Slide 1: RED 5 Limited: The next gold producer
RED 5 Limited The next gold producer Fidelity Investment Management 14 June 2011 RED 5 Li m i t ed
Slide 2: Red5 presenters
Red5 presenters Colin G Jackson – Chairman Mark Milazzo – Non-executive Director Joe Mobilia – Chief Financial Officer RED 5 Li m i t ed
Slide 3: Company highlights
Company highlights Target production Sept 2011 quarter at Siana Gold project • Construction 60% complete, all plant equipment in country • Forecast cash costs sub $400 per ounce, low relative to peers • 10 year mine life based on current LOM plan of 849,000 • recovered ounces - with explorat
Slide 4: Red 5 at a glance
Red 5 at a glance... Red 5 Share performance vs. re-based S&P/ASX Gold RED – ASX: 15.0 cents (A$ cents) 25 Market Cap: A$193m Issued Shares: 1,284m 20 Cash (1 June 2011) A$58.5m S&P/ASX Enterprise Value Gold (post construction, US$174/oz 15 Red 5 per LOM plan ounce): No debt, hedge or FX positions n
Slide 5: The Philippines
The Philippines 125°25’ Fault 125° 35’ PHILIPPINES • Resource rich area - providing a number of key Road growth opportunities 0 10 Manila • Third largest gold mineral endowment kilometres Mindanao • Fourth largest copper mineral endowment Surigao City 9°45’ • The Philippines has strong investment ra
Slide 6: Siana gold mine fast facts
Siana gold mine fast facts Red 5 beneficial Interest 100% Location Philippines – Surigao del Norte, Mindanao Island Capital cost to first gold US$82.8million Production commencement date September 2011 quarter Resources Total contained gold of 1,122,000 ounces , silver of 2,095,000 ounces Reserves T
Slide 7: Siana site layout
Siana site layout RED 5 Li m i t ed
Slide 8: Siana in construction
Siana in construction • Site construction activities previously restricted due to abnormal wet season – 4 metres of rain (+200%) Jan /March • Off-site activities on schedule – delivery of mill, crusher, apron feeder, agitators – all in country • Fabrication of steel and plate work on schedule • Grid
Slide 9: Construction status – June 2011
Construction status – 5 June 2011 RED 5 Li m i t ed
Slide 10: Siana long term initial mine plan
Siana long term initial mine plan Tonnes Gold Gold Silver Silver (M) g/t ounces g/t ounces Stockpile 0.08 1.33 3,549 10.67 28,000 Open Pit 3.10 3.42 341,000 8.71 870,000 Underground 3.36 5.83 630,000 9.12 986,000 Total 6.55 4.6 975,000* 8.9 1,885,000 Data base comprises • 88 drill holes for 37,840 m
Slide 11: Underground mining
Underground mining • Underhand cut and fill (top down) • Road header in ore (more productive in soft ground than conventional Active stope level drill and blast) - additional benefit less explosive on site • Drill and blast for hard material • Paste fill ground support - cement available locally RED
Slide 12: Resource panels – upside potential?
Resource panels – upside potential? • Panels 1-3 represent 89% of LOM plan • Panels 4 – 10 insufficiently drilled from surface due to length of angled hole and cost. Will be drilled from underground in project year 3 RED 5 Li m i t ed
Slide 13: Siana long section – unfinished business
Siana long section – unfinished business RED 5 Li m i t ed
Slide 14: Siana long section – unfinished business
Siana long section – unfinished business RED 5 Li m i t ed
Slide 15: Siana long section – unfinished business
Siana long section – unfinished business RED 5 Li m i t ed
Slide 16: Siana growth opportunities
Siana growth opportunities Further Siana underground extensions – 3 metres at 31.6 g/t (180 metres vertical), 5 metres at 25.4 g/t (380 metres vertical) (neither in resource data base). Drilling commenced – Panels 4 to 10 drill out – below 400 metres vertical Mapawa satellite ore 3 - 4 Mt potent
Slide 17: Mapawa exploration
Mapawa exploration Red 5 100% beneficial Interest Philippines Location (30km north of Siana project) Initial shallow drilling has Exploration confirmed gold cap above gold-copper porphyry Exploration US$10 million quarantined – Budget will be results driven Promising initial copper-gold porphyry int
Slide 18: Mapawa IP interpretation
Mapawa IP interpretation RED 5 Li m i t ed
Slide 19: Mapawa geological cross-section
Mapawa geological cross-section Other Mapawa Intersections • 53 metres at 0.8 g/t (MDD 004 from surface) • 69 metres at 0.8 g/t (MDD 005 from surface) • 149 metres at 0.8 g/t (MDD 007 from surface) • 23 metres at 1.1 g/t (MDD 008 from surface) • 76 metres at 0.7 g/t ( MDD 009 from surface) • 56 metr
Slide 20: Production target profiles
Production target profiles Mapawa Oxide Material Siana Resource Conversion Open pit production Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 RED 5 Li m i t ed
Slide 21: On-going community support
On-going community support Red 5 has taken an active role in local community relations Projects include: • Clean water project • Health assistance • Education programs • Welfare programs • Agricultural assistance • Infrastructure assistance • Security assistance RED 5 Li m i t ed
Slide 22: Financing
Financing Project fully funded by equity – Cash as at 1 June 2011 $58.5 million – Remaining forecast build spend $42.4 million Sprott Resource Lending Partnership – Technical, financial and legal due diligence completed – US$8 million standby credit facility in place – Non-revolving 24 months to
Slide 23: Summary
Summary Expected share price re-rating as Red 5 moves into production Company fully funded as it moves toward production Low cash costs relative to peers Resource growth potential at Siana extending current mine life Early drilling at Mapawa confirmed the potential for a second project in
Slide 24: Competent Persons Statement
Competent Persons Statement The information in this Public Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on, and accurately reflects, information compiled by Mr G C Edwards who is a full-time employees of Red 5 Limited and who are Members of The Australasian
Slide 25: Contact details
Contact details Australia Philippines • Level 2, 35 Ventnor Avenue • Greenstone Resources Corporation West Perth, Western Australia 6005 Level 5, NOL Tower PO Box 1911 West Perth, WA 6872 Commerce Ave, cnr Acacia Ave Madrigal Business Park • Ph: + 61 8 9322 4455 Muntinlupa City, Manila, Philippines
Slide 26: Additional Information Appendix
Additional Information Appendix RED 5 Li m i t ed
Slide 27: Siana Resources & Reserves
Siana Resources & Reserves Resources Category* Tonnes Au g/t Ounces Au Ag g/t Ounces Ag (M) Indicated 5.15 4.6 769,000 9.5 1,523,000 Inferred 1.54 7.1 353,000 11.5 573,000 Total 6.69 5.2 1,122,000 9.7 2,095,000 Reserves Category* Tonnes Au g/t Ounces Au Ag g/t Ounces Ag (M) Stockpiles 0.08 1.33 3,50
Slide 28: Summary Production Schedule
Summary Production Schedule Year 1 Year 2 Year 3 Year 4 Year 5-10 Total Ore milled 594 750 921 1,092 3,199 6,556 (‘000 tonnes) Grade (g/t) gold 2.88 3.48 3.56 4.21 5.90 4.63 Plant recovery 83.0 85.9 85.7 86.1 88.3 87.1 (gold %) Gold produced 45,700 72,200 90,300 127,100 513,600 849,000 (ounces) Silv
Slide 29: The permitting process
The permitting process All major Free permits and Prior in place Informed Consent Certificate Environmental Compliance Certificate Notice to Proceed Plant Discharge Permit ..... achievements recognised by other miners and explorers keen to start activities in the country RED 5 Li m i t ed
Slide 30: Abnormal rain season – February 2011
Abnormal rain season – February 2011 RED 5 Li m i t ed