Slide 1: October 2011
For personal use only October 2011
Slide 2: Company overview
Company overview For personal use only • Listed on ASX on 1 Sep 2011 RMX capital structure • Gold focused company with two 1 advanced projects in China Shares Options • Strategy to unlock potential of under- developed gold projects in China by Number issued 79,060,026 31,264,778 introducing modern e
Slide 3: Investment highlights
Investment highlights For personal use only • Experienced Board and management team with significant China and gold experience • China market has attractive fundamentals and cost competitive operating environment • Exposure to two exciting gold projects in major gold province • Zhongqu project – Ope
Slide 4: Experienced Board
Experienced Board For personal use only Michael Wolley BE, MM, MAICD; Resources and industrial Executive; 15 years Asia Pacific; previously COO Lynas Corporation and Chairman President BlueScope Steel China Neil Warburton MAusIMM, FAICD; CEO Barminco (Australia’s largest underground mining contracto
Slide 5: Management team with China and gold experience
Management team with China and gold experience For personal use only Andrew Richards, CEO BSc(Hons), DipEd, MAusIMM, MAIG; Andrew is a geologist with 30 years mining industry experience, including 7 years in Resource Project Finance within a banking environment. Previously Chief Geologist at New Cel
Slide 6: China – attractive market fundamentals
China – attractive market fundamentals For personal use only • Largest gold producing country • Established, well-endowed but underexplored gold belts • Low production costs • Legal security and enforceability • Opportunity to expand existing gold projects through partnerships • Foreign investment e
Slide 7: China – operating cost benefits
China – operating cost benefits For personal use only • Substantial comparative cost benefits in China as can be seen in the table below • Attractive mine economics given operating cost benefits Activity China Australia (US$) Open pit mining $1.43/t $4.50/t Decline development $1,870/m $5,500/m Shaf
Slide 8: Qinling belt – a major gold province
Qinling belt – a major gold province For personal use only • Qinling belt crosses Sichuan, Shaanxi and Gansu provinces • Numerous gold deposits (see Appendix) with large scale mining operations and foreign companies already in province Project Owner Resource Liba State Owned Enterprise >10 m oz Bagu
Slide 9: Operating mine with substantial potential
Zhongqu – operating mine with substantial potential For personal use only • Operating underground gold mine • Has produced at up to 30,000 oz Au pa • Chinese non-JORC compliant resource1 • Exploration target estimate of 400,000 to 500,000 tonnes at 7.0 to 9.5 g/t Au2 • RMX drilling program underway
Slide 10: Significant scope to increase production
Zhongqu – significant scope to increase production For personal use only • Modern CIL plant with 400,000 tpa capacity – underutilised, spare capacity • Mine production rate of 90,000 tpa due to manually intensive methods and hand bogging • Significant scope to increase production through modern mini
Slide 11: Successful drilling program
Zhongqu – successful drilling program For personal use only Slide 11
Slide 12: Stage 1 drilling intersected significant gold mineralisation
Zhongqu – Stage 1 drilling intersected significant gold mineralisation For personal use only Results of drilling below Level 6 at Xinqu mine • Intersected the main granodiorite-contact shear zone (31m at 4.61 g/t gold including 8m at 10.07 g/t gold) • Also intersected previously unrecognised limesto
Slide 13: Drilling encountered two mineralisations
Zhongqu – drilling encountered two mineralisations For personal use only Historically mined hematitic, often ... but RMX drilling also intersected brecciated ore in a sheared and faulted significant gold mineralisation in structural zone at a granodiorite-limestone zones within limestone away from c
Slide 14: Stage 2 drilling commenced
Zhongqu – Stage 2 drilling commenced For personal use only • Drill site preparation has commenced and Stage 2 drilling plan drilling teams to be mobilised • Targeting main granodiorite contact mineralised zone as well as newly encountered limestone hosted mineralisation in hanging wall • Plan 15 dri
Slide 15: Exercise of acquisition agreement driven by resource development
Zhongqu – exercise of acquisition agreement driven by resource development For personal use only Resource compliance and development • Validate mineralisation and establish significant JORC compliant resource • Substantial increase in resource from current Chinese reported resource • Targeting 1.0-1
Slide 16: Diebu – an advanced exploration project
Diebu – an advanced exploration project For personal use only • Large mineralised system over 6km of strike length for gold and antimony • Initial exploration target 400,000 - 500,000 tonne at 3.5 to 4.5 g/t Au • Intend to apply for additional infill tenements with known mineralisation Slide 16
Slide 17: Summary
Summary For personal use only • China market has attractive fundamentals underpinning long term growth – Low production costs – Established, well-endowed but underexplored gold belts • RMX is unlocking the potential of two under-developed gold projects in China – Introducing modern international sta
Slide 18: Disclaimer
Disclaimer For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe s
Slide 19: Competent Person
Competent Person For personal use only The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Andrew Richards, who is a member of The Australasian Institute of Mining and Metallurgy. He is a full time employee of Arc Resources Pty
Slide 20: For personal use only
For personal use only Suite 2, 2 Richardson Street West Perth, Western Australia, 6005 T +61 (08) 9226 5668 F +61 (08) 9322 1474 redmm.com.au
Slide 21: Group structure
Group structure For personal use only Red Mountain Mining Ltd (Australia) Zhongqu Binding Acquisition 100% Agreement (51%) Red Mountain Mining (Hong Kong) Holdings Ltd Diebu Binding Acquisition 100% Agreement (90%) Red Mountain Mining Consulting (Shenyang) Co Ltd Zhongqu: RMX to exercise Acquisition
Slide 22: China – production vs reserves
China – production vs reserves For personal use only SOURCE: Standard Chartered, Gold Fundamentals • Lack of systematic modern exploration techniques • Small scale “hand to mouth” mining focus • Scope to introduce established modern techniques to boost production Slide 22
Slide 23: China – gold reserves
China – gold reserves For personal use only Slide 23
Slide 24: The Qinling Belt – a prolific gold province
The Qinling Belt – a prolific gold province For personal use only ZHONGQU DIEBU Hosts numerous gold deposits Several >2Moz Au Slide 24
Slide 25: Project prospects
Zhongqu – project prospects For personal use only View to Zhongqu from Xinqu Slide 25
Slide 26: Stage 1 drilling highlights
Zhongqu – stage 1 drilling highlights For personal use only Highlights of RMX drill intercepts at XinQu mine Hole No. From To Intersection Mineralisation style XQ6L 002 22m 26m 4 m at 5.71 g/t Au Granodiorite contact XQ6L 005 40m 47m 7 m at 5.70 g/t Au Granodiorite contact XQ6L 009 37m 43m 6 m at 4.
Slide 27: Xinqu operation
Zhongqu – Xinqu operation For personal use only Slide 27
Slide 28: Current mining techniques
Zhongqu – current mining techniques For personal use only • Mining at 90,000 tpa, limited by manually intensive methods and hand bogging Slide 28
Slide 29: Mineralisation near granodiorite contact
Zhongqu – mineralisation near granodiorite contact For personal use only Slide 29
Slide 30: Mineralisation hosted in limestone structures
Zhongqu – mineralisation hosted in limestone structures For personal use only Slide 30
Slide 31: Contact details
Contact details For personal use only Andrew Richards, CEO E: andrew.richards@redmm.com.au M: +61 423 044 879 Investor relations – Ronn Bechler E: ronn.bechler@marketeye.com.au M: +61 400 009 774 RMX head office Unit 2, 2 Richardson St West Perth WA 6005 P: +61 8 9226 5668 F: +61 8 9322 1474 E: info