Red 5 — Investor Presentation (May 2019)
25 slides from Red 5's investor presentation, May 20, 2019
Slide 1: King of the Hills: Resource Update
King of the Hills: Resource Update Investor Presentation, 20 May 2019 Mark Williams, Managing Director ASX Code: RED
Slide 2: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer Competent Person Statement for Exploration Results The information in this presentation which relates to Exploration Results is extracted from ASX announcements titled “High-Grade Drilling Results Confirm Potential for Resource Extensions within Key Mining
Slide 3: Red 5 – Corporate summary
Red 5 – Corporate summary Share Price Issued Shares Market Cap Kevin Dundo Chairman (at 17/5/19) (undiluted) (at 17/5/19) Mark Williams Managing Director A$0.13 1,243.2M A$161.6M Ian Macpherson Non-executive Director Colin Loosemore Non-executive Director Enterprise Value Debt Cash/Bullion
Slide 4: Eastern Goldfields Operations
Eastern Goldfields Operations June 2019 Quarter guidance of 27-31Koz at AISC of A$1,300-$1,450/oz1 Flexible mining strategy to accommodate multiple underground ore bodies, including “right-sizing” mining equipment KOTH ramp-up completed to original 400Ktpa target in December 2018 Quarter – now
Slide 5: Red 5 – A strong track-record of achievement
Red 5 – A strong track-record of achievement… October 2017 Assumed operational control of Darlot and KOTH gold mines December 2017 Initial Ore Reserve estimate for Darlot of 131Koz January 2018 Mining operations commenced at KOTH Confirmation of new high-grade discovery at Darlot – “Oval Wes
Slide 6: Darlot Oval – Exploration success in H1 2018
Darlot Oval – Exploration success in H1 2018 Oval Probable Ore Reserve by Level as at June 2018 Level Tonnes Grade g/t Au Contained Gold oz OV738 58,604 7.08 13,347 OV723 72,276 8.22 19,210 OV707 35,878 8.25 9,518 Upper Oval West 167,208 7.83 42,075 OV690 31,607 5.00 5,084 OV673 49,947 3.72 5,615 OV
Slide 7: Darlot – A strong history and an exciting future
Darlot – A strong history and an exciting future Celebrated 30 years of continuous gold production in November 2018 – total production of 2.8 million ounces of contained gold Lords Extension Target delivering promising early results: CAX0049 5.1m at 2.1g/t Au from 429.1m (incl. 0.3m at 12.1g
Slide 8: KOTH Next Steps – Evaluate a stand-alone operation
KOTH Next Steps – Evaluate a stand-alone operation A KOTH stand-alone project potentially comprises four components, subject to successful studies: Build a 2-4Mtpa processing plant at KOTH Develop a large open pit at KOTH Expand the existing underground to supply early and high-grade feed
Slide 9: KOTH – Updated Resource – total 3.1Moz
KOTH – Updated Resource – total 3.1Moz 65% increase in resource Total KOTH Resource as at May 2019 since 4 December 2018 Contained Estimate Classification Cut-off (g/t) Tonnes (000t) Gold (g/t) Now 66Mt at 1.5g/t for Gold (000oz) Indicated 0.4-1.0 53,100 1.4 2,350 3.1Moz May 2019 JORC 2012 Infer
Slide 10: KOTH – Open Pit 2.0Moz. Underground 1.1Moz
KOTH – Open Pit 2.0Moz. Underground 1.1Moz Total Open Pit & Underground KOTH Resource as at May 2019 Cut-off for drilling data, and mining depletion up to Cut-off Mining Contained Gold 14 February 2018 Classification Tonnes (000t) Gold (g/t) (g/t) Method (000oz) Indicated 0.4-1.0 OP+UG 53,100 1.4
Slide 11: KOTH – 3.1Moz Resource
KOTH – 3.1Moz Resource Open Pit The open pit resource of 48.5Mt at 1.3g/t Au for 2.0Moz will be the basis of the open pit Reserve There remains open pit potential under the south pit, along strike to south, and to the west Underground The underground resource of 17.5Mt at 2.0g/t Au for 1.1Moz
Slide 12: KOTH – 3.1Moz Resource
KOTH – 3.1Moz Resource The damage zone is the region at the boundary of the granodiorite (pink) and ultramafics (green), and includes both rock types The 10780N section shown highlights the grade enrichment outside of and inside the granodiorite Also highlighted are the larger high grade vein
Slide 13: Mineralization open in all directions
Mineralization open in all directions The endowment under the north pit is 5,000 oz/vm, and under the south pit 6,000 oz/vm If the south endowment keeps going, the combined endowment would potentially be 11,000 oz/vm Drilling north along the contact returned full length of hole composite assays Dril
Slide 14: What's different about Red 5's approach?
What’s different about Red 5’s approach? Lemonwood bulk stope development face Baelor development face grading 9.24g/t targeting grading 10.14g/t with almost no major veins gold in major veining (mined to ~1.5m width) visible Baelor (RHS picture) is the type of narrow, high-grade vein that was exp
Slide 15: What Red 5 is doing differently – Explore the contact
What Red 5 is doing differently – Explore the contact The contact between the granodiorite and the ultramafics extends into both rock types, in the form of large veins and smaller veinlets forming a stockwork damage zone The endowment is higher grade on the contact and generally falls moving awa
Slide 16: Bulk Underground is much more compact
Bulk Underground is much more compact North East Bulk Mining Area (mined in red, planned in orange) The new mine plan First bulk stope (Lemonwood – 31,778t @ 3.35g/t) discovered in September 2018 and fully mined out by first week of January 2019 Since then, ~600kt identified in bulk stoping posi
Slide 17: Regional Oxide Mill Feed - 13,300m RC drill program
Regional Oxide Mill Feed - 13,300m RC drill program Regional near-mine exploration underway to test potential open pit ore sources to supply early mill feed for a stand- alone KOTH processing facility A1 Drilling will focus on areas of known gold mineralisation partly drilled by previous owners
Slide 18: Future – Explore along contact
Future – Explore along contact Exploration aimed at increasing the Resource in total tonnage and potentially grade Granodiorite/ultramafic contact zone extends almost 12km around the granodiorite, with the potential to host gold mineralisation outside the existing mine area Focus areas include
Slide 19: KOTH – A great place to build a plant
KOTH – A great place to build a plant Stand-alone Processing Plant Study GR Engineering Services engaged to complete a study to evaluate the suitability, cost and next steps required to construct a new stand-alone processing plant at KOTH Existing Assets and Infrastructure Tailings storage facil
Slide 20: KOTH in Perspective - Australia's Top 20 Gold Deposits
KOTH in Perspective - Australia’s Top 20 Gold Deposits Resources Reserves Mt g/t Moz Mt g/t Moz Cadia Newcrest 3175 0.4 37.6 1480 0.5 22.5 Boddington Newmont 928 0.6 18.6 574 0.7 12.4 Golden Mile (100%) Newmont/Barrick 273 1.3 11.7 193 1.2 7.3 Mineral Granny Smith Goldfields 46 5.3 7.8 13 5.5 2.2 Re
Slide 21: Siana Gold Project, Philippines
Siana Gold Project, Philippines Red 5’s Philippine affiliated company, Greenstone Resources has received government approval to construct and operate a new Tailings Storage Facility Previous delays in receiving this approvals resulted in the decision to suspend Siana mining operations in April 2
Slide 22: Red 5 – New Mines, Not Old Mines
Red 5 – New Mines, Not Old Mines Commanding 365km2 footprint in the highly-endowed Leonora-Leinster gold district – Darlot, King of the Hills and Ockerburry Hill Darlot exploration is delivering broad mineralised intercepts at grades equal to or possibly better than the best in its history – thi
Slide 23: Appendix: Australia's top 20 gold deposits
Appendix: Australia’s top 20 gold deposits Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Cadia Newcrest Lake Cowal Evolution Measured Indicated 33.0 3090.0 0.30 0.37 0.3 Proven 36.5 Probable 1480.0 0.47 22.5 Measured Indicated 46.5 174.9 0.69 0.85 1.0 Proven 4.8 P
Slide 24: Appendix: Resource grade tonnage tables
Appendix: Resource grade tonnage tables 24
Slide 25: Thank-you
Thank-you ¥ RED ASX Code: RED