Slide 1: Australia's Premier Nickel Exploration Opportunity
ASX: RXL For personal use only Australia’s Premier Nickel Exploration Opportunity Sydney Resources Roundup 10 May 2018 Ian Mulholland - Managing Director 1
Slide 2: Why Invest in Rox?
Why Invest in Rox? For personal use only JORC Mineral Resources of Nickel Sulphide 64,000 t contained Ni @ 2.45% NiEq 86,000 oz contained Au @ 2.75 g/t Cash & Receivables of $15 million Enterprise Value (EV) of $6.3 million Awarded Explorer 2
Slide 3: Nickel Sulphide Projects
Nickel Sulphide Projects For personal use only Two nickel sulphide projects in WA’s northern goldfields Fisher East is a new nickel province – discovered in 2013 by Rox Collurabbie discovered in 2004 by WMC – but relatively unexplored Fisher East and Collurabbie are just 70km apart – project develop
Slide 4: Fisher East Resources
Fisher East Resources For personal use only X X X X Total Mineral Resource* of 2.0 Mt @ 2.5% Ni, for 50,000 tonnes Ni metal Drilling to increase current resources and aggressively explore to identify new discoveries * See Appendix for Mineral Resource details 4
Slide 5: EM Interpretation
EM Interpretation For personal use only Camelwood Corktree Musket Cannonball Camelwood Silverbark North 8km Ground EM survey conducted over 8km strike Very strong EM responses at Corktree, Camelwood and Silverbark The Corktree and Silverbark EM plates remain effectively untested by drilling Resource
Slide 6: Corktree Target
Corktree Target For personal use only VTEM X 1km Strongest EM anomaly at Fisher East, 1km strike Only one RC hole intersected the interpreted EM plate at Corktree The deeper (and stronger) EM plate remains untested at 400-600m depth 6
Slide 7: Exploration Targets
Exploration Targets For personal use only Exploration ongoing on several targets along 25km of strike X X Resource to be drilled out at Sabre Resource Target Fresh sulphides in aircore at Mt Tate to follow up Exceptional EM target at Corktree 7
Slide 8: Development Studies
Development Studies For personal use only Low technical risk project: o Toll milling – truck ore to nearby plant (two plants within 200km) o Build a plant on site – truck concentrate for sale Decline to underground mine ~70-100m depth Standard underground mining techniques and costs Simple process f
Slide 9: Collurabbie
Collurabbie For personal use only 123km2 of prospective tenure Main discovery at Olympia deposit Only 70km from Fisher East Widespread Ni-Cu-PGE mineralisation over ~15km strike length on multiple stratigraphic horizons Underdone previous exploration Extensive and quality datasets of drilling and ge
Slide 10: Exploration Potential
Exploration Potential For personal use only Olympia Mineral Resource of 573,000 tonnes @ 1.6% Ni, 1.2% Cu, 0.08% Co and 2.3 g/t Pt+Pd, 2.3% NiEq* High grade drill intercepts Open at depth Exploration potential over 15km of strike Aircore drilling planned * See Appendix for Mineral Resource details 1
Slide 11: Gold Spinout – Helios Gold
Gold Spinout – Helios Gold For personal use only • Historic mining at Mt Fisher in 1930’s • Open pit mining in 1980’s • Discovery of a new zone of gold by CRA in 1990’s • Main project in Avoca Resources’ 2004 IPO • Avoca purchased Higginsville in 2005 • Project acquired by Rox in 2011 from Avoca • R
Slide 12: Mt Fisher Gold
Mt Fisher Gold For personal use only • Several mills for toll treating within 150km • Gold endowment of adjacent Yandal (17 Mozs) and Agnew-Wiluna (10 Mozs) belts an order of magnitude greater than Mt Fisher belt (0.5 Mozs) • Tenements cover approximately 25% of the belt area • Interest in the area
Slide 13: Gold Drilling
Gold Drilling For personal use only • Gold resources at Mt Fisher, Moray Reef and Damsel • A 10km zone of strong gold anomalism – Dam to Shiva • A sub-parallel structure – Dirks • Many high grade drill intersections • Recent outstanding aircore results • $10 million JV with Doray terminated after $1
Slide 14: Gold Resources
Gold Resources For personal use only JORC Mineral Resource of 86,000 oz* @ 2.75 g/t Au Large scale gold-in- regolith anomaly along complex western shear zone (Damsel-Dam-Shiva) – 10km long Targeting >500,000 ozs 3,600m of RC drilling ready to go * See Appendix for Mineral Resource details 14
Slide 15: Gold Model
Gold Model For personal use only • Bronzewing is a group of gold deposits in Yandal Belt – 3.6 Moz • Distance is ~75km from Mt Fisher • Footprint of Bronzewing deposits quite small • 100m x 50m Aircore/RAB drilling required to properly define anomalies • Large low grade gold halo (~100 ppb Au) – but
Slide 16: Gold Anomalies
Gold Anomalies For personal use only Dam Central Prospect Oxide 100 ppb Au 300 ppb Au Fresh Target Zone • Comparison of Mt Fisher with Bronzewing shows similar features at a number of prospects • Potential for deeper gold systems at Mt Fisher beneath Aircore/RAB gold anomalies Reference: Anand, R.R.
Slide 17: Lack of Deep Drilling
Lack of Deep Drilling For personal use only All drilling RAB/AC 3,519 holes 159,747m RC 349 holes 29,438m DD 66 holes 11,106m TOTAL 3,934 holes 200,291m Drilling below 150m RC 50 holes 3,260m 11% DD 41 holes 3,573m 32% TOTAL 91 holes 6,833m 3% 17
Slide 18: Exceptional Recent Results
Exceptional Recent Results For personal use only 300m anomaly at Dam North 4m @ 6.2 g/t Au 200m extension at Dam 800m extension to Damsel 4m @ 2.8 g/t Au Filled in Dirks over 1km 4m @ 3.5 g/t Au RC drilling needed to define resources 18
Slide 19: More Recent Results
More Recent Results For personal use only At Shiva, strong continuous gold anomaly > 1 g/t Au over 500m 4m @ 1.3 g/t Au RC drilling needed to define resources 19
Slide 20: Nickel Market Dichotomy
Nickel Market Dichotomy For personal use only There are two types of nickel: ❖ Class 1 (99.9% pure) – suitable for batteries – comes from sulphide concentrates and refined laterites – 1 Mtpa ❖ Class 2 (impure) – not suitable for batteries - direct shipped ore to blast furnace either as low grade ore
Slide 21: Ni Supply & Demand Trends
Ni Supply & Demand Trends For personal use only Main end use of Ni is stainless steel (65%) 165% and alloys (20%) Nickel stocks are now falling – currently about 16 weeks of supply Nickel price is starting to rise As nickel stocks Continued production continue to fall an despite price fall increase
Slide 22: EV Vehicle Take-up
EV Vehicle Take-up For personal use only 93% 2Mtpa, 100% Current EV 30% 600ktpa, market share 1Mtpa, 33% 50% 1% 300ktpa, 16.5% As conversion to the NMC811 battery takes place, Ni demand should see an increase of ~33% (600kt) by 2025 (8 years), and 100% (2Mt) by 2030. There simply isn’t this supply o
Slide 23: Nickel Deficit is Coming
Nickel Deficit is Coming For personal use only A decade of nickel surpluses to be followed by a decade of deficits Nickel market now in deficit and predicted to stay in deficit When will supply-demand pressures start to affect nickel prices? Graph from Western Areas (WSA) presentation 20 February 20
Slide 24: Nickel Production Impetus
Nickel Production Impetus For personal use only Increasing demand from switch from ICEs to EVs will be 300 – 600 ktpa, triggering a shortage in Class 1 nickel – predicted to be in deficit for at least next 8 years By 2030, will need 1 -2 Mtpa more Class 1 Ni Where will this production come from? Lac
Slide 25: Corporate Information
Corporate Information For personal use only Key Information ASX Code: RXL Share Price: A$0.014 Shares: 1,259M Unlisted Options: 65.8M Market Cap: $17.8M Cash* (at 31 Mar 2018): $11.5M EV: Cash Backing of $6.3M $0.01/share Top 20: 22% * Plus $3.75 million deferred payment from Teck for Reward sale 25
Slide 26: Forward Strategy
Forward Strategy For personal use only • Cashed Up • $15 million in cash plus receivables • Nickel Continue to explore and grow resources – drilling Continually assess development options & opportunities Leverage for the improving nickel price • Gold Spinout into new ASX listed company – Helios Gold
Slide 27: Value Proposition
Value Proposition For personal use only Two relationships between EV/kt Ni and Ni grade – explorers and developers RXL EV/kt Ni is ~$460/kt Ni = $30 million Cash & receivables have an NPV ~$14.0m Rox’s market cap should be ~$44m (~3.5 cents/share) Independent research* has valued Rox at just that Bu
Slide 28: Thank You
For personal use only Thank You Rox Resources Limited Level 1, 34 Colin Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: admin@roxresources.com.au W: www.roxresources.com.au 28
Slide 29: Disclaimers
Disclaimers For personal use only Forward-Looking Statements Competent Person Statements This presentation has been prepared by Rox Resources Limited. This document contains background information Resource Statements about Rox Resources Limited current at the date of this presentation. The presentat
Slide 30: Appendix – Mineral Resources
Appendix – Mineral Resources For personal use only Fisher East Nickel, ASX:RXL 5 February 2016 Mt Fisher Gold, ASX:RXL 28 March 2018 Deposit Category Tonnes Uncut Cut Deposit Category Tonnes (Mt) Ni% Ni (kt) Grade Metal Grade Metal Value (g/tAu) (Ozs) (g/tAu) (Ozs) (g/tAu) Indicated 0.99 2.56 25.3 M