Rox Resources Ltd · ASX:RXL
Rox Resources — Australian Nickel Conference 2016
26 slides from Rox Resources's conference presentation, Oct 20, 2016
Slide 1: Fisher East Nickel Sulphide Project, WA
For personal use only Fisher East Nickel Sulphide Project, WA Rox Resources Limited Australian Nickel Conference 20 October 2016 1 1
Slide 2: Rox in a Nutshell
Rox in a Nutshell For personal use only Advanced Nickel Sulphide Project – Fisher East Resource of 78,000t (172 Mlb) of contained nickel, 4.2 Mt @ 1.9% Ni1 Potential to increase resources with a number of high quality targets Sale of Reward Project interest for $20.6 million $8 million cash
Slide 3: Well Funded
Well Funded For personal use only Cash at Bank Now $1.5m Cash Payment 3 Months $8.0m Shares 3 Months $3.6m Convertible Note 3 Years $5.25m Deferred Payment 6 Years $3.75m TOTAL $22.1m 3
Slide 4: Company Snapshot
Company Snapshot For personal use only Rox Capital Structure (19 Oct 2016) ASX Code: RXL Issued Shares: 1,236.3 m Unlisted Options: 62.0 m (various 2.7c to 8.0c) Market Cap: $22.3 m (at 1.8c) Cash: $1.5 m (as at 30 June 2016) Experienced Board & Management Stephen Dennis Operations/Commercial: Major
Slide 5: Nickel Market
Nickel Market For personal use only Nickel supply predicted to go into deficit Supply out of The Philippines in doubt Pressure on nickel price * Source: Wood Mackenzie, HSBC 5
Slide 6: Fisher East Nickel
Fisher East Nickel For personal use only New nickel province – discovered by Rox Four deposits discovered so far, Camelwood, Cannonball, Musket & Sabre Total Mineral Resource* of 4.2 Mt @ 1.9% Ni, for 78,000 tonnes Ni metal High grade portion of 0.5 Mt @ 4.6% Ni across 3 orebodies Strong exploration
Slide 7: Camelwood
Camelwood For personal use only Over-turned Simple Sulphide Mineralogy Section Basal Limited Contact Drilling at Depth 7
Slide 8: Musket
Musket For personal use only Orebodies all dip at 60-65o to east Disseminated Over-turned Sulphides overlie Simple Sulphide Massive/Semi-Mass Mineralogy sulphides Disseminated Section Basal Limited Contact Drilling at Depth Massive 8
Slide 9: Resources & Potential
Resources & Potential For personal use only 800m 1km Open at depth and along strike, untested downhole EM conductors Strong potential for increasing mineral resources at depth Scoping Study completed, PFS partially completed – on hold pending improvement in nickel price 9
Slide 10: Nickel Sulphide Resources
Nickel Sulphide Resources For personal use only Total Mineral Resource* (Camelwood, Cannonball, Musket) of 4.2Mt @ 1.9% Ni (78,000t Ni) at 1% Ni cut-off Indicated 3.7Mt @ 1.9% Ni (91%) Inferred 0.5Mt @ 1.5% Ni (9%) Higher grade portion, 0.5 Mt @ 4.6% Ni (21,100t Ni) across 3 orebodies Camelwood (50%
Slide 11: Scoping Study
Scoping Study For personal use only Examined two options: o Toll milling – truck ore to nearby plant (e.g. Nickel West at Leinster) o Build a plant (e.g. 600,000 tpa) – truck concentrate for sale Box cuts with separate declines to underground mines ~100m depth to sulphides Standard underground minin
Slide 12: Mining Study - PFS
Mining Study - PFS For personal use only Camelwood Musket Three separate underground mines Boxcut and 1:9 decline to each Standard long hole stoping with CAF or Avoca method (95% mining recovery) Additional tonnes produce significant additional revenue Cannonball 12
Slide 13: Operating Costs
Operating Costs For personal use only Operating Item Amount Underground Mining Cost A$63.50/t* Processing Cost A$39.60/t Concentrate Haulage A$167.50/t conc G & A Costs A$250,000/mth Freight & Refining A$5.47/t Royalty 2.5% Total Operating Cost (C1) A$130/t Total Operating Cost is lower than Scoping
Slide 14: New Resources
New Resources For personal use only RC drill testing required X X X Sabre Potential = 30,000t Ni 14
Slide 15: Exploration Potential
Exploration Potential For personal use only Strong exploration potential over 25km Fresh sulphides in aircore at Mt Tate and Horatio 10m @ 1.9% Ni Several targets ready to RC drill – e.g. Cutlass, Sabre, Mt Tate, Horatio, Claymore Potential to double total resource base 15
Slide 16: Collurabbie Acquisition
Collurabbie Acquisition For personal use only Located only 70km east of Fisher East 123km2 of prospective tenure ~$90K expenditure commitment $25,000 cash + 7.5 million RXL shares (~$150K) Widespread Ni-Cu-PGE mineralisation over ~15km strike length on multiple stratigraphic horizons Mineralisation
Slide 17: Exploration History
Exploration History For personal use only WMC/Falcon JV from 2002 Discovery of Ni-Cu-PGE at Olympia in 2004 Intense exploration by WMC 2004-2005 5.8m @ 3.0% Ni, 2.0% Cu, 5.3g/t PGE Takeover of WMC in 2005 by BHP put a stop on things BHP exited in 2009 Moderate exploration by Falcon 2010-2011, then s
Slide 18: Ni-Cu-PGE Targets
Ni-Cu-PGE Targets For personal use only Olympia lens is mostly drilled out, but drill spacing at other prospects is quite broad Untested downhole EM anomalies Untested aircore anomalies – drill-ready targets Several strike kilometres of untested UM Regional coverage with effective geochemistry is po
Slide 19: Gold Targets
Gold Targets For personal use only Significant exploration in 1990’s focused on northern tenure No work since 2000 Numerous zones of moderate gold mineralisation to follow up, e.g. 2m @ 5.2g/t Au from 30m 2m @ 2.4g/t Au from 60m 2m @ 2.47g/t from 70m Strong potential for new discoveries 19
Slide 20: Benchmarking
Benchmarking For personal use only >6,000 Nickel Resources Nickel Resources 2,000 4.00 4.0 3.50 MCR 1,500 3.00 3.0 Grade (Ni%) 2.50 IGO RXL 1,000 2.00 2.0 1.50 PAN WSA 500 1.00 1.0 POS 0.50 AVQ CZI 0 - 0.0 BHP MLX WSA CZI POS IGO PAN AVQ MCR RXL IPT LEG SGQ 0 200 400 600 800 1,000 1,200 kt Ni (LHS)
Slide 21: Value Proposition
Value Proposition For personal use only Nickel Resources Obvious relationship between EV/t Ni 4.0 and Ni grade MCR RXL seems to be fairly valued against 3.0 peers based on grade of nickel resource Grade (Ni%) RXL 2.0 PAN Increases in resources should thus see an WSA increase in market cap and theref
Slide 22: What Next?
What Next? For personal use only Increased Mineral Resource at Fisher East will give longer mine life and improve project economics Complete further metallurgical testwork (needs additional drilling), and scope out processing options to PFS level – to complement PFS level Mining Study already comple
Slide 23: 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 Resource Statements about Rox Resources Limited current at the date of this presentation. The presentat
Slide 24: Thank You
For personal use only 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 24
Slide 25: Appendix: Mineral Resources
Appendix For personal use only Mineral Resources Fisher East Nickel, ASX:RXL 5 February 2016 Deposit Category Tonnes (Mt) Ni% Ni (kt) Indicated 1.7 2.0 34.0 Camelwood Inferred 0.3 1.5 5.0 Total 2.0 1.9 39.0 Indicated 0.24 2.9 7.0 Cannonball Inferred 0.02 1.9 0.3 Total 0.26 2.8 7.3 Indicated 1.8 1.7
Slide 26: Appendix: Resource/Reserve EV/t
Appendix For personal use only Resource/Reserve EV/t Market Company ASX Resource Reserve Grade Res Grade Rsv Cash EV EV/tNi Res EV/tNi Rsv Comments Reference Cap kt Ni kt Ni %Ni %Ni $M $M $M 17-Oct-16 30-Jun-16 BHP Nickel West BHP 6,144 388 0.61 0.67 NA NA Part of a Major Multi-national company ASX: