Slide 1: Youanmi Gold Project Scoping Study
Youanmi Gold Project Scoping Study OCTOBER 2022 Alex Passmore | Managing Director
Slide 2: Cautionary Statement
Cautionary Statement The Scoping Study referred to in this ASX release has been undertaken to evaluate the potential development of the Youanmi Gold Project (“Project”) near Mt Magnet, approximately 480 kilometres northeast of Perth, Western Australia. Rox Resources Limited (“Rox Resources, Rox, the
Slide 3: Disclaimers and Competent Person Statement
Disclaimers and Competent Person Statement Forward-Looking Statements Competent Person Statements This presentation has been prepared by Rox Resources Limited. This document contains background information about Rox Exploration Results Resources Limited current at the date of this presentation. The
Slide 4: Youanmi Gold Project
PROJECT OVERVIEW Youanmi Gold Project • Rox holds a 70% interest in the Youanmi Gold Mine (OYG Joint Venture) and is Manager of the JV • Scoping Study outlines a production target of 569koz Au at an average AISC of $1,538/oz over 8 years • Pre-production capital cost of $99m • Leverages off existing
Slide 5: The Project Generates High Quality Outcomes at a Low Capital Cost
The Project Generates High Quality Outcomes at a Low Capital Cost Total Material LOM Payable Metal Plant Processed 569koz over 8 years Throughput 3.9Mt @ 5.0g/t Au from 3.2Moz resource 480ktpa Mining Physicals Annual Payable Metal C1 Cash Cost1 AISC2 71koz pa $1,358/oz $1,538/oz Pre-Production Capex
Slide 6: Production Target and AISC
Production Target and AISC Total payable metal produced is approximately 569koz with a low AISC of $1,538/oz over the life-of-mine Annual Payable Metal and All-In Sustaining Cost (AISC) (100% basis)1 Payable Metal (koz) AISC ($/oz) 120 Indicated Inferred AISC 2,500 98 100 2,000 84 78 80 66 67 1,500
Slide 7: Gold Concentrate Production
Gold Concentrate Production The Company has considered various options to develop the Project including producing only concentrates, building an Albion Process plant to produce bullion on site, or various combinations. It has determined that a combination of gold-in-concentrate and carbon- in-leach
Slide 8: Gold Concentrate Production Advantages
Gold Concentrate Production Advantages Readily extractible via CIL. Most of this material is in the near surface resource. Some material also within quartz rich Non - Sulphide lodes in the Underground. Main Ore Types at Youanmi Fine gold associated with Pyrite (75%); and gold associated with Arsenop
Slide 9: Capital Requirement
Capital Requirement Pre-Production Capital 100% RXL (70%) Attractive Value Proposition Site Infrastructure $m 6 5 $303m Processing Facilities $m 66 46 Water Management $m 6 4 Underground Development $m 19 12 $212m 3.1x Open Pit $m 2 2 Total Pre-Production $m 99 69 $173m Value Gap 5.4x Sustaining Cap
Slide 10: Key Study Outcomes
Key Study Outcomes1 Key Physicals Assumptions Capital Costs Life Of Mine years 8.0 Pre-production Capital $m 99 Plant Throughput ktpa 480 Key Financial Assumptions Sustaining Capital $m 59 Open Pit Mining Production Target Gold Price $/oz 2,450 Total $m 158 Grade g/t 3.3 Discount Rate % 5 Ounces Con
Slide 11: Attractive Value Proposition
Attractive Value Proposition $303m $212m 3.1x $173m Value Gap 5.4x $99m $39m Youanmi Gold Project NPV (100%) Pre-Production Capex (100%) Youanmi Gold Project NPV RXL Enterprise Value as at 17 Rox Resources (70%) October 2022 Notes: 1. Financial results are unleveraged and pre-tax numbers calculated
Slide 12: Project Sensitivity Analysis
Project Sensitivity Analysis The Project shows robust financial returns under various downside scenarios. NPV is most sensitive to movements in gold price and more resilient to the rest of the variables. Project NPV (unleveraged and pre-tax) Sensitivity Analysis1 Scenario Analysis – Various Gold Pri
Slide 13: Attractive All-In Sustaining Cost
Attractive All-In Sustaining Cost The Project has an attractive LOM All-In Sustaining Cost (AISC) given the current inflationary cost environment in the mining industry. LOM C1 Cash Cost and AISC Breakdown1 ($/oz) Notes: 1. C1 cash cost and AISC are calculated based on payable metal and in Australia
Slide 14: Outstanding Project EBITDA
Outstanding Project EBITDA At a conservative gold price of A$2,450/oz, the Project is forecast to generate a healthy EBITDA of $577m over the life-of-mine Cumulative EBITDA and Gold Production Target (100% basis)1 Cumulative EBITDA ($m) Cumulative Payable Metal (koz) $800 1,000 Cumulative EBITDA Cum
Slide 15: Upside and Growth Options
Upside and Growth Options In the current market environment, the Scoping Study has focused on high quality outcomes at a low capital cost. The following factors offer potential medium-term upside to the Scoping Study outcomes. Growth in Near Surface Resource Underground Resource Growth Regional Expl
Slide 16: Potential Upside Beyond Production Target
Potential Upside Beyond Production Target Potential Upside – Open Pit Potential Upside – Underground Potential Upside Beyond Production Target (koz) (koz) (koz) Indicated Inferred Indicated Inferred Indicated Inferred 3,500 3,500 3,500 3,199koz 3,000 3,000 3,000 2,500 2,500 2,500 2,194koz 1,903koz 2
Slide 17: Project Potential – Underground Resource
Project Potential – Underground Resource Small Mining Envelope Relative to Underground Mining Resource Potential Upside Beyond Production Profile - UG (koz) Total Underground Mineral Resource 2,194koz1 Indicated 305koz Unmined Potential 1,221koz Inferred Unmined Inferred Potential 548koz 1,602koz Un
Slide 18: Additional Potential Opportunities to Extend Project Life / Increase Production Rate
Additional Potential Opportunities to Extend Project Life / Increase Production Rate OPEN PITS OPTIMISE WELL FOR LOWER TREATMENT COSTS OPTIMISED STOPES TO NORTH REGIONAL GREENFIELDS TARGETS LIGHTING UP EXTENSION OF UNDERGROUND MIDWAY LODE IN MINE POTENTIAL HANGINGWALL IN ALL DIRECTIONS 18
Slide 19: Next Steps
Next Steps Inferred to Indicated Resource Conversion Youanmi Gold Project Resource Update Further Drilling and Studies (Resource, PFS) to quote reserves Exploration and Drilling at Youanmi Regional Tenure and Mt Fisher 2119
Slide 20: Corporate Information
ABOUT ROX RESOURCES Shareholders Corporate Board & Management Hawke’s Point Information Directors & Stephen Dennis Chairman 13% Management 3% Alex Passmore Managing Director John Mair Non-Executive Director Rox Resources Limited (ASX: RXL) is a West Australian focused gold exploration and developmen
Slide 21: EV / Attributable Measured & Indicated Resource ounces
Comparable Gold Companies EV / Attributable Measured & Indicated Resource Ounces vs Grade for Comparable Gold Companies1 (Bubble size represents attributable measured & indicated resource ounces) $400 EV / Attributable Measured & Indicated Resource ounces GMD Average = $276/oz $350 $300 MGV $250 AME
Slide 22: Comparable Gold Companies
Comparable Gold Companies 1 Market Capitalisation (as at 17 October 2022) ($m) $450 $400 $350 $300 $250 High quality and $200 large resource with compelling $150 valuation $100 $50 $0 GMD MGV AUC KIN BC8 MEK HRN RXL HRZ AME STN Notes 1. Refer Appendix 1 for support. 22
Slide 23: ESG Program
ESG Program We are pleased to align our reporting to the United SDGs that Rox Contributes to Nations Sustainable Development Goals (SDG’s), the Global Reporting Initiative’s (GRI) Standards and the Task Force for Climate-related Financial Disclosures (TCFD). 2022 Goals & Progress Produce our Inaugur
Slide 24: Youanmi Gold Project - Supporting Schedules
SUPPORTING SCHEDULES Youanmi Gold Project - Supporting Schedules 24
Slide 25: Mineral Resources
Mineral Resources Youanmi Mineral Resources (ASX: RXL 20 Apr 2022) Resource Growth Area Classification Cut-off (g/t) Tonnes (dmt) Au Grade (g/t) Au Metal (oz) (Moz) Near Surface Indicated 0.51 9,070,000 1.89 552,000 3.5 3.2Moz 167% Growth in 3.0Moz Underground Indicated 3.0 3,060,000 7.55 744,000 3.
Slide 26: Youanmi Ounces per Vertical Metre
Youanmi Ounces per Vertical Metre 26
Slide 27: Mining – Design
Mining – Design Small Open Pits mined in Year 1 • First stage for Kathleen and Hill End Pits • Grace Stage 1, followed by a second Stage including Pollard. • Total volume 1.9 mil bcms mined over 6 months using 2x 100t fleets. • 331kt at 3.3g/t Au for 35koz 96% indicated • Simple metallurgy free mill
Slide 28: Mining – Schedule
Mining – Schedule Mining Schedule Processing Schedule Grade • Mine 3 small open pits (Kathleen, Hill End, and Grace • Processing commences in month 8 initially at a higher • Open Pit average grade mined is 3.3g/t Au. Stage 1) and a second stage on Grace / Pollard in the first rate of 55,000 tonnes p
Slide 29: Underground Production Target Schedule
Underground Production Target Schedule Year on year graphical underground production target schedule colour coded by Month 2 – 12 Month 13 – 24 Month 25 – 36 Au Grade Month 37 – 48 Month 49 – 60 Month 61 – 72 1.5 – 3.0 g/t Au 3.0 – 6.0 g/t Au 6.0 – 10.0 g/t Au 10.0 to 15.0 g/t Au > 15.0 g/t Au Month
Slide 30: Process Flowsheet
Process Flowsheet • The process flow builds on a standard CIL circuit to include a sulphide flotation circuit which captures most of the gold bearing mineralisation into a concentrate which is then cleaned to optimise final gold grade. The concentrate is dried to a suitable moisture content, loaded
Slide 31: Processing Plant Layout and Location
Processing Plant Layout and Location • 480kt p.a Carbon-in-Leach plant and sulphide flotation circuit Processing Facilities • Existing TSF has 8-month capacity remaining, then a new dam will be built with 2-year capacity stages. Processing Facilities Location Processing Plant Layout 31
Slide 32: Mineralogy
Mineralogy Mineralogy Underground Resource • The Youanmi Underground Resource has a small percentage of its content that requires more than just standard CIL to extract the gold. o Gold is associated with Pyrite (75%) and Arsenopyrite (25%) and is easily floatable in a simple proven process flow cir
Slide 33: Other Infrastructure
Other Infrastructure Evaporation Ponds Power and Other Site Roads and Site Offices and Village and Water Airstrip Services Carparks Communication Management • Existing facilities • Gas power generation • There is allowance • The Youanmi airstrip • The existing road • New site office will be include
Slide 34: Experienced Consultants Team
Experienced Consultants Team Geology Mining Technical Turner Mining and Geotechnical In Association with Peter O’Bryan and Associates Metallurgy and Processing Costing Heritage and Environment 34
Slide 35: Scoping Study Summary
Scoping Study Summary Mining ESG • Detailed mining schedules and operating costs • Flora Fauna and Lake Noondie Ecology surveys in • Attractive Project with o Small open pits mining in the first 6 months progress robust economics o Underground mining commencing in month 2 • Heritage survey in progre
Slide 36: Appendix 1 - Comparable Gold Companies
Appendix 1 - Comparable Gold Companies Companies selected are considered comparable to Rox Resources as they are in exploration and/or study phase Measured Resources - 100% Indicated Resources - 100% Inferred Resources - 100% Total Resources - 100% M&I Resources - 100% Attributable Development Tonna
Slide 37: Thank You
ASX : RXL Thank You Rox Resources Limited T: (08) 9226 0044 Follow Rox: Level 2, 87 Colin Street, West Perth, WA 6005 E: admin@roxresources.com.au W: www.roxresources.com.au