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Yaramoko

Roxgold Mining Convention

Latest Technical Report


NI 43-101 Feasibility Study

Overview


The Yaramoko permit covers approximately 196km2 in the Province of Balé in southwestern Burkina Faso. The property is located approximately 200 kilometres southwest from the capital city of Ouagadougou.

Yaramoko lies directly south of, and is contiguous to, the SEMAFO Inc. property hosting its flagship Mana Gold Mine and lies within the Hounde greenstone belt.

Roxgold is currently advancing a significant high-grade gold discovery at Yaramoko's 55 Zone through contruction, for which it completed a Feasibility Study in 2014. In addition, the Company continues to explore at targets located within the permit. The most prospective of these is currently Bagassi South.

Yaramoko Geology

  • The Yaramoko Concession is located in North-East portion of Hounde Greenstone Belt
  • Paleoproterozoic (2200-2000 Ma)NNE-SSW elongated belts stretching 400 kilometres
  • Multiple gold and base metal deposits identified
  • Eastern part of belt is a 6 km thick basalt sequence bounded to west by Boni shear zone, making contact with younger Tarkwian type sediments and further west more intermediate to acid rocks

Mineralization

  • Most commonly hosted in quartz veins in dilation and shear zones in granitoid, felsic porphyry and volcanics
  • Also in sheared volcanics with no conspicuous quartz veining
  • Gold mineralization occurs in an WSW trending sub-vertical structures

55 ZONE:


Roxgold is currently advancing a significant high-grade gold discovery at Yaramoko's 55 Zone, which was fully permitted for construction in January 2015. The Company released the results of a positive Feasibility Study on April 22, 2014.

The study envisions an underground mining operation with an initial life of mine ("LOM") of over seven years, and production of 99,500 ounces per year. Roxgold expects to commence development at the 55 Zone in Q1 2015.


HIGHLIGHTS:
(all amounts in US dollars unless otherwise indicated)
Base case is stated assuming 100% basis and a gold price of $1,300/oz

- Pre-tax IRR of 53.7% with a 1.5 year payback on initial capital
- After-tax IRR of 48.4% with a 1.6 year payback on initial capital
- Pre-tax NPV5% of $300 million
- After-tax NPV5% of $250 million
- Average Total Cash Costs of $467/oz (including royalties)
- Average All-in Sustaining Costs of $590/oz
- Pre-Production capital of $106.5 million
- Estimated average annual gold production of 99,500 ounces
- Current study mine life of 7.4 years
- Average metallurgical recoveries of 96.9% gold


The Feasibility Study is based on a new mineral resource model completed by SRK Toronto. The resource estimate is restricted to the 55 Zone and does not include intersections drilled on other zones discovered on the Yaramoko Property. Please refer to the Company's April 22, 2014 news release for more information.

Updated Mineral Resource Estimate*
As at April 22, 2014
Resource Category Grade Cut-off (g/t) Tonnes Grade
Au gpt
Au oz
Probable >5.0 1,996,000 11.83 759,000
Indicated (Inclusive of Reserves) >5.0 1,600,000 15.80 810,000
Inferred >5.0 840,000 10.26 278,000
*Jean François Couture, P.Geo (SRK Consulting Canada Inc.) is a Qualified Person within the Meaning of National Instrument 43-101 and has verified the data disclosed.

REGIONAL EXPLORATION


Regional exploration on the Yaramoko permit to date has provided encouraging results at Bagassi South, the 109 Zone, 109 Hill, the 117 Zone, the 300 Zone and Haho and along the Boni shear where large gold in soil anomalies up of greater than 30 ppb have been outlined in recent soil geochemistry surveys.

Five regional targets have been tested with diamond drilling on the Yaramoko permit in 2013; these are: 109 Hill (0.5 km east of the 109 Zone), the 117 Zone, Bagassi South, the 300 Zone and Haho. All regional targets were defined by a combination of mapping, prospecting, geophysics and geochemical sampling. All drill tested areas have returned results of elevated gold values on this first pass test program. Gold at all of these targets is primarily hosted within quartz veining in sheared and faulted host rocks. Induced Polarization orientation surveying ("IP") has provided an invaluable tool for mapping these quartz rich structures which IP images as resistivity anomalies.

At Bagassi South, Roxgold is continuing to evaluate the QV1 target which has returned high grade results in successive drill campaigns including results up for 41.4 g/t over 4.4 metres. From surface mapping the area appears to host a large, wide, structurally complex quartz, sericite, pyrite ("QSP") alteration zone currently mapped to be approximately 250 metres along strike at surface and may be larger below. Within this structure, gold is associated with veining and silicification. This area responds well to IP and future targeting will be aided by a recently completed IP survey over the area. The high grade nature of the initial results are very encouraging and will be followed up on in the current regional drill program as Roxgold continues to define and delineate more gold within this area.

Future exploration on the five identified regional targets will incorporate additional IP, prospecting, auger drilling, mapping and follow up drilling.  
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