Rox Resources Ltd · ASX:RXL
Rox Resources — Shareholder Meeting (November 2018)
40 slides from Rox Resources's shareholder meeting presentation, Nov 29, 2018
Slide 1: Rox Resources AGM Presentation
ASX: RXL For personal use only Rox Resources AGM Presentation 29 November 2018 Ian Mulholland ASX: RXL www.roxresources.com.au Managing Director 1
Slide 2: Disclaimers
Disclaimers For personal use only 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 presentat
Slide 3: Disclaimers – Cautionary Statement, Scoping Study Parameters
Disclaimers For personal use only Cautionary Statement – Scoping Study Parameters The updated Scoping Study 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 case at this stage, or to
Slide 4: This Year
This Year For personal use only Completed a total of 17,756 metres of drilling (3,191m DD – 8 holes, 2,453m RC – 15 holes, 12,112m AC – 280 holes) Extended Camelwood and Musket orebodies by 150m each in depth Re-structured and sold Bonya JV interest for $550,000 in shares Updated Mount Fisher Gold R
Slide 5: What is Rox?
What is Rox? For personal use only A junior exploration (and development) company Strong Financial Positon: Total $12.8 million = Cash ~$8.7 million* + Receivables of ~$4.1 million*, no debt JORC Mineral Resources of Nickel and Gold All projects in Australia Committed management with “skin in the ga
Slide 6: Gold
For personal use only Gold 6
Slide 7: Why Helios Gold?
Why Helios Gold? For personal use only Market was good for IPO’s earlier in the year Good exploration results at Mt Fisher Competition for funding with Fisher East – can’t do everything Opportunity to independently fund gold exploration which would benefit Rox shareholders Excellent Board available
Slide 8: Mt Fisher Gold Potential
Mt Fisher Gold Potential For personal use only JORC Mineral Resource of 89,000 oz* @ 2.7 g/t Au Large scale gold-in-regolith anomaly along complex western shear zone (Damsel-Dam-Shiva) – 10km long Targeting >500,000 ozs Gold plants within 150km (e.g. Bronzewing, Darlot, Jundee, Wiluna) * See Appendi
Slide 9: Exceptional Recent Results
Exceptional Recent Results For personal use only 300m anomaly at Dam North 4m @ 6.2 g/t Au 200m extension at Dam 800m extension to Damsel 4m @ 2.8 g/t Au Filled in Dirks over 1km 4m @ 3.5 g/t Au RC drilling to define resources is next step 9
Slide 10: More Recent Results
More Recent Results For personal use only At Shiva, strong continuous gold anomaly > 1 g/t Au over 500m 4m @ 1.3 g/t Au RC drilling to define resources is next step 10
Slide 11: Yilgarn Gold Model
Yilgarn Gold Model For personal use only Bronzewing is a group of gold deposits in Yandal Belt – 3.6 Moz Distance is ~75km from Mt Fisher Footprint of Bronzewing deposits quite small 100m x 50m Aircore/RAB drilling required to properly define anomalies Large low grade gold halo (~100 ppb Au) – but s
Slide 12: Mt Fisher vs. Bronzewing
Mt Fisher vs. Bronzewing For personal use only Dam Central Prospect Oxide 100 ppb Au 300 ppb Au Fresh Target Zone Comparison of Mt Fisher with Bronzewing shows similar features at a number of prospects Potential for deeper gold systems at Mt Fisher beneath Aircore/RAB gold anomalies Reference: Anand
Slide 13: Bronzewing South
Bronzewing South For personal use only 7 exploration tenements all within 20km of the Bronzewing Gold Processing Plant More than 3,000 holes drilled for 150,000m but depths only ~30-60m Active gold mining area, viz. Yandal Belt (24 Moz) ➢ 1992-2002: 10 year legal dispute (Creasy vs Beal) ➢ 2005: Awa
Slide 14: Bronzewing South
Bronzewing South For personal use only Highly prospective ground – immediately south of Bronzewing mine – along strike from 1Moz Orelia gold deposit Up Front : $500K = $100K cash + $400K shares ➢ $20K cash for Option + $80K cash on successful listing of Helios on ASX ➢ 2 million x Helios Gold Shares
Slide 15: Nickel
For personal use only Nickel 15
Slide 16: Nickel Sulphide Discoveries
Nickel Sulphide Discoveries For personal use only Two exceptional high grade nickel sulphide resources in WA’s northern goldfields 70km apart 150km from established infrastructure 16
Slide 17: Fisher East Resources
Fisher East Resources For personal use only 2km Total Mineral Resource* of 4.1 Mt @ 1.9% Ni, for 78,000 tonnes Ni metal Potential to increase current resources and to identify new resources over 2km strike * See Appendix for Mineral Resource details 17
Slide 18: Scoping Study Results
Scoping Study Results For personal use only Onsite Upfront Capital Free Cash Flow Concentrator A$87m A$146m NPV IRR C1 Cost AISC A$79m 44% US$3.14/lb US$3.57/lb Upfront Capital NPV IRR Toll Mill A$48m A$58m 55% Figures at Nickel price of US$16,500/t (US$7.50/lb). See Appendix for Toll Mill and other
Slide 19: Mine Schedule & Design
Mine Schedule & Design For personal use only Musket Cannonball Camelwood Yr 1 Yr 2 Yr 1 Yr 3 Yr 2 Yr 4 Yr 3 Yr 5 Yr 4 Yr 6 Yr 5 Yr 6 Yr 7 Yr 7 Yr 8 Yr 8 Standard underground mining technique - sublevel stoping with paste fill Extensions at Musket and Camelwood to be drilled Typically nickel sulphide
Slide 20: Processing & Logistics
Processing & Logistics For personal use only 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
Slide 21: Resource Extensions
Resource Extensions For personal use only MFED076: 1.4m @ 2.9% Ni MFED076W1: 2.4m @ 2.4% Ni 21
Slide 22: New Resources
New Resources For personal use only Exploration of several targets along 40km of strike Economic thicknesses and grades of Ni intersected at Sabre – resource to be drilled out Fresh sulphides up to 1% Ni in aircore at Mt Tate to follow up 0.6% Ni intersected at Sholl Range 22
Slide 23: Collurabbie
Collurabbie For personal use only 167 km2 of prospective tenure Main discovery at Olympia deposit Only 70km from Fisher East Widespread Ni-Cu-PGE mineralisation and drill targets over ~15km strike length on multiple stratigraphic horizons Underdone previous exploration Extensive and quality datasets
Slide 24: Exploration Potential
Exploration Potential For personal use only 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
Slide 25: Nickel Market
Nickel Market For personal use only Nickel price (top) and nickel stocks (bottom) are generally anti-pathetic (i.e. one goes up when the other goes down and vice-versa) Price peak in May 2014 was due to restrictions on supply of nickel from Indonesia – then price fall as restrictions eased Stocks ke
Slide 26: Nickel Market Dichotomy
Nickel Market Dichotomy For personal use only There are two types of nickel: ❖ Class 1 (99.9% pure) – suitable for batteries – comes from sulphide concentrates and refined laterites – 1 Mtpa – LME stockpiles ❖ Class 2 (impure) – not suitable for batteries - direct shipped ore to blast furnace either
Slide 27: EV Batteries
EV Batteries For personal use only NICKEL 33.3% 60% 80% MANGANESE 33.3% 30% 10% COBALT 33.3% 20% 10% PRESENT 2018 2020 NMC111 NMC532 NMC811 The move from NMC111 to NMC811 battery will increase range by 60% NMC811 re-charges to 80% in 20 minutes Further improvements are proposed to give greater range
Slide 28: EV Vehicle Take-up
EV Vehicle Take-up For personal use only 93% 2Mtpa, 100% Current EV 30% 600ktpa, market share 1Mtpa, 33% 50% ~2% 300ktpa, 16.5% Conversion to the NMC811 battery will see Ni demand increase by 600kt in 2025 (7 years), and by 2Mt by 2030. There simply isn’t this supply of Class 1 nickel. The growth fr
Slide 29: Nickel Price Forecast
Nickel Price Forecast use only Market Balance and Nickel Price Forecasts 30,000 Where 500 we are Market Balance kt Ni Nickel Price US$/t Stocks kt Ni 400 now 25,000 Long term price: 300 Crunch US$22,050/t Nickel Price (US$/t) ForLMEpersonal Market Balance (kt Ni) Point 200 20,000 Price in Scoping St
Slide 30: Corporate
Corporate For personal use only Rox Board of Directors: Ian Mulholland (MD), Stephen Dennis (Chairman), Brett Dickson (Finance) 30
Slide 31: Project Search
Project Search For personal use only Focus on identifying and acquiring Gold, Silver, Copper or Zinc project/s with near- term commercialisation potential Australia preferred, but also any jurisdiction with secure Mining laws and permissive community attitudes Advanced exploration (i.e. mineral reso
Slide 32: Money in the Ground
Money in the Ground For personal use only ~68% of funds into exploration since inception ~72% of funds into exploration over the last 6 years (~$20.5 million) Rox Expenditure by Year Total Rox Expenditure 6.0 Last 6 Years 5.0 Soft Market 4.0 Boom 28% Millions 3.0 GFC % Admin 2.0 % Expl 1.0 0.0 72% 2
Slide 33: Corporate Information
Corporate Information For personal use only Capital Structure Rox Share Price, Last 12 Months $0.04 40,000,000 ASX Code: RXL Volume Share Price Shares on Issue: 1,259M $0.03 30,000,000 Share Price: A$0.010 Share Price $ $0.02 20,000,000 Volume Unlisted Options: 65.8M $0.01 10,000,000 Market Capitali
Slide 34: A Great Opportunity
A Great Opportunity For personal use only RXL Cash & receivables of Project NPV vs. Company EV ~A$13m 450 400 Concentrator Case has an 350 Savannah Rox is NPV of A$79m 300 Odys s eus Significantly Undervalued Toll Mill Case has NPV of NPV A$M 250 200 A$58m 150 Rox’s Market Cap should be a 100 Fi s h
Slide 35: Key Points
Key Points For personal use only “Amongst High Grade Nickel “WA is a stable and the highest Sulphide Resources reliable jurisdiction” grade Ni in in WA WA” “Rox MD shared the 2016 AMEC 4.8 Mt @ 2.0% Major Re-rating of Prospector Award” Ni; 91,000t Ni* Rox share price “Valuation of peers is higher pe
Slide 36: Thank You
For personal use only 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 36
Slide 37: Appendix - Study Outcomes
Appendix - Study Outcomes For personal use only 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
Slide 38: Appendix – Mineral Resources
Appendix – Mineral Resources For personal use only 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 In
Slide 39: Appendix – Mineral Resources
Appendix – Mineral Resources For personal use only Mt Fisher Gold, ASX:RXL 11 July 2018 0.8 g/tAu block cut-off grade. Values may not sum due to rounding. 39
Slide 40: Appendix – Peer Comparison Data
Appendix – Peer Comparison Data For personal use only Unit Savannah Odysseus Fisher East FE Toll Mill Mincor Poseidon Ore Reserves/Mining Inventory Mt 7.7 4.9 2.9 2.9 1.1 3.3 Grade Ni% 1.42 2.30 1.73 1.73 2.50 0.72 Production Rate ktpa 936 750 500 500 300 1100 Mine Life Yrs 8 8 6 6 4 3 Up-Front Cape