Red 5 — Investor Presentation (November 2017)
24 slides from Red 5's investor presentation, November 2017
Slide 1: Production, cash-flow and growth: Darlot, King of the Hills and Beyond
Investor Presentation, November 2017 Mark Williams, Managing Director Production, cash-flow and growth: Darlot, 1 King of the Hills and Beyond ASX Code: RED
Slide 2: Competent Person's Statement & Disclaimer
Competent Person’s Statement & Disclaimer Competent Person’s Statement for Siana JORC 2012 Mineral Resource and Ore Reserve The information in this presentation that relates to Mineral Resources for the Siana Underground is extracted from the report titled Siana Underground Mineral Resource dated 23
Slide 3: Red 5: A New Platform for Growth
Red 5: A New Platform for Growth Recently completed acquisition of two advanced gold assets in WA’s Eastern Goldfields with 626,000oz Mineral Resource inventory¹: Darlot Gold Mine – acquired from Gold Fields Limited King of the Hills Gold Project – acquired from Saracen Mineral Holdings (ASX:
Slide 4: Red 5 Corporate Overview
Red 5 Corporate Overview ASX code RED Directors and Management Share price (as at 27 October 2017) A$0.049 Kevin Dundo – Chairman Issued shares 1,240.7M Mark Williams – Managing Director Market capitalisation (at A$0.049) A$60.8M Ian Macpherson – Non-Executive Director Cash and bullion (at 16 Octobe
Slide 5: Consolidation Strategy in WA's Eastern Goldfields
Consolidation Strategy in WA’s Eastern Goldfields 100% ownership of operating Darlot Gold Mine, located in the heart of the prolific Leonora-Leinster mineral province: CY2016 produced 66koz from 454kt¹ and CY2017 production to 30 September of 39koz from 338kt² High-quality mill and infrastruct
Slide 6: Darlot: Assets and Infrastructure
Darlot: Assets and Infrastructure Operating gold mine located ~900km NE of Perth Rich goldfield with production of 2.7Moz over a 28-year operating history¹ Historical production averaging 96kozpa since 1989 Fully operational 0.83Mtpa gold processing plant (refurbished in 2010-2013), excess m
Slide 7: Stage 1: Darlot + King of the Hills
Stage 1: Darlot + King of the Hills Darlot mill has operating capacity of: 830,000tpa – fresh ore¹ Can be upgraded to 1,100,000tpa capacity for a relatively small spend¹ Currently under-utilised ~94% recoveries² Opportunity to reduce cost per tonne at Darlot by: Mining ore adjacent to
Slide 8: Darlot: Immediate Operating Strategy
Darlot: Immediate Operating Strategy All existing staff and contractors retained Targeting opportunities to increase the recovery of existing resources to extend the mine life Combine extended Darlot operation with ore from King of the Hills to return processing plant to as close to capacity a
Slide 9: Darlot: First Gold Pour under Red 5 Ownership
Darlot: First Gold Pour under Red 5 Ownership First Red 5 gold pour at Darlot completed 20 October 2017, delivering 2,445oz (~$4M value) 9
Slide 10: Darlot: Open Pit Upside
Darlot: Open Pit Upside SRK Consulting engaged to conduct high-level pit optimisations on a series of small historical pre-JORC 2012 resources near Darlot Aim to identify and rank targets for drilling to expand potential open pit resource base Near-surface targets already identified along Waik
Slide 11: Darlot: Underground Upside
Darlot: Underground Upside Gold Fields invested in exploration to rebuild the production pipeline, improving confidence in the Lords South Lower and CDA Oval orebodies, as well as a number of smaller orebodies Potential to lower mining costs by extracting ore from the upper levels of the mine wi
Slide 12: Darlot: Exploration Upside
Darlot: Exploration Upside Total land-holding of approximately 13,900ha with tenements in good standing Minimal third-party royalties Numerous ore grade intercepts recorded over multiple prospect areas Good potential both to extend existing zones and discover new deposits Vast drilling dat
Slide 13: Darlot: 3D Seismic
Darlot: 3D Seismic Darlot is a large, structurally controlled mineralised ore system which has opportunities for additional resource extensions High-resolution 3D seismic survey carried out over the Darlot mining facilities commenced in November 2016 ~75 cubic kilometres of 3D seismic data (~2
Slide 14: Darlot: 3D Seismic "Arm Chair View"
Darlot: 3D Seismic “Arm Chair View” 3D seismic cube showing Darlot mine workings in blue The seismic image is coloured by seismic amplitude or strength of the seismic reflection from sub-surface geological units and/or structures The brightly coloured areas show strongest reflective zones Source: DE
Slide 15: King of the Hills: First Consolidation Asset
King of the Hills: First Consolidation Asset Historical gold project located ~80km south of Darlot and ~28km north of Leonora – previously known as Tarmoola Historical production by Mt Edon Gold Mines (and others) of 1.6Moz from the open pit (28.4Mt @ 1.7g/t – closed in 2004) and 0.3Moz by St Ba
Slide 16: King of the Hills: Immediate Operating Strategy
King of the Hills: Immediate Operating Strategy Underground mining contractor Pit n Portal Group engaged to review underground mine plan and continue dewatering Mining to commence as soon as permitting is in place and mining contractor has been appointed – first ore expected to be delivered to D
Slide 17: King of the Hills: Underground Mining
King of the Hills: Underground Mining Underground Indicated and Inferred Mineral Resource of 2.71Mt @ 4.6g/t Au for 402,000oz of contained gold New UG mine design developed by Saracen after 6-month trial mining campaign Existing KOTH North Mine Envisions two mining areas in the southern portio
Slide 18: King of the Hills: Exploration Potential
King of the Hills: Exploration Potential Major shear-hosted gold system King of the Hills underground remains open in all directions Recent strong drilling results demonstrate exploration upside for the mine area Multiple lodes extending over 1.95km and open at depth, providing numerous expl
Slide 19: Stage 2: Beyond Darlot and King of the Hills
Stage 2: Beyond Darlot and King of the Hills Aim to increase Reserves via regional exploration Assess other ‘bolt-on’ neighbouring opportunities Commanding 25,700ha footprint in the highly-endowed Leonora-Leinster gold district Multiple undeveloped gold deposits within economic trucking dist
Slide 20: Summary: Key Investment Takeaways
Summary: Key Investment Takeaways Red 5 is well underway with a new growth strategy underpinned by a portfolio of high-quality gold assets in WA’s Eastern Goldfields The combination of Darlot and King of the Hills provides: A commanding 25,700ha footprint in the highly-endowed Leonora-Leinster
Slide 21: Experienced Operators with a Strong Track Record
Experienced Operators with a Strong Track Record Kevin Dundo – Chairman Extensive experience as a director of ASX, TSX and AIM listed gold mining companies as well as experience in mining and financial services. Lawyer by profession specialising in the commercial and corporate sectors. Mark Williams
Slide 22: Philippines Gold Operations – Current Status
Philippines Gold Operations – Current Status Mining suspended at Siana Gold Project in April 2017 in response to regulatory delay New Philippines Secretary of Department of Environment and Natural Resources (DENR) appointed in May 2017. Appointment confirmed by Commission of Appointments in Octo
Slide 23: Mt Cattlin Royalty
Mt Cattlin Royalty Red 5 owns the right to receive a royalty of A$1.50 per tonne of ore processed from the Mt Cattlin mine in WA Mt Cattlin mine re-commenced processing operations in 2016 Galaxy Resources has announced that it will ramp- up production at Mt Cattlin to a throughput rate of 1.6M
Slide 24: Thank-you
Thank-you ¥ RED ASX Code: RED