Red Metal Limited · ASX:RDM
Red Metal — Investor Presentation (July 2012)
41 slides from Red Metal's investor presentation, Jul 3, 2012
Slide 1: Investor Presentation: Giant Ore Deposits
For personal use only Investor Presentation Giant Ore Deposits Discovery Opportunities 2012
Slide 2: Disclaimer
Disclaimer • Caution Regarding Forward-Looking Statements For personal use only Statements regarding the Company’s plans with respect to exploring its projects are forward-looking. There can be no assurance that any mineralisation identified will be proven to be economic, that future evaluation wo
Slide 3: Corporate Profile
Red Metal For personal use only Corporate Profile • Issued Capital 112,115,885Ordinary shares 6,500,000 Unlisted options • Directors Rob Rutherford Managing Director Russell Barwick Chairman Joshua Pitt Non-executive Director • Well Managed Very attractive asset base Low overheads with
Slide 4: Short Term Project Focus
Short Term Project Focus • Silver-lead For personal use only Silver-lead Maronan New geological model Recent high-grade intercepts Cannington grades Significant off-hole EM target at depth • Copper-gold Corkwood New copper-gold-silver discovery 153 metres @ 0.41%copper, 0.1g/t gold, 10g/t silver
Slide 5: Base Metals Mount Isa Inlier
Base Metals Mount Isa Inlier • Mount Isa Inlier For personal use only Worlds most productive silver- lead-zinc terrain and geological time period Giant silver-lead-zinc deposits include Cannington, Mount Isa, George Fisher, Century, HYC, Broken Hill, Lady Loretta and Dugald River Significant c
Slide 6: Silver-Lead Cannington Mine
Silver-Lead Cannington Mine Cannington Plan • BHPB owned 100% For personal use only • Worlds largest silver and lead mining operation • One of the worlds lowest cost producers • Total published resources 500m 77Mt @ 5.9% lead, 3.1% zinc and 210 g/t silver (27 June 2012) • High cash generating asse
Slide 7: Maronan Regional Setting
Maronan Regional Setting • Known Cannington or Broken For personal use only Hill type silver-lead-zinc mineralisation • Hosted in carbonate, sulphide, silicate and magnetite facies banded iron formation (BIF) • Within Mount Norna Quartzite Sequence within Soldiers Cap Group • Distinct regional magne
Slide 8: Maronan Regional Setting
Maronan Regional Setting • Historic Driling For personal use only 35 wide spaced core holes on 200m x 200m spacing Two parallel silver-lead mineralised banded iron formations (BIF) Laminated carbonate- silicate-magnetite sulphide (galena-pyrrhotite) facies • Upper BIF (Hangingwall) Very high
Slide 9: Maronan New Interpretation
Maronan New Interpretation • Recent Red Metal Drilling For personal use only Intersected very high-grade silver lead (14.5% lead, 375 g/t silver) Cannington grades Supports new interpretation Dyke • New Interpretation Steep northward plunge not southward as previously targeted Potential
Slide 10: Maronan New Interpretation
Maronan For personal use only New Interpretation 10m @ 4.2 Pb, 31 g/t Ag 9m @ 7.2% Pb, 88 g/t Ag Long Sections Viewed Facing East Dyke 5.2m @ 13.6% Pb, 308 g/t Ag 5.7m @ 7.7% Pb, 85 g/t Ag 17.3m @ 5.1% Pb, 126 g/t Ag 9.8m @ 3.7% Pb, 135 g/t Ag Dyke 3.7m @ 1.9% Pb, 120 g/t Ag
Slide 11: Maronan Recent Drilling
Maronan For personal use only Recent Drilling Remobilised, coarse-grained, breccia, vein fill and bedded, strong pyrrhotite 20% Lead, 657 g/t Silver Bedded, medium to coarse-grained, recrystallised, folded, strong pyrrhotite 12.25% Lead, 227g/t Silver Bedded, fine-grained 13.35% Lead, 225g/t Silver
Slide 12: Maronan Recent Drilling
Maronan For personal use only Recent Drilling Remobilised, coarse-grained, breccia, vein fill and bedded, strong pyrrhotite 20% Lead, 657 g/t Silver Strong Conductor
Slide 13: Maronan New Interpretation
Maronan For personal use only New Interpretation Dyke Cross Section
Slide 14: Maronan New Interpretation: Comparison with Cannington
Maronan For personal use only New Interpretation Dyke Cross Section Comparison with Cannington Section 4700N at Scale
Slide 15: Maronan New Interpretation: Comparison with Cannington
Maronan For personal use only New Interpretation Dyke Cross Section Comparison with Cannington Section 4700N at Scale The giant Cannington deposit is folded and transitions from bifurcated parallel beds to a massive thicker body at depth
Slide 16: Maronan New Interpretation: Comparison with Cannington
Maronan For personal use only New Interpretation Dyke Cross Section Comparison with Cannington Section 4900N at Scale
Slide 17: Maronan New Interpretation
Maronan For personal use only New Interpretation Does the Maronan prospect transition to a giant massive body at depth? Dyke Cross Section Comparison with Cannington Section 4900N at Scale The giant Cannington deposit is folded and transitions from bifurcated parallel beds to a massive thicker body
Slide 18: Copper-Gold-Silver Corkwood
Copper-Gold-Silver Corkwood • Large regional IOCG alteration For personal use only system • New Xstrata JV 2400m follow-up drilling on Jimmy’s Creek Electrical geophysics over regional targets RDM retain 49-40% of any discovery • Jimmy’s Creek Cu-Au-Ag Breccia 153m @ 0.41% copper, 0.1g/t gol
Slide 19: Corkwood Jimmy's Creek
For personal use only Corkwood Jimmy’s Creek Pelican Dam • Jimmy’s Creek Breccia Copper-gold and silver in felsic volcanic 153m @ 0.41% copper, 0.1g/t gold, 10g/t silver from recent hole Open to south and at TMI depth Drilling imminent
Slide 20: Corkwood Jimmy's Creek
For personal use only Corkwood Jimmy’s Creek Cross Section Long Section View Facing West
Slide 21: Corkwood Jimmy's Creek
For personal use only Corkwood Jimmy’s Creek 153m @ O.41% copper, 0.1 g/t gold 10 g/t silver Mineralised Breccia Untested Potential to South 3D Magnetic Model View Facing Northeast
Slide 22: Corkwood Jimmy's Creek Magneto-telluric Inversion Models
For personal use only Corkwood Jimmy’s Creek Magneto-telluric Inversion Models
Slide 23: Copper-Gold Gawler Craton
Copper-Gold Gawler Craton • Large IOCG Systems For personal use only Eastern margin Gawler Craton SA Similar regional setting to Olympic Dam system. Magnetite and hematite associated copper • Copper-Gold Olympic Dam, Prominent Hill, Carrapateena, Wirrda Well, Acropolis, Hillside, Moonta, Mag
Slide 24: Copper-Gold Gawler Craton
Copper-Gold Gawler Craton • Analysts forecast strong long For personal use only term copper price Driven by increasing demand and declining grades of global copper mines • Renewed interest in deep copper exploration in the Gawler Craton Deposit styles offer large tonnage potential at moderate to
Slide 25: Copper-Gold Pernatty Lagoon JV
Copper-Gold Pernatty Lagoon JV • Large IOCG System For personal use only Eastern margin Gawler Craton SA Similar regional setting to Olympic Dam system Untested stand out gravity and magnetic targets District scale halo alteration Magnetite and hematite associated copper • Joint venture te
Slide 26: Copper-Gold Pernatty Lagoon JV
Copper-Gold Pernatty Lagoon JV • Large IOCG System For personal use only Eastern margin Gawler Craton SA Similar regional setting to Olympic Dam system Torrens Untested stand out gravity and magnetic targets District scale halo alteration Oak Dam Magnetite and hematite associated copper •
Slide 27: Copper-Gold Pernatty Lagoon JV
Copper-Gold Pernatty Lagoon JV • Four Key Targets For personal use only P1, P2 untested magnetic±gravity P3 unresolved magnetic P4 unresolved gravity • District Scale Halo Alteration Sericite - tourmaline ± hematite Siderite ± garnet Garnet Epidote ± actinolite Broad lead-zinc anomal
Slide 28: Pernatty Lagoon JV Giant P1 Target
Pernatty Lagoon JV For personal use only Giant P1 Target Chalcopyrite-magnetite veins From 1660m to 1834m at end of hole up to 0.8% Cu 0.15ppm Au 3D UBC Magnetic Model – Long Section View Facing West
Slide 29: Pernatty Lagoon JV Giant P1 Target
Pernatty Lagoon JV For personal use only Giant P1 Target Chalcopyrite-magnetite veins From 1660m to 1834m at end of hole up to 0.8% Cu 0.15ppm Au 3D UBC Magnetic Model – Long Section View Facing West Very large, potentially mineralised magnetic/gravity target
Slide 30: Pernatty Lagoon JV Giant P1 Target
Pernatty Lagoon JV For personal use only Giant P1 Target GRV GRV – intense sericite-tourmaline-hematite altered Wallaroo Group massive garnet ±siderite±chlorite Untested Magnetic/Gravity Target alteration Giant Orebody? Wallaroo Group Intense epidote±actinolite alteration weak chalcopyrite-magnetite
Slide 31: New Colorado Potash Discovery
For personal use only New Colorado Potash Discovery Large Tonnage Potential Solution Mining
Slide 32: Potash Paradox Basin
Potash Paradox Basin • Paradox Basin For personal use only Thick salt units deposited in Upper Carboniferous Overlain by Permian red bed sediments Extensive seismic and old oil well data • Known Potash Multiple potash horizons within thick salt unit Solution mining at Moab, Utah (Intrepid-
Slide 33: Potash Colorado Potash Project
Potash Colorado Potash Project • Prospecting Permit Applications For personal use only 22 in total,166 square kilometers On Federal administered lands History of oil/gas/uranium exploration and mining • Grant Pending environmental assessment of proposed drill sites Outcome expected by 3rd
Slide 34: Potash Colorado Potash Project
Potash Colorado Potash Project • Potential solution mineable For personal use only depths, grades and widths Flat dips apparent Large tonnage potential • Agapito Study Independent verification Production concept 200kt-2Mt KCl per year Valid target with proof of concept drill tests Genera
Slide 35: Colorado Potash Project
Potash For personal use only Colorado Potash Project View of Typical Landscape on the Colorado Potash Project
Slide 36: Potash Colorado Potash Project
Potash Colorado Potash Project • Independent Due Diligence by Agapito and Associates Inc. For personal use only World renowned leading experts in potash solution mining No fatal flaws at this early stage Recommend proof of concept drill core tests and scoping study • Potash 5 horizon JORC co
Slide 37: Potash Colorado Potash Project
Potash Colorado Potash Project • Potential for vast tonnages identified in underlying beds For personal use only Potash 6, Potash 9 and Potash 19 Could significantly lower unit production cost if extractable with Potash 5 Potash 9 looks viable Schematic figure showing solution mining method ut
Slide 38: Exploration Target Estimate for the Colorado Potash Project
Potash For personal use only Colorado Potash Project Exploration Target Estimate for the Colorado Potash Project Grade- Bed No. Depth Thickness Grade Thickness Sylvinite (m) (m) K2O% Sylvite% Product Tonnage (% K2O-m) (Mt) Potash 5 1,600 – 1,900 3.5–5.2 13–19 20.8-30.4 57–86 940–1,410 Potash 6 1,650
Slide 39: Potash Proof of Concept
Potash Proof of Concept • Grant of prospecting permits For personal use only Pending environmental approval of exploration drill program Outcome expected by 3rd quarter 2012 • Drill core tests Test mineralogy, grade, thickness, broad continuity, geotechnical data For Potash 5, Potash 6, Pota
Slide 40: Potash Export Markets
Potash Export Markets • Strong potash growth forecast For personal use only Particularly if China, India, SE Asia and Brazil applied potash at the same application rate per hectare as the western world • Presents opportunity for new production from greenfield sites
Slide 41: Competent Persons Statements
Competent Persons Statements • The information in this presentation that relates to Exploration Results is based on information compiled by Mr Robert For personal use only Rutherford, who is a member of the Australian Institute of Geoscientists (AIG). Mr Rutherford is the Managing Director of the Co