Rakita Exploration d.o.o Bor
Suvaja 185A, 19210 Bor
030/2155-005
030/2495-473
InformationMemorandumSerbia, Bor | November 2016.
TIMOK PROJECTHigh-Grade Copper and Gold Project
02.
Rakita Exploration Ltd. is a Serbian company, currently carrying out advanced project & explorationactivities in the world famous Timok district of Eastern Serbia.
Ownership on the two deposits is arranged as follows:
| Nevsun Resources Ltd holds 100% of Timok Upper Zone.
| Timok Lower Zone is a joint venture between Nevsun and Freeport McMoRan Exploration Corporation
Rakita’s Timok Copper and Gold project flagshipis The Cukaru Peki deposit, a high grade copper-gold resource located 6 km south from the existing mining operations of RTB Bor.
Company profile
03.
ManagementVP Serbia
| Timothy James Livesey
Mr. Livesey has been in the industry for over 27 years and has a proven track record of delivery in exploration and resource addition, with a particular focus on large scale projects.
Program manager
| Dejan Bucanovic
Mr. Bucanovic holds a MSc. in geological engineering from Belgrade Mining-Geological University.
Chief geologist
| Humberto Brockway
Mr. Brockway was born in Santiago de Chile and has more than 30 years of experience in mineral exploration.
Co-Director
| Dejan Kozelj
Mr. Kozelj is currently the Director of Rakita Exploration doo Bor. He received his PhD degree in 1999. at Belgrade University.
04.
Timok projectThe Timok Copper and Gold project consists of two mineralized zones:
| Timok Upper Zone, a high grade massive sulphide body
| Timok Lower Zone, a lower grade porphyry style deposit
The Upper Zone is currently in pre-feasibility stage, with ongoing exploration on the underlying Lower Zone porphyry.
Timok Upper Zone
Timok Lower Zone
05.
Timok Project: Upper Zone 400-800m
Upper Zone:
| Semi Massive Sulphide ( ”SMS” ) — high-sulphidation epithermal pyrite and copper sulphide
35 MT@ 2.9%Cu & 1.7g/t Au INFERRED MINERAL RESOURCE
1.7 MT @ 13.5% Cu & 10.4 g/t Au INDICATED MINERAL
RESOURCE
| Subject of the April 2016 Reservoir Minerals PEA5
$US1.5B NPV at $3.00 per lb Cu and $1200 per oz Au 12 year mine life with sub-level open stoping and conventional copper flotation processing
| Nevsun owns 100% of Upper Zone project
1. The cut-off grade used for the estimate is 0.75% Cu.2. All figures are rounded to reflect the relative accuracy of the estimate.3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.4. Mineral Resource is given on 100% basis.For details see Reservoir Minerals press release April 19, 2016 and associated Technical Report on Nevsun’s website.
5. The Mineral Resources and the associated PEA were reviewed and approved by Martin Pittuck of SRK Consulting (UK) Limited, a Qualified Person under National Instrument43-101, details of which can be found on SEDAR and the Nevsun website. The PEA is preliminary in nature and it includes inferred mineral resources that are considered toospeculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineralreserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized.
U P P E R Z O N E B L O C K M O D E L C O P P E R G R A D E D I S T R I B U T I O N
06.
Timok Project: next stepsNevsun is rapidly advancing a Pre-Feasibility study ("PFS") for the Upper Zone.
Keys next steps for the project are:
| 50,000 metres of drilling with six drills on-site in fall 2016
| PFS targeted to be completed in September 2017
| Exploration decline targeted to start later in Q4 2017
| Production in mid-2020 to mid-2021
| ~ $35 million spend in 2017
07.
Timok Project: Lower Zone 800-2.200m
Lower Zone:
| Extensive porphyry style copper-gold mineralization below the Upper Zone with block cave potential
| Long term potential for world scale project
| After UZ feasibility, Freeport McMoRan 54% JV partner
| Drilling $20 million before end of 2017
Local footprint:
| 5 km from mining and smelting complex: RTB Bor and 40,000 person mining town of Bor | No significant structures or villages in Upper Zone project footprint | Land use largely small-scale agriculture | Land acquisition underway and well advanced | Project has local community support
P L A N V I E W O F U P P E R & L O W E R Z O N E D E P O S I T S
08.
Social responsibilityRakita Exploration has a strong commitment to the local communities, safety performance and environmental management.
The company’s policies are consistent with Serbian laws and regulations and international best practices.
Rakita Exploration is a socialy responsible company which cares for the community where it operates.
Bor River Cleaning 2015. Bor Hospital 2015.
09.
Rakita Exploration d.o.o Bor
Suvaja 185A, 19210 Bor
030/2155-005
030/2495-473
ContactThe main purpose of the Information Center is to provide factual information to thepopulation of Bor regarding the exploration process at Cukaru Peki, as well as establishing a two-way avenue of communication with the local community.
Since opening in May 2014, Info Center Rakita has registeredmore than 6.000 visits.
