Regis Resources Limited · ASX:RRL
Regis Resources — Diggers & Dealers 2011
38 slides from Regis Resources's conference presentation, Aug 2, 2011
Slide 1: Building a quality gold business
For personal use only Building a quality gold business Diggers & Dealers August 2011 www.regisresources.com
Slide 2: Disclaimer
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 g to the g geology gy of Regis’ g p projects, j
Slide 3: Corporate snapshot
For personal use only ASX Code RRL FP shares on issue 432m Listed options 13m (RRLO, RRLOA, RRLOB) Unlisted options 17m Share price $2.90 Range (1yr) $0.93‐$3.00 Monthly volume (shares) 28m Major shareholders Cash $34m Newmont 17% Market Cap $1,250m Directors & mgt 12% Libra Advisers 4% 3
Slide 4: Board of directors
For personal use only Mark Clark Managing Director Nick Giorgetta Chairman Morgan Hart Operations Director Appointed to RRL board by shareholders in May 2009 All previously exec directors of Equigold NL Ross Kestel Non Exec Mark Okeby Non Exec 4
Slide 5: For personal use only
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Slide 6: Moolart Well location
For personal use only Located 350km north north‐ north east of Kalgoorlie 100% Regis owned 6
Slide 7: Regis project package
For personal use only 387 granted leases 2,030km2 of ground 5.8 Moz resources1 5 2.4 Moz reserves1 Note 1 – full breakdown of these reserves and resources in accordance with JORC is set out in Appendix 1 & 2 to this presentation 7
Slide 8: Reserves by project
For personal use only Total MT g/t Koz Garden Well 35.3 1.46 1,660 Moolart Well - Laterites 8.8 1.30 367 - Oxide 2.6 1.82 153 MW Total 11.4 1.42 520 Erlistoun 2.7 2.36 203 Total 49 4 49.4 1 50 1.50 2 383 2,383 8 Note 1 – full breakdown of the reserves in this table in accordance with JORC in Appendi
Slide 9: Reserve ounces versus peers
For personal use only 2500 5 2000 usands) 1500 Ounces (thou 1000 500 0 RRL NGF CAH IGO SAR NAV IGR RMS CRE AXM BCD SBM FML SLR Source: Euroz Securities 9
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Slide 11: Moolart Well geology
For personal use only Transported cover of approx 5m. Laterite ore zone averages g 4 4m (max 20m). Oxide mineralisation from base of laterite to base of oxidation (averages 70m). 11
Slide 12: Moolart Well production
For personal use only Jun 2011 Mar 2011 Quarter Quarter Ore mined (tonnes) 619,239 598,048 Ore milled ((tonnes)) 636,058 3 , 5 5580,495 ,495 Grade (g/t) 1.44 1.28 Recovery (%) 89 92 Production (oz) 26,189 22,005 Cash cost (A$/oz) 525 545 Cash cost including incl ding ro royalties alties (A$/oz) (A$/
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Slide 14: Cash, debt and hedging
For personal use only Cash $33.9m at 30 Jun 11 A$18.6m operating cash‐flow in Q4 2011 Debt Facility of $60m ‐ drawn to A$30m $30m available for Garden Well development Hedging 198koz 8k off hedging h d i (8% off reserves)) 119koz at A$1,401/oz – 12koz/qtr 2012 – 2014 79koz at A$1,434/o
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Slide 16: Goal, strategy and delivery
For personal use only Goal Build reserves to 3 million ounces Strategy Depth and southern strike at Garden Well Moolart Well oxides Resource conversion drilling Optimisation of current reserves Prioritise and drill satellite resources Drill new prospects & regional exploration Delivery
Slide 17: Regional satellite deposits
For personal use only 7 regional satellite deposits ((excludingg MW,, GW and Erlistoun) Resources of 1.1Moz1 None more than 15km away from either MW or GW All on granted t d mining i i leases Drill outs and reserve studies planned Garden Well Incremental reserve ounces 1.34Moz reserve 2.1 Moz resour
Slide 18: Moolart Well drilling and reserve conversion
For personal use only Current resource of 577koz1 Blenheim Aug ‐ Nov 2010. Current reserve 148koz1 53 holes 5 for 6,760m MWRC519: 9 22m Au from 80m @ 33.2g/t g 26% conversion to reserve Mosquito Nov 2010. Only 1km of 5km strike drilled 16 holes for 1,700m 56% of resource in drilled area converts to
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Slide 20: Garden Well drilling status
For personal use only Drilling Status – Mar 2011 Discovery hole Nov 09 438 aircore holes drilled 180 RC holes drilled 44 d diamond a o d holes o es d drilled ed 90,000 metres drilled Significant results over 1,040m of strike. Mineralistion confirmed to depth of approx 270 + metres and still open p 2
Slide 21: Garden Well drill intersections
For personal use only Hole From (m) To (m) Intersection Grade (g/t) (m) GDAC038 60 110 50 2.36 2 36 GDAC037 41 92 51 2.78 GDAC036 65 109 44 3.65 GDAC032 71 104 33 3 17 3.17 GDAC031 44 64 20 2.90 GDAC024 40 82 42 2.02 GDAC022 32 51 19 3 99 3.99 GDAC002 51 124 73 3.61 GDAC005 42 111 69 4.26 GDAC014 46
Slide 22: Garden Well cross section and pit design
Garden Well Cross Section & Pit Design [PIT DESIGN P OF FRESH Rock lsoomRL som & RESOURCES LTD ' ~~ 5: 3 = -/-- SEDIMENTS RL GARDEN WELL 6912680m N 3 Ro, 8.01 Gold g/t / 6 Metres ULTRAMAFIC. <e3. N ' Gold Mineralised Zone H Garden Well - AC, RC and DD Drilling 6912680m N| Metre : SHEAR ZONE: MIXED |
Slide 23: Garden Well reserve and resource
For personal use only Ore Reserve » 35.3Mt at 1.46g/t for 1.66Moz1 » 90% of reserve is shallower than 200m » Stripping ratio 3.33 Resource » 49Mt at 1.36g/t for 2.14Moz1 Note 1 – full breakdown of these reserves & resources in accordance with JORC set out in Appendix 1 & 2 23
Slide 24: Operations summary
For personal use only Operations Summary Total gold production 1.57 million ounces Average annual gold production 180,000 ounces 247,000 ounces Year 1 gold production (cash cost less than A$400/oz) Capital cost A$109 million Cash operating p g cost A$555 per ounce (life of mine, pre royalties) Mine
Slide 25: Financial analysis
For personal use only Financial Analysis Revenue A$2.2 billion (at A$1,400/oz A$1 400/oz GP) Net cash flow A$1.1 billion (after capex, capex before tax) NPV @ 6% A$750 million (after capex, capex before tax) IRR 143% Payback period 7 months 25
Slide 26: Other DFS results and licensing
For personal use only Other DFS Results 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 L di b bondd workk iindex d 13.6 6 kWh/ kWh/tonne Very soft crushing i
Slide 27: Financing and development timeline
For personal use only Financing Internal funding Modest increase in debt Target development timeline Feasibility F ibilit & fi finance JJune 11 quarter t Commence construction Sept 11 quarter Commence production Sept 12 quarter Long g lead capital p items committed Ball mill, scrub
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Slide 29: Garden Well gram metre long section
For personal use only Mineralisation open at depth & south Open at Depth Open Gram metre plot = to South intersection metres x grade 29
Slide 30: Garden Well focus and targets
For personal use only Focus on: Southern high grade shoot Southern extension Targeting: Resource increase Extend pit south and deeper on high grade zone South 1 km North Garden Well gram metre long section with pit design Planned RC/diamond hole
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Slide 32: Top ranked targets
For personal use only Top Ranked Targets ‐ All under d 20 to t 35m off cover 3 ‐ no p previous drilling g 2 1) Garden Well Drilled – major discovery!! 4 2) West Duketon Soil geochem – June 11 1 3) Anchor 3,000m Aircore Ai d illi May drilling M 11 4) Garden Well North 3,000m Aircore drilling May 11 3
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Slide 34: Production forecast
For personal use only 350,000 2013 + 7 years 300,000 250,000 200,000 150,000 100,000 50,000 0 2011A 2012F 2013F 2014F 2015F +340koz in 2012/13 & 300kozpa beyond 34
Slide 35: Production versus Australian producers
For personal use only 500 000 500,000 1.37moz NCM 450,000 old Producttion (ouncces) 400,000 350,000 300,000 Regis 300,000 250 000 250,000 200,000 150,000 Go 100,000 50,000 ‐ Source of 2009/10 production stats – Surbiton Assoc Quarterly Review Regis production is a forecast for FY2013 35 Note 1 – Aus
Slide 36: Summary
For personal use only Moolart Well Gold Mine In production ≈ 100koz pa Low technical risk Strong cashflows Garden Well project Resource 2.14Moz1 Reserve R 66M 1 1.66Moz Commence Sept 12 qtr ≈247koz pa production Organic O i reserve growth th Targeting g g 3Moz 3 oz reserve & ≈ 35
Slide 37: Appendix 1: Ore reserves
Proven Probable Total For personal use only Cut‐ off Project ggrade g gold ggrade g gold ggrade g gold MT MT MT G d Grade g/t koz g/t koz g/t koz g/t Garden Well 35 3 35.3 1 46 1.46 1 660 1,660 35 3 35.3 1 46 1,660 1.46 1 660 0 60 0.60 Moolart Well Laterite 7.8 1.31 335 1.0 1.00 32 8.8 1.30 367 0.50
Slide 38: Appendix 2: Mineral resources
Measured Indicated Inferred Total Resources Cut‐off For personal use only Project gold gold gold gold Grade MT g/t MT g/t MT g/t MT g/t koz koz koz koz g/t Moolart Well Laterite 9.8 1.45 459 1.0 0.90 29 0.3 0.88 8 11.1 1.39 496 0.50 Oxide 1.2 1.85 71 3.9 1.52 192 6.7 1.45 314 11.9 1.51 577 0.80 Sulp