Red Metal Limited · ASX:RDM
Red Metal — Investor Presentation (May 2018)
20 slides from Red Metal's investor presentation, May 9, 2018
Slide 1: Lead: The Forgotten Battery Mineral - Maronan
For personal use only ASX:RDM LEAD THE FORGOTTEN BATTERY MINERAL MARONAN MAY 2018 LEAD-SILVER COPPER-GOLD
Slide 2: Caution Regarding Forward-Looking Statements
• Caution Regarding Forward-Looking Statements For personal use only • Statements regarding the Company’s plans with respect to exploring its projects are forward-looking. There can be no assurance that any mineralisation identified will be proven to be economic, that future evaluation work will con
Slide 3: Proven Terrain
Maronan Proven Terrain For personal use only • Located in Proven Carpentaria Zinc Province • Multiple “Tier 1” zinc-lead-silver deposits • World’s most productive zinc-lead-silver terrain • 1.7Bn tonnes of lead-zinc-silver ore • >120Mt of zinc, 84Mt lead and 5.36Boz of silver Carpentaria • “Carpenta
Slide 4: Significant Resources
Maronan Significant Resources For personal use only • 100% Red Metal • Two Separate Mineral Systems • Bedded Cannington or Broken Hill-type lead- silver mineralisation Eloise • Partially overprinted by iron sulphide copper- gold type (ISCG) Maronan • Sulphide mineralisation within 90 metres from sur
Slide 5: Exceptional Ore Quality, Simple Processing
Maronan Exceptional Ore Quality For personal use only • Simple Processing • Coarse-grained and soft lead-silver ore • Outstanding recoveries • Low grinding index • Low-cost processing • Lowers economic cut-off grade to ~3.0% Pbeq • Allows mining of thicker and shallower ore lenses • Excellent Projec
Slide 6: Scope to be Mined
Maronan Scope to be Mined For personal use only • Favorable Mining Parameters Surface • Good geometry – steep dips • Multiple ore horizons • Good mining widths (average 9m for the lead) • Excellent ground conditions, competent footwall and hangingwall rocks • Sulphide ore within 90 metres of surface
Slide 7: Preliminary Economic Studies Reveal Strong Positive Cashflows
Maronan Preliminary Economic Studies For personal use only • Reveal Strong Positive Cashflows • For standalone operation • Forecast using $US2200/t lead price – currently $2335 • Enhanced Using Nearby Infrastructure • Eloise Mine CuAu 14km • Cannington PbZnAg 130 km • Jericho CuAu discovery 11km
Slide 8: Significant Exploration Upside
Maronan Upside For personal use only • Significant Exploration Upside • Down plunge 0m RL -300m RL -600m RL -900m RL Down Plunge Potential
Slide 9: Significant Exploration Upside
Maronan Upside For personal use only • Significant Exploration Upside • Down plunge • Increasing zinc and silver at depth, zoning to “Cannington” Known Maronan Resource In the Apron Vent Core? Vent Apron? 44Mt @11.6% Lead, 77Mt @ 5.9% Lead, 4.4% Zinc, 538 Silver 3.1% Zinc, 210 Silver Undiscovered Ve
Slide 10: Significant Exploration Upside
Maronan Upside For personal use only • Significant Exploration Upside • Increasing zinc and silver at depth, zoning to “Cannington” • Scope for thicker zones of high-grade copper, gold and cobalt at depth • Shallow soluble copper-gold (as chalcocite) Weathered copper potential as soluble chalcocite
Slide 11: Significant Exploration Upside
Maronan Upside For personal use only • Significant Exploration Upside • Increasing zinc and silver at depth, zoning to “Cannington” • Scope for thicker zones of high-grade copper, gold and cobalt at depth • Shallow soluble copper-gold (as chalcocite) • New copper-gold structures surrounding Maronan
Slide 12: Pre-Feasibility Ready
Maronan Pre-Feasibility Ready For personal use only • Infill and Step-out Drilling • Both economically and geologically valid Stage 3 Stage 2 Long Sections – Proposed Infill Drilling Stage 1
Slide 13: Lead: Part of the Renewable-EV-5G Industrial Revolution
Maronan Lead For personal use only • Very much part of the “Renewable-EV-5G” industrial revolution • EV-iffication • Maybe a little slower than hyped and • Indirectly provide new markets for lead battery energy storage • Strong future battery energy storage needs mean plenty of room for growth in le
Slide 14: Lead Production Snapshot
Maronan Lead Production Snapshot For personal use only Total Lead Production 2017 Lead Mined 2017 (Thousand Tonnes) (Thousand Tonnes) Total Produced 11,320kt Total Produced 4,762kt Total Used 11,487kt ~ $US11 Bn
Slide 15: Lead Battery: Global Lead Battery Market
Maronan Lead Battery For personal use only • Global Lead Battery Market • US$ 36 Bn in 2017 • Vehicle starter batteries ~60% • Industrial batteries ~30% • Short Term Forecasts • Very strong for next 10 years • US$ 80 Bn by 2026 (Transparency Market Research) • US$ 94.8 Bn by 2027(Future Market Insig
Slide 16: Lead Vehicle Starter Battery
Maronan Lead Vehicle Starter Battery For personal use only • Car Forecast Data • Global vehicle projections and EV uptake data still predict a large number of internal combustion engines (ICE) on the road at 2040 (Bloomberg New Energy Finance, 2017) • Lack of investment in additional power generatio
Slide 17: Lead's Indirect EV Benefit
Maronan Leads Indirect EV Benefit For personal use only • Every EV Purchase Comes With The “Desire” To Use Renewable Energy • Potentially increasing demand for stationary (industrial) renewable energy storage batteries (attached to every wind farm or bank of solar cells)
Slide 18: Industrial Lead Battery Growth
Maronan Industrial Lead Battery Growth For personal use only • Global Lead Battery Market • US$ 36 Bn in 2017 • Industrial Lead Battery Market • US$ 11 Bn in 2017 (~30%) • “Renewable-EV-5G” Industrial Revolution • Just the beginning • Forecast battery energy storage demand can only be met if lead an
Slide 19: Lead Battery Industry: Highly Competitive
Maronan Lead Battery Industry For personal use only • Highly Competitive • Continues to innovate, customize and develop advanced lead battery technologies • “Not falling asleep at the wheel”
Slide 20: Recent M&A Activity in the Lead Resource Space
Maronan Recent M&A Activity in the Lead Resource Space For personal use only • S32 • Hermosa Pb-Zn Project • Taylor deposit over 100.9Mt @4.3%Pb, 4.1%Zn, 2.1g/t Ag • Significant exploration upside • $110M private placement in Arizona Mining for 15% stake in the company • The Doe Run Company • Browns