Red Rock Resources plc · LSE:RRR

Red Rock Resources — Investor Presentation (October 2010)

29 slides from Red Rock Resources's investor presentation, October 2010

  1. Slide 1: October 2010

    October 2010

  2. Slide 2: Disclaimer

    Disclaimer These presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any securities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any such securities

  3. Slide 3: Corporate Profile

    Corporate Profile  AIM Listed Company (AIM:RRR)  Assets : Gold and VMS deposits in Kenya Two gold mines in Colombia  Major Shareholder: Regency Mines (22%)  Share Price: 6.60 pence  Market Cap: £43.18m  Shares in Issue: 654,387,240 3

  4. Slide 4: Share Price & Volume

    Share Price & Volume Daily volume 8.5m shares on AIM 1.5m on PLUS (3m average) 4

  5. Slide 5: Management

    Management Executive Directors:  Andrew Bell, MA, LLB, FGS, Chairman Over 30 years experience in finance, investment and mining. Directorships include Regency Mines Plc (Chairman), Resource Star Ltd (Chairman) and Jupiter Mines Ltd (Director).  Manoli Yannaghas, BA, Director 15 years experience in

  6. Slide 6: Management

    Management Non-Executive Directors:  Michael Nott, BSc, MSc, FIMMM, FIQ, FMES Mining engineer and geologist with over 35 years experience.  John Watkins, FCA Former partner of Ernst & Young, with over 35 years of accounting experience.  Robert Weicker, BSc, PGeo Geologist with over 25 years exper

  7. Slide 7: Gold: Kenya

    GOLD: KENYA 7

  8. Slide 8: Migori: Project Overview

    Migori: Project Overview Mid Migori Mining (MMM) Company Limited operates the Migori gold and base metals project RRR owns 15% of MMM with farm in to raise to 60% Historic gold and base metals mining between 1930s-60s Geita • Located in SW Kenya, 15 km north of the Tanzanian border AngloGold 1.89 g/

  9. Slide 9: Migori: Project Map

    Migori: Project Map Option over further 320 sq km SPL 236 (Ngira Migori) Special Prospecting Licences 122 and 202 covering 310.5 sq km 9

  10. Slide 10: Migori: Current Gold Resources

    Migori: Current Gold Resources Tonnes Grade Contained Prospect Category (kt) (g/t) Au (oz) KKM Indicated 22,110 0.96 680,000 Gori Maria Indicated 8,600 0.87 240,000 MK Indicated 1,450 2.32 108,000 Nyanza Indicated 840 5.32 144,000 2006 Subtotal: Indicated 33,000 1.10 1,172,000 NI 43:101 Macalder Tai

  11. Slide 11: Migori: Tailings Project

    Migori: Tailings Project Macalder Tailings Dam  Mid- 2010: JORC-Compliant, Indicated Resource estimate  Estimate excluded 5 holes from smaller, adjacent tailings dam  Metallurgical test work being assessed 1.424 million tonnes containing 75,084 oz Au at 1.64 g/t Zone Volume (m3) Tonnes (kt) Grade

  12. Slide 12: Migori: Exploration Stages

    Migori: Exploration Stages GIS Database Geophysics Geology PHASE 1 Drilling & VTEM Field Reconnaissance Aug 2009 Soil Geochemistry Magnetics/Radiometrics Maps & Cross-Sections Sep 2010 PHASE 2 Interpretation Oct 2010 Nov 2010 PHASE 3 Drilling Programme 12

  13. Slide 13: Migori: Objectives

    Migori: Objectives  Build a 2 - 3Moz resource base  Follow up high grade intersections  Investigate Macalder VMS and other VTEM targets  Upgrade KKM Resource model with view to early production  Plan for gold production from tailings

  14. Slide 14: Gold: Colombia

    VT, GOLD: Colombia

  15. Slide 15: Colombia: Gold Overview

    Colombia: Gold Overview  Investment in two Colombian Goldmines on Frontino Gold Belt – oldest in Colombia  Loan with rights to acquire up to 51% of operating company  El Limon 60 year old production history – production infrastructure in place  Ore production capacity expected to be 150tons/day

  16. Slide 16: Colombia: Area Map

    Colombia: Area Map Frontino Gold Belt Zaragoza El Limon La Aurora Segovia Mineralisation in the Frontino Gold Belt is controlled by the OTU FAULT (N-S) Remedios The Frontino Gold Belt is one of the world’s great mesothermal gold fields, with estimated production of 8-9 Moz from the Segovia-Remedios

  17. Slide 17: Colombia: Assets

    Colombia: Assets El Limon  60-year-old mine produced 108 tonnes of ore/m and 15.3kg/m in first five months of 2010 from non-mechanised operations.  Vein-style gold deposit produced ore from 7 levels down to 380m.  Surface plant with 150 tpd capacity non-operational for several years Machuca (La A

  18. Slide 18: Colombia: Deal Structure

    Colombia: Deal Structure 3 year $US2m loan to Mineras Four Points (MFP)  5% interest  3 year Consultancy Agreement at $200K and increasing to $350k/quarter (Gross Return $3.2m)  Total agreed return 15% EBITDA if greater Option (2 yr period) to acquire 50% of MFP for $6.5m Option (3 yr period) to

  19. Slide 19: Colombia: Objectives

    Colombia: Objectives  Looking for extensions to the vein  Expanding plant capacity to 250tpd and 400tpd  Exploring for other veins  Expanding property portfolio in order to grow production 19

  20. Slide 20: Financial Summary

    VT, FINANCIAL SUMMARY

  21. Slide 21: Investment Holdings

    Investment Holdings Jupiter Mines Ltd  ASX –listed ‘steel feed’ platform created by RRR/Pallinghurst with potential 1.3 bn ton magnetite project in WA (RRR has 1.5% royalty)  August 2010 vote agreed to acquire major open pit manganese mine at Tshipi, S. Africa  83,734,165 shares held by RRR (22.7

  22. Slide 22: Financial Overview

    Financial Overview End October 2010 End December 2010 (Predicted) (Projected) Current Assets and Investments Cash £1,500,000 £7,000,000 Listed Investments £15,300,000 £15,300,000 Loans -£560,000 -£192,000 Market Value £44,000,000 £44,000,000 Overhead 2010 Q4 exploration cost (est): -£400,000 2010 Q4

  23. Slide 23: Political Risk

    VT, POLITICAL RISK

  24. Slide 24: Kenya: Political Risk

    Kenya: Political Risk  Tribal riots after last Presidential election  Migori area affected  Perception of corruption Mitigated by:  International mediation and assistance  New constitution  Bipartisan approach to reform  New local appointments by MMM.

  25. Slide 25: Colombia: Political Risk

    Colombia: Political Risk  FARC communist guerrillas and drug cartels established in some areas of the country  The El Limon and Machuca areas historically affected Mitigated by:  Successful military campaigns against FARC  U.S.A assisted drive against cocaine production  El Limon and Machuca ar

  26. Slide 26: Summary

    SUMMARY 26

  27. Slide 27: Key Points

    Key Points A new gold company:  Production starting in Colombia  1.2m oz Indicated Gold Resource in Kenya  Plans for production in Kenya but not a new company:  Proven capacity to generate profits  Active exploration  Strong asset backing 27

  28. Slide 28: 2010 – 2011 Key Objectives

    2010 – 2011 Key Objectives Red Rock intends to INCREASE GOLD PRODUCTION and PLANT CAPACITY in Colombia Red Rock aims to START GOLD PRODUCTION in Kenya initially from tailings 28

  29. Slide 29: Analyst and press comments

    ‘…..analysts believe the shares are worth over 20p…….investors looking for a way to benefit from current enthusiasm for gold should have a punt.’ Daily Mail – Midas Column, Joanne Hart, 26th Sept 2010 ‘Top-end scenario: NAV 61.59p per share’ Edison Investment Research, Charles Gibson, 22nd Sept 2010

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