Slide 1: A growing, low-cost gold producer in the Philippines
For personal use only A growing, low-cost gold producer in the Philippines Investor Presentation – Denver Gold Forum, 19-21 September 2016 Mark Williams, Managing Director ASX Code: RED OTCQX International Code: RDFLY
Slide 2: Disclaimer and Competent Person's Statement
Disclaimer and Competent Person’s Statement For personal use only Competent Person’s Statement for JORC 2012 Mineral Resource and Ore Reserve The information in this report that relates to Mineral Resources and Ore Reserves for the Siana Open Pit is extracted from the report titled Siana Open Pit Mi
Slide 3: Presentation Overview: 5 Key Pillars
Presentation Overview: 5 Key Pillars ASX-listed gold producer operating in the Philippines For personal use only 1. Low-cost gold production from open pit operations at Siana • Strong gold production of 59,663oz for FY2016 • Reducing cost profile due to drop in waste-to-ore ratio from July 2016 • Ta
Slide 4: Corporate Snapshot
Corporate Snapshot Unhedged and debt-free ASX-listed gold producer operating in the Philippines For personal use only ASX Code RED Directors and Management Share price (as at 14 September 2016) A$0.11 Kevin Dundo – Chairman Issued shares 761.9M Mark Williams – Managing Director Market capitalisation
Slide 5: Siana Gold Project – Location
Siana Gold Project – Location Located in a highly prospective and well-established mining region For personal use only 5
Slide 6: Open Pit Mining Schedule and Production Guidance
Open Pit Mining Schedule and Production Guidance Strong and consistent performance with reducing cost profile For personal use only 1. 2016/17 financial year forecast production profile: Low cost open pit Open Pit Update and FY 2017 Guidance production Quarter Estimated Au oz recovered 2. Achieved
Slide 7: Siana – Underground Feasibility Study
Siana – Underground Feasibility Study A blueprint to deliver future growth at Siana For personal use only 1. Updated Feasibility Study completed in Low cost open pit June 2016 by underground mining production consultants Mining One Pty Ltd: 2. – Forecast production of ~60,000ozpa over Underground
Slide 8: Siana – Underground Resources & Reserves
Siana – Underground Resources & Reserves Underpins robust long-term underground mine development For personal use only 1. Siana Underground deposit: Low cost open pit production Indicated and Inferred Mineral Resource of 3.8Mt @ 5.8g/t 2. Au for 704,000oz Underground development Maiden Probable
Slide 9: Siana – Underground Production Profile
Siana – Underground Production Profile Robust economics with relatively modest capital cost estimate For personal use only 1. 600,000 7.00 Projected 12-month Low cost open pit timeline to access production 6.00 underground ore 500,000 Potential to fund Total Ore Production & Grade 2. 5.00 Underg
Slide 10: Siana – Underground Mining Method
Siana – Underground Mining Method A blueprint to deliver future growth at Siana For personal use only 1. Mine plan based on use of Low cost open pit a conservative short up- production hole retreat mining method with cemented 2. Underground paste-fill for ore extraction development Proven mining
Slide 11: Siana – Long-Term Underground Mine Plan
Siana – Long-Term Underground Mine Plan Includes assessment of entire resource beneath the Siana open pit For personal use only 1. Feasibility Study also considered Low cost open pit technical and economic viability production of the entire UG resource – including Indicated and Inferred 2. Undergr
Slide 12: Major Capital Expenditure Items for FY 2016-17
Major Capital Expenditure Items for FY 2016-17 Estimated costs For personal use only Short-term loan facility of 1. • Open Pit Development A$17.2M Low cost 300 million Philippine open pit production • Underground Development A$13.6M pesos (~A$8.8M) available 2. • Paste-Fill Plant A$18.2M from Phil
Slide 13: Siana Underground – Major Project Risks
Siana Underground – Major Project Risks Risk Management Strategies For personal use only 1. Risk Area Risk Mitigation Strategies Low cost open pit • Water ingress into • Upgrade open pit dewatering capability to 1000 litres/second production underground mine • Install 2-3 small bores near the base o
Slide 14: Siana Underground – Major Project Risks
Siana Underground – Major Project Risks Risk Management Strategies For personal use only 1. Risk Area Risk Mitigation Strategies Low cost open pit • Development rates Conservatively targeting advance rates of 70m per month in the production decline and 30m per month in any ore drive 2. Commence
Slide 15: The Future – Exploration and Growth
The Future – Exploration and Growth Surigao del Norte – one of the most mineralised provinces in one of the most mineralised countries globally For personal use only 1. • Exploration targets identified Low cost • Increase in near-mine and regional exploration open pit production activities 2. Underg
Slide 16: Mapawa Project
Mapawa Project Maiden resource paves the way for Scoping Study; longer term exploration upside For personal use only 1. Low cost 20km north of Siana open pit production JORC 2012 Indicated and Inferred Mineral Resource for LSY deposit of 2. Underground 8.8Mt @ 1.0g/t Au for 289,000oz development
Slide 17: Alegria Area
Alegria Area Exploration to commence in the second half of 2016 For personal use only 1. Low cost Located in the southern tenement open pit region named “Alegria” production Previous exploration identified 2. Underground three significant prospects –Alipao, development Madja and Budlingin 3. A
Slide 18: Alegria Area – Madja Prospect
Alegria Area Madja Prospect: A priority target For personal use only 1. Low cost Previous drilling at Madja intersected significant copper-gold mineralisation open pit production Hole ALDD001 intersected 8.0m @ 0.74g/t Au and 0.94% Cu and 23m @ 0.48g/t Au and 0.44% Cu 2. Underground Promising
Slide 19: Processing Plant
Processing Plant Only modern operating gold plant in a highly endowed world-class mining region For personal use only Modern 1.1Mtpa gravity and carbon-in-leach 1. Low cost open pit production (CIL) processing facility Constructed in 2011 2. Underground development Heart of the plant is an Out
Slide 20: Management Track Record – Recent Achievements
Management Track Record – Recent Achievements Realising our potential at Siana and beyond For personal use only 1. Gold production achieved higher end of FY2016 Low cost open pit guidance – 59,663oz production Operational improvements completed – upgrade 2. of haul roads, re-build of ring draina
Slide 21: ISO Accreditation Standards
ISO Accreditation Standards Siana Gold Project accredited in December 2015 For personal use only 1. • Accreditation for ISO 14001: Environmental Management Systems Low cost open pit production • in compliance of the Philippines Department of Environment and Natural Resources (DENR) requirement for a
Slide 22: Sustainable Development Initiatives
Sustainable Development Initiatives Strong commitment to health and safety, community and environmental programs For personal use only 1. Support continues in the areas of: Low cost open pit • Health production • Community education 2. • Welfare • Agricultural Underground development • Infrastructur
Slide 23: Sustainable Development Initiatives
Sustainable Development Initiatives Strong commitment to health and safety, community and environmental programs For personal use only 1. Low cost • Significant contributor to local communities open pit production and to the regional and national economy in the Philippines: 2. Underground • Employme
Slide 24: Presentation Overview: Key Pillars
Presentation Overview: 5 Key Pillars ASX-listed gold producer operating in the Philippines For personal use only 1. Low-cost gold production from open pit operations at Siana • Strong gold production of 59,663oz for FY2016 • Reducing cost profile due to drop in waste-to-ore ratio from July 2016 • Ta
Slide 25: Thank you.
For personal use only Thank you. Mark Williams (Managing Director) Joe Mobilia (CFO) Web: www.red5limited.com E-mail: info@red5limited.com 25 25