Rua Gold: Brown Field Exploration at Multiple Projects in New Zealand

Key Concepts

• Orogenic Gold Deposits: Gold deposits formed by hydrothermal processes in orogenic belts, often characterized by high-grade, nuggety gold.
• Gold Antimony Mineralization: A type of mineralization where gold is found associated with antimony. Antimony is a critical mineral with limited global supply, primarily controlled by China.
• Epithermal Deposits: Hydrothermal mineral deposits formed at relatively shallow depths and moderate temperatures, often associated with volcanic or geothermal activity.
• Fast-Track Permitting Process: A streamlined government process designed to expedite the approval of mining projects.
• Critical Minerals List: A government-compiled list of minerals deemed essential for economic and national security, often with supply chain vulnerabilities.
• UAV Magnetics: Magnetic surveys conducted using Unmanned Aerial Vehicles (drones) for geological exploration.
• CSMAT Magnetics: Controlled Source Audio-Magnetotellurics, a geophysical method used to map subsurface electrical resistivity, which can indicate mineralized zones.

Rua Gold Projects in New Zealand

Rua Gold, a Canadian company, is actively exploring and developing gold projects in New Zealand, spanning both the North and South Islands.

Reefton Project (South Island)

• Project Status: Rua Gold's most advanced project, located on the South Island of New Zealand. The company holds approximately 95% of the land package.
• Geological Setting: Reefton is situated in a historically significant gold-producing area, with an estimated 50 million ounces of gold extracted at very high grades. The deposit type is orogenic, characterized by high-grade, nuggety gold.
• Current Activities: The company has three drills operating at Reefton.
  • Old Creek Deposit: Two drills are focused on this deposit, which exhibits gold-antimony mineralization.
    • Resource: Currently has a 100,000-ounce resource.
    • Expansion Target: The company aims to triple the ounces in its inventory at Old Creek by the end of the year, requiring approximately 4,000 meters of drilling, of which about half is completed.
    • Grades and Potential: The deposit is yielding very good grades and is open in all directions (north, south, and at depth), suggesting significant potential for expansion.
    • Antimony Significance: The presence of antimony is highlighted as a critical mineral with scarce global supply, largely controlled by China, leading to high demand.
  • Calonia Property: A third drill is operating at the Calonia property, which is also considered highly prospective.
• Upcoming Results: Drill results from Reefton are expected in October.

Glamorgan Project (North Island)

• Project Status: Located on the North Island, Glamorgan is an epithermal deposit.
• Geological Setting: The project is situated in close proximity to OceanaGold's WKP deposit, which is undergoing fast-track permitting, and near the historic Wahhee Martha mine, which produced approximately 10 million ounces of gold. This proximity indicates a highly prolific gold-bearing region.
• Exploration Activities (2023 onwards): Since acquiring the land package in 2023, Rua Gold has conducted extensive surface exploration, including:
  • Soil sampling
  • UAV magnetics
  • CSMAT magnetics
• Exploration Results: All surface exploration efforts have yielded positive results, identifying numerous anomalies similar to those found at OceanaGold's WKP deposit.
• Drilling Plans: An application to drill was submitted in July, and the company anticipates receiving drilling access by the end of the year. Drilling is expected to commence by year-end, presenting a "blue sky" opportunity.

Management Team and Experience

Rua Gold's management and board of directors possess significant experience and a track record of success in the mining industry, aiming to advance projects from exploration to production.

• Oliver Lennox King (Chairman): Previously Executive Chair of Rox Gold, which was sold to Fortuna. He has a history of successful ventures.
• Robert Eford (CEO): Co-founder of Aerys Mining, now a major gold producer in Colombia.
• Card Locala (CFO and Corporate Secretary): Most recently with Great Bear Resources, which was acquired by Kinross for $1.8 billion in 2022.
• Paul Criddle (Board Member): Has a proven history of building approximately five mines, all completed under budget.

The team's collective experience is geared towards taking projects all the way to production, not just exploration.

New Zealand as a Mining Jurisdiction

New Zealand is presented as a highly favorable jurisdiction for mining, supported by recent government initiatives.

• Government Support: The current government views mining as a means to strengthen the New Zealand economy.
• Fast-Track Approvals: A new fast-track permitting process allows for mine permitting in approximately six months.
• Critical Minerals Focus: The government has established a critical minerals list, indicating a proactive approach to resource development.
• Ministerial Endorsement: Resource Minister Shane Jones has expressed strong support for the mining sector, promoting New Zealand as "open for business."

Gold Sector Outlook and Rua Gold's Position

The current gold price, nearing $4,000 (likely a misstatement in the transcript, as gold prices are typically in the thousands of dollars per ounce, not per kilogram), is favorable. Rua Gold is strategically positioned to capitalize on this momentum due to:

• Favorable Jurisdiction: New Zealand's supportive mining policies.
• Experienced Management: A team capable of executing projects.
• Prospective Land Package: High-grade gold potential in its projects.
• Strong Gold Prices: Favorable market conditions for gold.

Conclusion and Future Outlook

Rua Gold is actively drilling its Reefton project, with significant results anticipated in October and a goal to triple the Old Creek resource. The Glamorgan project on the North Island is poised for drilling by the end of the year, offering a high-potential exploration opportunity. The company's experienced management team and New Zealand's supportive mining environment position Rua Gold for potential success in advancing its projects towards production. The company plans to provide updates at future industry events like PDAC.