Red Rock Resources Plc · LSE:RRR
Red Rock Resources — Investor Presentation (July 2012)
28 slides from Red Rock Resources's investor presentation, July 2012
Slide 1: Red Rock Resources – July 2012
: a Se ) REDROCK RESOURCES
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: Corporate Profile
Corporate Profile Red Rock Resources Plc – developer of gold & iron ore projects Proven Explorers, Expanding Producers London Stock Exchange AIM listing: AIM:RRR Share Price: 2.14p Market Capitalisation: £18.88m Shares in Issue: 884, 149, 814 Major Shareholder: Regency Mines plc 16.55% Directors: An
Slide 4: Corporate Statistics
Corporate Statistics Financial Highlights 2011: Pre-Tax Profit of £13,973,537 EPS of 1.78p Shareholders Equity of £32m 4
Slide 5: Project and Value Creation Strategy
Project and Value Creation Strategy Project Cycle Value Cycle New Project Production Acquire Dispose Exploration Development Expand Liquidity Event 5
Slide 6: RRR – Current Project Pipeline
RRR – Current Project Pipeline Phase Project Metal Activity Value Driver Realization/Disposal: Jupiter Mines Ltd Fe Mn Small sales Production start Mt Ida Royalty Fe Lay off risk BFS, DTP Production: El Limon/El Mango Au Increase Scale up Buy in Cash cost down Spread overhead Liquidity events Develo
Slide 7: Migori Project Kenya (Au)
Migori Project Kenya (Au)
Slide 8: NB: Real Value vs Stockmarket Value?
NB: Real Value vs Stockmarket Value? 8
Slide 9: Migori Gold Project Overview
Migori Gold Project Overview Special Prospecting Licences 122 & 202 • 310 sq km in southwest Kenya, near Lake Victoria • 63 km of Archaean Greenstone Belt, extension of Tanzanian Craton • Possible comparators: Barrick’s North Mara Mine and AngloGold’s Geita mine in Tanzania Activities • Explored sin
Slide 10: Investment in Mid Migori Mining
Investment in Mid Migori Mining • July 2009 Red Rock buys 15% in Mid Migori Mining Company Ltd (MMM) 33.02% (+4.94% option) 15% 85% RRR will have 60% of MMM on completion of BFS 100% 100% SPL122 SPL202 Macalder-Migori Mid-Migori • Jan 2012: RRR takes an option over 4.94% of Kansai common stock • Mar
Slide 11: Migori Exploration: All Activities
Migori Exploration: All Activities 11
Slide 12: Macalder Tailings: Scoping Study
Macalder Tailings: Scoping Study Scoping Study Report • Completed Q1 2012 (Saint Barbara LLP) • Confirms potential for shareholder value creation from retreatment of tailings • Discounted Cash Flow (DCF) estimations for 2 base case scenarios Tailings Resource • JORC Measured resource (2011) used in
Slide 13: Migori Project Objectives and Strategy
Migori Project Objectives and Strategy Macalder Tailings Retreatment Project Plan for gold production from tailings dam • Scoping Study report and DCF completed Q1 2012 • Value creation potential confirmed • Financing options being explored H2 2012 Mikei Gold Resources View to early production at KK
Slide 14: Melville Bugt Project Greenland (Fe)
Melville Bugt Project Greenland (Fe)
Slide 15: Melville Bugt Iron Ore Project
Melville Bugt Iron Ore Project Greenland – One of the Final Mineral Exploration Frontiers • Melville Bugt Licence Area: 1,570km2 (NAMA Greenland Ltd) 2012 Exploration Goals: •Obtain JORC Mineral Resource Estimate (MRE) •>4500m diamond drilling planned •Generate new exploration targets Activities: •3
Slide 16: 2012 Drill Programme Summary
2012 Drill Programme Summary • Priority Drill Targets: • Havik East – magnetite- BIF • De Dødes Fjord – haematite-BIF • De Døns magnetic anomaly – exploratory drilling on large sub-glacial magnetic anomaly • 2 Phase Drill Programme • Phase 1: Wide-spaced exploration holes to define the subsurface ex
Slide 17: Licence Area
Licence Area 1,570km2 area granted Licence enlargement Licence Area 17
Slide 18: NAMA Greenland Joint Venture
NAMA Greenland Joint Venture • Mar 2011: RRR signs option agreement with North Atlantic Mining Associates Ltd. (NAMA) • Summer 2011: First Melville Bugt Field Season • Dec 2011: Year 1 Field Season closed, RRR receives 25% stake in NAMA Greenland Ltd. • Dec 2011: Year 2 Option picked up by RRR • Jan
Slide 19: 2011 Field Season Results
2011 Field Season Results • Analysis of 218 iron formation samples by Activation Laboratories in Greenland and Canada • Lab assays confirm high iron grades • Slight increase from field XRF readings • Low deleterious elements • Apparent regional differentiation of iron mineral dominance •Eastern targ
Slide 20: Regional Correlations
Regional Correlations • Iron formation in Melville Bugt is hosted by the Archaean Lauge Koch Kyst supracrustal complex • Geology correlated between Mary River and Prince Albert Groups of Melville Nunavut, Canada Bugt • Contain significant haematite and Mary River magnetite deposits • Haematite enric
Slide 21: Comparable Projects
Comparable Projects • Advanced exploration programs • Mary River Iron Ore Project (Baffinland) • Roche Bay Iron Ore Project (Advanced Explorations Inc.) Melville • The Isua Iron Ore Project magnetite Bugt project in southern West Greenland Mary River • London Mining • Potential for a similar-scale p
Slide 22: El Limon & El Mango Gold Mines Colombia (Au)
El Limon & El Mango Gold Mines Colombia (Au)
Slide 23: Colombia: Project Overview
Colombia: Project Overview • El Limon and El Mango –gold mines in Antioquia, south of Zaragoza • RRR manages and operates under Mineras Four Points (MFP) • RRR owns 51% of MFP • MFP profitable since August 2011 23
Slide 24: Colombia: Production Highlights
Colombia: Production Highlights 1st Quarter 2012 production 1149 ozs from El Limon Grade increased from 8.7 g/t to 10.7 g/t Fall in recovery rates contributed to decline in sales Monthly sales increasing: Jan: 312oz Feb: 398oz Mar: 439oz Infrastructure improvements underway at El Lim
Slide 25: Investment Holdings
) REDROCK Investment Holdings
Slide 26: Jupiter Mines (Investment + Royalty)
Jupiter Mines (Investment + Royalty) 74.2m JMS Shares held by RRR c4% Market value A$11.1m ‘Steel feed’ platform strategy Open pit manganese mine at Tshipi, South Africa - in production Q4 2012 530m ton JORC Resource of high quality magnetite at Mt Ida, WA BFS by Q4 2012 Haematite proj
Slide 27: Other Investment Holdings
Other Investment Holdings Ascot Mining Plc Two operating gold mines in Costa Rica Plan to move listing from PLUS to AIM RRR holds loan stock convertible to 7.5m shares, 1.28m shares, and 9.5m options Market value of holdings c £660k Resource Star Ltd ASX-listed uranium and rare earth vehic
Slide 28: Contact Details
Contact Details Investment or Project Enquiries: General Enquiries: Andrew Bell Rasa Vaitkute Chairman Personnel Manager Email: Andrew.Bell@rrrplc.com Email: Rasa.Vaitkute@rrrplc.com Marketing or CSR Enquiries: Press Enquiries: Natasha Walton Sandra Spencer Head of Marketing and Community Press and
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