Rosita Mining. Moving to Production in an Old Mining Camp With Significant Exploration Potential. March, 2017

Transcription

1 Rosita Mining Moving to Production in an Old Mining Camp With Significant Exploration Potential March, 2017

2 Forward Looking Statements This document contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the development potential and timetable of the Rosita project; the timing and amount of estimated future development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of metals; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws. The technical and scientific information included herein has been reviewed and approved by John Cook, P.Eng, President and CEO of the Company, and a qualified person under National Instrument of the Canadian Securities Administrators.

3 PEA HIGHLIGHTS All resources from the stockpiles and tailings considered. These resources are indicated and inferred and both will be excavated and treated. The PEA Mine Plan confined to 10 year life, using $1250 gold and $2.50 copper After taxes, the key financial criteria were in US$ s IRR 41% 7% NPV $34 million Pre-production capital with 30% contingency $11.4 million Payback of this capital, 2.6 years Operating cost $18.5 per tonne CURRENT FINANCING $1.5 M at $0.05 with a full transferrable warrant at $0.075 (for 24 months). CURRENT SHARE STRUCTURE. Share Structure (as of March 1, 2017). ISSUED 53,708,982. Options 3,991,725. Warrants 17,524,900. Finders' warrants 363,300. FULLY DILUTED 75,588,907

4 Project Location and Infrastructure Nicaragua Access, Infrastructure and Safety A Mining Country Historically the principal gold producing country in Central America; A mining friendly country with a rich history of mineral exploration and production; More than 100 year of Mining History in the Gold Triangle; 3,356 hectares in the prolific Bonanza- Rosita-Siuna Gold Triangle, 275 km NE of Managua, capital of Nicaragua; RST and other Mining companies with high possibility to start operations in the next years;

5 The Golden Triangle A New Porphyry District Gold mining is still the primary economic driver in the region; New discoveries underscore the region s potential; Rosita s concessions include 15 well defined targets for gold-copper porphyry and skarn hosted mineralization; 8 million oz of gold and 305 million lbs of copper produced in Nicaragua s Golden Triangle

6 Investment and Project Highlights Past Producer In Nicaragua Significant NI Resources Focus on Engineering and Production Rosita, currently holds 68% interest with Calibre of the Rosita D Concession. Production of the old mine ( ) was 245 m lbs. Cu and 160,000 oz. Au. Six stockpiles from the old mine contain indicated and inferred resources; Tailings from the old mine contains inferred resources and further potential. The North Stockpile contains higher grade ore and will be the initial focus Slide 8 contains details of current resources. Optimizing metallurgical process to maximize gold and copper recoveries, SGS; Designing Treatment Plant to recover gold and copper from the Stockpiles and the Tailings. DENM Engineering. Flow sheet in Slide 10 Exploration Potential Several highly prospective exploration targets for gold-copper skarn and porphyry mineralization. On the Rosita D concession

7 Previously Mined Material Requires Processing Santa Rita Stockpiles Previously mined material does not require excavation; Easily accessible ore with zero strip ratio; Small artisanal operations recovering Au from stockpiles; Six stockpiles are included in current resources; South and North Stockpile South Stockpile

8 Stockpiles and Tailings Access to basic services (power, water, etc); Large tailings potential; Exploration prospects within 5 km from the stockpiles;

9 Current NI Resources Stockpile Category Tonnes Cu Au Ag Cu Au Ag (MT) (%) (g/t) (g/t) M lbs. (koz.) (koz.) North Indicated Inferred East Indicated Inferred South Indicated Inferred Southwest Indicated Inferred Northeast Inferred North2 Inferred Total Indicated ,520.5 Inferred Tailings Inferred Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. 2. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. 3. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council. 4. A gold price of US$1,200/oz, copper price of US$2.5/lb and silver price of US$16/oz were utilized in the NSR calculations of block values with process recoveries of 80% for gold, 35% for Cu (10% deducted for smelting) and 65% for silver. These values were equated against a cut-off grade of US$10 for stockpiles and 0.3 g/t Au for tailing mineral resources. 5. For the cut-off grade, mining costs were assumed at US$1.00/t, process costs at US$7.50/t and G&A costs at US$1.50/t 6. Totals in the table may not sum due to rounding.

10 Santa Rita Timeline Next Steps Completed New Resource Estimate on all six stockpiles (February 2016); Advance metallurgy and process engineering; - File PEA;. Continue to advance permitting for stockpile project;. Continue land negotiations;. Negotiate with financial institutions with regard to Plant Capital; Engineering and Plant construction; Treasury expected to support G&A and permitting. Rosita Mining Santa Rita Project Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Baseline Metallurgy Plant Register Mines Direction (DGM) Engineering & PEA or revised Economics Engineering for Procurement/construction Permitting Mine Financing Acquire land surface rights Construction Production

11 Santa Rita Project Treatment Plant (Proposal)

12 Santa Rita Project Treatment Plant (Proposal)

13 Rosita D and neighbors Advanced Cu, Au and Ag Exploration in Rosita D; The Rosita project is located seven km north of the Primavera project where CXB and BTO announced the discovery of significant porphyry style Au-Cu mineralization and one km to the south of Monte Carmelo where exploration work carried out by CXB and BTO has outlined skarn and structurally related gold mineralization.

14 Geology The eastern part of the concession is underlain mainly by carbonate sedimentary rock of the K Todos Santos Formation; To the west are andesitic to basaltic volcanic rocks that have been intruded by a series of stocks and plugs that include diorite, quartz diorite, granodiorite, quartz monzonite and granite; Hydrothermal alteration associated with emplacement of the intrusives has led to the development of larges areas of skarn and hydrothermally altered rock. Target rich area with porphyry copper-gold potential as well copper-gold-silver skarn;

15 Targets Prospects - Resources Tipispan: 500 m by 250 m Cu in soil anomaly overlies a Cu-Au-Ag mineralized monzonite porphyry that is cut by northwest trending high structures; Target is approximately 0.5 to 1 million tonnes grading 1.0 to 1.8 % Cu; T3: 250,000 to 300,000 tonne target 1.0 to 2% Cu; El Rastro: gold and Copper high priority drilling target; Santa Rita: there are historical resources still associated with Santa Rita; Others;

16 Management & Board of Directors John Cook, President & CEO Mr. Cook has more than 45 years of professional experience in all facets of mining development, operations and management. He was most recently President and CEO of San Anton Resources Corp. and the Chairman of Premier Gold Inc. until He has been the President of Tormin Resources Limited, a private mining Company since May 1995, and is a graduate of Sheffield University in Mining Engineering. Nick Tintor, Chairman Mr. Tintor in Managing Director of RG Mining Investments, a management services Company. He is a graduate of the University of Toronto (B.Sc., Geology) and has more than 25 years experience in the mining industry and has been involved with all aspects of junior mining Company management, finance and project acquisition. Mr. Mark B. Keatley Mr. Keatley is the Chief Financial Officer of a UK firm, Actavis Sarl. Mr. Keatley is formerly Chief Financial Officer of Ashanti Goldfields Company Limited. With an M.B.A. from Stanford Business School, and an M.Phil and M.A. (Double First) from the University of Cambridge, Mr. Keatley s career includes senior management positions with the International Finance Corporation, the World Bank and Ford Motor Company, U.K. Don Dudek Mr. Dudek has held various roles with junior and senior exploration and mining Companies over the past 28 years, he most recently served as President of Alder, Senior VP Technical Services for Endeavour Mining Corp. Prior to that he served as SVP Exploration for Avion Gold Corp. Mike Bandrowski Mr. Bandrowski has over 15 years experience working as a mining analyst with several leading Canadian financial institutions and most recently as Vice President-Research with a leading banking institution in Toronto.

17 Thanks for your attention For further information, please contact Bob Mullins at or by at