Rox Resources Ltd · ASX:RXL
Rox Resources — Shareholder Meeting (November 2015)
38 slides from Rox Resources's shareholder meeting presentation, Nov 26, 2015
Slide 1: Successful Base Metals Exploration – AGM Presentation
For personal use only Successful Base Metals Exploration AGM Presentation 25 November 2015 ASX: RXL 1
Slide 2: Who is Rox?
Who is Rox? For personal use only Fisher East Nickel: Pathway to short term nickel sulphide production in WA Reward Zinc: New potentially large zinc discovery Bonya Copper: Early stage exploration - strong potential Strong leverage to rising base metal prices: Nickel, Zinc, Copper 2
Slide 3: Research Endorsements
Research Endorsements For personal use only Patersons Rob Brierley 28 Oct 2015 Speculative Buy “…continues to steadfastly pursue the unlocking of value from its projects and we admire this approach” Fat Prophets David Lennox 7 Oct 2015 Speculative Buy “We reiterate our buy recommendation for those m
Slide 4: Explorer of the Year
Explorer of the Year For personal use only Recently Rox was awarded Australian Mining Prospects Awards Explorer of the Year In recognition of Rox’s multifaceted exploration success in discovering nickel at Fisher East, copper at Bonya, and our involvement in the Teena zinc exploration venture. 4
Slide 5: Fisher East – Nickel
Fisher East – Nickel For personal use only Current Mineral Resource* ~3.6 Mt @ 2.0% Ni, for 72,100 tonnes contained Ni Further discoveries (e.g. Cannonball, Sabre and Horatio) will add to resource base Multiple exploration targets - potential for more discoveries Scoping Study completed, PFS underwa
Slide 6: Mt Fisher Location
Mt Fisher Location For personal use only Mt Fisher Greenstone Belt Camelwood (35kt Ni) 150km north-east of Cannonball Leinster (BHP Nickel West) Musket (37kt Ni) New province for nickel Cutlass sulphide deposits – Sabre discovered by Rox Mt Tate Tomahawk Four deposits discovered Horatio so far Two r
Slide 7: Long Section
Long Section For personal use only Camelwood Mineral Resource: Indicated 0.6 Mt @ Ultimate size of these deposits is unknown as they are open at depth 2.4% Ni, Inferred 1.0 Mt @ 2.1% Ni, Total 1.6 Mt @ and still have untested downhole EM conductors 2.2% Ni Musket Mineral Resource: Indicated 1.2 Mt @
Slide 8: Scoping Study
Scoping Study For personal use only Conducted by independent international consultants, CSA Global Pty Ltd Examined two options: o Toll milling – truck ore to nearby plant (200km) o Build a plant – truck concentrate for sale Standard industry underground mining techniques Produces a clean, saleable
Slide 9: Exploration Potential
Exploration Potential For personal use only Camelwood Discovery Cost ~4.8 cents/lb (cf. Sirius 4.0 cents/lb) (35kt Ni) Cannonball Drill targets defined at Cutlass, Sabre, Mt Tate, Tomahawk and Musket Horatio (37kt Ni) Sabre discovered in March 2015 – more drilling required before Cutlass resource st
Slide 10: Sabre Prospect
Sabre Prospect For personal use only Target Zone Sabre is a “look-a-like” to Camelwood More drilling required to fully assess potential 10
Slide 11: Resource Comparisons
Resource Comparisons For personal use only Rox resource grade is middle of group Rox resource inventory has potential to grow Expect larger resource inventory at similar grade 11
Slide 12: Reward Zinc Project
Reward Zinc Project For personal use only Teena Zn Discovery Owned by Rox (49%) and Teck Resources (51%) Teck earning-in to 70% by funding $15m ($12.4m spent) Excellent infrastructure including bitumen road, gas pipeline, major airport, ship loader, port 12
Slide 13: Teena Drilling
Teena Drilling For personal use only 38.8m @ 16.9% Zn+Pb 200m One hole to come 26.4m @ 13.3% Zn+Pb 200m Drill results at 6% Zn+Pb cut-off or higher 20.1m @ 15.0% Zn+Pb 300m 1,300m+ 35.4m @ 13.2% Zn+Pb of HG 200m 200m 20.3m @ 13.9% Zn+Pb 300m 400m 400m 200m 200m 14.7m @ 13.3% Zn+Pb 19.4% Zn, 2.9% Pb
Slide 14: Stacked Cross Sections
Stacked Cross Sections For personal use only ~400-600m 14
Slide 15: Stacked Cross Sections
Stacked Cross Sections For personal use only ~400-700m 15
Slide 16: Stacked Cross Sections
Stacked Cross Sections For personal use only ~500-800m 16
Slide 17: Stacked Cross Sections
Stacked Cross Sections For personal use only ~500- 1,000m 17
Slide 18: Teena Cross Section
Teena Cross Section For personal use only Large stratiform mineralised system; Overall >1.9km strike x 800m wide x 250m thick; plunging east 1,000m around hinge 400-1,000m depth High Zn:Pb ratio = 6.5:1 400- Exploration Target 1,000m 60 - 80Mt @ 11 - 13% Zn+Pb* (6-10 Mt, 13-22 Blb contained zinc-lea
Slide 19: Bonya Copper Project
Bonya Copper Project For personal use only 30.5Mt @ 1.1% Cu, 23 g/t Ag New high grade copper sulphide discovery at Bonya Mine prospect Multiple drill targets ready to be tested Rox 51% and earning to 70% for $1 million (by Dec 2016) 19
Slide 20: Historic Mining
Historic Mining For personal use only Jervois Bonya 20
Slide 21: Bonya Prospect
Bonya Prospect For personal use only Copper sulphide intercepts * 11m @ 4.4% Cu, incl. 3m @ 6.1% Cu 38m @ 4.4% Cu, incl. 6m @ 8.8% Cu and 8m @ 7.9% Cu 5m @ 9.1% Cu, incl. 3m @ 13.4% Cu and 11m @ 3.9% Cu Open at depth/down plunge TARGET * ASX:20 October 2014, 5 November 2014, 1 December 2014 21
Slide 22: Planned Drilling
Planned Drilling For personal use only Green Hoard Fat Cow 22
Slide 23: Commodity Prices?
Commodity Prices? For personal use only Acknowledgement to Alan Trench of CRU 23
Slide 24: Prices Below LRMC
Prices Below LRMC For personal use only LRMC = Long Run Marginal Cost (last 30 years) Acknowledgement to Alan Trench of CRU 24
Slide 25: Commodities - 2015
Commodities - 2015 For personal use only Acknowledgement to Alan Trench of CRU 25
Slide 26: Zinc
Zinc For personal use only Supply Reductions (ktpa) Glencore -500 kt Century -500 kt Lisheen -180 kt Skorpion -160 kt Others -190 kt -1,530 kt New Supply (ktpa) Gamsberg +250 kt Dugald River +200 kt +450 kt Balance -1,080 kt 9% of global supply Acknowledgement to Alan Trench of CRU 26
Slide 27: Copper
Copper For personal use only Acknowledgement to Alan Trench of CRU 27
Slide 28: Nickel Stocks
Nickel Stocks For personal use only • LME Stocks ~450kt (~85 days consumption) • Economic uncertainty surrounding direction of interest rates & global growth • Chinese equity, debt and economic concerns Acknowledgement to Carey Smith of Alto Capital 28
Slide 29: Nickel Price/Costs
Nickel Price/Costs For personal use only • Price floor historically around the 90th percentile of C1 costs • 90th percentile C1 costs currently ~US$6.60/lb (~US$14,500t) • Sep Quarter Average Price US$4.80/lb • Over short periods (6 – 18mths) nickel price can fall through 90th C1 cost Acknowledgemen
Slide 30: Nickel Price Cycles
Nickel Price Cycles For personal use only Price From Price To Price Duration Change Date (US$/lb) Date (US$/lb) (mths) (%) A-B May-85 $2.65 Jan-87 $1.60 -40% 20 B–C Jan-87 $1.60 Apr-88 $8.15 +409% 15 C–D Apr-88 $8.15 Sep-93 $1.80 -78% 64 D–E Sep-93 $1.80 Jan-95 $4.65 +158% 16 E–F Jan-95 $4.65 Dec-98
Slide 31: Commodities - Forecast
Commodities - Forecast For personal use only Acknowledgement to Alan Trench of CRU 31
Slide 32: Company Snapshot
Company Snapshot For personal use only Rox Capital Structure (24 Nov 2015) Camelwood Ni Musket Ni ASX Code: RXL Discovery Discovery Teena Zn Ni Resource Bonya Cu Discovery Doubled Discovery Issued Shares: 1,112.2 m +150% Unlisted Options: 45.3 m Market Cap: $16.7 m (at 1.5c) Cash: $0.657 m (30 Sept)
Slide 33: Markets - XSR
Markets - XSR For personal use only Acknowledgement to Barry Dawes of Paradigm Securities 33
Slide 34: Markets - Gold
Markets - Gold For personal use only Acknowledgement to Barry Dawes of Paradigm Securities 34
Slide 35: Successful Explorer
Successful Explorer For personal use only • In last ~3 years – 4 new nickel sulphide deposits, 1 large zinc deposit, and a new copper discovery • Fisher East is a new nickel sulphide province – growing in size and moving towards development • Teena is a significant new zinc discovery – in JV with a
Slide 36: Disclaimers
Disclaimers For personal use only Forward-Looking Statements Competent Person Statements This presentation has been prepared by Rox Resources Limited. This document contains background information The information in this report that relates to nickel Mineral Resources for the Mt Fisher project was a
Slide 37: Thanks to Jeff Gresham
Thanks to Jeff Gresham For personal use only Rox Resources Limited Level 1, 30 Richardson Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: admin@roxresources.com.au W: www.roxresources.com.au 37
Slide 38: The End
For personal use only The End Rox Resources Limited Level 1, 30 Richardson Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: admin@roxresources.com.au W: www.roxresources.com.au 38