Regis Resources Limited · ASX:RRL
Regis Resources — Diggers & Dealers 2010
37 slides from Regis Resources's conference presentation, Aug 3, 2010
Slide 1: Building a quality gold business
For personal use only Building a quality gold business Diggers & Dealers August 2010
Slide 2: For personal use only
For personal use only This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“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 3: Directors
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 4: Corporate snapshot
For personal use only 1.2 7000 Volume (thousands) 6000 ASX Code RRL 1 5000 Price (cps) 0.8 FP shares on issue 414m 0.6 4000 3000 0.4 Listed options 16m 0.2 2000 1000 (RRLO, RRLOA, RRLOB) 0 0 Unlisted options 14m Share price $0.98 Range (1yr) $0.40‐$1.07 Monthly volume (shares) 11m Major shareholders
Slide 5: For personal use only
For personal use only 5
Slide 6: 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 6
Slide 7: Moolart Well and Erlistoun reserves
For personal use only Proven Probable Total MT g/t Koz MT g/t Koz MT g/t Koz Moolart Well ‐ Laterites 9.5 1.44 437 0.6 0.98 19 10.1 1.41 456 ‐ Oxide 1.2 1.85 71 1.2 2.02 77 2.4 1.94 148 MW Total 10.7 1.48 508 1.8 1.66 96 12.5 1.50 604 Erlistoun 2.0 2.41 158 2.0 2.41 158 DGP Total 10.7 1.48 508 3.8 2
Slide 8: Moolart Well mineralisation
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). 8
Slide 9: 92% of resource converts to reserve
For personal use only 92% of resource converts to reserve 9
Slide 10: Operations (Moolart Well only)
For personal use only Operations (Moolart Well only) 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 109koz pa 10
Slide 11: Metallurgy
For personal use only Metallurgy Bond Work Index ‐ Laterites 16.7 ‐ Oxide 7.1 Cyanide consumption ‐ Laterites 0.28kg/t ‐ Oxide 0.24kg/t Recovery (24 hrs) ‐ Laterites 92.6% ‐ Oxide 93.4% 11
Slide 12: Capital Costs
For personal use only Capital Costs $M Reduced from $125m Earthworks & concrete 6.7 Manage construction in Transport & craneage 3.3 Tanks contract 5.1 house Off site fabrication 4.4 All new equipment Structural & Mechanical 11.3 2.0 mtpa CIP plant SAG mill 6.2 Single stage crushing Piping 4.2 SAG mi
Slide 13: Operating costs and financial results
For personal use only Moolart Well only Moolart Well only Operating costs $/oz Financial Mining 244 (gold hedge price + bal at Milling 211 A$1200/oz) Lab & admin 40 Revenue $687m Cash costs 495 Net cashflow $295m Rehab 5 NPV @ 6% $212m Royalties 62 IRR 72% Total opex 562 Payback (months) 15 • Curren
Slide 14: For personal use only
For personal use only 14
Slide 15: Status
For personal use only Status No native title All permits in place Construction approaching practical completion Commissioning underway Tailings dam at practical completion Mining proceeding – ore on ROM pad Committed $55m (75%) at 30/6/10– on budget Î First gold late August 2010 15
Slide 16: For personal use only
For personal use only 16
Slide 17: Debt Financing and Equity Raising
For personal use only Debt Financing Financing agreements executed $45m debt facility Lightly covenanted & competitive terms 150koz of hedging required Completed at A$1,340/oz – 12koz/qtr 2010 ‐ 2013 No options or other equity participation Equity Raising $50m ‐ $25m placement / $25m r
Slide 18: For personal use only
For personal use only 18
Slide 19: Goal, strategy and delivery
For personal use only Goal Build reserves to 1.8 ‐ 2 million ounces in 15 months Strategy Infill drilling and reserve study at Garden Well Drilling density in Moolart Well oxides Prioritise and drill resources at Petra, Dogbolter, Russells Find Reichelts Find etc Drill new prospects & regi
Slide 20: Deposits in DGP
For personal use only 9 deposits in DGP All on granted mining leases Incremental reserve ounces likely 20
Slide 21: Garden Well 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 21
Slide 22: Erlistoun resource and reserve
For personal use only Resource 270koz. 2.22MT at 3.85g/t Maiden reserve (Jan 10) 2.0MT at 2.41g/t – 158koz 45km from plant site. Close to site access road. Expedite into mining schedule. Russells Find & Reichelts Find nearby – 73koz resources 22
Slide 23: Garden Well Discovery
my Garden Well Discovery
Slide 24: 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 24
Slide 25: Moolart Well gold in soil anomalies
For personal use only Moolart Well Gold in soil anomalies sit at the margin of the tertiary palaeochannel Regional application 25
Slide 26: Soil anomaly 35km south of Moolart Well
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 26
Slide 27: Drilling Status – July 2010
For personal use only Drilling Status – July 2010 314 aircore holes drilled 53 RC holes drilled 37,000 metres drilled Significant results over 880m of strike. Mineralistion confirmed to depth of approx 170 metres and still open 27
Slide 28: 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 29: 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 30: Garden Well cross section
For personal use only 500mRL 450mRL Saprolite and Saprock 400mRL Ultramafic Open 50 metres 436650mE 436750mE Garden Well 6912800mN 350mRL 2.78 / 44 Gold g/t / Metres Ultramafic & Sediment Sediment Gold Mineralised zones
Slide 31: Garden Well cross section
For personal use only 500mRL Saprolite 450mRL and Saprock EOH 9.3g/t 400mRL Ultramafic Sediment 50 metres Open 436750mE 436650mE Garden Well 6912480mN 350mRL 2.78 / 44 Gold g/t / Metres Gold Mineralised zones
Slide 32: Garden Well Prospect RC drilling
Garden Well Prospect RC drilling - 240m south of discovery.line 50 metres ——_ Shear Zone: Mixed Garden Well 6912760mN Ultramafic/Sediment 4.2616 Gold g/t / Metres C) Gold Mineralised zone A86650ME ___________--------------
Slide 33: Garden Well Prospect RC drilling
Garden Well Prospect RC drilling - 320m south of discovery.line 50 metres <——_ Garden Well 6912680mN 42616 Gold g/t / Metres C) Gold Mineralised zone 436650mE “436750mE
Slide 34: Garden Well Prospect RC drilling
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 35: Garden Well discovery and development timeline
For personal use only Significant virgin discovery at +2g/t 880 metres of mineralised strike Mineralisation confirmed to depth of approx 170m Potential to be bigger than Moolart Well Targeting stand alone operation Target development timeline Resource Sept 10 quarter Reserve Dec 10 quart
Slide 36: Production outlook (ounces)
For personal use only Thousands 300 250 Production (ounces) 200 150 100 Assumptions 50 •240koz resource conversion Moolart oxides and other resources •500koz yielded from Garden Well •Garden Well & Erlistoun processed in 2nd stand alone plant ‐ 2011 2012 2013 2014 2015 2016 2017 Moolart Well (reserv
Slide 37: Investment summary
For personal use only Proven management team Duketon Gold Project Low capex – fully funded Low technical risk Strong cashflows First gold – Sept 2010 quarter Pipeline to 2 million oz reserve & >200koz pa production Garden Well discovery Stand alone operation – target production Sep