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Riverstone corporate presentation dec 12 2011


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Riverstone corporate presentation dec 12 2011

  1. 1. Corporate PresentationDECEMBER 2011
  2. 2. Forward-Looking Information This presentation may contain “forward-looking information” within the meaning of Canadian securities acts or “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development results will not be consistent with the Company’s expectations, accidents, equipment breakdowns, title matters and surface access, labour disputes, the potential for delays in exploration activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described under Risk Factors in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.2
  3. 3. Investment Highlights  Portfolio of 3 Exciting Gold Projects in Burkina Faso, West Africa  Karma Project • New NI 43-101 resource of 1.93 MM oz – An increase of 70% from the prior resource • +40,000 metres drilled since the last resource estimate • 5 drills currently under contract • Aggressive drill program of 90,000m in progress • Exciting new discovery at the Nami prospect • +800 km2 of underexplored ground  Received $17 million cash and 16 million shares from sale to Roxgold  Additional Projects • Ligidi, Bissa East • All located in prolific greenstone belts, with strong exploration drill results to date  Experienced, Proven Management & Technical Team  Attractive Valuation3
  4. 4. Capitalization Financial Snapshot 52 Week High / Low $1.09 / $0.43 Average Daily Trading Vol. (3 months) 364,966 Basic Shares Outstanding 105.0 Basic Market Capitalization $63.63 Options 12.0 Warrants 2.3 Total Fully Diluted Shares Outstanding 119.3 Fully Diluted Market Capitalization $72.29 Cash $15.0 Securities Held $22.2 Debt Nil4
  5. 5. Management TeamMichael D. McInnis, P.Eng  Director, Chairman and CEOMr. McInnis brings over 35 years of experience in mineral exploration in North America and overseas to the Company. He providessound management expertise with over 25 years of experience in managing public resource companies and has a demonstratedtrack record in acquiring and developing high quality mineral projects. He serves on the Boards of several other minerals companiesincluding Abacus Mining & Exploration Corp., Canasil Resources Inc. and Victoria Gold Corp. Mr. McInnis has primary managerialresponsibility for the Companys activities.Dwayne L. Melrose, P.Geo  Director, President and COOMr. Melrose has over 30 years experience in the mining industry, ranging from early stage exploration through to mine operations inboth open pit and underground mine operations. He spent twenty-one years with Cameco Corporation/Centerra Gold Inc. in Canada,the USA and Kazakhstan. Mr. Melrose was responsible for the exploration team and all programs at the Kumtor Gold Mine in theKyrgyz Republic where he was responsible for the discovery of the high grade SB Zone, which significantly increased the reservesand resources at the mine. The Kumtor Gold Mine is the sixteenth largest gold mine in the world. Mr. Melrose joined the MincoMining Group in 2007. As the VP of Exploration for Minco Silver Corporation, Mr. Melrose was directly responsible for defining theFuwan silver deposit (157 million ounces) and upgraded Minco Gold’s Changkeng gold deposit to +1 million ounces gold.Paul G. Anderson, P. Geo  Vice President, ExplorationMr. Anderson has over 25 years experience in the mineral exploration industry, including 12 years spent as a consultant to bothmajor and junior mining companies, working on projects in Canada, South America and East and West Africa. This included overthree years in a senior role with Channel Resources in Burkina Faso in the 1990s, as part of a team that discovered three golddeposits that are currently in production or under development. Mr. Anderson has primary responsibility for the operation of thecompanys exploration office in Burkina Faso, and for directing the companys exploration programs.Ryan E. Torvik, CA  Chief Financial OfficerMr. Torvik joined Riverstone in October 2011 as Chief Financial Officer and has 15 years of executive management, finance,operations, mergers and acquisitions and capital markets experience in a number of industries with extensive internationalexposure. Prior to joining Riverstone, Mr. Torvik held a similar position with one of the Lundin Group Companies primarily focused inthe Russian Federation and Commonwealth of Independent States. Mr. Torvik received his Chartered Accountant designation in2000 and holds a bachelor of commerce degree from the University of Saskatchewan.5
  6. 6. Burkina Faso: An Emerging West African Gold Producer Burkina Faso is under-explored and has excellent geology and recent significant gold discoveries  Democratic government  Population: 15.7 million  GDP: US$9.1 billion (2009)  Growth rate: 3.2% (2009)  Corporate tax rate: 25% (7-year tax holiday)  6 gold mines opened since 2007  Rated #3 for mining friendly  Hosts 22% of West Africa’s Birimian Greenstone Belts  Same highly prospective geology as Ghana, Mali, Guinea, and Senegal, but underexplored in comparison6
  7. 7. We Are In The Right Address 3.0 MM oz 5.2 MM oz 1.93 MM oz Karma • NI 43-101 Resource of 1.93 MM oz Au 3.29 MM oz 1.5 MM oz Ligidi • Drill ready, 15km long target 4.28 MM oz Bissa East • Drill ready • Adjacent to Bissa Hill deposit (1.5 MM oz) 3.5 MM oz 1.5 MM oz Sold to Roxgold Inc. • Yaramoko • Solna • Bissa West7
  8. 8. Karma: Flagship Asset Significant Unexplored Land Position• Located in north-central Burkina Faso, 100km NE of Ouagadougou (capital)• 814 km2 of underexplored ground• 5 permits hosting 4 gold deposits • Kao – 100% RVS • Rambo – 100% RVS (subject to 3% NSR) • Goulagou/Rounga/ Youba/Tougou – subject to an Option to Purchase 100% interest from Golden Star Resources8
  9. 9. Karma: Kao9
  10. 10. Karma: Kao • Mineralized area at Kao Main Zone ~ 800m x 400m • Open to north, east- northeast and at depth to east • Over 140 holes drilled to maximum depth of 85m • Part of ongoing 25,000m drill program (15,000m RC and 10,000m diamond) • To expand oxide resources to north and southwest, and to define sulphide resources at depth10
  11. 11. Karma: Kao Strong Upside Potential• Blue sky potential at depth and along strike• One hole drilled to 160m, with hole bottoming in 5.1g/t Au over 16m• Similar deposits in Burkina Faso drilled to 400m, only grading 1.0 g/t Au11
  12. 12. Karma: Goulagou12
  13. 13. Karma: Goulagou• Historically drilled – 51,000m• NI 43-101 Indicated resource of 421,200 and inferred resource of 261,300 oz (GGII); Inferred resource of 437,300 oz (GGI, GGII) TOTAL: 1,119,000 oz• Significant recent expansion of GGI by Riverstone – now 1.7km x 300m; open to the west and at depth• GGII > 2km long• New zone 200m south of GGI (15.2 g/t over 6m)• Ongoing RC drilling to expand the strike length of the mineralized zone13
  14. 14. Karma: Goulagou I14
  15. 15. Karma: Goulagou II15
  16. 16. Karma: Goulagou Potential at Depth16
  17. 17. Karma: Rambo High-grade Resource17
  18. 18. Karma: Rambo High-grade Resource• NI 43-101 Indicated resource of 80,300 at 3.48 g/t and Inferred resource of 21,300 oz at 1.41 g/t• Occurs along 350m long zone, open in all directions and for 170m down-dip• At least two new gold zones identified along strike• Located 4km south of the Nami discovery• Significant intercepts include: • 18.5m of 4.104 g/t Au in Hole 18 • 21m of 1.831 g/t Au, including 6m of 5.121 g/t Au in Hole 20 • 8m of 2.490 g/t Au and 2m of 6.455 g/t Au in Hole 21 • 3m of 9.075 g/t Au and 2m of 5.545 g/t Au in Hole 22 • 2m of 2.348 g/t Au in Hole 2418
  19. 19. Karma: Rambo Long Section19
  20. 20. Karma: Nami20
  21. 21. Karma: Nami• Site of artisanal mining• Drilling has established a new wide gold zone within a curvilinear shear zone• Zone is 125m wide and open to the south, west and at depth• Zone has been traced for 500m to date• Significant intercepts include: • RADD-10-40 – 1.92 g/t over 14m incl. 5.91 g/t over 4m • RADD-10-33 – 3.27 g/t over 20m incl. 6.5 g/t over 9m • RC-088 – 0.814 g/t over 22m incl. 1.503 g/t over 8m • RADD-10-28 – 5.87 g/t over 10m incl. 14.163 g/t over 4m21
  22. 22. Karma: Internal Conceptual Mine Plan• Potential for centralized gold processing facility to handle ore from all Karma deposits• Potential open-pit mining through truck-and-shovel operations• Potential heap-leach extraction• 2005 metallurgical test work by McClelland Laboratories – 85-95% recoveries at GGII• Dore would likely be poured on site and transported by road or air22
  23. 23. Karma: Favourable Early Infrastructure To Develop a Mine  Regional power grid development supported by the World Bank  Water will be piped to site  Flat topography  Readily accessible by unpaved road  Labour readily available  Strong community support for Riverstone  No environmental challenges identified to date23
  24. 24. 2011 Milestones to Create Value  Complete 90,000m drill program at Karma  Commence engineering/metallurgical studies at Karma  Update resource estimate by year-end  Completed sale to Roxgold Inc. • Received $17 million cash • Received 16 million shares • RVS owns approximately 18% of Roxgold Inc.24
  25. 25. Comparable Companies Trading at a Discount to West African Gold Exploration Peers $350 $300 $254 $250 $227 $200 EV/Resource $150 $123 Average: $108 $100 $86 $76 $63 $51 $47 $50 $40 $29 $0 Gryphon Ampella Azumah Oromin Keegan Aureus Orezone PMI Volta Riverstone Market Capitalization $511M $491M $158M $136M $570M $137M $255M $99M $260M $54M Enterprise Value $458M $455M $129M $118M $335M $86M $206M $66M $203M $51M 1 Total Resources 1.8Moz 2.0Moz 1.0Moz 1.4Moz 4.4Moz 1.4Moz 4.0Moz 1.4Moz 5.0Moz 1.7Moz As at 8/5/2011 Notes: All figures are stated in US$ Source: Scotia Capital (1) All resources take into account government ownership25
  26. 26. Summary  1.93 MM oz NI 43-101 gold resource  Significant potential for increased resources at Karma  Exciting new gold discoveries at Karma  Three attractive gold projects in Burkina Faso  Close of Sale of properties to Roxgold Inc. for approx $36 million  Compelling valuation relative to peers26
  27. 27. Riverstone Resources Inc. 1125 – 595 Howe Street Vancouver BC Canada V6C 2T5 Tel: 604 801 5020 www.riverstoneresources.com27