Rox Resources Ltd · ASX:RXL
Rox Resources — Australian Nickel Conference 2018
26 slides from Rox Resources's conference presentation, Oct 23, 2018
Slide 1: Revised Presentation and Retraction of Share Price Target
23 OCTOBER 2018 RRL1595D For personal use only Revised Presentation and Retraction of Share Price Target Rox Resources Limited (ASX: RXL) (Rox or the Company) advises that the Nickel Conference Presentation lodged with ASX on 23 October 2018 inadvertently included a share price target. The Company w
Slide 2: Cashed Up Nickel Explorer
ASX: RXL For personal use only Cashed Up Nickel Explorer Rox Resources Limited Australian Nickel Conference 23 October 2018 ASX: RXL www.roxresources.com.au 1
Slide 3: 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 4: 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 5: It's All About Nickel
It’s All About Nickel For personal use only “Amongst High Grade Nickel “WA is a stable and reliable jurisdiction” the highest Sulphide Resources grade Ni in in WA “Ni price was WA” up 70% in last financial year” 4.8 Mt @ 2.0% Major Re-rating of Ni; 91,000t Ni* Rox share price “Valuation of peers is
Slide 6: Scoping Study Update
Scoping Study Update For personal use only 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
Slide 7: Scoping Study Delivers
Scoping Study Delivers For personal use only 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
Slide 8: 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 7
Slide 9: Fisher East Resources
Fisher East Resources For personal use only 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 8
Slide 10: Mine Layout
Mine Layout For personal use only 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 9
Slide 11: Mine Schedule & Design
Mine Schedule & Design For personal use only 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. Th
Slide 12: Mine Schedule & Design – Production Profile
Mine Schedule & Design For personal use only 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% Indic
Slide 13: 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 14: Cost Estimates
Cost Estimates For personal use only 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 Cos
Slide 15: Resource Extensions
Resource Extensions For personal use only 14
Slide 16: Upside Case
Upside Case For personal use only Exploration of several targets along 25km of strike Economic thicknesses and grades of Ni intersected at Sabre Fresh sulphides in aircore at Mt Tate to follow up 0.6% Ni intersected at Sholl Range Over 40km of strike to explore 15
Slide 17: 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 over ~15km strike length on multiple stratigraphic horizons Underdone previous exploration Extensive and quality datasets of drilling and g
Slide 18: 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 Minera
Slide 19: Nickel Deficit is Coming
Nickel Deficit is Coming For personal use only Nickel Market Balance & Stocks After 5 years of 300 600 surplus, nickel market 224.7 180.0 now into yearly 200 122.9 131.4 400 deficits (out to 2020 Market Balance (kt Ni) and beyond) LME Stocks (kt Ni) 100 52.9 200 0 0 Stocks shrinking to “alarm” level
Slide 20: Key Points
Key Points For personal use only 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) Aggressively exploring tenem
Slide 21: 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 Cap: $12
Slide 22: A Great Opportunity
A Great Opportunity For personal use only RXL Cash & receivables have Project NPV vs. Company EV an NPV ~$13m 450 400 Concentrator Case has an 350 Sa va nnah Rox is NPV of $79m 300 Odys s eus Significantly Undervalued Toll Mill Case has NPV of NPV A$M 250 200 $58m 150 Rox’s Market Cap should be a 10
Slide 23: 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 22
Slide 24: 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 25: 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 26: 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