Regis Resources Limited · ASX:RRL
Regis Resources — Citi London Conference March 2012
53 slides from Regis Resources's conference presentation, Mar 6, 2012
Slide 1: Building a quality gold business
For personal use only Building a quality gold business Citi London Conference March 2012 Mark Clark ‐ Managing Director
Slide 2: Disclaimer
For personal use only This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Regis’ projects, may rely on
Slide 3: Board and management
For personal use only Mark Clark Managing Director Nick Giorgetta Chairman Morgan Hart Operations Director Appointed to RRL board by shareholders in May 2009 All previously i l exec directors di t off Equigold E i ld NL Ross Kestel Non Exec Mark Okeby Non Exec 3
Slide 4: Corporate snapshot
For personal use only ASX Code RRL FP shares on issue 434m Listed options 11m ((RRLO,, RRLOA,, RRLOB)) Unlisted options 17m Share price $4.32 Range (1yr) $1.82‐$4.43 Monthly volume (shares) 32m Major shareholders Cash $40m Newmont 18% Market Cap $1,890m Directors & mgt 12% Libra Advisers 4% 4
Slide 5: For personal use only
jd UW = ‘e) Soe 0. So Oo UO Cc \e) jad VD) ZZ ) (a)
Slide 6: Project location
For personal use only Located 350km north‐ north east of Kalgoorlie 100% Regis owned 6
Slide 7: Tenement package and resources
For personal use only 387 granted leases 2,030km , 3 2 of g ground 6.5 Moz resources1 2.9 9 Moz ese es1 o reserves Note 1 – full breakdown of these reserves and resources in accordance with JORC is set out in Appendix 1 & 2 to this presentation
Slide 8: Reserves by project
For personal use only Total MT g/t g Koz Garden Well 35.3 1.46 1,660 Moolart Well - Laterites 8.8 1.30 367 - Oxide 26 2.6 1 82 1.82 153 MW Total 11.4 1.42 520 Erlistoun 2.7 2.36 203 Rosemont 8.7 1.73 487 Total 58.1 1.54 2,870 8 Note 1 – full breakdown of the reserves in this table in accordance with
Slide 9: Peer reserve ounces comparison
For personal use only 3,500 3,000 nds) 2,500 Ouncess (thousan 2,000 1 500 1,500 1,000 500 ‐ EVN RRL NGF SAR RMS IGR NAV AXM FML SBM BCD NST SLR Source: Euroz Securities 9
Slide 10: For personal use only
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Slide 11: Moolart Well geology
For personal use only Transported cover of approx 5m. Laterite ore zone averages 4m (max 20m). 20m) Oxide mineralisation from base of laterite to base of oxidation (averages 70m). 11
Slide 12: Moolart Well quarterly production
For personal use only Dec 2011 Sept 2011 Jun 2011 Quarter Quarter Quarter Ore mined (tonnes) 621,862 657,919 619,239 Ore milled (tonnes) 644,179 636,812 636,058 Grade (g/ (g/t)) 1.34 34 1.40 4 1.44 44 Recovery (%) 94 92 89 Production (oz) 26,025 26,477 26,189 Cash cost (A$/oz) 510 487 8 525 Cash cos
Slide 13: For personal use only
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Slide 14: Financial position and hedging
For personal use only Cash $40.9m at 31 Dec 11 A$52.3m operating cash‐flow in H1 2012 Profit $38.2m NPAT for half year to Dec 2012 Debt Facility of $60m ‐ drawn to A$30m $30m available for Garden Well development Hedging 185koz of hedging (7% of reserves) 119koz at A$1,401/oz – 12koz/q
Slide 15: For personal use only
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Slide 16: Goal and strategy
For personal use only Goal Build reserves beyond 3 million ounces Strategy Depth D th and d southern th strike t ik att Garden G d Well W ll Moolart Well oxides Resource conversion drilling Optimisation of current reserves Prioritise and drill satellite resources Drill new prospects &
Slide 17: Regional satellite deposits
For personal use only 6 regional satellite deposits (excluding MW, GW, Erlistoun & Rosemont) Resources of 315koz1 None more than 15km away from either MW or GW All on granted mining leases Drill outs and reserve studies planned I Incrementalt l reserve ounces likely Note 1 – full breakdown of these
Slide 18: Moolart Well resource conversion drilling
For personal use only Current resource of 577koz1 Blenheim Aug ‐ Nov 2010. Current reserve 148koz1 53 holes for 22m 6,760m MWRC519: Au from 80m @ 3.2g/t 26% conversion to reserve Mosquito Nov 2010. Only 1km of 5km strike drilled 16 holes for 1,700m 56% of resource in drilled area converts to reserve
Slide 19: For personal use only
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Slide 20: Garden Well drilling status
For personal use only Drilling Status – Mar 2011 Discovery hole Nov 09 438 aircore holes drilled 180 RC holes drilled 44 diamond holes drilled 90,000 9 , metres drilled Significant results over 1,040m of strike. Mineralistion confirmed to depth of approx 270 + metres and still open 20
Slide 21: Garden Well drill intersections
For personal use only Hole From (m) To (m) Intersection Grade (g/t) (m) GDAC038 60 110 50 2.36 GDAC037 41 92 51 2 78 2.78 GDAC036 65 109 44 3.65 GDAC032 71 104 33 3.17 GDAC031 44 64 20 2 90 2.90 GDAC024 40 82 42 2.02 GDAC022 32 51 19 3.99 GDAC002 51 124 73 3.61 GDAC005 42 111 69 4.26 GDAC014 46 50 4
Slide 22: Garden Well cross section and pit design
Garden Well Cross Section & Pit Design G9.) = 5, | | QReEsIs : | | RESOURCES LTD SS 25 Sates scenes peeeecceesenaeee aly] " AZ : ' GARDEN WELL 6912680m N 8.01 Gold g/t / 6 Metres | ULTRAMAFIC Gold Mineralised Zone |__| Garden Well - AC, RC and DD Drilling 691 200mRL| | a a VAN a NN SHEAR ZONE: MIXED
Slide 23: Garden Well reserve and resource
For personal use only Ore Reserve (March 2011) » 35 35.3Mt 3Mt at 11.46g/t 66Moz1 46g/t for 11.66Moz » 90% of reserve is shallower than 200m » Stripping St i i ratio ti 3.33 Resource (Nov 2011) » 62Mt at 1.29g/t for 2.56Moz1 Note 1 – full breakdown of these reserves & resources in accordance wit
Slide 24: Operations summary
For personal use only Operations Summary Total gold production 1.57 million ounces Average g annual g gold p production 180,000 , ounces 247,000 ounces Year 1 gold production (cash cost less than A$400/oz) Capital cost A$109 million Cash operating cost A$555 per ounce (life of mine, pre royalties) M
Slide 25: Financial analysis
For personal use only Financial Analysis Revenue A$2.2 billion (at A$1,400/oz GP) Net cash flow A$1.1 billion (after capex, before tax) NPV @ 6% A$750 million (after capex, before tax) IRR 143% Payback period 7 months 25
Slide 26: Other DFS results and licensing
For personal use only Other DFS Results Metallurgical testing complete – excellent results Recoveries > 95% in 24hr at course grind of 150µm High gravity gold recovery >54% Low abrasion index 0.057 Ai (g) Low‐medium bond work index 13.6 kWh/tonne Very soft crushing index 4.9 4 9 kWh/to
Slide 27: Construction progress
For personal use only Financing Internal funding g Construction progress (% complete) Procurement 90% Bulk earthworks 80% Concrete 55% Leach tanks 95% Structural steel erection 5% Mine development Open pit mining on schedule 1.5M bcm mined PTD TSF and borefield progressing Ta
Slide 28: Garden Well man camp
Garden Well — 250 Man Camp
Slide 29: CIL tanks complete
CIL tanks complete & top of tanks steel commenced ~~? ae
Slide 30: Primary crusher concrete complete
Primary Crusher concrete complete ue GE Re € § S ig o> Ra
Slide 31: Scrubber and mill concrete complete
Scrubber & mill concrete complete —
Slide 32: Reclaim tunnel and apron feeder install
Reclaim tunnel & apron feeder instal
Slide 33: For personal use only
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Slide 34: Ball mill shell arrived on site
Ball mill shell arrived on site
Slide 35: Other fixed plant arriving
Other fixed plant arriving
Slide 36: Garden Well open pit mining
den Well Open Pit Mining TNE NMC! BM acl erlang ay se ee
Slide 37: Garden Well open pit mining
Garden Well Open Pit Mining
Slide 38: Mineralisation open at depth and south
For personal use only Mineralisation open at depth & south Open at Depth Open Gram metre plot = to South i intersection i metres x grade 38
Slide 39: Garden Well southern focus and targets
For personal use only Focus on: Sout Southern e highg g grade ade sshoot oot Southern extension Targeting: g g Resource increase Extend pit south and deeper on high grade zone South 1 km North Garden Well gram metre long section with pit design Planned RC/diamond hole
Slide 40: For personal use only
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Slide 41: Rosemont resource and reserve
For personal use only Granted mining lease Within Withi 10km k off GW Resource: 21.3 MT @ 1.57 g/t for 1.08 Moz Reserve 8.7 MT @ 1.73 g/t for 487,000 oz
Slide 42: Quartz hosted stock-work gold deposit
For personal use only Quartz hosted stock-work gold deposit
Slide 43: Rosemont reserve study results
For personal use only Reserve Study Results G ld price Gold i ffor pit i optimisation i i i A A$1,000/oz / Total pit volume (bcm) 24.6 million Stripping ratio (waste:ore) 5.61 Ore (tonnes) 8 7 million 8.7 Grade (g/t) 1.73 Contained gold (ounces) 487,145 g recoveryy (%) Milling 95 Recovered gold (oun
Slide 44: Rosemont reserve study costs
For personal use only Reserve Study Results Mining cost (A$/tonne) A$23 65 A$23.65 Milling cost (A$/tonne) A$9.13 Administration cost (A$/tonne) A$0.50 Total operating cost (A$/tonne) (A$/tonne)* A$33 28 A$33.28 Total operating cost (A$/oz)* A$628 Operating surplus (pre royalties & tax)# A$357 milli
Slide 45: Rosemont open pit reserves
For personal use only Open n pit reservves (thousa ands ounces) ‐ 800 1,200 600 200 400 1,000 Rosemont 487,000 oz 45
Slide 46: Rosemont development options
For personal use only Scale of project means all development options can be considered Early thinking: Crush and grind at Rosemont Pump ore slurry to Garden Well plant Add 2 CIL tanks to Garden Well Target T case: Preliminary capex ‐ $35m (order of mag) 1.5mtpa t att 1.73 g/t /t for
Slide 47: For personal use only
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Slide 48: Top ranked exploration targets
For personal use only Top Ranked Targets ‐ All under 20 to 35m of cover ‐ no previous drilling 2 1)) Garden Well Drilled – major discovery!! 3 2) Anchor South 4 10,000m+ 10 000m+ Aircore 8m @ 5.42g/t 9m @ 3.46g/t 1 12m @ 2.19g/t 3) Gum Well Corridor Soil geochem 4) Garden Well North 3,000m Aircore
Slide 49: For personal use only
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Slide 50: Regis gold production outlook
G REGIS RESOURCES LTD A q wi Regis Gold Production Otlook 350,000 300,000 200,000 150,000 2011/12 2012/13 2013/14 2014/15 2015/16 Gold Production (ounces) N wn oO [o) 8 Moolart Well & Garden Well ® Erlistoun - GW displaced tonnes @ Erlistoun - extra grade & Rosemont 50
Slide 51: Summary
For personal use only Moolart Well Gold Mine In production ≈ 100koz pa Low technical risk Strong cashflows Garden Well project Resource 2.56Moz 2 56Moz1 Reserve 1.66Moz1 Commence Septp 12 q qtr ≈247koz 47 p pa p production Rosemont 487koz – expedite development – first gold 2013
Slide 52: Appendix 1: Ore reserves
For personal use only Proven Probable Total Cut‐off Project grade gold grade gold grade gold Grade MT MT MT g/t g/ koz g/t g/ koz g/t g/ koz g/t g/ Garden Well 35.3 1.46 1,660 35.3 1.46 1,660 0.60 Moolart Well Laterite 7.8 1.31 335 1.0 1.00 32 8.8 1.30 367 0.50 Oxide 1.4 1.64 75 1.2 2.02 78 2.6 1.82
Slide 53: Appendix 2: Mineral resources
Measured Indicated Inferred Total Resources For personal use only Cut off Cut‐off Project gold gold gold gold Grade MT g/t MT g/t MT g/t MT g/t koz koz koz koz g/t Moolart Well Laterite 9.8 1.45 459 1.0 0.90 29 0.3 0.88 8 11.1 1.39 496 0.50 Oxide 1.2 1.85 71 3.9 1.52 192 6.7 1.45 314 11.9 1.51 577 0