Rox Resources Ltd · ASX:RXL
Rox Resources — RIU Explorers Conference 2019
26 slides from Rox Resources's conference presentation, Feb 19, 2019
Slide 1: Rox Resources RIU Explorers Conference Presentation
ASX: RXL Rox Resources RIU Explorers Conference Presentation 19 February 2019 Alex Passmore ASX: RXL www.roxresources.com.au Chief Executive Officer 1
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements Competent Person Statements This presentation has been prepared by Rox Resources Limited. This document contains background information Exploration Results about Rox Resources Limited current at the date of this presentation. The presentation is in summary form
Slide 3: Disclaimers
Disclaimers Cautionary Statement – Scoping Study Parameters The updated Scoping Study released to the ASX on the 10th of October 2018 is based on low-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development
Slide 4: Highlights
Highlights New management, new energy, focus, and strategy Rox is a junior exploration and development company that has a strong history of exploring for, and discovering, base metal and gold deposits. The company has traded mineral assets when these have not met the strategic imperatives of the com
Slide 5: Corporate Information
Corporate Information Capital Structure ASX Code: RXL Shares on Issue: 1,259M Share Price: A$0.008 Unlisted Options: 65.8M Market Capitalisation: $10.1M Cash & Receivables* (at 31 Dec $11.6M 2018): Debt: Nil Top 20: 22% * A$3.75 million deferred payment from Teck for Reward sale, plus $0.4 million i
Slide 6: Gold – renewed focus
Gold – renewed focus Rox Resources – Mt Fisher & Collurabbie Gold remains a key focus of Rox Resources Gold development projects can be scaled to suit capital availability Lower complexity in development The company has a commanding position in two underexplored greenstone belts along strike from Di
Slide 7: Mt Fisher Gold Project
Mt Fisher Gold Project JORC Mineral Resource of 89,000 oz* Mt Fisher Project Scale Geology Mt Fisher Project – max Au downhole @ 2.7 g/t Au Majority of the known gold mineralisation (excluding extensions to historical Moray Reef and Mt Fisher) is found within regolith. Basement source of gold not ye
Slide 8: Gold Mineralisation
Gold Mineralisation Conceptual Model - Mt Fisher gold mineralisation Mt Fisher gold mineralisation is typical of greenstone- hosted Archean lode gold Lithology, structure and weathering are primary controls on gold mineralisation Project Summary • High-grade resource defined (7.53g/t Au) • Small 20m
Slide 9: Moray Reef
Moray Reef Archaean narrow vein quartz hosted gold reef system. The mineralisation Moray Reef – Historic ore parcel produced at 66 g/t Au is hosted in a narrow shear zone in relatively massive tholeiitic basalt Quartz reef strikes north-south, with a sub-vertical to steep easterly dip Two ore shoots
Slide 10: Mt Fisher Mine
Mt Fisher Mine Situated on the eastern limb of Mt Fisher Open Down Plunge the Wonganoo Anticline The sequence strikes north- northeast and dips to the east between 40 and 90 degrees The gold deposit is hosted within a well defined sulphidic chert and banded iron unit The chert, and also the gold min
Slide 11: Dirks and Damsel
Dirks and Damsel Dirks: depth extensions being tested in 2019 Damsel: reasonable continuity, targeting resource growth 11
Slide 12: Dam (Regolith) Gold
Dam (Regolith) Gold Previous work has identified the presence of considerable supergene gold enrichment along a number of separate parallel structures. However basement sources have not been identified with any certainty Drilling by previous explorers* returned a number of encouraging results highli
Slide 13: Basement Source
Basement Source Depth to Basement and Gold Occurrences > 2g/t Au Analogous to the Garden Well deposit Aircore drilling Implications for Targeting Au Mineralisation ineffective due to depletion above primary mineralization Drilling beneath regolith mineralisation ineffective (Au migration) Potential
Slide 14: Magnetics indicate major structures line up with basement lows
Depth to Basement and Gold Occurrences > 2g/t Au Structure, Max Au over Magnetics Magnetics indicate major structures line up with basement lows Gold mineralisation in the Dam trend is potentially remobilized to the west of the main structural corridor Dirks and Damsel structural targets stand out a
Slide 15: Collurabbie Gold Potential
Collurabbie Gold Potential Regional Geology Regional Magnetics Collurabbie has historically been the focus of substantial nickel exploration Gold mineralisation is present although exploration model is still being developed Along strike from Garden Well and Moolart Well and on the edge of the Yilgar
Slide 16: Nickel
Nickel Rox is comfortable with its nickel portfolio and awaits an uptick in pricing, noting declining global nickel stockpiles prior to committing capital for development or further detailed studies The Mt Fisher East Nickel Deposit was discovered by Rox’s technical team and has very good potential
Slide 17: Nickel – Rox discoveries
Nickel – Rox discoveries Two exceptional high grade nickel sulphide projects in WA’s northern goldfields 70km apart, 150km from established infrastructure Fisher East nickel a discovery made by Rox Nickel assets remain core to the company 17
Slide 18: Fisher East Resources
Fisher East Resources 2km Total Mineral Resource* of 4.1 Mt @ 1.9% Ni, for 78,000 tonnes Ni metal Potential to increase current resources and to identify new resources over 2km strike * See Appendix for Mineral Resource details 18
Slide 19: Scoping Study Results
Scoping Study Results Onsite Upfront Capital Free Cash Flow Concentrator A$87m A$146m NPV IRR C1 Cost AISC A$79m 44% US$3.14/lb US$3.57/lb Upfront Capital NPV IRR Toll Mill A$48m A$58m 55% Figures at Nickel price of US$16,500/t (US$7.50/lb). See Appendix for Toll Mill and other source data. Please r
Slide 20: Collurabbie Nickel
Collurabbie Nickel 167 km2 of prospective tenure Main discovery at Olympia deposit Olympia Mineral Resource of 573,000 tonnes @ 1.6% Ni, 1.2% Cu, 0.08% Co and 2.3 g/t Pt+Pd, 2.3% NiEq* Only 70km from Fisher East Widespread Ni-Cu-PGE mineralisation and drill targets over ~15km strike length on multip
Slide 21: Exploration Efficiency
Exploration Efficiency Rox is an efficient explorer and will continue to be ~68% of total expenditure into exploration since inception ~72% of total expenditure into exploration over the last 6 years (~$20.5 million) Soft Market Boom GFC 21
Slide 22: New Business & Growth
New Business & Growth In addition to its existing projects and organic growth pipeline Rox has reviewed over 100 projects over the past two years Some of these have progressed to detailed due diligence however for a variety of reasons have not progressed Rox seeks to acquire a project/s which will d
Slide 23: Thank You
Thank You Rox Resources Limited Level 1, 34 Colin Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: admin@roxresources.com.au W: www.roxresources.com.au 23
Slide 24: Appendix - Study Outcomes
Appendix - Study Outcomes Capital Costs Concentrator Case Toll Case Mining Inventory 2.9Mt @ 1.7% Ni 2.9Mt @ 1.7% Ni Pre-Production Capital A$87.0m A$48.0m Sustaining Capital A$37.9m A$37.0m Life of Mine 6.0 years 6.0 years Processing Rate 500ktpa 500ktpa Nickel in concentrate - LOM 44,100t 44,100t
Slide 25: Appendix – Mineral Resources
Appendix – Mineral Resources Fisher East Nickel, ASX:RXL 5 February 2016 Olympia Nickel-Copper-PGE, ASX:RXL 18 August 2017 Tonnes Pd+Pt Deposit Category Tonnes (Mt) Ni% Ni (kt) Ni % Cu % Co ppm Pd ppm Pt ppm NiEq %* NiEq (kt) (kt) (koz) 573 1.6 1.2 820 1.5 0.85 2.2 13.5 43.0 Indicated 1.7 2.0 34.0 O
Slide 26: Appendix – Mineral Resources
Appendix – Mineral Resources Mt Fisher Gold, ASX:RXL 11 July 2018 0.8 g/tAu block cut-off grade. Values may not sum due to rounding. 26