Red Metal Limited · ASX:RDM
Red Metal — Investor Presentation (March 2011)
49 slides from Red Metal's investor presentation, Mar 30, 2011
Slide 1: Investor Presentation: Giant Ore Deposits, Discovery Opportunities 2011
For personal use only Investor Presentation Giant Ore Deposits Discovery Opportunities 2011
Slide 2: Disclaimer
Disclaimer • Caution Regarding Forward-Looking Statements For personal use only Statements regarding the Company’s plans with respect to exploring its projects are forward-looking. There can be no assurance that any mineralisation identified will be proven to be economic, that future evaluation wo
Slide 3: Discovery Pipeline
Discovery Pipeline New Targets Ag-Pb • Copper-gold New discovery • Silver-lead-zinc Ore-grade intercepts For personal use only 153 metres @ 0.6%Cu Eq Scope for 10-20Mt Corkwood New JV Xstrata Maronan Cannington style Walford Creek McKinlay (JV BHBP) Osborne - Lily Creek Urapunga (pending
Slide 4: Why Red Metal?
Why Red Metal? • Exploring for Giant Deposits Types For personal use only Offers spectacular leverage upon discovery Attracts joint venture funding from Majors • Number of Emerging Discoveries Copper-gold, Silver-Lead, Potash Further success will significantly re-rate stock • Full Pipe-line
Slide 5: Terrain Focus
For personal use only Terrain Focus
Slide 6: Recent Highlights
Recent Highlights • Corkwood Copper-Gold-Silver For personal use only Jimmy’s Creek Cu-Au and Ag breccia discovery 153 metres @ 0.6% Cu Eq New Xstrata JV Follow-up drilling imminent • Maronan Silver-Lead New interpretation Scope for 10-20Mt Cannington style mineralisation Drill ready t
Slide 7: Discovery Pipeline
Discovery Pipeline New Targets Ag-Pb • Copper-gold New discovery • Silver-lead-zinc Ore-grade intercepts For personal use only 153 metres @ 0.6%Cu Eq Scope for 10-20Mt Corkwood New JV Xstrata Maronan Cannington style Walford Creek McKinlay (JV BHBP) Osborne - Lily Creek Urapunga (pending
Slide 8: Giant Copper Deposits
For personal use only Giant Copper Deposits Olympic Dam, Ernest Henry, Mount Isa Style Targets
Slide 9: Mt Isa Strategy
Mt Isa Strategy • Fertile Terrain For personal use only Seeking new opportunities • Copper Mount Isa, Mount Gordon, Lady Annie, Ernest Henry, Rocklands, Mount Dore, Osborne, Selwyn, Eloise, E1 • Lead-Silver-Zinc Cannington, Mount Isa, George Fisher, Century, Dugald River, Lady Loretta • Uraniu
Slide 10: Copper-Gold Corkwood
Copper-Gold Corkwood • Large regional IOCG alteration For personal use only system • New Xstrata JV 2400m follow-up Jimmy’s Creek to be initiated before May 2011 Electrical geophysics over regional targets RDM retain 49-40% of any discovery • Jimmy’s Creek Cu-Au-Ag Breccia 153m @ 0.6% Cu Eq
Slide 11: Copper-Gold Corkwood: Jimmy's Creek Breccia
Copper-Gold For personal use only Corkwood Pelican Dam • Jimmy’s Creek Breccia Cu-Au and Ag in felsic volcanic 153m @ 0.6% Cu Eq from recent hole Open to south and at TMI depth Drilling imminent
Slide 12: Corkwood Jimmy's Creek Cross Section
For personal use only Copper-Gold Corkwood Jimmy’s Creek Cross Section Long Section View Facing West
Slide 13: Corkwood Jimmy's Creek 3D Magnetic Model
For personal use only Copper-Gold Corkwood Jimmy’s Creek 153m @ O.6% Cu Eq. Mineralised Breccia Untested Potential to South 3D Magnetic Model View Facing Northeast
Slide 14: Copper-Gold Osborne Projects
Copper-Gold Osborne Projects • Red Metal 100% For personal use only • Target Giant IOCG Pyrrhotite-associated High-grade Cu • Location Along Mount Dore structural zone and parallel structures South of Ivanhoe’s new Houdini discovery Close to Ivanhoe’s Osborne mine • Exploration 2011 Sq
Slide 15: Copper-Gold Osborne Projects
Copper-Gold Osborne Projects • Red Metal 100% For personal use only • Target Giant IOCG Pyrrhotite-associated High-grade Cu • Location Along Mount Dore structural zone and parallel structures South of Ivanhoe’s new Houdini discovery Close to Ivanhoe’s Osborne mine • Exploration 2011 Sq
Slide 16: Copper Silver-Lead-Zinc Walford East
Copper Silver-Lead-Zinc Walford East • Basin Margin For personal use only Northern margin to Isa Super Basin Faulted against basement Murphy Inlier • Known Mineralisation Walford Creek SEDEX PbZnAg with later overprinting copper-silica • Walford Creek East Prospective stratigraphy under shal
Slide 17: Copper Silver-Lead-Zinc Walford East
Copper Silver-Lead-Zinc For personal use only Walford East 18m @ 2% Cu • Walford Creek • Walford Creek East Known Sedex PbZn (pyrite-rich distal?) New VTEM targets Overprinting copper in cross structures Major cross structures
Slide 18: Walford East Structure Controlled Copper Target
Copper Silver-Lead-Zinc For personal use only Walford East Structure Controlled Copper Target Two-lines (800m apart) Sedex Target Ag-Pb-Zn ? • Walford Creek East VTEM targeting transfer structures Possible Mount Isa stratigraphy Fault controlled copper targets defined
Slide 19: Copper-Gold Gawler Craton
Copper-Gold Gawler Craton • Large IOCG Systems For personal use only Eastern margin Gawler Craton SA Similar regional setting to Olympic Dam system. Magnetite and hematite associated copper • Copper-Gold Olympic Dam, Pominant Hill, Hillside, Moonta, Carrapeteena. • Projects in 2011 Pernatt
Slide 20: Copper-Gold Pernatty Lagoon JV
Copper-Gold Pernatty Lagoon JV • Target For personal use only Large combined magnetic-gravity anomaly in Gawler Craton SA 7km x 3km • District Scale Alteration Sericite-hematite Siderite-magnetite Garnet Epidote-magnetite Associated copper • Drilling Extended PN0709 to test magnetic
Slide 21: Pernatty Lagoon JV Chalcopyrite-Magnetite Veins
Copper-Gold For personal use only Pernatty Lagoon JV Chalcopyrite-magnetite veins From 1660m to 1834m at end of hole up to 0.8% Cu 0.15ppm Au 3D UBC Magnetic Model Very large, potentially mineralised magnetic/gravity target
Slide 22: Copper-Gold Maitland
Copper-Gold Maitland • Large IOCG system For personal use only South Eastern margin Gawler Craton SA Large magnetite alteration system Abundant de-magnetised structures Low iron oxide/high sulphide pyrrhotite-pyrite associated copper Shallow cover 50 km NW of Rex Minerals Hillside discov
Slide 23: Copper-Gold Northern Territory
Copper-Gold Northern Territory • Two standout copper projects For personal use only • Irindina Copper Emerging new copper mineral province Mithril making new discoveries EM works Partially granted, VTEM in 2011 • Tennant Creek Copper-Gold South eastern extension to Tennent Creek field Si
Slide 24: Copper Irindina
Copper Irindina • Eastern Arunta For personal use only Emerging new copper and nickel province
Slide 25: Copper New Target Concepts
Copper New Target Concepts • Giant hydrothermal Cu-Co±Ag potential For personal use only Bazil discovery – broad zones chalcopyrite-pyrrhotite in extensive crustal scale shear zones New Geoscience Australia seismic data shows mineralised Basil Fault (BaF) extends deep into mantle - scope for a g
Slide 26: Copper Irindina Magnetics
Copper For personal use only Irindina Magnetics Baldrick Blackadder Basil
Slide 27: Giant Silver, Lead, Zinc
For personal use only Giant Silver, Lead, Zinc Cannington, Century and Mount Isa Style Targets
Slide 28: Silver-Lead-Zinc NT and QLD
Silver-Lead-Zinc NT and QLD • Maronan & McKinlay JV For personal use only Cannington-type targets Drill ready • Walford Creek VTEM targets defined Potential giant Mount Isa type shale hosted silver-lead- zinc and copper targets Drill ready • Urapunga & Mallapunyah Sandy Creek Significant
Slide 29: Silver-Lead Maronan
Silver-Lead Maronan • Target For personal use only Stand alone Cannington-type silver-lead deposit • New Interpretation Significant Exploration Target defined from existing drilling (36 core holes) Steep northward plunge (not southward) Potential larger Cannington size deposit at depth Hig
Slide 30: Silver-Lead-Zinc Maronan
Silver-Lead-Zinc Maronan • Target For personal use only Stand alone Cannington-type silver-lead deposit • New Interpretation Significant Exploration Target defined from existing drilling (36 core holes) Steep northward plunge (not southward) Potential larger Cannington size deposit at depth
Slide 31: Maronan Exploration Target Potential
Silver-Lead-Zinc Maronan • Hellman and Schofield Study – Exploration Target Potential For personal use only Based on 36 diamond core holes, spacing to wide to define resource Potential to double size at depth Exploration Target Million Tonnes Lead % Ag g/t Cut-off 1.5% Lead 20-40 3-5 40-60 2.5%
Slide 32: Uranium Projects
For personal use only Uranium Projects Giant Sandstone-Hosted Targets New Cameco JV
Slide 33: Uranium Lakes and Frome JVs
Uranium Lakes and Frome JV’s • Cameco Joint Venture For personal use only Targeting giant sandstone-hosted styles - Kasakhstan types Right to earn 51% on Lakes project • 2011 Program Extensive 16,000m drill program >$A2.9 Budget Drilling imminent Uranium Channel Radiometric Image
Slide 34: Uranium Frome Basin Model
Uranium Frome Basin Model • Source For personal use only Highly radiogenic Mt Painter, Mt Babbage, Olary inliers Granites 40-100ppm U, high K Exposed hematite breccia and granite hosted uranium mineralisation • Ore Fluid Pathway Oxidised fluids transport uranium from source region down Terti
Slide 35: Uranium Frome Basin Model
Uranium For personal use only Frome Basin Model Honeymoon, Goulds Dam Giant Kazak Sandstone types? After Heathgate Resources
Slide 36: Uranium Lakes and Frome JVs: Proposed Drilling
Uranium For personal use only Lakes and Frome JV’s Paralana Fault Proposed Drilling 2011 Oblique View Looking Northeast
Slide 37: Uranium Lakes and Frome JVs: TEM Interpretation
Uranium For personal use only Lakes and Frome JV’s Mount Painter Uplift Zone Proposed Drilling 2011 TEM Interpretation Showing Depth to Base of Namba Formation
Slide 38: New Colorado Potash Discovery
For personal use only New Colorado Potash Discovery Large Tonnage Potential Solution Mining
Slide 39: Potash Paradox Basin
Potash Paradox Basin • Paradox Basin For personal use only Thick salt units deposited in Upper Carboniferous Overlain by Permian red bed sediments Extensive seismic and old oil well data • Known Potash Multiple potash horizons within thick salt unit Solution mining at Moab, Utah (Intrepid-
Slide 40: Potash Colorado Potash Project
Potash Colorado Potash Project • Prospecting Permit Applications For personal use only 22 in total,166 square kilometers On Federal administered lands History of oil/gas/uranium exploration and mining Outside “Known Potash Resource Areas” Applications “priority in time” rather than “compet
Slide 41: Potash Colorado Potash Project
Potash Colorado Potash Project • Potential solution mineable For personal use only depths, grades and widths Flat dips apparent Large tonnage potential • Agapito Study Independent verification Production concept 200kt-2Mt KCl per year Valid target for proof of concept drill tests General
Slide 42: Colorado Potash Project Landscape
Potash For personal use only Colorado Potash Project View of Typical Landscape on the Colorado Potash Project
Slide 43: Potash Colorado Potash Project: Independent Due Diligence
Potash Colorado Potash Project • Independent Due Diligence by Agapito and Associates Inc. For personal use only World renowned leading experts in potash solution mining No fatal flaws at this early stage Recommend drill core tests and scoping study • Potash 5 horizon JORC compliant “Explorat
Slide 44: Potash Colorado Potash Project: Underlying Beds
Potash Colorado Potash Project • Potential for vast tonnages identified in underlying beds For personal use only Potash 6, Potash 9 and Potash 19 Could significantly lower unit production cost if extractable with Potash 5 Potash 9 looks viable Schematic figure showing solution mining method ut
Slide 45: Exploration Target Estimate for the Colorado Potash Project
Potash For personal use only Colorado Potash Project Exploration Target Estimate for the Colorado Potash Project Grade- Bed No. Depth Thickness Grade Thickness Sylvinite (m) (m) K2O% Sylvite% Product Tonnage (% K2O-m) (Mt) Potash 5 1,600 – 1,900 3.5–5.2 13–19 20.8-30.4 57–86 940–1,410 Potash 6 1,650
Slide 46: Potash Proof of Concept
Potash Proof of Concept • Asses all existing seismic data For personal use only Define dip and continuity of strata • Grant of prospecting permits Pending environmental approval of exploration drill program • Drill core tests Test mineralogy, grade, thickness, broad continuity, geotechnical da
Slide 47: Potash Export Markets
Potash Export Markets • Strong potash growth forecast For personal use only Particularly if China, India, SE Asia and Brazil applied potash at the same application rate per hectare as the western world • Presents opportunity for new production from greenfield sites
Slide 48: Why Red Metal?
Why Red Metal? • Exploring for Giant Deposits Types For personal use only Offers spectacular leverage upon discovery Attracts joint venture funding from Majors • Number of Emerging Discoveries Copper-gold, Silver-Lead, Potash Further success will significantly re-rate stock • Full Pipe-line
Slide 49: Competent Persons Statements
Competent Persons Statements • The information in this presentation that relates to Exploration Results is based on information compiled by Mr Robert For personal use only Rutherford, who is a member of the Australian Institute of Geoscientists (AIG). Mr Rutherford is the Managing Director of the Co