rcu investor presentation q1 2017
TRANSCRIPT
TSX.V: RCUTSX.V: RCU
Canadian High Grade Deposits in Manitoba
ONE OF THE HIGHEST GRADE BASE AND PRECIOUS METAL DEPOSIT PORTFOLIOS IN NORTH AMERICA
COPPER | GOLD | ZINC
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Hudbay’s World Class Lalor VMS Mine, Snow Lake, Manitoba
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This Presentation includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements thatdescribe Rockcliff Copper Corporation’s future plans, objectives or goals, including words to the effect that Rockcliff Copper Corporation or management expects a statedcondition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or“plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks anduncertainties. Although these statements are based on information currently available to Rockcliff Copper Corporation, Rockcliff Copper Corporation provides no assurancethat actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results,performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in thisPresentation includes, but is not limited to, Rockcliff Copper Corporation’s objectives, goals or future plans, statements, exploration results, potential mineralization, theestimation of mineral resources, exploration and mine development plans, successful exploration results, successful categorization of mineral resources into mineral reserves,successful development of a feasibility study, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differmaterially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves,the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtainrequired governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples ifpotential issues arise, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates,fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in themineral exploration and development industry, and those risks set out in Rockcliff Copper Corp.’s public documents filed on SEDAR. Although Rockcliff Copper Corporationbelieves that the assumptions and factors used in preparing the forward-looking information in this Presentation are reasonable, undue reliance should not be placed on suchinformation, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. RockcliffCopper Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events orotherwise, other than as required by law.
Cautionary Note to Investors Concerning Estimates of Historical, Inferred and Indicated Resources
This presentation uses the terms Historical, Inferred and Indicated Resources. Investors (Canadian and U.S.) are advised that while such terms are recognized and requiredby Canadian regulations, the Securities and Exchange Commission does not recognize them. Historical and Inferred Resources have a great amount of uncertainty as to theirexistence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an historical or Inferred Resource will ever be upgradedto a higher category. Under Canadian rules, estimates of Historical and Inferred Resources may not form the basis of feasibility or other economic studies. Both U.S. andCanadian investors are cautioned not to assume that all or any part of Historical, Inferred or Indicated Resources will ever be converted into Reserves and will becomeupgraded into an economically or legally mineable deposit. Neither Rockcliff Copper Corporation nor its Qualified Persons have done sufficient work to classify the historicestimates in this presentation as current mineral resources under current mineral resource or mineral reserve terminology and are not treating the historic estimates as currentmineral resources. The resources in this presentation should not be relied upon.
Ken Lapierre P.Geo., President and CEO of Rockcliff Copper Corporation, a Qualified Person in accordance with Canadian regulatory requirements as set out inNI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this presentation.
DISCLAIMER
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OVERVIEW
Rockcliff over the last 10 years has consolidated a significant land position controlling the highest grade unmined copper deposits, the highest grade unmined zinc deposits and the highest grade former gold mine in the Snow Lake mining camp, Manitoba.
Rockcliff controls 8 VMS deposits totalling over 9.0Mt of high grade copper, gold, zinc and silver in Manitoba including a royalty on one of the VMS deposits slated for production in 2018-19.
Rockcliff has spent over CDN$25M in the last 10 years and completed ~75,000 m in drilling. Pictured above: Infrastructure at the Laguna Gold Mine, circa 1930s.
Production from Laguna vein of 60,000 ounces of gold from ~100,000 tonnes
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EXPLORERS DISCOVERERS MINEFINDERS FINANCIERS
MANAGMENT DIRECTORS
Ken Lapierre, P.GeoPresident & CEO, VP Exploration+30 years of exploration, discovery, mining and finance in North America, notably in the Flin Flon-Snow Lake greenstone belt
Gerald McCarvillChairman-Co-founder of Consolidated Thompson Iron Ore (sold to Cliffs for C$4.9B)
Daniel Crandall, CFO+10 years Senior Manager experience as CFO, accounting, regulatory compliance and advisory services to numerous issuers on the TSX, TSX-V, and US exchanges
Ken Lapierre
Bill Johnstone, Corporate Secretary+30 years experience in Canadian securities and corporate law, partner at Gardiner Roberts LLP since 2005
Bruce Durham, P.Geo-Hemlo Gold Mine co–discoverer-President & CEO of Nevada Zinc Corp
Edmund King-Ex-Chairman & CEO of CIBC World Markets
Don ChristieEx-CFO of Continental Gold, President & CEO of Norvista Capital (merchant bank)
Bill Johnstone
MANAGEMNET & DIRECTORS
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TSXV-RCUManagement/Insiders 25% Market Capitalization ~$13.6M
Retail 60% Cash ~$1.2M
Institutional 10% No Debt
Kinross 5%
52 Week High/Low $0.16/$0.02
Company Market Capitalization
2014: ~$0.5M
2015: ~$1.5M
2016: ~$15.0M
Shares Outstanding 136,217,784
Fully Diluted 167,419,934
Options 8,741,000 ($0.05-$0.75)
Warrants 22,461,150 ($0.055-$0.11)
CAPITAL STRUCTURE
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LOCATION: Manitoba, Canada
• Manitoba ranked #2 in the world (2017 Fraser Institute study) for exploration, mining and investment
• Flin Flon-Snow Lake (FFSL) greenstone belt is a high grade Volcanogenic Massive Sulphide (VMS: copper, zinc, gold silver) and high grade precious metals (gold) mining camp
• FFSL mining camp boasts: 100 years of mining Thirty high grade VMS mines, Five gold mines Nineteen of thirty VMS mines began initial
production with under 2.0Mt Average mine grows 2.5 times from the initial
production to mine closure
• LOM growth and high grade metal tenor are common traits in FFSL mining camp
• Global deficits in copper and zinc forecasted for the foreseeable future
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25km
0
Snow Lake Mining Camp: +50Mt of high grade copper, zinc, gold and silver
emerging mining camp
*Please refer to the cautionary information on current resource and historical estimates for all
deposits in the appendix of the presentation. Historical resources cannot be relied upon.
LOCATION: Snow Lake Project, Manitoba
• Project near Hudbay’s operating high grade Lalor VMS mine (+30Mt) and two mills (base metal and gold)
• Control the highest grade unmined copper rich and zinc rich deposits in FFSL mining camp (up to +5% Cueq and up to +20% Zneq)
• Control the highest grade former gold producer in Manitoba (production of 60,000 ounces in the 1930s)
• High grade base and precious metal deposits are rare and will be in demand
• Excellent BLUE SKY for resource advancement
Penex
Rockcliff’s Snow Lake Project:
• 8 unmined high grade VMS deposits• royalty stream slated in 2018-19• 1 former high grade gold mine• additional high grade properties
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*Mineral and historical resources are not mineral reserves and have not demonstrated economic viability and should not be relied upon. The estimate of mineral and historical resources may also be materially effected byother relevant factors or issues. There has been insufficient exploration to define these resources as reserves and further exploration may not upgrade any of the individual deposits to a reserve. The resources above are anaggregate of resources controlled by the Company from seven deposits(Talbot, Tower, Rail, Bur, Morgan, Lon, MacBride) in central Manitoba where the Company’s interests range from 100% (Rail, Lon, MacBride, Morgan,Penex), a net smelter return royalty(Tower), to earning an interest up to 65% interest in Talbot and up to a 100% interest in Bur). The Talbot, Tower and Rail deposits are NI43-101 Compliant and the Bur, MacBride, Morganand Lon deposits are historical. Please refer to the specific deposit resources in the appendix of this presentation. Copper and Zinc equivalent grades were estimated for historical resources using US$2.35 copper, US$1300
gold, US$1.15 zinc and US$20 silver for the Bur deposit and US$2.50 copper, US$1300 gold, US$1.15 zinc and US$20 silver for the Lon, Morgan and MacBride deposits.
Rockcliff's NI43-101 Compliant Indicated and Inferred Resources and Historical Resources*
Category* TONNES COPPER-% GOLD-g/t ZINC-% SILVER-/g/tCueq(%) Zneq(%)
Indicated 1,906,186 3.4 0.6 1.0 13.9 4.2 12.4Inferred 3,421,822 2.5 1.6 1.8 38.0 4.4 12.8
Historical 3,694,046 1.0 0.4 8.8 7.7 5.5 11.9
Contained MetalTONNES Copper (lbs) Gold (oz) Zinc(lbs) Silver(oz)
IndicatedInferred
Historical
1,906,1863,421,8223,694,038
142,802,705189,116,849
83,325,313
39,414179,400
44,754
42,601,79132,800,29
718,980,091
848,8124,181,103
914,308
ROCKCLIFF’S RESOURCE ESTIMATE in Manitoba*
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Completed NI 43-101 Inferred Resource at Talbot property: ~2.2Mt @ 5.5% Cueq
Raised CDN$2.0M non flow through funds (August 2016)
Completed Phase 2 drill program at Talbot
Consolidated the highest grade unmined zinc deposits and the highest grade former gold mine in Manitoba:• Bur Zinc deposit: 1.35Mt @ 12.8% Zneq• MacBride Zinc deposit: 1.82Mt @ 9.7% Zneq• Morgan Zinc deposit: 0.27Mt @ 20.1% Zneq• Penex Zinc deposit (down plunge below 300m vertical)• Laguna Gold Mine: produced 60,000 ounces of gold @
~0.6 opt (recoveries of between 30%-60% reported) with initial Rockcliff prospecting returning values up to 20 opt gold with mineralized widths up to 5 m. Potential long lived, extensive gold environment present-6km long by 200 m wide
ACCOMPLISHMENTS: Last 12 months
Pictured above: World class Laguna gold specimen on permanent display
at Royal Ontario Museum in Toronto Canada
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2. Laguna Gold: 5,000 m of drilling
3. Bur Zinc: 5,000 m of drilling
emerging mining camp
1. Talbot Copper: Complete NI43-101 Resource Estimate
Penex
ROCKCLIFF EXPLORATION PRIORITIES FOR 2017
Snow Lake Mining Camp: +50Mt of high grade copper, zinc, gold and silver
0 25km
*Please refer to the cautionary information on current resource and historical estimates for all deposits in the
appendix of the presentation. Historical resources cannot be relied upon.
Rockcliff’s Snow Lake Project:
• 8 unmined high grade VMS deposits• royalty stream slated in 2018-19• 1 former high grade gold mine• additional high grade properties
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*Please refer to the cautionary information on the current resource for the Talbot deposit in the appendix of this
presentation
2017 drill program accomplishments:
• Expanded north lens of deposit
• Identified thick high grade copper mineralization within main lens
• Discovered new deeper conductive plates for drilling
Talbot Deposit Target: +5.0Mt @
+5% Cueq
1. TALBOT COPPER DEPOSIT
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Talbot Deposit Main Lens Significant Intervals and Grades
Cross Section Average Width : +10mCross Section Average Cueq Grade: 6.0%
WIDTH(m)
Copper (%)
Gold (g/t)
Zinc(%)
Silver (g/t)
Cueq
14.1 2.4 1.1 3.5 36.0 5.2%
6.3 2.7 1.1 3.5 41.7 5.6%
9.3 6.1 8.4 5.0 112.1 16.0%
13.8 2.6 1.6 1.5 30.9 4.8%
18.4 1.7 1.1 1.7 25.1 3.9%
16.1 0.9 2.7 0.7 15.2 3.5%
24.6 5.4 4.6 1.5 77.5 10.5%
5.6 2.6 2.9 1.7 23.0 5.9%
7.3 2.1 1.1 0.4 22.5 3.7%
1. TALBOT COPPER DEPOSIT: Continuous, Thick, Predictable
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Rich History:
• Laguna Gold Mine –world class gold mine grades(~18.7g/t)
• Mine Infrastructure - 381 m - 3 compartment vertical shaft, 3.0 km of underground workings
• Multiple shafts - 5 exploration shafts on property
• Strategic Location - 20 km from a 2,150 tpd gold mill
Initial Prospecting Program:
gold mine trend of 6km long x 200 m wide
Individual surface assays of up to 20 opt*
multiple quartz rich gold zones within gold mine trend up to 5 metres wide grading up to 7.5g/t gold*
Laguna Gold Specimen on Display at the Royal
Ontario Museum
Laguna Gold Target +3.0Mt @ +10 g/t Gold
Highest Grade Former Gold Mine in Manitoba
2. LAGUNA GOLD PROPERTY
*Grab samples may not be representative of the overall grade of the gold mineralization
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Map #1
Map #2a, 2b
Laguna Gold Mine Trend+6 km long by 200 m wide hosting 7 known quartz vein systems
Drilling Planned for summer of 2017
Laguna Gold Mine Trend
last drilled in 1944
2. LAGUNA GOLD PROPERTY
0km
1
Former Laguna Gold Mine• +100,000t @ 18.7g/t Au• +60,000 recovered ounces• recoveries between 30-60%
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surface
*Please refer to the cautionary information on current resource estimates on slide 8 for the Bur Deposit
surface
Scale 1:2500
• Advanced Property
• Deposit open in all directions
• Located 22 km from HBM copper-zinc concentrator
• 2017 drilling planned
openopen
open
open
*Please refer to the cautionary information on current resource for the Bur deposit estimates in the appendix of this presentation
Bur Zinc Deposit 1,352,000 t @ 12.8% Zneq*
Bur Zinc Deposit Target: +5Mt @
+12% Zneq
3. BUR ZINC DEPOSIT
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Complete Talbot phase 2 drilling
Deliver Talbot NI43-101 Mineral Resource estimate(Q4-2017)
Complete Laguna Gold geophysics (Q2-2017)
Complete 5,000 m of drilling at Laguna Gold property (Q3-2017)
Complete 5,000 m of drilling at Bur Zinc property (Q4-2017)
2017 PLAN & UPCOMING CATALYSTS
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KEY TAKEAWAYS
Rockcliff’s Manitoba portfolio includes 8 unmined VMS deposits with growth potential and one former underexplored high grade gold mine • Consolidation of the highest grade unmined deposits in one camp establishes Company as a major
player in the Flin Flon-Snow Lake greenstone belt
Experienced focused management with skin in the game and leadership skills in place to continue to build value • Team has made world class discoveries in Canada and abroad, developed mining operations,
collectively raised significant funds for property advancement, with large M&A transaction experience
Up to 10,000 metres of drilling planned for the balance of 2017• Significant exploration upside with deposits open for expansion and discoveries yet to be made on
+450 km2 property package
High grade base metal and precious metal property portfolio in a world class prolific mining belt• 100 years of mining for base and precious metals, excellent infrastructure including multiple
milling operations nearby
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Ken Lapierre P.Geo. President & CEOEmail: [email protected]
Mobile: 647 678 3879
Office: 416 644 1752
Cathy HumeCEO, CHF Capital MarketsEmail: [email protected]
Office: 416 868 1079 x231
CONTACT INFORMATION
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*The Talbot report completed by RPA dated January 26, 2016 and press released February 3, 2016. CIM definitions were followed, 2.0% copper cut-off was used with US$3.50
copper, US$1450 gold, US$1.25 zinc and US$22 silver. Metal recovery for copper was 95%, gold at 70%, zinc at 85% and Silver at 65%. Mineral Resources are not Mineral
Reserves and do not have demonstrated economic value. **The Rail Deposit report completed by SRK Consulting dated December 19, 2012 and press released December 21,
2010. CIM definitions were followed, 2.0% copper cut-off was used with US$3.00 per pound and a metal recovery of 80% without considering revenues from other metals. Mineral
Resources are not Mineral Reserves and do not demonstrate economic viability. ***The Tower (T-1) deposit report completed by CCIC Inc. dated January 20, 2013 and press
released December 6, 2012. CIM definitions were followed, 0.5% copper cut-off was used using US$3.63 per pound. Mineral Resources are not Mineral Reserves and do not have
demonstrated economic value.****The Lon, Bur, Morgan and MacBride deposits are historical deposits. The reader may refer to the Lon deposit press released October 31, 2007
and the Bur deposit press released September 29, 2016 and the Morgan deposit press released November 22, 2016 and the MacBride deposit press released December 1, 2016.
An internal report was completed by Granges Inc. in 1993 for the Lon deposit, Manitoba Government reports in the 1990s for the Morgan deposit and an internal report by Knobby
Lake Mines in 1977 for the MacBride deposit, however not all of the parameters used, assumptions made and methods used to prepare the historic estimates are known at this
time. A public report was completed by Hudbay in 2007 and filed on SEDAR for the Bur deposit. Its parameters are known. Additional drilling would be required to upgrade all
historical resources to a current Mineral Resource as the historic information does not satisfy the requirements set out by NI 43-101. Neither Rockcliff Copper nor its Qualified
Persons have done sufficient work to classify the historic estimates as current Mineral Resources and are not treating the historical estimates as a current Mineral Resource. The
reader is cautioned that the Lon, Bur, Morgan and MacBride historical resources should not be relied upon as they do not satisfy current Mineral Resource or Mineral Reserve
terminology. *****Copper and Zinc equivalent grades were estimated for historical resources using US$2.35 copper, US$1300 gold, US$1.15 zinc and US$20 silver for the Bur
deposit and US$2.50 copper, US$1300 gold, US$1.15 zinc and US$20 silver for the Lon, Morgan and MacBride deposits.
Rockcliff's NI 43-101 Compliant Resources – CIM Standards Used
DEPOSIT TONNES COPPER-% GOLD-g/t ZINC-% SILVER-/g/tCopper Equivalent(%)
(*****)
TALBOT-Inferred Total* (earning up to 65%) 2,168,300 2.8 2.4 2.2 54.6 5.5%
Rail-Indicated** (100%) 822,000 3.0 0.7 0.9 9.3 3.9%
Tower (T-1)-Indicated***(interest or royalty)
Tower (T-1)-Inferred*** (interest or royalty)
1,084,186
1,253,522
3.7
2.0
0.6
0.3
1.1
1.0
17.3
9.3
4.5%
2.5%
Rockcliff’s Historical Resources**** Zinc Equivalent(%)
(*****)
Morgan(100%)
Lon (100%)
Bur(earning up to 100%)
MacBride(100%)
272,000
250,000
1,352,000
1,820,055
N/A
3.2
1.8
0.3
3.4
0.6
0.1
0.1
15.0
5.2
8.7
8.8
N/A
18.8
11.5
4.5
20.1%
13.6%
12.8%
9.7%
APPENDIX: ROCKCLIFF’S MANITOBA RESOURCE BREAKDOWN
AND OTHER PROPERTIES OF INTEREST
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25km
0 emerging mining camp
*Please refer to the cautionary information on current resource and historical estimates for all
deposits in the appendix of the presentation. Historical resources cannot be relied upon.
Penex
APPENDIXRail, MacBride and Penex Properties
Snow Lake Mining Camp: +50Mt of high grade copper, zinc, gold and silver
Rockcliff’s Snow Lake Project:
• 8 unmined high grade VMS deposits• royalty stream slated in 2018-19• 1 former high grade gold mine• additional high grade properties
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• Sub-cropping Rail Deposit open in all directions
• 61 drill holes in +15,000 m completed
• 40 km west of 3,000tpd base metal mill
• Excellent Resource expansion potential
Rail Deposit 3D
Longitudinal Section
(looking north)
*Please refer to the cautionary information on current resource estimates and copper equivalent prices used
for the Rail Deposit in the appendix of this presentation
200m
400m
Rail Deposit 3D
Longitudinal Section
(looking north)
surface
Rail Deposit Target:+2.5Mt@ +4% Cueq
RAIL DEPOSIT:IND. 822,000 t @3.0% Cu,
0.7 g/t Au, 0.9% Zn, 9.3 g/t Ag(3.9% Cueq)*
APPENDIXRAIL DEPOSIT: High Grade Copper, 100% owned
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• Excellent potential for
resource expansion
and discovery
• Historic drilling below
deposit intersected high
grade copper: 2.1 m
grading 5.9% copper
(not in resource)
• DPEM anomaly below
deposit continues to
minimum 1,000 m
vertical: UNTESTED
deepest historic
hole: 2.1 m @
5.9% Cu
Planned Drilling
Deposit bore-
hole anomaly
FW
Anomaly
Rail Deposit 3D
Longitudinal Section (looking west)
surface
*Please refer to the cautionary information on current resource estimates and copper equivalent prices used
for the Rail Deposit in the appendix of this presentation
APPENDIXRAIL DEPOSIT: Excellent Growth Potential
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surface
MacBride Zinc Longitudinal Section
MacBride Zinc DepositHistorical Cross Section
(looking north)
APPENDIXMacBride Zinc Deposit, 100% owned, Open-Pit Target: +10Mt @ 10% Zneq
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MacBride Zinc Deposit*: 1,820,055 tonnes @ 9.7% Zneq**Please refer to the cautionary information on historical resource estimates and prices used for zinc equivalent
grades in the appendix section of this presentation for the MacBride Zinc Deposit.
Magnetometer Survey Plan View EM Survey Plan View
APPENDIXMacBride Zinc Deposit: Excellent Growth Potential
MacBride
Deposit
MacBride
Deposit
Drill Target
Drill Target
Drill Target
Drill Target Drill Target
Drill Target
Drill Target
Drill Target
Drill Target
Drill Target
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Penex Zinc Property (100% owned, no royalties)
• 20km from Hudbay's 3,000tpd mill
• Surface deposit dips onto property at ~350 m vertical
• Geophysics identified strong untested conductive plate below known mineralization to at least 800 m vertical
APPENDIXPen Zinc Deposit, Snow Lake, 100% owned, no royalties