INVESTOR PRESENTATION MARCH 2018 | CSE: RISE | OTC: RYES CSE: - - PowerPoint PPT Presentation
INVESTOR PRESENTATION MARCH 2018 | CSE: RISE | OTC: RYES CSE: - - PowerPoint PPT Presentation
INVESTOR PRESENTATION MARCH 2018 | CSE: RISE | OTC: RYES CSE: RISE CSE : RISE OTC: RYES Cautionary Statements D i s c l o s u r e s & F o r w a r d L o o k i n g S t a t e m e n t s This presentation contains certain
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Cautionary Statements
D i s c l o s u r e s & F o r w a r d L o o k i n g S t a t e m e n t s
This presentation contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words or statements that certain events
- r conditions “may” or “will” occur.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks, uncertainties and assumptions related to certain factors including, without limitation, obtaining all necessary approvals, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. Rise undertakes no obligation to update forward-looking statements or information except as required by law. This presentation does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The securities referenced herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be
- ffered or sold in the United States except in compliance with one or more exemptions from the registration requirements of the U.S. Securities Act and
applicable state securities laws. The Company cautions that mineral resources that are not mineral reserves do not have demonstrated economic viability. Rise Gold Corp. has not established mineral reserves supported by a NI43-101 compliant technical report and feasibility study. The Company cautions readers that production may not be economically feasible. Rise Gold Corp. has not verified the historical mineral resources estimated for the Idaho-Maryland property. Rise is not treating these historical mineral estimates as current mineral resources and the historical mineral resources should not be relied on.
- Mr. Benjamin Mossman P.Eng, CEO of Rise Gold Corp. is the qualified person who reviewed and approved the contents of this presentation.
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Idaho-Maryland Gold Project
Idaho-Maryland Gold Project “I-M Mine”
- Past Producer (100% ownership)
- Produced ~2,414,000 oz gold*
- Average historic head grade of 17 gpt*
- Production of ~129,000 oz per year in 1940**
- All major veins open for exploration at depth
Grass Valley, California USA Nevada County
- Private Land
- ~2800 Acres of Private Mineral Rights
- 100% Ownership
- 175 Acres Industrial Surface Land
- No Royalties
CALIFORNIA USA = Rule of Law Private Land Mild Climate Year Round Drilling Highway Access Idaho-Maryland | City of Grass Valley | Nevada County | California | USA *Details of historic production disclosure in Rise press release dated April 4th 2017 and available at www.sedar.com **US Bureau of Mines. Mineral Yearbook 1941 (1942). Pg.252
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UNITED STATES - PRIVATE MINERAL RIGHTS
- USA stopped issuing patents in 1994
- Most significant historic mining properties re-developed after gold price removed from fix in 1970’s
- Strong Rule of Law and property rights
NEVADA COUNTY IS LEAD AGENCY FOR FUTURE PERMITTING
- No permits required for exploration drilling from surface
- Underground exploration and mining is an allowed use in Zoning regulations subject to a Use Permit
- Nevada County is lead agency for future mine permitting, NOT California State
- No permitting through US BLM or US Forest Service
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Nevada County - California
P R I V A T E L A N D – A L L O W E D U S E I N L O C A L Z O N I N G C O D E
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Business Strategy Phases, Milestones, and Catalysts
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Discovery
- Core drilling from surface to demonstrate gold
mineralization continues below historic mining areas.
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Mineral Resource
- Infill drilling using branch holes from surface to define,
calculated, and report mineral resources.
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Economic Assessment
- Mine design, environmental and economic analysis.
Exploration Drill Results Milestone & Catalyst Phase Mineral Resources PEA Study
2018 2019 2020
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Value Opportunity Rare and Exceptional Gold Project
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PRIVATELY OWNED LAND AND MINERAL RIGHTS
- Very strong property rights for reduced Political Risk and Permitting Risk
MAJOR HIGH GRADE PAST PRODUCING GOLD MINE
- I-M Mine was one of the most prolific historic gold producers in the entire United States
- Exceptionally high grade with average historic mill head grade of 17 gpt gold
- Virtually unexplored below historic mine workings
DRILL PROGRAM TARGETING A DRAMATIC DISCOVERY
- Drilling directly below historic mined areas with bonanza gold grades
- Numerous historic drill holes, mapping, and historic resources in target area
- Significant exploration targets at I-M Mine below mine workings
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MARKET ANALYSIS
STRONG MARKET INTEREST IN HIGH GRADE GOLD DEPOSITS
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Valuations – Discovery to Production Stage
A C O M P A R I S O N O F I D A H O - M A R Y L A N D T O R E C E N T M & A
IDAHO-MARYLAND*
Rise Gold Corp Discovery Stage Current valuation $8M Mineral Resources: No mineral resources Requires drilling Past production : Before forced shutdown in 1942 Up to 129,000 oz gold per year 17.0 gpt gold avg headgrade 2,414,000 oz gold past production $19/oz in 1941 =~ $316 /oz in 2017
LEMAQUE**
Integra Gold Advanced Exploration Purchased for $590M in 2017 Mineral Resources: 1.9M oz @ 7.1 gpt M&I 1.3M oz @ 9.1 gpt Inferred Proposed production: PEA level study 123,000 oz gold per year 7.0 gpt gold headgrade 1,311,000 oz gold total production $458 per oz gold cash cost
ISLAND GOLD**
RichmontMines Producer Purchased for $933M in 2017 Mineral Resources: 0.9M oz @ 8.8 gpt M&I 1.0M oz @ 10.2 gpt Inferred Proposed production: PEA level study 115,000 oz gold per year 10.0 gpt gold headgrade 926,000 oz gold total production $483 per oz gold cash cost
*Details of historic past production is disclosed in Technical Report dated June 1st 2017 and available at www.sedar.com **Information based on publicly available Technical Reports The Company cautions that mineral resources that are not mineral reserves do not have demonstrated economic viability. Rise Gold Corp. has not established mineral resources or reserves supported by a NI43-101 compliant technical report and feasibility study. The Company cautions readers that production may not be economically feasible. Rise Gold Corp. has not verified the historical mineral resources estimated for the Idaho-Maryland property. Rise is not treating these historical mineral estimates as current mineral resources and the historical mineral resources should not be relied on.
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*Major producing gold mines defined as production greater than 100,000 oz gold per year **Information for current producers based on publicly available Q3 2017 Financials Statements. ***Details of historic past production is disclosed in Technical Report dated June 1st 2017 and available at www.sedar.com
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Today's Highest Grade Major Producing Gold Mines*
Mine Company Mill Head Grade (gpt) Mill Recovery
- Est. Annual**
Production (oz/year) Cash Cost ($/oz) Fosterville Kirkland Lake 16.5 97% 293,000 $295 Turquoise Ridge Barrick 15.3 92% 281,000 $522 Macassa Kirkland Lake 14.1 95% 246,000 $522 Yaramoko Roxgold 13.6 99% 114,000 $445 Red Lake Goldcorp 11.3 93% 172,000 $981 Brucejack Pretium 10.5 97% 329,000 $656
Historic Past Production at Idaho-Maryland Mine***
Mine Avg Mill Head Grade (gpt) Mill Recovery Peak Annual Production (oz/year) Year Idaho 28.4 97% 70,000 1937 Brunswick 9.3 94% 78,000 1940 I-M Combined 17.1 96% 129,000 1940
Major High Grade Gold Projects
S I G N I F I C A N T G O L D P R O D U C E R S B Y G R A D E I N T H E W O R L D T O D A Y
HISTORY
ONE OF USA’s GREATEST PAST PRODUCING GOLD MINES
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I-M was NOT “Mined Out”
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I-M Mine was forced to shut down
- Forced closure in 1942 by US Government during WWII
- I-M was the second largest lode gold mine in the entire USA in 1940
- I-M completed a major capital expansion to double production just before shutdown
Forced shutdown devastated the I-M and American gold mining
- I-M lost access to its highest grade reserves in the Idaho Mine due to lack of maintenance
- CEO had a stroke during the war and was incapacitated
- Fixed gold price at $35 and high cost inflation after WWII. Gold prices at historic lows until 1971
I-M under option for last three decades
- Emgold and predecessors controlled the I-M from ~1985-2013
- Emgold didn’t drill a single hole beneath the mine workings during this time
- Emgold’s largest shareholder (20%), RAB Capital, imploded after 2008 financial crisis
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*http://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
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Idaho-Maryland History
1971 “Nixon Shock” US dollar removed from gold fix of $35/oz. 1980 2011 1934 US government raises the price of gold from $20/oz to $35/oz. 1940 Idaho Maryland Mine produces 129,000 oz gold per year. USA’s 2nd largest lode gold mine 1942 US government orders all its gold mines closed 1954 I-M Mine shuts down due to low gold price 1920 2001 2008
Inflation adjusted price of gold $US/oz*
EMGOLD – 1985-2013 1946 I-M mine back into commercial production
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- Brilliant mine engineer Errol MacBoyle takes control of a consolidated Idaho-Maryland Mine as
Presidentand General Manager.
- The Idaho Mine is considered mined out but MacBoyle recognizes the huge opportunity of the
property.
- MacBoyle discovers the #3 vein in 1929 which is the catalyst for the huge growth in gold production
- ver the coming years.
- Gold discovered on property in 1861.
- 935,000 oz gold produced from #1 Vein at an average head grade of 1.12oz/ton (39gpt).*
- In 1934 the US government raises prices of gold from$20/oz to $35/oz.
- MacBoyle acquires Brunswick Mine and makes numerous new discoveries.
- From 1936-1941 the mineproduced from95,000-129,000 oz of gold per year.*
- Idaho-Maryland Mine is now the 2nd largest gold producer in theUnited States.
Early days | 1866-1901 Path to Glory | 1926-1934 Rising Star | 1936-1941
History of I-M A great mine shut down just when it was achieving its full potential
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*Details of historic production disclosure in Rise press release dated April 4th 2017 and available at www.sedar.com
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- Errol MacBoyle suffers a paralytic stroke in 1943 which leaves him invalid and leads to his death in 1949.
- Most of the Idaho Minebecomes inaccessibledue to lack of maintenance.
- Idaho workforce and staff disbanded. Infighting between board of directors.
- In December 1941 the USA joins WorldWar II.
- In 1942 Macboyle completed an expansion to the New Brunswick shaft headframe, hoist, and crusher
to expandproduction to 2,000 tons/day and to deepen theshaft to a depth of 5,000ft.
- In 1942 the US government orders all gold mines in the USA, including Idaho-Maryland, to shut down.
- In 1944 the mine is restarted at limited capacity and withoutits Leader.
- The company has lost its crews and capital and resorts to using lease miners to mine any easily
assessable mineralization.
- Massive inflation after the war and the fixed price of gold at $35/oz leads to almost all gold mines
becoming unprofitable.
The Leader Falls | 1943-1949 Half Hearted Restart | 1945-1955 Wartime Forced Shutdown | 1942-1946
History of I-M A great mine shut down just when it was achieving its full potential
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I-M was in an Elite Group of Gold Mines
T O P 5 L O D E G O L D M I N E S I N U N I T E D S T A T E S – 1 9 4 0 *
Rank Mine Location History & Status 1 Homestake South Dakota Shut down in 2002 with total production of 44M oz gold. One of the largest gold producers in the United States history. 2 Idaho Maryland Grass Valley Production ceased in 1954 with total production of 2.4M oz gold. No activity since. Owned by Rise Gold Corp. 3 Alaska Juneau Alaska Shut down in 1944 with total production of 3.5M oz gold. Echo Bay Mines acquired in 1986 and defined mineral resources of 4.5M oz gold. 4 Empire Star Grass Valley Production ceased in 1956 with total production of 5.9M oz gold produced. No activity since. Currently owned by Newmont. 5 Getchell Nevada Shutdown in 1951. Restarted in 1989. Currently in production by Barrick. Turquoise Ridge producing 320,000 oz gold per year with reserve of 7.8M oz.
*USGS Mineral Yearbook. 1940. Excludes base metal mines & placer mines
EXPLORATION TARGETS
2018 DRILLING FROM SURFACE
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Priority Exploration Targets Surface Drill Program
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IDAHO #1 – AREA OF KNOWN HIGH GRADE MINERALIZATION
- Directly below Idaho #1 Vein which produced 935,000 oz gold*
- Directly below I2400 level with two faces abandoned in full faces of mineralization
- Directly below channel samples which assayed up to 481 gpt / 1.2 m, 142 gpt / 2.5 m, 21 gpt / 4.5 m
- Adjacent diabase mineralization with historic drill intercepts up to 3.7 gpt / 12 m
CRACKLE ZONE – EXTENSIVE GOLD STOCKWORK ZONE
- Extensively mineralized “52 Vein” zone drilled through enroute to #1 Vein Target
- Historic drill intercepts in area assayed up to 16 gpt gold over 9 meters
- Massive adjacent mineralized stockworks to be tested
BRUNSWICK MINE – MINING HALTED AT B1600 LEVEL
- Brunswick Veins produced 793,000 oz gold at an average mill head grade of 9 gpt gold*
- Extensive mining of numerous Brunswick veins on and above the B1600 level (~500 m below surface)
- 12 gpt gold over 7.8 m true width in B1 Vein Set intersected by drill-hole B-17-01 (2017)**
*Details of historic exploration results is disclosed in Technical Report dated June 1st 2017 and available at www.sedar.com **Drill results reported in News Release dated Jan 3rd 2018
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IDAHO #1 VEIN 935,000 oz gold produced 39 gpt gold head grade BRUNSWICK VEINS 793,000 oz gold produced 9 gpt gold head grade 3 VEIN SYSTEM 686,000 oz gold produced 20 gpt gold head grade *Details of historic production disclosure in Rise press release dated April 4th 2017 and available at www.sedar.com
Drill Targets Plan View showing Major Gold Veins
CRACKLE/52 VEIN Large scale gold stockwork discovered on last mining level in final years of
- peration
BRUNSWICK #1 VEIN Recent DrillholeB17-01 12 gpt Au / 12 m (true width) Including 63 gpt Au / 1.4 m (true width) NEW BRUNWICK SHAFT Vertical shaft to B3280 level. ~1,000m depth
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PLANVIEW
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Idaho #1 Vein
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- Dr. Carlton Hulin – Professor UC Berkeley - 1951
“The Idaho No. 1 vein, which contained the great bonanza ore body mined in early days, has been extensively developed above the 2000 level. Below the 2000 level this vein has been barely touched down to the 2400 level on the west and down to the 2700 level on the east. Thus this great vein, great in terms of its past production amounting to tens of millions of dollars in gold, remains completely virgin and unexploredbelow the 2000 level through a length which at the 2400 level elevation amounts to 1675 ft (510 m).”
Source: Hulin, Carlton D. (1951). “Geology and Ore Occurrences of the Idaho Maryland Mine, Nevada County, CA.”
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G R E A T C O N T I N O U S B O N A N Z A G O L D V E I N Internal shaft to I2400L completed in 1941 Shutdown in 1942 Access to area lost after WWII Drifting from East side after WWII. Shutdown in 1954 935,000 oz gold at 39 gpt headgrade mined above I2400 level Mineralized dike adjacent to bonanza gold quartz veins PLANVIEW I2400L No exploration below I2400 level
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Post-War 52 Vein Discovery
N E W D I S C O V E R I E S I N T H E F I N A L Y E A R S O F T H E I - M M I N E
GRASS VALLEY, May 20 (Exclusive) – White quartz glistening with free gold is being mined from the ore body discovered about three weeks ago on the 2700-foot level of the Idaho mine. Albert Crase, president and general manager of Idaho-Maryland Mines Corp., reported leasers have taken out $50,000 in specimen
- re from one of the six parallel veins found in the zone, piling the high-grade in powder boxes as it is mined. Prospects are said
excellent for production of some of the richest ore ever found in the Grass Valley area. In Virgin Area The discovery was made in a zone between the 2300-foot workings of the Idaho and 3200-foot Brunswick mine level, in a virgin area
- pened by the wide raise or inside shaft completed about a year ago. A crosscut from the deep Brunswick level is being driven into
the Idaho to contact the downward extension of the ore body and explore extensions of numerous intervening ledges. Crase expressed the belief that gold production from the new area will equal that of the 1928 discovery which made Idaho- Maryland Mines the second largest American gold producer. Specimen ore is showing in the new winze going down through the ore body from Idaho workings to the Brunswick 3200-foot level, and sufficient tonnage has already been blocked out to assure a long period of steady production.
Source: May 21, 1951. New Grass Valley Gold Find Shows Vast Promise. LosAngelesTimes. Pg. 8.
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Crackle Zone / 52 Vein area
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N E W L Y D I S C O V E R Y A R E A J U S T B E F O R E F I N A L S H U T D O W N Historic drillhole 16 gpt gold over 9 m Never followed up Historic drillhole 5 gpt gold over 13 m Never followed up 52 Vein system Multiple parallel veins and stockworks over 430 m strike length. Discovered after WWII in final years of mine PLANVIEW I2700L
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Brunswick #1 Vein
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S I G N I F I C A N T G O L D I N T E R C E P T I N F I R S T D R I L L H O L E RISE Drillhole B-17-01 12 gpt over 7.8 m True width PLANVIEW Planned drillholes
“1600L-601D has gone through the ore shoot after developing 600 feet of continuous ore.”
- February 1941 (IMM Monthly Geology Report)
“2300L-1D has been the best showing of ore
- n the 2300 level. Nearly all of the 484 feet
from the crosscut has contained narrow ore of good grade. The present face shows 23 inches
- f quartz and visible free gold.”
- April 1941 (IMM Monthly Geology Report)
Rise Gold’s first drill hole under the Brunswick Mine.
- 1. Significant gold values in walls
- f the quartz veins.
- 2. Wide intercept of multiple
veins and wall rock mineralization
CORPORATE SUMMARY
BUILDING SHAREHOLDER WEALTH
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Rise Gold Corp Management Team
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Alan Edwards Chairman of the Board of Directors Executive and Mining Engineer with over 35 years of experience. Experience includes: Senior Vice Present Operations for Freeport Indonesia responsible for the leadership of a workforce of over 6,000 employees, V.P. Operations for Kinross Gold, Chairman of Aurico Gold culminating in US$1.5 billion merger with Alamos Gold. Benjamin Mossman President, Director and CEO An accomplished leader and highly skilled engineer. Experience at eight producing underground mines with production rates ranging from 250 tpd to 3,000 tpd. Explored, permitted, financed, constructed, and operated profitable gold mine as CEO of Banks Island Gold. Thomas Vehrs Director A highly regarded and experienced Geologist with over 40 years of experience in the Americas. Recently retired as Vice President Exploration for Fortuna Silver Mines. Mr. Vehrs has managed numerous exploration programs resulting in the discovery and delineation of major copper, gold, and silver deposits. John Anderson Director An experienced financier with over 15 years of experience in the capital markets. Throughout his career, Mr. Anderson has raised in excess of $500 million in equity for a number of private and public companies in the United States, Canada, and Europe. Cale Thomas Director & CFO
- Mr. Thomas holds a Master of Business Administration degree and was formerly the Chief Financial Officer and director of Eagle Hill Exploration.
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Rise Gold Corp Financial Snapshot – March 19th 2018
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RISE SHARE STRUCTURE
Shares Issued & Outstanding 80,752,000 OPTIONS (Avg Price CDN$0.24=$1.4M) 5,729,000 WARRANTS $0.23 expires Jul 13/18 $0.3M 1,500,000 $0.40 Expires Dec 23/18-Feb 6/19 $10.0M 24,900,000 $0.40 Expires May 5/19 $3.9M 9,863,000 $0.25 Expires Sep 25/19 – Dec 27/19 $3.5M 13,870,000 TOTAL WARRANTS (Avg price = $0.35) $17.7M 50,133,000 Fully Diluted 136,614,000
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RISE TRADING
Average daily volume CSE (12 months) 214,000 Average daily volume OTC (12 months) 83,000 Average daily volume (12 months) 297,000 52 trading range $0.33-$0.09 52 week VWAP $0.18 Recent Share Price (Mar 7th) $0.14 Recent Market Capitalization ($CDN) $11,300,000 Cash & Receivables ($CDN) ~$100,000 Debt $0
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Major Past Producer – 2,414,000 oz of gold historical production High Grade – Average past production mill head grade of 17 gpt Continuity – Proven over a century of historical mining Prolific – Epic history of major discoveries Secure – 100% private mineral ownership Advanced targets with known mineralization
A New Era for Idaho-Maryland
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End of Presentation
www.risegoldcorp.com
INVESTOR PRESENTATION – MAR 2018 | CSE: RISE | OTC: RYES
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