During the 3 days of October 24-26, 2013, Rambler Metals and Mining conducted an investor road show to present the company to financial professionals and professional investors in Toronto and Montreal. Here is one of those presentations, made by CEO George Ogilvie during a lunch held in Montreal on Friday, October 26.
1. CANADA’ S NEWEST COPPER AND GOLD PRODUCER
“BRINGING OUR VISION TO LIFE”
MINING MILLING MARKETS
INVESTOR ROADSHOW OCTOBER 2013
2. FORWARD LOOKING STATEMENT
Caution Regarding Forward Looking Statements:
Certain information included in this presentation, including information relating to future financial or operating performance and other
statements that express the expectations of management or estimates of future performance constitute “forward-looking statements”.
Such forward-looking statements include, without limitation, statements regarding copper, gold and silver forecasts for fiscal 2014
(including the information provided in any tables relating to production and concentrate forecasts for fiscal 2014), the financial strength of
the Company, estimates regarding timing of future development and production and statements concerning possible expansion
opportunities for the Company. Where the Company expresses or implies an expectation or belief as to future events or results, such
expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include,
without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of
such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery
and equipment at estimated prices, mineral recovery rates, and others. However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by
such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical
results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that
could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases
in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold;
costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to
successfully integrate acquired assets; operational risks inherent in mining or development activities and legislative factors relating to
prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue
reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are
expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the
date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any
forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except
as required under applicable law.
RMM’s qualified person, Mr. Larry Pilgrim, P. Geo., is responsible for verification and quality assurance of the exploration data and the
analytical results set forth in this presentation. RMM is in full compliance with all NI43-101 rules and regulations.
2
4. CORPORATE INFORMATION
4
Management
George Ogilvie, P. Eng. (CEO, Director), Norman Williams, CA, (CFO), Peter Mercer (VP Corporate Development), Tim
Sanford, P. Eng. (VP Technical Services) and Bob McGuire, P. Eng. (General Manager)
Board of Directors and Officers
Harry Dobson, John Thomson, Brian Hinchcliffe, Stanley Neamonitis, Leslie Goodman, Dalis Chan and Eason Chen
Market Facts (October 27, 2013 )
Shares Outstanding: 143,280,614
Options: 4,100,000
Fully Diluted: 147,380,614
Current Share Price: $ 0.45
52 Week Range: $ 0.31 - $0.65
Market Cap: $ 64 M
Cash at Bank: $ 5.5 M*
Debt: $ 4.75 M
(*Plus an Additional £2 M in Credit Facility)
5. MAJOR SHAREHOLDERS
5
Holder Shares Percent
1. Henderson Global Investors 24,427,575 17.05
2. Tinma International Limited 22,736,992 15.87
3. Legal and General Investment 17,575,000 12.27
4. Majedie Asset Management 9,043,597 6.31
5. Whitmill Trust Co Limited 8,838,000 6.17
6. Vestra Wealth LLP 5,827,698 4.07
7. Northern Trust Global Investments 5,415,000 3.78
8. SVM Asset Management Ltd. 4,360,000 3.04
Total Insiders 98 M 69%
Average Trading Volume on AIM – 290,671 shares
Average Trading Volume on TSX-V – 43,042 shares
as of Sept 2013
7. LOCATION
7
Paved Roads
Fresh Water
Electrical Grid
Community
Airports
Port
Permitted Mill
Permitted Tailings
150Km Proximity
Geo-Political
Socio-Economic
Tax Regime
Krissy’s
Buckle
Little Deer
Project
Ming Copper-Gold Mine
Nugget Pond Mill/Crown Pillar
Goodyear’s
Cove Port
Hammerdown Mine
& Orion Deposit
8. MAJOR ASSETS
8
Ming Copper-Gold Mine, Baie Verte, NL, Canada
The Ming Copper-Gold Mine is 100% owned by Rambler and was brought back into production in
December 2011. Initially producing Gold Doré before switching over to Copper Concentrate production
with Gold and Silver credits in the concentrate from May 2012.
Nugget Pond Mill, Snook’s Arm, NL, Canada
In 2009 the Company acquired 100% ownership of the 500 mtpd Nugget Pond Gold Hydrometallurgical
Mill for C$ 3.5M from Crew Gold. Prior to Crew Gold the Mill was owned by Richmont Mines. The
Company then invested C$15M in a new 1,000 mtpd copper flotation circuit giving the mill dual
functionality of producing a Gold Doré or Copper Concentrate. The plant has a permitted tailings pond
with a minimal 10 year life that could be significantly increased with raising of the two impoundment
dams. Replacement value of C$60M.
Goodyear’s Cove Port Facility, South Brook, NL, Canada
A permitted deep water port with all year round access giving Rambler access to the North American
and European shipping lanes. The port facility has a 15,000 wmt concentrate storage facility capable of
loading ships at a rate of 850 wmt per hour.
9. OTHER ASSETS
9
Krissy‘s Buckle Property, Baie Verte, NL, Canada
A greenfield 2,300 Hectare Gold property within 35Km of the Nugget Pond Processing Plant. The
greenfield property is 100% owned by Rambler and has anomalous Gold samples including 10.51 g/t
over 1.7 metres within 10 metres from surface
50% Interest in “The Little Deer Project” , Springdale, NL, Canada
Rambler recently entered into an agreement to purchase Cornerstones 50% interest in the project for
$550,000 consisting of $200,000 in cash and $350,000 in Rambler shares. The project consists of the
former producing Copper Mines of Little Deer and Whalesback that jointly have a historical resource of
2.7Mt grading 2.16% Copper (129 M lbs. Cu) in the indicated category and 4.2Mt grading 2.07% Copper
(191 M lbs. Cu) in the inferred category.
The Little Deer Project is located less than 140 kilometres from the Company’s Nugget Pond base and
precious metals processing facility and only 30 kilometres from the Goodyear’s Cove Port Facility. The
Mines closed in 1974 when the copper price was 50 cents per lb. Copper.
Minority 18% Equity Stake in Maritime Resources (Greenbay Properties, Springdale, NL, Canada)
Maritime owns the former producing Hammerdown Gold Mine situated within 150 kilometres of the
Nugget Pond Mill and 20 kilometres from the Goodyear’s Cove Port Facility. Formally owned by
Richmont Mines the Mine produced 143,000 oz. Gold over a 4 year period mining 291,400 tonnes at a
head grade of 15.8 g/t with a 97% Gold recovery through the Nugget Pond Mill. The Mine closed in
2004 when the gold price was $325/oz.
10. NI43-101 RESOURCE(AS OF AUGUST 2012)
10
Classification
Quantity Grade Contained Metal
(000't)
Copper
%
Gold
g/t
Silver
g/t
Zinc
%
Copper
tonnes
Gold
oz
Silver
oz
Zinc
tonnes
Measured and Indicated Resources
1807 Zone 401 3.83 1.79 7.21 0.72 15,358 23,077 92,955 2,887
Other Massive Sulphide Zones 1,673 1.80 2.06 8.58 0.44 30,035 110,999 461,230 7,280
Total Massive Sulphide Zones 2,074 2.19 2.01 8.31 0.49 45,393 134,077 554,185 10,168
Stringer Sulphides
LFZ + UFZ
18,291 1.43 0.09 1.35 0.01 261,561 52,926 793,893 1,829
Total Copper Resource 20,365 1.51 0.29 2.06 0.06 306,954 187,003 1,348,078 11,997
Total Gold Resource
(1806 Zone)
257 0.60 3.61 27.82 1.16 1,542 29,822 229,869 2,981
Copper cut-off grade of
1.0% for massive sulphide zone;
1.25% for the stringer zone
11. PHASE I PRODUCTION
11
Historically
Mined Area
1807 Zone
401 Kt @ 3.83% Cu & 1.79 g/t Au
1806 Zone
257 Kt @ 0.61% Cu & 3.61 g/t Au
South Zone (upper)
134 Kt @ 3.23% Cu & 1.12 g/t Au
South Zone (lower)
1,108 Kt @ 1.64% Cu & 2.24 g/t Au
North Zone
ShaftRamp
Open at Depth
Measured
Indicated
Inferred
All tonnes and grades are measured
and indicated combined
13. HEALTH & SAFETY
13
• 1 LTA in 7 Years of Continuous Operation
• 730 Days Since Last Lost Time Accident
• 123 Days Since Last Medical Aid
Dewatering
Construction
Production
Target
• Fiscal 2014 TIFR Target < 3
• Over 1,000,000 Manhours Worked
14. GOLD PRODUCTION – 1806 ZONE
14
• $25M in Revenue Sales
• Total Cash Cost per Oz $1,100
• Gold Recoveries in Excess of 92%
• Processed Ore at a Rate of 617 Wet Metric Tonnes per Day
18. GOLD PRODUCTION
18
• Fiscal 2013 Actual Gold Head Grade Averaged 1.30 g/t with 65% Recovery
• Fiscal 2014 Gold Head Grade Forecast at 1.48 g/t with 70% Recovery
• Fiscal 2014 Forecasting 6,000 to 9,000 oz. Gold
Includes Intermittent
Running of
Gold Mill
Re-Processed
Copper Tailings
Thru Hydromet
19. CONCENTRATE SHIPMENTS
19
1st Shipment
(Nov 2012)
2nd Shipment
(Feb 2013)
3rd Shipment
(May 2013)
4th Shipment
(est. 1st Oct 2013)
Est. Total
Wet Metric Tonnes 8,873 3,150 6,103 9,200 27,326
% Moisture 8.5% 8.5% 8.4% 8.5% 8.5%
Dry Metric Tonnes 8,119 2,882 5,591 8,418 25,010
Cu. Grade % 26.1% 28.6% 28.3% 28.5% 28.0
Ibs. Cu. Metal 4.83M lbs. 1.81M lbs. 3.49M lbs. 5.29M lbs. 15.42M lbs.
Gold Grade g/t 5.6 g/t 6.8 g/t 6.6 g/t 9.0 g/t 7.0 g/t
Silver Grade g/t 47 g/t 47 g/t 50 g/t 60 g/t 53 g/t
Revenue $20M $7M $13M $18M $58M
• 8,645 Wet Metric Tonnes on 23rd September 2013 in Storage at GYC
• 85,000 Wet Metric Tonnes Off-Take Agreement with Transamine Trading SA
• Rambler is Paid 90% of Provisional Value of Concentrates when in Warehouse
• Transamine allows Rambler to Hedge Concentrate in Storage if so Desired
• Clean Concentrate – No Deleterious Material
24. 24
NUGGET POND – 1,000 MTPD
• Newly Installed Copper Flotation Circuit Rated for 1,000 mtpd (Operating experience
predicts 1500 mtpd)
• Production Constrained by Pre-Rambler Crushing & Grinding Circuit i.e. 600 - 700 mtpd
• Mine Capable of Producing at 1,000 metric tpd by Trucking to Surface
• A New Crushing and Grinding Circuit would Improve Productivity
• 630 mtpd to 1,000 mtpd Increases Production by 59%
• Allows Two Mills, Copper and Gold to be Run in Parallel and Unison.
• Production of Copper Concentrate and Gold Doré Simultaneously Provides Second
Revenue Stream.
• Ming Mine (Copper), Ming Mine 1806 Zone (Gold), Krissy Buckle (Gold), Little Deer
(Copper)
25. 25
KRISSY’S BUCKLE (100% OWNERSHIP)
• 2,300 Hectare Land Package Sandwiched between 3
Former Producing Mines; East Mine, Main Mine & Big
Pond
• Numerous Untested Copper and Gold Anomalies with
Three Main Trends already Defined
• Krissy Trend – Priority Target 10.51 g/t gold over
1.75 m (including 31.9 g/t over 0.5 m)
• Brass Buckle Trend
• SB Trend
• Rambler to pay $90,000 over the first 4 years in advanced
Royalty Payments on a 2% NSR.
• Situated within 35 kilometres of the Nugget Pond Copper
and Gold Processing Facility
Visible Gold
26. 26
LITTLE DEER PROJECT (50% OWNERSHIP)
• Cyprus Type VMS Deposit
• Consists of the Little Deer and Whalesback Former Producing Copper Mines
• Previously operated by Brinex and Green Bay Mines
• 276 Mineral Claims in 4 Mineral Licenses over 65 Km2
• 96 Surface Diamond Drill Holes for 54,998m and Historical Information
• $8M Invested by Cornerstone and Thundermin in last 5 Years
• NI43-101:
• Little Deer – 1.9Mt @ 2.37% Cu (99.8 M lbs. Cu) Indicated Resource
- 3.7Mt @ 2.13% Cu (176 M lbs. Cu) Inferred Resource
• Whalesback – 0.8Mt @ 1.67% Cu (29.3 M lbs. Cu) Indicated Resource
- 0.4Mt @ 1.57% Cu (15.3 M lbs. Cu) Inferred Resource
• PEA (Little Deer Only):
• Pre-Tax NPV6 = $130M, Pre-Tax Net Cash Flow = $237M, Pre-Tax IRR = 26%, Total
Revenue $829M, Capital Cost $110M and Life of Mine 9.5 years
• Infrastructure – Roads, Power, Goodyear’s Cove Port, Fresh Water
27. 27
MARITIME RESOURCE (18% OWNERSHIP)
Hammerdown Mine
Former Producing UG Mine
Mined 2000 – 2004
Mined 291,400 @ 15.8g/t Gold
Processed at Nugget Pond
Recovery 97%
Recovered 143,000 oz. Gold
Closed 2004 Gold Price $325 oz.
NI43-101 Resource
M&I 727,500 T @ 11.59 g/t
providing 271,100 oz Gold
Inf. 1,767,000 T @ 7.68 g/t
providing 436,000 oz Gold
Orion Deposit
Newly Discovered
1.5 Km from Hammerdown
NI43-101 Resource
M&I 1,096,500 @ 4.47 g/t
providing 157,500 oz Gold
Inf. 1,288,000 @ 5.44 g/t
provinding 225,100 oz Gold
18.4% Minority Interest
Hammerdown Mine
& Orion Deposit
Goodyear’s Cove Port
Nugget Pond Mill/ Crown Pillar
Ming Copper-Gold Mine
28. 28
LOOKING FORWARD
• Pay Down Sprott Debt Facility (now standing at $4.75M)
• Project Work – 1,000 mtpd Optimization Plan
• Explore on the Ming Mine and Within the Immediate Area (e.g. Krissy’s Buckle)
• In-Fill Drilling on Little Deer to move Inferred Category Resource to Higher Level in
Preparation for more Detailed Engineering
• Exploration Results and Reserve / Resource Update
• Continue with Optimization Studies on the Lower Footwall Zone
29. 29
SUMMARY
• Producing Profitable Mine with Free Cash Flow
• Stable Low Risk Jurisdiction in Historical Mining District with Community Support
• Infrastructure in Place and Expandable
• Good Exploration Potential both On-Site and in the Immediate Area
• Dual Functioning Mill Capable of Processing Base Metals and Gold
• Credible Management Team bringing Mine to Production in Volatile Markets
• Organic Growth Opportunities i.e. Dual Functioning Mills Running Simultaneously, Lower
Footwall Zone
• Further M&A Activity in a Friendly Price Environment
30. 30
QUESTION #1:
How do yields here in Canada
compare to those in South Africa
based on your experience?