Red Rock Resources plc · LSE:RRR
Red Rock Resources — Shareholder Meeting (December 2010)
33 slides from Red Rock Resources's shareholder meeting presentation, Dec 30, 2010
Slide 1: AGM December 2010
AGM December 2010
Slide 2: Disclaimer
Disclaimer These presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any securities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any such securities
Slide 3: Proxies for AGM
Proxies for AGM Resolution For Against Discretion % Abstain Total 1 29,140,373 40,000 116,519 0.0172 15,000 29,311,892 2 28,728,723 140,000 141,519 0.0209 301,650 29,311,892 3 28,992,468 40,000 116,519 0.0172 162,905 29,311,892 Total 678,211,050 Voting Rights 3
Slide 4: Corporate Profile
Corporate Profile AIM Listed Company (AIM:RRR) Interests: Migori gold project in Kenya Two gold mines in Colombia Two gold mines in Costa Rica Major Shareholder: Regency Mines (21%) Share Price: 15.00 pence Market Cap: £102.37m Shares in Issue: 682,439,017 4
Slide 5: Share Price & Volume
Share Price & Volume Share Price: 15.0p 5
Slide 6: GOLD: KENYA
GOLD: KENYA 6
Slide 7: Migori: Project Overview
Migori: Project Overview Mid Migori Mining (MMM) Company Limited operates the Migori gold and base metals project RRR owns 15% of MMM with farm in to raise to 60% Historic gold and base metals mining between 1930s-60s Geita • Located in SW Kenya, 15 km north of the Tanzanian border AngloGold 1.89 g/
Slide 8: Migori: Project Map
Migori: Project Map Option over further 320 sq km SPL 236 (Ngira Migori) Special Prospecting Licences 122 and 202 covering 310.5 sq km 8
Slide 9: Migori: Current Gold Resources
Migori: Current Gold Resources Tonnes Grade Contained Prospect Category (kt) (g/t) Au (oz) KKM Indicated 22,110 0.96 680,000 Gori Maria Indicated 8,600 0.87 240,000 MK Indicated 1,450 2.32 108,000 Nyanza Indicated 840 5.32 144,000 2006 Subtotal: Indicated 33,000 1.10 1,172,000 NI 43:101 Macalder Tai
Slide 10: Migori: Tailings Project
Migori: Tailings Project Macalder Tailings Dam Mid- 2010: JORC-Compliant, Indicated Resource estimate Estimate excluded 5 holes from smaller, adjacent tailings dam Metallurgical test work currently under assessment 1.424 million tonnes containing 75,084 oz Au at 1.64 g/t Zone Volume (m3) Tonne
Slide 11: Migori: Exploration
Migori: Exploration Dec2009 Resource drilling on Scout drilling the Macalder Tailings RC 507 metres Jan2010 Jul2010 VTEM helicopter Magnetic and Aug2010 survey over Macalder Radiometric survey Mine block across both licences Nov2010 Diamond Coring 2000+ metres Infill resource drilling Exploration Dr
Slide 12: Migori: VTEM Results
Migori: VTEM Results VTEM Targets T1 and T3 largest anomalies T1 East and west Macalder Mine Extensions T3 North of MK prospect. Anomaly over BIF outcrop T2 Smaller anomaly over Bushells prospect Drilling planned at both targets to investigate deep conductors Other anomalies - cultural
Slide 13: Migori: Objectives
Migori: Objectives Build a 2 - 3Moz resource base Follow up high grade intersections Drill Macalder VMS and other Cu target Upgrade KKM Resource model with view to early production Upgrade confidence in the tailings resource. Plan for gold production Explore new targets
Slide 14: GOLD: Colombia
VT, GOLD: Colombia
Slide 15: Colombia: Project Overview
Colombia: Project Overview Investment in two Colombian gold mines on Frontino Gold Belt – oldest in Colombia Loan with rights to acquire up to 55% of operating company El Limon 60 year old production history – production infrastructure in place Production begins Nov/Dec 2010 Ore production
Slide 16: Colombia: Gold Geology
Colombia: Gold Geology Frontino Gold Belt Mineralisation in the Frontino Gold Belt, Antioquia is controlled by the OTU FAULT The Frontino Gold Belt is one of the world’s great mesothermal gold fields, with estimated production of 8-9 Moz from the Segovia-Remedios region alone. 16
Slide 17: Colombia: Assets
Colombia: Assets El Limon 60-year-old mine produced 108 tonnes of ore/m and 15.3kg/m in first five months of 2010 from non-mechanised operations. Vein-style gold deposit produced ore from 7 levels down to 380m. Plant with 150 tpd capacity re-opened December 2010 Machuca (La Aurora) Further s
Slide 18: Colombia: Deal Structure
Colombia: Deal Structure 3 year $US2m loan to Mineras Four Points (MFP) 5% interest 3 year Consultancy Agreement at $200K and increasing to $350k/quarter (Gross Return $3.2m) Total agreed return 15% EBITDA if greater Option (2 yr period) to acquire 50% of MFP for $6.5m Option (3 yr period) to
Slide 19: Colombia: Objectives
Colombia: Objectives Looking for extensions to the vein Expanding plant capacity to 250tpd and 400tpd Exploring for other veins Expanding property portfolio in order to grow production 19
Slide 20: GOLD: Costa Rica
VT, GOLD: Costa Rica
Slide 21: Costa Rica: Deal Structure
Costa Rica: Deal Structure Investment in Ascot Mining Announced on 19th November 2010 £1.5million investment @20p (now 45.5p) Ascot [ASMP] quoted on PLUS market Enables Ascot to meet payment obligations for producing Chassoul gold mine 2/3 other mines Convertible + options give up to 23.
Slide 22: Costa Rica: Location
\§)) REDROCK a “e ~ Costa Rica: Locat
Slide 23: Costa Rica: Gold Geology
Costa Rica: Gold Geology Chassoul Gold Mine Ascot's wholly owned Veritas Gold CR is acquiring a 100% interest in Mina Chassoul, approximately 60km south of Veritas Mining's operations. Construction of infrastructure, the mill and plant facilities and rehabilitation of the mine is well underway.
Slide 24: OTHER
OTHER 24
Slide 25: Tasmania and WA
Tasmania and WA Arthur River tenement Arthur lineament, NW Tasmania On strike from Savage River mine Magnetite target – five RC holes drilled Extensive Fe mineralisation encountered – results awaited Other tenements, WA Prospectivity for Cu, Au, Mn 25
Slide 26: FINANCIAL SUMMARY
VT, FINANCIAL SUMMARY
Slide 27: Investment Holdings
Investment Holdings Jupiter Mines Ltd ASX –listed ‘steel feed’ platform created by RRR/Pallinghurst with potential 1.3 bn ton Mt Ida magnetite project in WA (RRR has 1.5% royalty) August - agreed to acquire major open pit manganese mine at Tshipi, South Africa Jan 2011 – JORC Resource at Mt Id
Slide 28: Investment Holdings 2
Investment Holdings 2 Ascot Mining plc Two operating gold mines in Costa Rica; two or three potential mines Plan to move listing from PLUS to AIM early 2011 RRR holds loan stock convertible to 7.5m shares, 1.54m shares, and 9.5m options Market value of holdings £6.43m Cue Resources Inc TSX
Slide 29: Financial Overview
Financial Overview End December 2010 Current Assets and Investments Cash £300,000 Short Term Advances £616,000 Listed Investments £50,000,000 Loans Received -£1,700,000 Market Value £102,300,000 Overhead 2011 Q1 exploration cost (est): -£220,000 2011 Q1 overhead cost (est): -£200,000 29
Slide 30: SUMMARY
SUMMARY 30
Slide 31: Key Points
Key Points A new gold company: Production started in Colombia 1.2m oz Indicated Gold Resource in Kenya Plans for production in Kenya Increase in production to over 1200 ounces per month in Costa Rica but not a new company: Proven capacity to generate profits Active exploration Strong a
Slide 32: 2010 – 2011 Key Objectives
2010 – 2011 Key Objectives FURTHER INCREASE GOLD PRODUCTION/ CAPACITY in Colombia, EXERCISE OPTION START GOLD PRODUCTION in Kenya initially from tailings INCREASE GOLD PRODUCTION in Costa Rica 32
Slide 33: Press and analyst quotes
‘...analysts believe the shares are worth over 20p…investors looking for a way to benefit from current enthusiasm for gold should have a punt.’ Daily Mail – Midas Column, Joanne Hart, 26th Sept 2010 ‘Top-end scenario: NAV 61.59p per share’ Edison Investment Research, Charles Gibson, 22nd Sept 2010 w
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