quantity Grade Metal
‘000 t Au gpt Ag gpt Au ‘000 oz Ag ‘000 oz
Open Pit**
Measured 14,707 1.21 1.84 572 869
Indicated 77,934 1.05 2.24 2,640 5,616
Measured and Indicated 92,641 1.08 2.18 3,212 6,485
Inferred 104,591 0.80 2.31 2,703 7,781
Underground**
Measured 39 5.66 2.38 7 3
Indicated 1,197 5.18 3.30 199 127
Measured and Indicated 1,236 5.20 3.27 206 130
*Mineral resources are reported in relation to an elevation determined from optimized pit shells.
Inferred 3,831 Mineral resources are not mineral reserves and472 have demonstrated
3.83 2.62 do not 323
economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate.**Open pit mineral resources are
reported at a cut-off grade of 0.35 gpt gold and underground mineral resources are reported at a cut-off grade of 2.50 gpt gold. Cut-off grades are based on a price of US$1,025 per
Combined Mining recoveries of 88 percent and 90 percent for open pit and underground resources, without considering revenues from other metals.
ounce of gold and gold
Qualified Persons – The mineral resource statement was prepared by Dorota El-Rassi, P.Eng. (APEO #100012348) and Glen Cole, P.Geo (APGO #1416), of SRK, both
Measured qualified persons” as that term is defined in National Instrument 43-101. Rainy River’s exploration program1.84 The Company continuessupervised 872 rigorous
“independent
14,746 1.22 in Richardson Township is being
Sparkes, P.Geo (APEGBC #25261), Vice-President Exploration and a Qualified Person as defined by National Instrument 43-101.
579 by Kerry
to implement a
QA/QC program to ensure best practices in sampling and analysis of drill core.
Indicated 79,131 1.11 2.26 2,839 5,743
© 2011 Rainy River Resources Ltd.
- 31. 31
PEA Assumptions
Gold Price $1,200 USD/oz
Silver Price $25 USD/oz
Exchange rate: 1.00 CAD: 1.00 USD (Initial)
1.05 CAD: 1.00 USD (Operations)
Discount rate 5%
Mine Equipment Lease 5.0%
Gold Recovery 88.5%
Silver Recovery 65%
Open Pit Production 30,000 tpd
Underground Production 2,000 tpd
Process Plant Capacity 32,000 tpd (operating average 31,340)
Mine Life 13.2 years
© 2011 Rainy River Resources Ltd.
- 32. 32
Open Pit Mine Design
‘Starter Pit’ Design
Ultimate Pit Starter Pit
• 43.8 Mt @ 1.0 g/t Au, 1.6 g/t Ag
• 2.9 operating strip ratio
Ultimate Pit Design
• 143.9 Mt @ 0.9 g/t Au, 1.9 g/t Ag
• Production: 3.7 Moz Au,
5.8 Moz Ag
• 4.1 strip ratio
• 3.3 operating strip ratio
Operating Statistics
• 30,000 tpd
• 13.2 year mine life
© 2011 Rainy River Resources Ltd.
- 33. 33
Underground Mine Design
Underground Design
Ventilation Raise
• 6.36 Mt @ 3.52 g/t Au, 5.7 g/t Ag
• Production: 0.64 Moz Au, Main Ramp Access
0.75 Moz Ag
Production Stopes
Operating Statistics
• Underhand Cut and Fill method
• 2,000 tpd
• 10 year mine life
© 2011 Rainy River Resources Ltd.
- 34. 34
Mineral Processing
Design
• Crusher
• Mill: SAG, Ball
• Flotation
• Regrind flotation concentrate
• Cyanidation
• Dore gold product
Recoveries
• Gold: 88.5%
• Silver: 65.0%
© 2011 Rainy River Resources Ltd.
- 35. 35
Project Capital: Open Pit Components
Pre-Production Capital: $681 M
5% Mine Infrastructure $31.1M
2% Waste Stripping $15.8M
40% Process Plant $271.7M 4% Overburden Stripping $28.1M
15% Contingency $102.5M
2% Tailings & Water Management $14.4M 19% Indirect Costs $130.2M
3% Equipment $21.1M 10% Site infrastructure $65.9M
Sustaining Capital: $598 M
2% Other $11.9M 11% Tailings Dam Construction $68.3M
13% Overburden Stripping Costs $75.3M
41% Equipment Lease $247.4M 33% Waste Stripping Costs $195.4M
© 2011 Rainy River Resources Ltd.
- 36. 36
Project Capital: Underground Components
Pre-Production Capital: $67 M
2% Vertical Development $1.4M
50% Horizontal Development $33.1M
48% Mining Equip. and Infrastructure $32.2M
Sustaining Capital: $110 M
8% Mining Equip. & Infrastructure $9M
81% Horizontal Development $89.2M
11% Vertical Development $11.5M
© 2011 Rainy River Resources Ltd.
- 37. 37
Proven Management Team
Raymond Threlkeld, President & CEO Nicholas Nikolakakis, Vice President & CFO
• Over 30 years experience in exploration, mine development, • 17 years experience in corporate finance, accounting
mine operations and executive management and senior management
• Former President & CEO of Western Goldfields • Former VP Finance with Barrick Gold Corporation, Regional
CFO with Placer Dome, and investment banker with
• Former Vice President, Project Development with Barrick
BMO Nesbitt Burns
Gold Corp.
Michael Mutchler, COO Garett Macdonald, Vice President, Operations
• 30 years of underground and open pit mining experience • P. Eng and MBA with over 15 years experience in mine
in both operations and projects. engineering and operations with Placer Dome and Suncor Energy
• Former Kinross VP, Project Development Services, Project
Manager - Paracatu Mine Optimization feasibility study in
Brazil, Mining Manager - Cerro Casale Mine feasibility study
Kerry Sparkes, Vice President, Exploration
in Chile, and Operations Manager - Round Mountain Mine
in Nevada. • P. Geo with over 22 years experience
• 20 years with ASARCO Incorporated in positions of increasing • Instrumental in the discovery and delineation of the Voisey’s
responsibility ranging from Mine Engineer, Mine Foreman, Bay nickel deposit
Mine Manager and General Manager.
Kyle Stanfield, VP, Environment & Sustainability Gerry Shields, Vice President and General Counsel
• Over 15 years experience mine permitting and environmental • Lawyer with over 20 years of experience in advising both public and
assessments private companies on a broad range of legal matters including
equity financings, mergers and acquisitions, takeovers, corporate
• Led the environmental assessment of the Galore Creek project
governance and general corporate and securities law
in BC, environmental engineer with Placer Dome
© 2011 Rainy River Resources Ltd.
- 38. 38
Board Expertise: Projects,
Finance, Governance
Leo Berezan, Chairman of the Board Richard Pettit, Independent Director
• Established a successful career over past 30 years • C.A.
in commercial real estate development and property
• Over 30 years of experience as a C.A., mainly with
management
PricewaterhouseCoopers where he was a senior partner
• Audit Committee member of their Corporate Advisory and Restructuring practice
• Brings strong financial literacy as well as analytical and risk
management skills to the Rainy Board
Dale Peniuk, Independent Director & Audit • Audit Committee member
Committee Chair
• B.Comm and C.A.
• Provides financial consulting services to a number of Jim Excell, Independent Director
mining companies • Metallurgical Engineer with extensive senior executive,
• Formerly an assurance partner with KMPG’s Vancouver office, mine management and process engineering experience
specializing in the mining area and the leader of KPMG’s • Over 30 years with BHP Billiton, responsible for overseeing
Vancouver office mining industry group
the management and development of some of the world’s
premier mining projects including the EKATI diamond mine
in the Northwest Territories.
Stuart Averill, Independent Director
• P.Geo and founder and owner of Overburden Drilling Raymond Threlkeld, Director
Management (ODM)
• Played critical roles in the several discoveries in Canada
including the Collins Bay “B” uranium mine (SK), the Casa
Gerry Shields, Director
Berardi gold district (QC) and the original #17 and #433
gold discoveries at Rainy River
© 2011 Rainy River Resources Ltd.
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Analyst Coverage
Analyst Company Email Telephone
Stephen Walker RBC Capital Markets stephen.walker@rbccm.com 416.842.4120
Leily Omoumi Scotia Capital Inc. leily_omoumi@scotiacapital.com 416.945.4527
John Hayes BMO Capital Markets johnp.hayes@bmo.com 416.359.6189
Paolo Lostritto National Bank Financial paolo.lostritto@nbfinancial.com 416.869.6754
Wendell Zerb Canaccord Genuity wzerb@canaccordgenuity.com 604.643.7485
Barry Cooper CIBC World Markets barry.cooper@cibc.ca 416.956.6787
Don Blyth Paradigm Capital dblyth@paradigmcap.com 416.360.3461
Michael Gray Macquarie Capital Markets michael.gray@macquarie.com 604.639.6372
Dan Rollins UBS Securities Canada Inc. dan.rollins@ubs.com 416.814.3694
Adam Melnyk Desjardins Securities Inc. adam.melnyk@vmd.desjardins.com (416) 607-3081
© 2011 Rainy River Resources Ltd.
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Indi Gopinathan, Director, Investor Relations
Telephone: 416.645.7289
Email: igopinathan@rainyriverresources.com
Defining Canada’s Newest Gold District
© 2011 Rainy River Resources Ltd.