Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Diggers & Dealers 2012
27 slides from Ramelius Resources's conference presentation, Aug 7, 2012
Slide 1: Ramelius Resources Limited – Diggers & Dealers Presentation August 2012
Ramelius Resources Limited ASX:RMS DIGGERS & DEALERS Presentation August 2012 1
Slide 2: Forward Looking and Competent Persons Statements
Forward Looking and Competent Persons Statements Forward looking statements This presentation contains certain forward looking statements with respect to Ramelius’ financial condition, results of operations, production targets and other matters that are subject to various risks and uncertainties. Ac
Slide 3: Ramelius corporate information
Ramelius corporate information Corporate details: Significant shareholders: • ASX Code: RMS Sprott: 10% • Ordinary shares on issue: 336M Van Eck: 6% • Market capitalisation: ~A$168m Paradice: 6% • 12 month share price range: $0.425-1.695 • Cash and gold on hand: A$61m (Jun 12) Share price (5 year):
Slide 4: Investment Highlights
Investment Highlights: Two operating gold mines in Western Australia: Mt Magnet – low risk open cut Wattle Dam – high grade underground Targeting sustained increase in gold production by 2014* Debt free and able to fund current operations from cash flow Progressing acquisition of a new high grade mi
Slide 5: Project Locations
Project Locations: Ramelius Resources Limited • DIGGERS & DEALERS • Aug 2012 5
Slide 6: FY 2013 is a year of transition
FY 2013 is a year of transition: Mt Magnet - ramping up High strip ratio and lower grades from subsidiary zones to date Current costs reflect ramp up process Higher grade BIF zones now being accessed Full production by December 2012 Wattle Dam – winding down Expecting average grade of 7 g/t Au for r
Slide 7: Mt Magnet Gold Mine (WA)
Mt Magnet Gold Mine (WA): Significant past producer (+ 5m oz Au produced) Current JORC Resources of 3m oz Au Open pit Reserves of 536,000 oz Au Pre-strip completed in Feb 2012 First gold poured in March 2012 Currently has a 6 year mine life 1.7mtpa refurbished gold plant Gold plant expandable to 2.4
Slide 8: Mt Magnet Gold Mine (WA)
Mt Magnet Gold Mine (WA): Titan Pit Saturn Pit Mars Pit Ramelius Resources Limited • DIGGERS & DEALERS • Aug 2012 8
Slide 9: Mt Magnet – significant progress
Mt Magnet – significant progress: August 2011 - Mining approval September 2011 - Mining commenced March 2012 - First gold poured June Qtr 2012 production 10,500 oz Sept Qtr 2012 Production guidance 12-14,000 oz FY 2013 - Production guidance of 70,000 oz Ramelius Resources Limited • DIGGERS & DEALERS
Slide 10: Mt Magnet – planned production
Mt Magnet – planned production: Current project is scheduled to produce an average of 80,000 oz p.a. FY2013 estimated production is lower at 70,000 oz due to: Ramp up of high grade ore mining to December 2012 Blending of low grade ore to meet milling capacity Plan to increase production from 2013 wi
Slide 11: Mt Magnet – improving grade control results at depth
Mt Magnet – improving grade control results at depth Surface to 430m RL contains 2,987 holes with 32,955 samples Intercept Hole_ID From To Interval Au Gram Metres 1 GXMM001796 5.0 11.0 6.0 40.9 245 2 GXMM001881 26.0 33.0 7.0 8.97 63 3 GXMM005199 0.0 11.0 11.0 5.70 63 4 GXMM001820 6.0 12.0 6.0 9.68 5
Slide 12: Mt Magnet – improving grade at depth
Mt Magnet – improving grade at depth Most ounces and highest grade sits at the base of old pits All cutback operations will take time to reach the best ore zones Original Pit New Pit Current Design Level of new Pit 49m @ 4.20 g/t Au 64m @ 1.34 g/t Au 54m @ 2.58 g/t Au Saturn Section 79825mN Ramelius
Slide 13: Mt Magnet – processing plant
Mt Magnet – processing plant: Refurbished 1.7mtpa gold plant – replacement value A$80-100m Currently being ramped up to full capacity Milled 350,000t in June quarter (capacity 435,000 t/qtr) Reviewing plan to increase throughput to 2mtpa (CY2013) Ramelius Resources Limited • DIGGERS & DEALERS • Aug
Slide 14: Mt Magnet – Western Queen South
Mt Magnet – Western Queen South: Probable Reserve of 20,000 oz (refer to slide 26) Mining to commence in January 2013 subject to approvals Ore to be trucked to Mt Magnet and milled in FY2014 Cut Back Pit to 100m depth Ramelius Resources Limited • DIGGERS & DEALERS • Aug 2012 14
Slide 15: Mt Magnet – Galaxy Underground Potential
Mt Magnet – Galaxy Underground Potential Ramelius Resources Limited • DIGGERS & DEALERS • Aug 2012 15
Slide 16: Mt Magnet – Water Tank Hill Underground Potential
Mt Magnet – Water Tank Hill Underground Potential 9m @ 5.19 g/t Au 7m @ 6.56 g/t Au Water Tank Hill Pit 16m @ 3.45 g/t Au 9m @ 10.4 g/t Au 9m @ 4.92 g/t Au 13m @ 10.9 g/t Au Known Limit of Historical Underground Mining – 136mbs 20m @ 7.97 g/t Au 10m @ 8.38 g/t Au New Drilling 24m @ 4.65 g/t Au 35m w
Slide 17: Wattle Dam Gold Mine (WA)
Wattle Dam Gold Mine (WA): Pit Decline Production of 250,000 oz since 2006 Blocks A & B Completed with ~180,000 oz production over High grade high nugget gold deposit 100m vertically Blocks C & D mining to Production life to June quarter 2013 2013 Grade to date from Block D averages 7.3 g/t Au New e
Slide 18: Vivien Project (WA) – High grade gold opportunity
Vivien Project* (WA) – High grade gold opportunity: High grade gold development opportunity located near Agnew (WA) Existing Indicated Resource of 154,000 oz Au @ 8.3 g/t Au Drilling and mining studies in 2012-13 Potential to develop in calendar 2013 Fits with Ramelius’ existing skill set Low cost c
Slide 19: Vivien Project (WA) – High grade gold opportunity
Vivien Project (WA) - High grade gold opportunity: Vein style mineralisation with multiple high grade zones Historic production of 110,000 oz Au (~1,000 oz per vertical metre) Open down plunge of high grades Significant true width intersections: Existing Potential 10m @ 31.8 g/t Au Open Pit Open Pit
Slide 20: Coogee Project (WA) – High grade open pit
Coogee Project (WA) – High grade open pit: Potential high grade open pit Exploration upside within tenement package Close to Ramelius’ Burbanks milling infrastructure Mining study to be completed in Sept quarter 2012 Significant Intersections* include: Optimised Open Pit 6m @ 37.8 g/t Au 7m @ 31.4 g
Slide 21: Exploration – North Queensland (earning 60%)
Exploration – North Queensland (earning 60%): Mt Windsor JV – expanded land package Ramelius Resources Limited • DIGGERS & DEALERS • Aug 2012 21
Slide 22: Exploration – North Queensland (earning 60%)
Exploration – North Queensland (earning 60%): Joint Venture with Liontown Resources Ltd (ASX: LTR) Exploring for intrusive breccia hosted gold deposits – drilling Sept qtr Ramelius Resources Limited • DIGGERS & DEALERS • Aug 2012 22
Slide 23: Exploration - Nevada (earning 70%)
Exploration - Nevada (earning 70%*): JV with Miranda Gold Corp in world class gold region Angel Wing targeting bonanza gold grade epithermal veins: DaVinci Fault – 2 km strike potential Discovered high level epithermal system Buried Au-Ag anomalous sinters/breccias 19.8m @ 1.01g/t Au from 222.5m Inc
Slide 24: Exploration - Nevada (earning 70%)
Exploration - Nevada (earning 70%*): Angel Wing discovery 700m north of outcropping epithermal DaVinci veins *Marmota Energy (ASX: MEU) may earn 40% of RMS interest Ramelius Resources Limited • DIGGERS & DEALERS • Aug 2012 24
Slide 25: Why Invest in Ramelius
Why Invest in Ramelius: Operations Mt Magnet – low risk and potential for expansion Wattle Dam – high grade, low cost Upside Potential Mt Magnet is a large gold system with potential to expand production Vivien project is high grade and open down plunge of high grades Greenfields projects in proven
Slide 26: Mineral Resources (inclusive of Ore Reserves)
Mineral Resources (inclusive of Ore Reserves) RAMELIUS RESOURCES LTD MOUNT MAGNET GOLD MINES Mineral Resource Statement 30/06/2011 Measured Indicated Inferred Total Resource Deposit Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au ('000s) g/t Oz ('000s) g/t Oz ('000s) g/t Oz ('000s) g/t Oz Bartus
Slide 27: Ore Reserves
Ore Reserves RAMELIUS RESOURCES LTD MOUNT MAGNET GOLD MINES Ore Reserve Statement 30/06/2011 Pit Proven Probable Total Reserve Tonnes Au Au Tonnes Au Au Tonnes Au Au ('000s) g/t oz ('000s) g/t oz ('000s) g/t oz Galaxy pits Saturn 824 1.8 47,000 1,253 1.4 57,000 2,078 1.5 104,000 Mars 225 2.1 15,000