Red Mountain Mining Ltd · ASX:RMX
Red Mountain Mining — Investor Presentation (November 2016)
17 slides from Red Mountain Mining's investor presentation, Nov 3, 2016
Slide 1: The Red Valley a fresh start - Lithium Brine Project, Utah
For personal use only The Red Valley a fresh start Lithium Brine Project, Utah November 2016
Slide 2: Capital Structure
Capital Structure For personal use only •Shares on issue = 310,542,182 •Market capitalisation (at 1 cent) = $3.1 million •Cash = $1.6 million •Enterprise value (at 1 cent) = $1.5 million THE RED VALLEY PROJECT – UTAH 2
Slide 3: A Fresh Approach
A Fresh Approach For personal use only • New board – Jeremy King – Jason Bontempo – Lincoln Ho • Tight capital structure, leveraged to success • Gold & energy metals focus • New Lithium Brine Project with significant upside: Red Valley Project THE RED VALLEY PROJECT – UTAH 3
Slide 4: Lithium: Brine vs Hard Rock
Lithium: Brine vs Hard Rock For personal use only • Lithium Brine Projects Produce Almost 70% of Global Production • Compared to hard rock, Brine Projects are: – Cheaper to explore – Faster to put into production – Lower CAPEX – Longer mine life COURTESY: C. Doornbos THE RED VALLEY PROJECT – UTAH 4
Slide 5: Lithium Brines on a Global Scale
Lithium Brines on a Global Scale For personal use only USA, China & South America are the only Lithium brine producers COURTESY: http://www.energyandcapital.com THE RED VALLEY PROJECT – UTAH 5
Slide 6: Clayton Valley (Nevada, USA)
Clayton Valley (Nevada, USA) For personal use only Holds the Silver Peak Mine: • Owned by Albermarle (NYSE: ALB, MC = $9.43B) • North America’s only Lithium brine producer • 50 years in production and counting Lithium Operation At Silver Peak THE RED VALLEY PROJECT – UTAH 6
Slide 7: Unique Opportunity
Unique Opportunity For personal use only • For 50 years, Clayton Valley has been North America’s only site of Lithium brine production but: – Ground waters have all been allocated to Albemarle Corp – Extensive and multiple mineral claim positions cover the valley – Drilling in the southern parts of
Slide 8: Attractive Earn-In Terms
Attractive Earn-In Terms For personal use only • Try before you buy: 1. Drill - Walk-up drill targets mapped and staked, near term drilling 2. Get results - Simple drilling & results analysis (US$200,000 – US$350,000) 3. Then, option to acquire 51% of Project for US$250,000 - No share dilution • Red
Slide 9: Red Valley (Utah, USA)
Red Valley (UTAH, USA) For personal use only • Total Red Valley Project area comprises circa 15,000 acres, sufficient scale to support a long-life brine project Project boundary with State highway, rail and power line • A remarkable Clayton Valley lookalike THE RED VALLEY PROJECT – UTAH 9
Slide 10: Red Valley (Utah, USA) - Regional and Local Faulting
Red Valley (UTAH, USA) For personal use only Regional and Local Faulting: Similar structural settings provide requisite fluid migration systems Clayton Valley Red Valley THE RED VALLEY PROJECT – UTAH 10
Slide 11: Red Valley (Utah, USA) - Requisite Basin qualities
Red Valley (UTAH, USA) For personal use only Requisite Basin qualities: Lithium enrichment alone is not enough for conventional brine production -- the correct reservoir characteristics are required. THE RED VALLEY PROJECT – UTAH 11
Slide 12: Red Valley (Utah, USA) - Anomalous Lithium water values
Red Valley (UTAH, USA) For personal use only Anomalous Lithium water values: Red Valley Lithium in water comparable to Clayton Valley anomalous levels (1 to 3 ppm) LITHIUM Red Valley Project Area 0.5 to 2.4 ppm 0.1 – 0.5 ppm 0.02 ppm – 0.1 ppm 0.001 – 0.02 ppm THE RED VALLEY PROJECT – UTAH 12
Slide 13: A geologic analogue . . .
A geologic analogue . . . For personal use only THE RED VALLEY PROJECT – UTAH 13
Slide 14: An experienced JV partner
An experienced JV partner For personal use only Bill Feyerabend (B.Sc Geology) Arizona-based certified professional geologist for over 40 years • Vast experience in the Clayton Valley • Author of expert reports for Clayton Valley players: – Lithium-X (MC: C$120m) – Pure Energy (MC: C$57m) On-site in
Slide 15: Utah: A Mining Jurisdiction
UTAH: A Mining Jurisdiction For personal use only • Voted top 10 mining jurisdiction in the world, 2015 • Backyard of Tesla, Faraday electric car plants in Nevada • Tesla seeking to source lithium exclusively from North America • Power, high-quality roads, workforce, rail, all on doorstep of project
Slide 16: Catalysts for growth
Catalysts for growth For personal use only 1. Anticipated Red Valley drilling commencement 6 - 10 weeks 2. Analysis for commercial lithium values shortly thereafter • On drilling success, significant upside 3. New board continuing to seek further opportunities in gold and new energy metals sector to
Slide 17: Summary
Summary For personal use only • An opportunity to control USA’s Next Lithium Brine Province • A geological analogue to Clayton Valley • Exploration Fully Funded With No Share Dilution • Earn-in and JV Partner = Geologist With Over 40 Years Experience • Micro Enterprise Value At Current Share Price •
Red Mountain Mining — Investor Presentation (November 2016) on 6ix