Rox Resources Ltd · ASX:RXL
Rox Resources — Investor Presentation (February 2015)
30 slides from Rox Resources's investor presentation, Feb 17, 2015
Slide 1: ASX/Media Release: Company Presentation
ASX/MEDIA RELEASE 17 February 2015 For personal use only COMPANY PRESENTATION Please find attached a copy of the latest company presentation prepared by Rox Resources Limited (ASX: RXL) (“Rox” or “the Company”). This presentation will be made at two Symposium Events seminars (roadshows) to be held i
Slide 2: Road to Production
For personal use only Road to Production February 2015 ASX: RXL 1
Slide 3: Disclaimers
Disclaimers For personal use only Disclaimer Forward-Looking Statements This presentation has been prepared by Rox Resources Limited. This document contains background This report contains certain forward looking statements. The words "expect", "forecast", "should", "projected", information about Ro
Slide 4: Disclaimers: Competent Person and Cautionary Statements
Disclaimers For personal use only Competent Person Statements Cautionary Statements The information in this report that relates to Exploration Results for the Mt Fisher, Reward and Bonya The Company advises the Scoping Study results and production targets reflected in this announcement are Projects
Slide 5: Who Is Rox?
Who Is Rox? For personal use only Mineral explorer with strong leverage to base metal prices: Nickel, Zinc, Copper Fisher East Nickel (100%): 72,000 t contained nickel, upside to double resource, scoping study completed Bonya Copper (51%): Exciting new massive copper sulphide discovery Reward Zinc (
Slide 6: Company Snapshot
Company Snapshot For personal use only Rox Capital Structure (31 Dec 2014) Camelwood Teena Zn Musket Ni Ni Resource Ni Discovery Discovery Discovery Doubled ASX Code: RXL Issued Shares: 849.7m Unlisted Options: 46.2m Market Cap: $22.9m (at 2.7c) Cash: $2.9m (31 Dec) Experienced Board & Management Ia
Slide 7: Mt Fisher Location
Mt Fisher Location For personal use only Mt Fisher Greenstone Belt located 150km north-east of Leinster (BHP Nickel West) New province for nickel sulphide deposits – discovered by Rox Three mineralised zones drilled so far along 3km of strike Deposits still wide open – potential to expand resources
Slide 8: Three Nickel Discoveries
Three Nickel Discoveries For personal use only VTEM anomalies followed up with aircore/RAB Camelwood, 1.6 Mt @ 2.2% Ni Musket, 2.1 Mt @ 1.8% Ni Cannonball, resource to come in 2015 All resources still open at depth and along strike Two nickel sulphide ore types, massive and disseminated 7
Slide 9: Nickel Sulphide Resources
Nickel Sulphide Resources For personal use only Combined Mineral Resource* Fisher East Nickel Resources (Camelwood & Musket) of 3.6Mt @ 8,000,000 8.00 2.0% Ni at 1% Ni cut-off 7,000,000 7.00 6,000,000 6.00 Indicated 1.8Mt @ 2.1% Ni (52% of 5,000,000 5.00 Ni Grade % metal) Tonnes 4,000,000 4.00 Infer
Slide 10: Scoping Study
Scoping Study For personal use only Technically low risk and financially robust project Examined two options: o Toll milling – truck ore to nearby plant (estimated 200km) o Build a plant (e.g. 500,000 tpa) – truck concentrate for sale Relatively low up-front capital costs, $85.0M for Base Case and $
Slide 11: Mine Planning
Mine Planning For personal use only Based on current mineral resources, which are expected to grow Two underground mines – Musket and Camelwood - boxcut and decline to each – straight forward mining methods Cannonball resource drilling could change this – e.g. one central decline Strong possibility
Slide 12: Processing
Processing For personal use only Base case to build, own and operate a processing plant, 500,000 tpa Metallurgical recoveries, ~95% for massive ore and ~80% for disseminated ore Straight forward process flow sheet Saleable concentrate grades, 10 - 14% Ni, acceptable Fe:MgO ratios with low MgO (<4%)
Slide 13: Outcomes
Outcomes For personal use only No foreseeable issues with Item Base Case Toll Case environmental, water, infrastructure or Operating Cost (C1) A$207/t A$217/t logistics Upfront Capital Cost A$85.0M A$20.8M Baseline environmental studies underway Standard industry practice underground Opportunities t
Slide 14: Increase Resources
Increase Resources For personal use only Open at depth and along strike, untested downhole EM conductors Camelwood Mineral Resource: Indicated 0.6 Mt @ 2.4% Ni, Inferred 1.0 Mt @ 2.1% Ni, Total 1.6 Mt @ Multiple target areas along 3km of strike 2.2% Ni Musket Mineral Resource: Indicated 1.2 Mt @ 2.0
Slide 15: Efficient Explorer
Efficient Explorer For personal use only 2.1% 1.0% 0.6% 0.6% 1.4% 0.8% 0.4% Expenditure by Category Expenditure on nickel sulphide 2.3% Drilling - Core exploration over last 2.5 years has 2.4% 2.6% Drilling - RC been $8.1 million 3.0% Salaries Geophysics Direct drilling expenditure is $4.85 3.5% Dri
Slide 16: Exploration Potential
Exploration Potential For personal use only New EM and geochemical targets still being generated Strong aircore results at Cutlass – similar to original results from Camelwood and Musket etc. New Option ground has strong Ni-Cu anomalies, yet to be tested New regional exploration program approved – s
Slide 17: Bonya Copper Project
Bonya Copper Project For personal use only Bonya Jervois 16
Slide 18: Bonya Regional Geology
Bonya Regional Geology For personal use only Rox has earned 51% for $500K and elected to earn to 70% for extra $1 million (Dec 2016) Same host rocks as Jervois copper deposits (KGL) Outcrops of copper oxide mineralisation up to 33% Cu and 55 g/tAg EM and geochemical surveys have defined several targ
Slide 19: Bonya Drilling
Bonya Drilling For personal use only Massive copper sulphides intersected at Bonya Mine prospect, e.g. 38m @ 4.4% Cu, with high grades up to 17% Cu Copper sulphides also at EM targets 03 and 04 18
Slide 20: Bonya Mine Prospect
Bonya Mine Prospect For personal use only Massive copper sulphide intercepts 11m @ 4.4% Cu, incl. 3m @ 6.1% Cu 38m @ 4.4% Cu, incl. 6m @ 8.8% Cu and 8m @ 7.9% Cu 5m @ 9.1% Cu, incl. 3m @ 13.4% Cu Still open at depth and along strike More drilling planned 19
Slide 21: Exploration Targets
Exploration Targets For personal use only Several copper oxide outcrops to investigate Exploration next year to look at drilling a number of these, plus more drilling at Bonya Mine 20
Slide 22: Reward Zinc Project
Reward Zinc Project For personal use only 21
Slide 23: Tenements
Tenements For personal use only Next to McArthur River zinc deposit JV between Rox (49%) and Teck (51%) Teck can earn-in to 70% by funding $15m total by August 2018 Existing infrastructure includes bitumen road, gas pipeline, major airport, ship loader and port Teena discovery in 2013 (8km west of M
Slide 24: Teena Deposit
Teena Deposit For personal use only Thick intercepts of 10-15% Zn+Pb; Large mineralised system; >1.9km strike x 0.8km wide; plunging to east Drilling still very wide spaced (250 – 500m) 2014 drilling program completed – extensions to system indicated Potential for 5-10 Mt contained zinc- lead (viz.
Slide 25: Teena Cross Section
Teena Cross Section For personal use only Stratigraphic sequence similar to McArthur River Well developed stratiform zinc- lead mineralisation Two lenses of high grade zinc- lead mineralization within a larger envelope of lower grade sulphide mineralization Zn:Pb ratio = 6.5:1 Bound to north by a ma
Slide 26: High Grade Massive Sulphide
High Grade Massive Sulphide For personal use only 19.4% Zn, 2.9% Pb 21.3% Zn, 3.4% Pb 22.1% Zn, 3.8% Pb 22.0% Zn, 4.0% Pb 24.2% Zn, 4.1% Pb 25
Slide 27: Zinc Price Predicted To Rise
Zinc Price Predicted To Rise For personal use only kt Zinc Market Balance US$/t Consumption is predicted to 20,000 3,800 4,000 continue to exceed Production 18,000 3,500 Deficit of between 2.5% and 5% 2,750 3,000 each year 2,165 2,500 16,000 1,910 2,000 Upward pressure on price 14,000 1,500 (current
Slide 28: Company Performance
Company Performance For personal use only Rox vs Small Resources Index 2014 Rox Expenditure by Financial Year 225 5.0 200 4.5 175 4.0 3.5 150 3.0 125 Millions 2.5 100 2.0 75 1.5 50 1.0 Rox Small Resources (XSR) 25 0.5 0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1-Apr-14 1-Jan-14 1-M
Slide 29: Summary
Summary For personal use only • Fisher East nickel project – further development studies, drilling, discoveries, & resource updates • Bonya – new copper discovery – more targets to test – early days – potential for high grade copper deposits • Teena drilling completed for this year - Teck still to s
Slide 30: Thank You
For personal use only Thank You Rox Resources Limited Rox Resources Limited Level 1, 30 Richardson Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: admin@roxresources.com.au W: www.roxresources.com.au 29
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