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TSX: ROXG
Investor Presentation | November 2018
Mining High Grade Gold in Burkina Faso
TSX: ROXG
in Burkina Faso TSX: ROXG Investor Presentation | November 2018 - - PowerPoint PPT Presentation
Mining High Grade Gold in Burkina Faso TSX: ROXG Investor Presentation | November 2018 TSX: ROXG 1 Cautionary Statement This presentation contains forward-looking information. Forward looking information contained in this presentation
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TSX: ROXG
Investor Presentation | November 2018
Mining High Grade Gold in Burkina Faso
TSX: ROXG
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This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of measured, inferred and indicated mineral resources and proven and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral resources and/or reserves and the expansion potential of existing mineral resources/reserves and the expansion potential of mining operations including with respect to proposed development at Bagassi South and the anticipated timing thereof; (ii) proposed exploration and development activities (including proposed plant expansion), and the anticipated nature, success and timing thereof; (iii) production, earnings, recovery rates and cost guidance as well as future sources of funding, capital expenditures and exploration budgets, (iv) permitting; and (v) expansion and growth potential and the anticipated timing thereof including the anticipated production at Bagassi South and the timing thereof, and future economics and development activities related thereto; (vi) expectations the Company will be within its 2018 cost guidance; (vii) statements that are not of historical fact; and (viii) any potential share buyback by the Company. For further details regarding the Yaramoko project, please refer to the technical report entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” dated December 20, 2017 (the “Technical Report”) as well as the press releases of Roxgold Inc. (“Roxgold” or the “Company”) dated April 18, 2017 and the November 6, 2017, Bagassi South Feasibility Study news release. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this presentation is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves (and potential establishment and increases in respect thereof), the potential expansion of mining operations, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals and permits, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration, risks relating to variations in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities (including risks that new mineral resources and/or reserves may not be established, or the anticipated expansion potential of existing mineral resources/reserves or mining operations may not be realized), risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, capitalization and liquidity risks, risks related to disputes concerning property titles and interest, and environmental risks. Please refer to the 2017 Management’s Discussion and Analysis filed on SEDAR at www.sedar.com on March 28, 2018 for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves and other forward looking matters. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking
securities laws. Unless stated otherwise herein, the following Qualified Persons, as defined in National Instrument 43-101, have prepared or supervised the preparation of the scientific or technical information presented in this presentation: Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Sebastien Bernier (SRK Consulting Canada Inc.), Iain Cox, Interim Chief Operating Officer (Roxgold), and Paul Weedon, VP Exploration (Roxgold). All amounts are in U.S. dollars unless otherwise stated.
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▪ Operating the Yaramoko Mine located in the Houndé belt in Burkina Faso
▪ 55 Zone – in production ▪ Bagassi South – in development
▪ High-Grade, Low Cost Underground Gold Producer
▪ High-grade at 17.1 grams per tonne1 at 55 Zone and 16.6 grams per tonne2 at Bagassi South ▪ LOM Site AISC3 ~$695 per ounce ▪ LOM production includes inferred resources out to 20274
▪ Growth Potential through Exploration ▪ Proven Management Team and Board
Canadian Based – Best in Class West African Gold Miner
1.
As of December 31, 2016. Measured & Indicated Resources. See appendix for Mineral Resource Statement – 55 Zone
2.
As of July 19, 2017. Measured & Indicated Resources. See appendix for Mineral Resource Statement – Bagassi South
3.
This is a non-IFRS financial performance measure with no standard definition under IFRS. Site All-in sustaining cost above represents both mines combined and excludes corporate G&A and in- country corporate costs.
4.
See Table 75 included in Section 23 titled “Other Relevant Data and Information” in the Company’s Technical Report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” available on SEDAR and the Company’s website.
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Nine-months ended Sept 30, 2018
All amounts in U.S. dollars
Financial Highlights1 – YTD 2018
EBITDA Margin Operational Highlights – YTD 2018
Cash Operating Cost /oz
Cash flow from operations Recovery Rate Gold Production
Head Grade
1.
These are non-IFRS financial performance measures with no standard definition under
2018 MD&A available on the Company’s website at www.roxgold.com or www.sedar.com
AISC /oz
Ore processed
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90.0 91.0 92.0 93.0 94.0 95.0 96.0 97.0 98.0 99.0 100.0 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Ore Processed (tonnes) Gold Recovery (%)
▪ Q3 2018 – Record quarterly processing throughput of 78,357 tonnes processed representing 15% above nameplate capacity
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As of September 30, 2018 in U.S. dollars
▪ Self-funding Bagassi South Expansion Project cost of ~$30 million
Cash on hand
1.
Represents the Face Value of Long-term debt representing the remaining balance owing on the Amended Facility.
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22.4% 18.0% 12.9% 9.2% 8.0% 6.4% 5.7% 5.5% 5.3% 2.1% 0.5% KL OGC CG WDO BTO GUY K TGZ AEM G
Roxgold Provided Shareholders with an Above Market LTM Return on Equity through Q3 2018
Source: Company Reports Note: ROE calculated as net income adjusted for gains / losses on derivative financial instruments, foreign exchange gains / losses and extraordinary events divided by average shareholder equity over the last 12 months. Companies Included: KL – Kirkland Lake Gold Ltd.; OGC – OceanaGold Corporation; CG – Centerra Gold Inc.; WDO – Wesdome Gold Mines Ltd.; BTO – B2Gold Corp.; GUY – Guyana Goldfields Inc.; K – Kinross Gold Corporation; TGZ – Teranga Gold Corporation; AEM – Agnico Eagle Mines Limited; G – Goldcorp Inc.
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Exploration Budget $12 million (increased from $9 million) Bagassi South Pre-Production Capital Expenditure $30 million Gold production of 120,000 – 130,000 oz Cash Operating Cost1 (per ounce produced) $450-$475 AISC1 (per ounce sold) $740-$790
1. This is a non-IFRS financial performance measure with no standard definition under IFRS. See the “non-IFRS financial performance measure” section of the Company’s Q3 2018 MD&A available on the Company’s website at www.roxgold.com or www.sedar.com
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Cost Underground Mine
Base Case Highlights (100% basis, gold price of $1,300/oz). All amounts in U.S. dollars
1.8 Km
▪ First ore delivered in October on schedule ▪ Capex funded by internal cash flow ▪ ~40% increase in Yaramoko annual gold production
▪ Proven and Probable Mineral reserves of ~170,000 oz at 11.54 g/t Au ▪ Estimated average gold production of 40,000 oz per year ▪ Plant expansion sees throughput increased from 750 tonnes per day (“tpd”) to 1,100 tpd
▪ Robust project economics
▪ $50M after-tax NPV5%, after-tax IRR 53.2% with a 1.8 year payback on initial capital
Pre-production Capital
Underground Mine $7.9M Plant Expansion $7.1M Infrastructure $6.0M Indirects $5.7M Contingency $2.8M Total $29.6M
Operating Cash Costs1 – LOM ($/oz)
Cash Operating Cost $361 Total Cash Cost $426 All-in Sustaining Cost $630
1. This is a non-IFRS financial performance measure with no standard definition under IFRS. See the “non-IFRS financial performance measure” section of the Company’s Q3 2018 MD&A available on the Company’s website at www.roxgold.com or www.sedar.com
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QV1 Structure
55 Zone Camp Plant Tailing Storage Facility Water Storage Dam
Yaramoko
Bagassi South 1.8 km from plant to Bagassi South
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▪ Plant expansion sees throughput increased nearly 50% from 750 tonnes per day (“tpd”) to 1,100 tpd ▪ All materials on site to complete expansion ▪ Overall project completion expected to be on schedule in latter part of Q4 ▪ Ramp up to 1,100 tonnes per day expected in early 2019
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▪ The 55 Zone 2017 deep drilling program was completed in Q4 2017 ▪ High-grade shoot extended to 1.1 km below surface with hole YRM-17-DD-443W1, down plunge from hole YRM-16-DD-426 ▪ The 55 Zone shoot is open at depth and characterized by a wide shear envelope and shear hosted veins at depth ▪ A resource conversion surface drilling program commenced in Q2 2018 with an aim to convert inferred resources to indicated resources ▪ Seven rigs currently drilling – six from surface, one from underground ▪ 26,250 metres completed at 55 Zone as of the end of Q3 2011-16 Drill Hole 2017/2018 Drill Hole < 1.0 g/t 1.0 to 3.0 g/t 3.0 to 5.0 g/t 5.0 to 10.0 g/t > 10.0 g/t
55 Zone Resource*
Size Grade Measured & Indicated 738k
17.1 g/t Inferred 347k
16.1 g/t
5,200RL 5,000RL 4,800RL 4,600RL 4,400RL 4,200RL 4,000RL
Measured Indicated Inferred Open
100m 0m 700m 1,100m 1,500m
Exploration Potential
*As of Dec 31, 2016
See press release dated February 2, 2017 for more information which is available on the Company’s corporate website (www.roxgold.com) and
verification undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
YRM-16-DD-426
20.1 g/t over 23.8 m
YRM-18-DD-456A
47.4 g/t over 2.2 m
YRM-17-DD-443W1
11.2 g/t over 12.5 m and 12.9 g/t over 3.9 m
YRM-18-DD-475W
19.5g/t over 10.1 m
YRM-18-DD-477W
6.9 g/t over 16.5 m
YRM-18-DD-482
9.2 g/t over 5.4 m
YRM-16-DD-472W2
7.0 g/t over 3.6 m
YRM-16-DD-473
6.6 g/t over 5.6 m
YRM-18-DD-485A
34.1 g/t over 2.1 m
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Siou 10 Km
Hounde Project 12 Km
55 Zone
Yaramoko
1 2 3 4 5 6 7 8 55 Zone
Bagassi South
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ID TARGETS 1 TW West Contact 2 BSN Foot Wall 3 San MVOL-VS and VS-DIO Contacts 4 HAHO Prospects 5 KAHO 6 Boni Shear 7 HOUKO 8 Bagassi Regional 9 Yaramoko Regional 10 300 Zone East Auger Grid 11 300 Zone North Auger Grid
▪ Large regional land package of approximately 230 km2, located on the Houndé Belt ▪ Majority of known anomalies and deposits are located along the Boni Shear regional break and the second order Yaramoko Shear ▪ Systematic auger drilling along key structures with ~15,500m completed to date ▪ Integrated structural, geochemical, geophysical, and lithogeochemical model being developed; reprocessing of regional geophysics underway ▪ Pathfinder element suites identified to discriminate targets (Haho, Kaho and the Boni Shear zone are characterized by High Zr/High Rb) ▪ Auger program to continue over Kaho granite with completion in early Q4, extending grid to the south ▪ RC drilling to start at Kaho late November testing 1.5km soil anomaly
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55 Zone Bagassi South 55 Zone Kaho Area Basaltic Flows Tarkwaian Basin Granite Tonalite Granodiorite Volcaniclastic
Legend
▪ Kaho is prospective due to the presence of meta-volcanic and granite contacts – analogous to 55 Zone and Bagassi South deposits ▪ Within the mineralised corridor of the Yaramoko Shear Zone – with potential for second order structures which are thought to be the dominant control at 55 Zone and Bagassi South ▪ First phase of auger drilling completed in the third quarter of
NW-SE, oblique to the Yaramoko Shear Zone ▪ Drill targeting is underway with follow up by reverse circulation
for Q4 2018
Yaramoko Shear Zone
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▪ Bagassi South Expansion – Adding ounces to production profile
▪ Increases production by ~40% to approximately 150,000 ounces in 2019 from both mines combined ▪ First ore delivered in October on schedule. Process Plant expansion expected to be completed in latter part of Q4 2018
▪ 55 Zone and Bagassi South – Pursuing resource growth
▪ The 55 Zone shoot is open at depth. Resource conversion surface drilling program commenced Q2 2018 with aim to convert inferred resources to indicated ▪ Bagassi South 2018 drill program focussed on extending western shoot down plunge and near surface infill around the eastern shoot. Follow on drilling planned to test for further down plunge extensions in western shoot in Q4 2018
▪ Regional Exploration – Maximizing the potential of Yaramoko
▪ Compelling targets in Kaho area with drilling expected in Q4 2018
▪ External Growth - Evaluating opportunities
▪ Continuing to evaluate external growth opportunities with a disciplined approach: ▪ Build on developing or advancing existing projects ▪ Low cost; high return on invested capital ▪ Capacity for growth
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▪ Generating strong cash flow through high-grade, low cost asset ▪ Delivering industry-leading Return on Equity to shareholders ▪ Increasing production through Bagassi South expansion at an estimated average gold production of 40,000 oz per year ▪ Self-funding accretive growth while paying down debt and building net cash ▪ Implemented share repurchase plan ▪ Actively pursuing growth opportunities through exploration program ▪ Led by proven management team and board demonstrated by excellent operational performance and safety record
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5,300RL 5,200RL 5,100RL 5,000RL 4,900RL
West
YRM-18-DD-BGS-435 16.1g/t over 0.5m YRM-18-DD-BGS-415 38.6g/t over 0.5m YRM-18-DD-BGS-406 15.5g/t over 1.8m YRM-18-DD-BGS-422 6.4g/t over 1.0m YRM-18-DD-BGS-410 7.3g/t over 0.6m YRM-18-DD-BGS-412 6.0g/t over 0.8m YRM-18-DD-BGS-371 20.9g/t over 2.3m YRM-18-DD-BGS-430A 30.4g/t over 0.5m YRM-18-DD-BGS-389B 10.6g/t over 2.8m YRM-18-DD-BGS-428 55.8g/t over 0.9m YRM-18-DD-BGS-437 10.2g/t over 2.3m YRM-18-DD-BGS-393 66.6g/t over 0.4m
East
YRM-18-DD-BGS-431B 14.8g/t over 0.5m
▪ A total of 23,535m drilled along the QV1 structure in 2017 targeting resource conversion and growth at depth ▪ Resource delivered in July 2017 and included all drilling to date ▪ Feasibility delivered in November 2017 ▪ 2018 drill program focussed on extending western shoot down plunge and near surface infill around the eastern shoot. Follow on drilling planned to test for further down plunge extensions in western shoot in Q4 2018 ▪ Approximately 10,200 metres drilled at Bagassi South
QV1 Structure Resource*
Size Grade Indicated 188k
16.6 g/t Inferred 33k
13.0 g/t
*As of July 19th, 2017
Block Model (Au Grade) >10.0 g/t Au <1.0 g/t Au 1.0 g/t – 3.0 g/t Au 3.0 g/t – 5.0 g/t Au 5.0 g/t – 10.0 g/t Au Drill Holes Mafic Dyke
Indicated Inferred Open
250m 0m 400m
See press release dated July 19, 2017 for more information which is available on the Company’s corporate website (www.roxgold.com) and on SEDAR at www.sedar.com and contains details regarding data verification undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
Exploration Potential
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▪ A total of 20,585m drilled along the QV’ structure in 2017 targeting resource conversion and growth at depth ▪ Resource delivered in July 2017, an additional 15,550m of drilling conducted along the QV’ structure since July 2017 ▪ QV’ mineralized shoot located along the same K-rich granite lithological contact as QV1 ▪ The shoot is open to the East of the Mafic Dyke and will be drill tested in 2019
QV’ Structure Resource*
Size Grade Inferred 36k
22.0 g/t
*As of July 18th, 2017
West East
YRM-17-DD-BGS-184 290.0 g/t over 0.8 m
< 1.0 g/t 1.0 to 3.0 g/t 3.0 to 5.0 g/t 5.0 to 10.0 g/t > 10.0 g/t
Block Model (Au Grade)
YRM-17-DD-BGS-181 55.8 g/t over 1.3 m YRM-17-DD-BGS-240 72.6 g/t over 0.7 m 5,200RL 5,100RL 5,000RL 4,900RL
Mafic Dyke
Inferred Open
350m 0m
Exploration Potential
See press release dated July 19, 2017 for more information which is available on the Company’s corporate website (www.roxgold.com) and on SEDAR at www.sedar.com and contains details regarding data verification undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
Area of planned drilling
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▪ Lithogeochemistry map shows good spatial correlation between High Zr/High Rb and major structures such as the Boni Shear zone and the Yaramoko Shear Zone ▪ Major deposits such as 55 Zone and Bagassi South are located in anomalous High Zr/High Rb areas ▪ Haho, Kaho and the Boni Shear zone are characterized by High Zr/High Rb ▪ Auger programs completed
commenced, currently on hold due to rainy season
High Zirconium granite High Titanium Basalt flow Altered granite – High Zr & High Rb
Legend Bagassi South 55 Zone Haho Kaho
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Ground Geophysical IP Compilation:
▪ Exploring for late Eburnean dextral reactivation within the Yaramoko granite and along the Boni Shear Zone ▪ Several areas of regional disruption of structural fabric within the Yaramoko granite ▪ Q1 2018 drilling focused
concession along the Boni Shear and Haho anomalies ▪ Q2 and Q3 2018 drilling focused on southern portion of the Yaramoko Shear corridor, around the Bagassi South deposit 2017 Boni Grid 2017 Houko Grid
Boni Shear Drilling 55 Extension
Basaltic Flows Tarkwaian Basin Granite Tonalite Granodiorite Volcaniclastic
Legend
2014 Bagassi Grid
55 Zone Mine Bagassi South Mine Kaho Anomaly Haho Drilling
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▪ Map shows interpreted second-order structures over untested portion of granitic bodies for the Bagassi South and Kaho areas ▪ First phase of auger drilling over the Kaho granite area has been completed, helping to confirm the potential orientation of the interpreted second order structures ▪ Approximately 7,000 metres have been drilled to date on the southern structural targets around Bagassi South
Bagassi South 55 Zone
Basaltic Flows Tarkwaian Basin Granite Tonalite Granodiorite Volcaniclastic
Legend
Kaho Granite
20 to 40 ppb 40 to 100 ppb 100 to 1000 ppb > 1000 ppb Auger AU Grade:
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* See appendix for 55 Zone Mineral Resource and Mineral Reserve Notes
Proven Mineral Reserves Probable Mineral Reserves Proven and Probable Mineral Reserves
Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) 55 Zone 317 18.06 184 1,453 10.01 467 1,770 11.45 651 Stockpiles 26 13.26 11 0.00 26 13.26 11 Total 343 17.69 195 1,453 10.01 467 1,796 11.47 662
Measured Mineral Resources Indicated Mineral Resources Measured and Indicated Mineral Resources Inferred Mineral Resources
Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) 55 Zone 265 26.88 229 1,076 14.73 509 1,341 17.13 738 669 16.14 347 Total 265 26.88 229 1,076 14.73 509 1,341 17.13 738 669 16.14 347
Reserve grade largely maintained compared to BFS grade despite mined grade over the course of 2016 of 15.5 g/t.
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As of July 19, 2017
* See appendix for Bagassi South Mineral Resource and Mineral Reserve Notes
Measured Mineral Resources Indicated Mineral Resources Measured and Indicated Mineral Resources Inferred Mineral Resources
Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) Tonnes (000) Grade g/t Au Ounces (000) QV1 Structure 0.00 352 16.6 188 352 16.6 188 79 13.0 33 QV’ Structure 0.00 0.00 0.00 51 22.0 36 Bagassi Total 0.00 352 16.6 188 352 16.6 188 130 16.6 69
Probable Mineral Reserves
Tonnes (000) Grade g/t Au Ounces (000) QV1 Structure 458,000 11.54 170,060 Total 458,000 11.54 170,060
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Notes: 1. Mineral Resources are reported compliance with National Instrument 43-101 (“NI 43-101”) with an effective date of December 31st, 2016. 2. Underground Mineral Resources are reported at gold grade cut-off of 5.0 g/t Au, based on a gold price of US$1,250/ounce. 3. The identified Mineral Resources in the block model are classified according to the CIM definitions for the Measured, Indicated, and Inferred categories. The Mineral Resources are reported in situ without modifying factors applied. 4. The Mineral Resource estimate was prepared under the supervision of Sébastien Bernier, Principal Resource Geologist at SRK Consulting (Canada). Mr. Bernier is a Qualified Person as defined in NI 43-101. 5. All figures have been rounded to reflect the relative accuracy of the estimates. 6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Reserves are reported in accordance with NI 43-101 with an effective date
Report for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the Company’s website and on SEDAR at www.sedar.com. 7. See also 55 Zone Mineral Reserve Notes below. Notes: 1. Mineral Reserves are reported in accordance with NI 43-101 with an effective date of December 31st, 2016 and are included in Mineral Resources. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the Company’s website and on SEDAR at www.sedar.com. Mineral Reserve estimates reflect the Company’s reasonable expectation that all necessary permits and approvals will be
2. Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources. Mineral Reserve estimates include mining dilution at grades assumed to be 1.3 g/t. Mining dilution and recovery factors vary with specific reserve sources and are influenced by several factors including deposit type, deposit shape and mining methods. 3. The Mineral Reserves were prepared under the supervision of Benny Zhang, Principal Mining Engineer at SRK, PEng (PEO # 100115459). Mr. Benny Zhang is a Qualified Person as defined by NI 43-101. 4. The Mineral Reserve estimate at December 31, 2016 is reported at a cut-off grade of 4.5g/t gold assuming: metal price of US$1,250 per ounce of gold, mining cost of US$100.00 per tonne, G&A cost of US$28.30 per tonne, processing cost of US$38.90 per tonne, and process recovery of 98.5%. Reserve estimates include mining dilution and mining recovery. 5. All figures have been rounded to reflect the relative accuracy of the estimates.
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Notes: 1. Bagassi South Mineral Resources are reported in compliance with NI 43-101 with an effective date of July 19th, 2017. 2. Underground Mineral Resources are reported at gold grade cut-off of 5.0 g/t Au, based on a gold price of US$1,250/ounce of gold using mining cost of US$100.00 per tonne, G&A cost of US$28.30 per tonne, processing cost of US$38.90 per tonne and process recovery of 98.5%. 3. The identified Mineral Resources in the block model are classified according to the CIM definitions for the Measured, Indicated, and Inferred categories. The Mineral Resources are reported in situ without modifying factors applied. 4. The Mineral Resource estimate was prepared under the supervision of Yan Bourassa, P.Geo (APGO #1336), VP Geology for Roxgold Inc., a Qualified Person within the meaning of NI 43-101 5. All figures have been rounded to reflect the relative accuracy of the estimates. Mineral Reserves are reported in accordance with NI 43-101 with an effective date of December 31st, 2016 and are included in Mineral Resources. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the Company’s website and on SEDAR at www.sedar.com. 6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 7. See also Bagassi South Mineral Reserve Notes below.
Notes: 1. The Mineral Reserve estimation used in the Technical Report only considered the indicated portion of the Mineral Resources. The Mineral Reserve estimation assumed a minimum mining width of 1.2 metres, included 26.8% stope dilution at a grade of 1.22 g/t and was base gold price of $1,250 per ounce. The effective date of the Mineral Reserve estimate is November 6, 2017. 2. Mineral Reserves are included in Mineral Resources and are reported at a cut-off grade of 4.8 gpt gold assuming: metal price of US$1,250 per ounce of gold, mining cost of US$73 per tonne, G&A cost of US$36 per tonne, processing cost of US$36 tonne and process recovery of 98.5%. 3. For further information, please refer to the press release dated November 6, 2017, entitled Roxgold Announces Positive Feasibility Study for its Bagassi South Project available on the Company’s website and on SEDAR at www.sedar.com. 4. The Mineral Resource estimate was prepared under the supervision of Yan Bourassa, P.Geo (APGO #1336), VP Geology for Roxgold Inc., a Qualified Person within the meaning of NI 43-101. 5. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the Company’s website and on SEDAR at www.sedar.com.
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Head Grade Head Grade ▪ 87% Burkinabe employment ▪ 51% of employees from the immediate area ▪ 72% of skilled employees from Burkina ▪ 70% of process plant department is from the immediate area with no prior mining skills ▪ Provided 6 – 12 months of intensive training prior to start up ▪ Part of the team that ramped up Yaramoko ▪ The plant delivers 99% recovery rates with 96%
Case Study: Training local people Localization and diversity have proven to be effective
With its commitment to local development, Roxgold has been recognized as a responsible mine receiving a CSR Award from the Accountability Group in 2016 Local area Roxgold employees working at the metallurgical lab
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Local procurement Health and safety Community investment Local employment Cultural heritage Road Biodiversity
Local procurement
▪ 93% of expenditures from suppliers registered in Burkina Faso ▪ Capacity building training for 25 local suppliers near the mine resulting in U.S.$1 million of spending per year for transportation, construction, food supply and preparation
Community health & safety
▪ Malaria control in three villages around the mine site ▪ Road safety, HIV and STIs education
Local employment
▪ Improving employment opportunities for local youth and community integration by providing training
Cultural heritage
▪ Supporting the traditional rituals and the preservation of the Bwa ethnic group cultural festival
Community road infrastructures
▪ Progressive rehabilitation of the main road between the national road and the mine site
Biodiversity
▪ Reforestation campaign planting over 20,000 trees per year for a total of ~100,000 trees planted since 2014 ▪ Protection and enhancement of a forest located on the mine site
Community investment
▪ Projects submitted and selected by the community representatives in collaboration with Roxgold ▪ 91 projects have been selected since 2014 including projects for women and youth such as occupational training center, potable water system, solar electrification of schools and medical centers and construction of medical infrastructures
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Our extensive community engagement program is the foundation
▪ Monthly meetings in 19 different villages with the community representatives ▪ Organization of quarterly mine provincial monitoring committee ▪ Participation in the municipal, departmental, provincial and regional committees ▪ Weekly meetings with the local public administration (Prefect, Mayor) ▪ Mine site visits ▪ Roxgold community relations office ▪ Billboards, phone, mail and emails ▪ Press articles, radio and television
Building trust by proactive outreach and open-door approach
Performance to date:
▪ Strong support from the community ▪ No issues affecting performance of the operation ▪ Positive Governmental appreciation ▪ NGO’s CSR Award ▪ Positive reputation at international, national and local levels
Village meetings 135 Committee meetings 12 Local authorities meetings 74 Mine site visits 9
Governor’s mine site visit in June 2018
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TSX: ROXG
Iain Cox, Interim COO
25+ years development & operational mining Former Roles: ▪ Newmont Corp ▪ AMR ▪ Centamin
Craig Richards, Principal Mining Engineer
30+ years development & operational experience Former Roles: ▪ Newmont Ghana ▪ Barrick Gold ▪ Ashanti Goldfields
Vince Sapuppo, CFO
10+ years senior finance, commercial and mergers & acquisitions experience in mining and energy sectors Former Roles: ▪ GM Finance - Beach Energy Limited ▪ Newcrest Mining ▪ BHP
John Dorward, President & CEO
20 years development & operating mines experience Former Roles: ▪ VP Business Dev. of Fronteer Gold ▪ Mineral Deposits Ltd ▪ Leviathan Resources
Eric Pick, VP , Corporate Development
10+ years corporate finance and mergers & acquisitions in mining sector Former Roles: ▪ Cormark Securities Inc.
Paul Weedon, VP , Exploration
25+ years exploration, development and production experience Former Roles: ▪ Newmont Corp ▪ Anglogold Ashanti
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TSX: ROXG
13% 41.1% 13.1% 8.7% 7.9% 6.5% 6.2% 3.5%
Yaramoko Debt Facility
▪ Face value of long-term debt of ~US$41 million as of September 30, 2018 ▪ Interest rate of LIBOR plus 3.75% ▪ Hedging component remaining of 38,246
loan which matures in June 2021 ▪ Project remains unencumbered by third party streams or royalties
Insiders & Mgmt
Source: Nasdaq IR Insight at Sept 30, 2018
Institutional Retail
Institutional Holdings by Country
23% 34% 29% 8% 2% 4%
Other
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TSX: ROXG
Covering Sell-Side Firm Analyst BMO Andrew Breichmanas Canaccord Rahul Paul Cormark Tyron Breytenbach Echelon Wealth Partners Ryan Walker Eight Capital Craig Stanley GMP Ingrid Rico Haywood Geordie Mark Global Mining Research David Radclyffe Macquarie Michael Gray Raymond James Tara Hassan RBC Dan Rollins
Capital Structure (as at November 13, 2018) Listings TSX: ROXG OTC: ROGFF Cash ~US$71 million1 Common Shares Outstanding 374.2M Options (total vested and unvested) 8.1M Market Capitalization ~C$307M
1.
As of September 30, 2018
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TSX: ROXG
Kelley Stamm
Manager, Investor Relations & Communications 360 Bay Street, Suite 500 Toronto, ON M5H 2V6 kstamm@roxgold.com www.roxgold.com 416 203 6401