Regis Resources Limited · ASX:RRL
Regis Resources — Investor Presentation (November 2010)
34 slides from Regis Resources's investor presentation, Nov 8, 2010
Slide 1: Presentation to Institutional Investors
8 November 2010 ABN 28 009 174 761 www.regisresources.com First Floor For personal use only 1 Alvan Street Subiaco WA 6009 Australia Manager Announcements PO Box 862 Company Announcements Office Subiaco WA 6904 Australia Australian Securities Exchange Limited P 08 9442 2200 Level 4, 20 Bridge Street
Slide 2: Building a quality gold business
For personal use only Building a quality gold business Mark Clark Managing Director November 2010
Slide 3: Disclaimer
This presentation contains only a brief overview of Regis Resources Limited and its associated entities For personal use only (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Regis’ projects, may rely on
Slide 4: Board and management
For personal use only Mark Clark Managing Director Nick Giorgetta Chairman Morgan Hart Operations Director Appointed to RRL board by shareholders in May 2009 All previously exec directors of Equigold NL Ross Kestel Non Exec Mark Okeby Non Exec 3
Slide 5: Corporate snapshot
1.8 8 For personal use only 1.6 7 1.4 ASX Code RRL 6 Share price ($/share) Daily Volume (Millions) 1.2 5 1 FP shares on issue 429m 0.8 4 3 0.6 Listed options 16m 0.4 2 (RRLO, RRLOA, RRLOB) 0.2 1 Unlisted options 16m 0 0 Share price $1.77 Range (1yr) $0.48‐$1.78 Monthly volume (shares) 24m Major shar
Slide 6: For personal use only
For personal use only 5
Slide 7: Duketon Gold Project
For personal use only 350 km north – north east of Kalgoorlie 387 granted leases 2,030 km2 of ground Significant gold resources Reserves at Moolart Well & Erlistoun Garden Well discovery 6
Slide 8: Moolart Well reserves
For personal use only Total Reserve growth pending MT g/t Koz Garden Well Moolart Well Dec 10 – maiden reserve Moolart Well oxides - Laterites 10.1 1.41 456 Resource conversion drilling - Oxide 2.4 1.94 148 Pit re‐optimisation MW Total 12.5 1.50 604 Satellite resources Erlistoun 2.0 2.41
Slide 9: Moolart Well Gold Mine
at * : . . Moolatt Well Gold Mine Rey = a) Se Wey Ke
Slide 10: Moolart Well geology
For personal use only Transported cover of approx 5m. Laterite ore zone averages 4m (max 20m). Oxide mineralisation from base of laterite to base of oxidation (averages 70m). 9
Slide 11: 92% of resource converts to reserve
For personal use only 92% of resource converts to reserve 10
Slide 12: Life of Mine forecasts – starter project
For personal use only Life of Mine forecasts – starter project Ore tonnes 12.4 MT Grade 1.51 g/t Recovery 92% Gold produced 555,136 oz Open pit mining – truck & shovel Primary crushing, SAG mill & CIL plant. Mill throughput 2.0Mtpa Mine life > 6 years Average production 90koz pa Max production 109ko
Slide 13: Operating costs – LOM forecast
For personal use only Operating costs – LOM forecast A$/oz • Current cost of diesel, Mining 244 cyanide & mill balls < DFS Milling 211 • $123m tax losses Lab & admin 40 Cash costs 495 Rehab 5 Royalties 62 Total opex 562 12
Slide 14: Status
For personal use only Status Construction & commissioning completed on budget $67m construction cost v budget of $73m Transitioning to full operations & optimising process Throughput up to 2.2MTpa (design +10%) Potential to further increase throughput with optimising Process water and or
Slide 15: Erlistoun
For personal use only Resource 270koz. 2.22MT at 3.85g/t Maiden reserve (Jan 10) 2.0MT at 2.41g/t – 158koz Cash costs A$698/oz On basis truck to Moolart Well ‐ 45km 7km from Garden Well Will be processed at Garden Well Re‐optimisation of reserve pending – upgrade likely 14
Slide 16: For personal use only
For personal use only 15
Slide 17: Debt and hedging
For personal use only Debt A$45m debt facility Lightly covenanted & competitive terms Drawn to A$29m First repayment of A$10m due 30 Jun 11 Hedging 181koz of hedging 143koz at A$1,340/oz – 12koz/qtr 2010 – 2013 38koz at A$1,382/oz – spot deferred 16
Slide 18: For personal use only
For personal use only 17
Slide 19: Goal and strategy
For personal use only Goal Build reserves to +2 million ounces in 12 months Strategy Infill drilling and reserve study at Garden Well Moolart Well oxides Resource conversion drilling Optimisation of current reserves Prioritise and drill satellite resources Drill new prospects & regiona
Slide 20: Satellite deposits in DGP
For personal use only 9 deposits in DGP All on granted mining leases Incremental reserve ounces likely 19
Slide 21: Satellite deposit resource and reserve
For personal use only Current resource 859koz Current reserve 148koz 17% of resource converts to reserve Only 1km of 5km strike drilled 35% of resource in drilled area converts to reserve Further drilling required Incremental reserve ounces likely 20
Slide 22: Garden Well Discovery
my Garden Well Discovery
Slide 23: Laterite grade map
For personal use only Village Tailings Mill Site Laterite Grade >16 gm Au 8 – 16 gm Au 4 – 8 gm Au 2 – 4 gm Au 1 – 2 gm Au 22
Slide 24: Gold in soil anomalies
For personal use only Moolart Well Gold in soil anomalies sit at the margin of the tertiary palaeochannel Regional application 23
Slide 25: Regional anomaly and discovery holes
For personal use only 35km south of Moolart Well 3 – 25 ppb gold in soil anomaly on edge of palaeochannel Discovery holes at end of traverse 24
Slide 26: Drilling status – Oct 2010
For personal use only Drilling Status – Oct 2010 371 aircore holes drilled 108 RC holes drilled 8 diamond holes drilled 60,000+ metres drilled Significant results over 1,040m of strike. Mineralistion confirmed to depth of approx 180 metres and still open 25
Slide 27: Garden Well intersections
Hole From (m) To (m) Intersection Grade (g/t) For personal use only (m) GDAC038 60 110 50 2.36 GDAC037 41 92 51 2.78 GDAC036 65 109 44 3.65 GDAC032 71 104 33 3.17 GDAC031 44 64 20 2.90 GDAC024 40 82 42 2.02 GDAC022 32 51 19 3.99 GDAC002 51 124 73 3.61 GDAC005 42 111 69 4.26 GDAC014 46 50 4 20.90 GDA
Slide 28: Garden Well cross section
For personal use only 500mRL Saprolite 450mRL and Saprock 400mRL Ultramafic Sediment Garden Well 6913000mN 436650mE Open 436750mE 350mRL 2.78 / 44 Gold g/t / Metres 50 metres Ultramafic & Gold Mineralised zones Sediment
Slide 29: Garden Well Prospect
Garden Well Prospect RC drilling - 480m south of discovery line 50 metres <-> Garden Well 6912520mN 4.2616 Gold g/t / Metres C) Gold Mineralised zone 1 J ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ih E} [oF 0: or oO: oO! vi
Slide 30: Garden Well maiden resource
For personal use only Maiden resource (Oct 10) » 20Mt at 1.92g/t for 1.2Moz Updated resource pending – infill & extension driiling Expect strong conversion to reserve Mineralisation confirmed to depth of approx 180m Open at depth and to south Stand alone operation – fund from cash‐flow 2
Slide 31: Garden Well development
For personal use only Feasibility & development work underway Mining leases granted Metallurgical testing complete – excellent results Recoveries > 95% in 24hr at course grind of 150µm High gravity gold recovery >54% Low abrasion index 0.057 Ai (g) Low‐medium bond work index 13.6 kWh/t
Slide 32: Reserve growth pipeline
For personal use only 2.5 0.15 2 0.15 Ounces (Millions) 1 1.5 1 0.8 1 0.158 0.158 0.158 0.158 0.5 0.8 0.9 0.604 0.604 0.442 0 2008 2009 2010 2011 2012 Moolart Well Erlistoun Garden Well Satellites Reserve growth pipeline Not reliant on discovery or acquisition 31
Slide 33: Production growth
For personal use only 300,000 2013 + 7 years 250,000 Production (ounces) 200,000 150,000 100,000 50,000 0 2011 2012 2013 2014 +250koz pa production by 2012/13 32
Slide 34: Summary
For personal use only Moolart Well Gold Mine In production ≈ 100koz pa Low technical risk Strong cashflows Garden Well project Resource 1.2Moz and growing – maiden reserve pending Stand alone operation – target production Sept 12 qtr 140 – 150koz pa Pipeline to +2Moz oz reserve & 2
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