October 12, 2023
Rupert Resources Ltd (“Rupert” or the “Company”) announces that it has published its financial results for the three and six months ending August 31, 2023 and accompanying Management’s Discussion and Analysis for the same period.
Both of the above have been posted on the Company’s website www.rupertresources.com as well as on SEDAR at www.sedar.com.
Financial Highlights
During the six months ended August 31, 2023, the Company spent $12,958,497 (6 months ended August 31, 2022 – $14,396,154) on general exploration costs and purchase of property, plant and equipment. As of August 31, 2023, Rupert held cash or cash equivalents of $54,517,897. The Company recorded a net loss and comprehensive loss for the three months and six months ended August 31, 2023 of $(1,547,544) and $(3,854,496) respectively (three months and six months ended August 31, 2022 – $(5,173,267) and $(10,318,244) respectively) and a net loss per share for the three months and six months ended August 31, 2023 of $(0.02) and $(0.03) respectively (three and six months ended August 31, 2022 – $(0.02) and $(0.03) respectively).
All references to currency in this press release are in Canadian dollars.
James Withall, Chief Executive Officer of Rupert Resources said, “Today’s results reiterate a strong balance sheet and operationally we are now building up towards the key winter drilling season where we plan to drill some 50,000 metres at several existing and new exploration targets in close proximity to Ikkari. We expect to publish a resource update for Ikkari in Q4 2023 and pre-feasibility study (Q2 2024).”
Operating Highlights
During the six months ended August 31, 2023 and up to the date of this document, Rupert’s operational activities have been focussed on the Rupert Lapland Project Area and Ikkari in particular.
Rupert Lapland Project Area
Regional Exploration Program, including Ikkari
The regional exploration program at the Rupert Lapland Project Area is designed to identify and evaluate the mineral potential contained in Rupert’s land package in the CLGB.
Since July 2020 the Company has been engaged in a diamond drill program to further evaluate discoveries made within the Rupert Lapland Project Area, including Ikkari, as well as continuing to generate new targets through base of till (“BoT”) sampling, which continues across the Rupert Lapland Project Area and specifically over geophysical anomalies of interest.
Ikkari Preliminary Economic Assessment and Related Studies
Following publication in September 2021 of a maiden MRE for Ikkari, and further to on-going regional diamond and BoT drilling and sampling programs, in November 2022 the Company completed and announced the results of the Ikkari PEA, including an updated MRE with the relevant NI 43-101-compliant technical report filed on Sedar in March 2023 (see: “Company Overview – Ikkari”).
The Ikkari PEA served inter alia as the basis for the Pre-feasibility Study (“Ikkari PFS”) that was initiated during the six months ended August 31, 2023, the parameters of which are currently being optimized.
Ikkari Project Drilling
The 2022/23 drill program was completed during the six months ended August 31, 2023, comprising some 68,000 metres (“m”) of drilling, with circa 30,000m allocated to Ikkari infill drilling. Near-term resource addition and the conversion of Inferred Resources to Indicated Resources were points of particular focus for the Company and work on the subsequent update to the MRE is presently under way, with publication envisaged in the fourth calendar quarter of 2023.
During the 2023/24 winter drilling season, additional drilling programmes are planned to further upgrade a portion of the near surface mineral resource at Ikkari from the Indicated to the Measured category, and provide further geotechnical, hydrogeological and metallurgical datapoints which will eventually feed into a Feasibility Study for Ikkari, which is expected to follow on from successful completion of the Ikkari PFS in calendar 2024.
Continuing Exploration
On-going exploration is a further key focus. Following an update to the structural model for the Ikkari deposit, exploration is focussed on the interpreted continuation of the Ikkari trend. New targets within the Rupert Lapland Project Area are being generated and tested through BoT sampling, geophysical programs and scout diamond drilling as appropriate, with the 2023/24 field season currently underway.
Advancing Permitting and Environmental Work
Permitting, specifically progression of the Environmental Impact Assessment (“EIA”) Programme and Land Use Planning is also a key focus of the Company. The EIA Programme was initially presented to the respective authorities on November 30, 2022 and formally started the environmental permitting process, with the aim of securing an environmental permit and thereafter a mining licence for Ikkari, in addition to those already held at Pahtavaara. The Company formally filed an EIA Programme with authorities during the second calendar quarter of 2023 and plans to file EIA documents during the second half of 2024.
As part of this process the Company continues with numerous baseline environmental assessments, as well as on-going engagement across all stakeholder groups. The Ikkari PFS is drawing from these processes as appropriate.
Pahtavaara Mine
The Ikkari PEA has identified the opportunity to develop Pahtavaara later in the life of the Ikkari operation as a satellite mine to a new central processing facility at Ikkari. This would allow Pahtavaara to benefit from cost synergies and shared infrastructure (see “Description of Business”). In the meantime, the Company is placing Pahtavaara under long term care and maintenance, while maintaining the relevant operational permits.
