Rox Resources Ltd · ASX:RXL
Rox Resources — Battery Metals Conference 2019
26 slides from Rox Resources's conference presentation, Mar 21, 2019
Slide 1: Battery Metals Conference Presentation
ASX: RXL Rox Resources Battery Metals Conference Presentation 21 March 2019 Alex Passmore ASX: RXL www.roxresources.com.au Chief Executive Officer 1
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements Competent Person Statements This presentation has been prepared by Rox Resources Limited. This document contains background information Exploration Results about Rox Resources Limited current at the date of this presentation. The presentation is in summary form
Slide 3: Disclaimers – Scoping Study Cautionary Statement
Disclaimers Cautionary Statement – Scoping Study Parameters The updated Scoping Study released to the ASX on the 10th of October 2018 is based on low-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development
Slide 4: Highlights
Highlights New management, new energy, focus, and strategy Rox is a junior exploration and development company that has a strong history of exploring for, and discovering, base metal and gold deposits The company has traded mineral assets when these have not met the strategic imperatives of the comp
Slide 5: Corporate Information
Corporate Information Capital Structure Rox Share Price, Last 12 Months ASX Code: RXL Shares on Issue: 1,259M $0.020 40,000,000 Volume Share Price: A$0.009 $0.015 30,000,000 Share Price Volume Unlisted Options: 65.8M $0.010 20,000,000 Market Capitalisation: $11.3M Cash & Receivables* (at 31 Dec $0.0
Slide 6: Nickel Market Deficit
Nickel Market Deficit Nickel Market Balance & Stocks Nickel market deficit emerged in 2016 and is 300 600 224.7 180.0 expected to continue for 200 400 sometime 122.9 131.4 Nickel used in battery Market Balance (kt Ni) LME Stocks (kt Ni) 100 52.9 200 end uses to grow rapidly 0 0 (estimates of 40% CAG
Slide 7: Nickel Price Observations
Nickel Price Observations Nickel price has started to edge Prices only just rebounding of the cost curve upwards in Q1 CY2019 However this is a muted response given: Rapidly declining stocks in LME warehouse Price is not far above cash cost level 75th Percentile Line for the best performing ¾ of the
Slide 8: Rox's Nickel Projects
Rox’s Nickel Projects High Grade Nickel Sulphide Resources in WA 4.8 Mt @ 2.0% Ni; 91,000t Ni* WA is a stable and reliable jurisdiction Amongst the highest grade Ni in WA *See Appendix for resource details 8
Slide 9: Rox's Nickel Projects
Rox’s Nickel Projects Two exceptional high grade nickel sulphide resources in WA’s northern goldfields 70km apart 150km from established infrastructure 9
Slide 10: Fisher East Nickel Conceptual Plan
Fisher East Nickel Conceptual Plan Updated Scoping Study1 based on new Conceptual Mining Study by CSA – stope optimisations, detailed mine schedule – optimum mining rate was 500 ktpa Other parameters same as previous Scoping Study in 20152 Two possible cases examined: Build a concentrator on site (C
Slide 11: Scoping Study Delivers
Scoping Study Delivers Concentrator Toll Mill Mining Inventory 2.9Mt @ 1.7% Ni 2.9Mt @ 1.7% Ni Mine Life 6 years 6 years Annual Production 7,300t Ni in conc 7,300t Ni in conc Pre-Production Capital A$87m A$48m See Appendix for source data Please refer Scoping Study announcement dated 10 October Oper
Slide 12: Fisher East Resources
Fisher East Resources Total Mineral Resource* of 4.2 Mt @ 1.9% Ni, for 78,000 tonnes Ni metal Potential to increase current resources and to identify new resources * See Appendix for Mineral Resource details 12
Slide 13: Mine Layout
Mine Layout Three deposits are along a 2km strike Shared decline for Musket/ Cannonball Camelwood has its own decline Spiral declines Standard underground mining technique - sublevel stoping with paste fill 15 m sublevels, with 3.0m x 3.0m mineralised development profiles 13
Slide 14: Mine Schedule & Design
Mine Schedule & Design Years 1 and 2 are most capital intensive Depth and side extensions at Musket to be drilled Depth extensions at Camelwood also to be drilled Current 6 year mine life could be extended to 9 years with extra drilling Rox projects do not have Ore Reserves. The Mineral Resources in
Slide 15: Mine Schedule & Design
Mine Schedule & Design Production Profile 600 2.50 Tonnes Milled Grade 500 2.00 400 1.50 Tonnes Milled (kt) Grade Ni% 300 1.00 200 0.50 100 - - 1 2 3 4 5 6 7 8 Year Rox projects do not have Ore Reserves. The Mineral Resources in Rox’s Resources in the Mining Plan are ~96% Indicated. See Appendix for
Slide 16: Processing & Logistics
Processing & Logistics Simple process flow sheet and logistics Metallurgical recoveries, 80 – 99%, and saleable concentrate grades, 10 - 14% Ni, acceptable Fe:MgO ratios, low As (no penalties) Overall metallurgical recovery of 88% at concentrate grade of 13% Ni assumed 500,000 tpa milling rate Conce
Slide 17: Cost Estimates
Cost Estimates Operating Costs Concentrator Concentrator Toll Mill Case Toll Mill Case Metric (pre-tax) Unit Concentrator Toll Mill Case (A$/lb) Case (US$/lb) (A$/lb) (US$/lb) Case Case Mining & Development Cost 2.25 1.69 2.25 1.69 Pre-tax Cash A$M ~A$146m ~A$102m Transport Cost Flow 0.63 0.47 1.19
Slide 18: Resource Extensions
Resource Extensions + ROX RES OMe s 7033500mN Musket Prospect Ground Surface 7034000mN- 7034500mN m% Ni 500m RL e F 250m RL Total Musket Mineral Resource 819 kt @ 2.2% Ni Pom RL | (18,000t contained Ni) Fisher East Long Section | Musket Prospect Looking West 2 © >225 © 18.0-225 © 135-18.0 9.0-13.5 4
Slide 19: Mineralisation not in Resource
Mineralisation not in Resource Exploration of several targets along 25km of strike Economic thicknesses and grades of Ni intersected at Sabre Fresh sulphides >1.5% Ni in RC at Mt Tate 0.6% Ni intersected at Sholl Range Over 40km of strike to explore 19
Slide 20: Collurabbie
Collurabbie 167 km2 of prospective tenure Main discovery at Olympia deposit Only 70km from Fisher East Widespread Ni-Cu-PGE mineralisation over ~15km strike length on multiple stratigraphic horizons Underdone previous exploration Extensive and quality datasets of drilling and geophysics Drill target
Slide 21: Exploration Potential
Exploration Potential Olympia Mineral Resource of 573,000 tonnes @ 1.6% Ni, 1.2% Cu, 0.08% Co and 2.3 g/t Pt+Pd, 2.3% NiEq* High grade drill intercepts Open at depth Exploration potential over 15km of strike First pass metallurgical test work underway! * See Appendix for Mineral Resource details 21
Slide 22: Key Points
Key Points Impressive Fisher East Scoping Study Outcomes Both Concentrator and Toll Cases are very attractive – and Upside Case is very achievable Large shallow mineral systems (over 10km in strike length, open at 700m depth, sulphides at 60m depth) Straight forward underground mining & processing E
Slide 23: Thank You
Thank You Rox Resources Limited Level 1, 34 Colin Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: admin@roxresources.com.au W: www.roxresources.com.au 23
Slide 24: Appendix - Study Outcomes
Appendix - Study Outcomes Capital Costs Concentrator Case Toll Case Mining Inventory 2.9Mt @ 1.7% Ni 2.9Mt @ 1.7% Ni Pre-Production Capital A$87.0m A$48.0m Sustaining Capital A$37.9m A$37.0m Life of Mine 6.0 years 6.0 years Processing Rate 500ktpa 500ktpa Nickel in concentrate - LOM 44,100t 44,100t
Slide 25: Appendix – Mineral Resources
Appendix – Mineral Resources Fisher East Nickel, ASX:RXL 5 February 2016 Olympia Nickel-Copper-PGE, ASX:RXL 18 August 2017 Tonnes Pd+Pt Deposit Category Tonnes (Mt) Ni% Ni (kt) Ni % Cu % Co ppm Pd ppm Pt ppm NiEq %* NiEq (kt) (kt) (koz) 573 1.6 1.2 820 1.5 0.85 2.2 13.5 43.0 Indicated 1.7 2.0 34.0 O
Slide 26: Appendix – Mineral Resources
Appendix – Mineral Resources Mt Fisher Gold, ASX:RXL 11 July 2018 0.8 g/tAu block cut-off grade. Values may not sum due to rounding. 26