Slide 1: A new consolidation and growth strategy in Western Australia's Eastern Goldfields
For personal use only Investor Presentation – 3 August 2017 Mark Williams, Managing Director A new consolidation and growth strategy in 1 Western Australia’s Eastern Goldfields ASX Code: RED
Slide 2: Competent Person's Statement & Disclaimer
Competent Person’s Statement & Disclaimer Competent Person’s Statement for Siana JORC 2012 Mineral Resource and Ore Reserve The information in this presentation that relates to Mineral Resources for the Siana Underground is extracted from the report titled Siana Underground Mineral Resource dated 23
Slide 3: A Brief Introduction to the Red 5 Group
A Brief Introduction to the Red 5 Group Australian gold explorer, developer and producer – listed on ASX For personal use only since 1996 and focused on the Philippines for most of its history Key asset of the Red 5 Group is the Siana Gold Project (SGP) in the Philippines Current management te
Slide 4: Red 5 Corporate Overview
Red 5 Corporate Overview ASX code RED Directors and Management For personal use only Share price (as at 31 July 2017) A$0.036 Kevin Dundo – Chairman Issued shares 763.8M Mark Williams – Managing Director Market capitalisation (at 3.6cps) ~A$27.5M Ian Macpherson – Non Executive Director Cash (at 24 J
Slide 5: Consolidation Strategy in WA's Eastern Goldfields
Consolidation Strategy in WA’s Eastern Goldfields Opportunity to acquire the operating Darlot Gold Mine, located For personal use only in the heart of the prolific Leonora-Leinster mineral province: 2016 produced 66koz from 454kt* High-quality mill and infrastructure with potential to become c
Slide 6: Stage 1: Darlot + King of the Hills
Stage 1: Darlot + King of the Hills Darlot mill has operating capacity of: For personal use only 830,000tpa – sulphide ore* Can be upgraded to 1,100,000tpa capacity for a relatively small spend* Currently under-utilised ~94% recoveries** Opportunity to reduce cost per tonne at Darlot by:
Slide 7: Consolidation Strategy – Key Elements
Consolidation Strategy – Key Elements Darlot Gold Operations For personal use only Binding acquisition agreement with wholly owned subsidiary of Gold Fields Potential to establish existing plant and infrastructure as a regional processing hub Unique opportunity to acquire a high quality, hig
Slide 8: Darlot Gold Mine – Acquisition Terms
Darlot Gold Mine – Acquisition Terms The structure of the consideration for the Darlot Transaction is: For personal use only a) Upon completion of the SPA (Completion), Red 5 will make the following payments to Gold Fields: i. A cash payment of $7,000,000 (Cash Consideration); ii. The issue of 130,0
Slide 9: Darlot – Assets and Infrastructure
Darlot – Assets and Infrastructure Operating gold mine located ~900km NE of Perth For personal use only Rich goldfield with production of 2.7Moz over a 28 year operating history* Historical production averaging 94koz/yr since 1989 Fully operational 0.83Mtpa gold processing plant (refurbished
Slide 10: Key Strategies
Key Strategies Employ adaptable mining equipment and mining method For personal use only selection to allow remnant mining to increase recovery of existing resources and extend life at Darlot. Remnant mining requires less capital investment Combine extended Darlot with King of the Hills ore to r
Slide 11: Darlot – Mining and Processing Upside
Darlot – Mining and Processing Upside Gold Fields has invested in exploration to rebuild the For personal use only production pipeline, and has improved confidence in the Lords South Lower and CDA Oval orebodies, as well as a number of smaller orebodies Potential to lower mining costs by extract
Slide 12: Darlot – Exploration Upside
Darlot – Exploration Upside Total land-holding of 13,900ha with For personal use only all tenements in good standing Minimal third-party royalties Numerous ore grade intercepts recorded over multiple prospect areas Excellent potential both to extend existing zones and discover new deposits
Slide 13: Darlot – Integration Sequence
Darlot – Integration Sequence Stage 1 (pre-completion) For personal use only Operational planning Delineate stope areas within existing resource base for extraction Develop costed mine schedule Stage 2 (1-3 months) Implement operational plan Utilise transitional services agreement with
Slide 14: Consolidation Strategy – King of the Hills
Consolidation Strategy – King of the Hills Darlot Gold Operations For personal use only Binding acquisition agreement with Gold Fields Potential to establish existing plant and infrastructure as a regional processing hub King of the Hills Gold Project Binding acquisition agreement with Sar
Slide 15: King of the Hills – First Consolidation Asset
King of the Hills – First Consolidation Asset Historical gold project located ~80km south of Darlot and ~28km For personal use only north of Leonora – previously known as Tarmoola Part of a broader package of ‘non-core’ gold assets currently being offered for sale by Saracen Mineral Holdings H
Slide 16: King of the Hills – Acquisition Terms
King of the Hills – Acquisition Terms For personal use only The structure of the consideration for the KOTH Transaction is: a) Upon completion of the ASPA (Completion), Red 5 will make the following payments to Saracen: i. A cash payment of $7,000,000 (Cash Consideration); ii. The issue of 90,000,00
Slide 17: King of the Hills – Underground Mining Potential
King of the Hills – Underground Mining Potential Underground Indicated and For personal use only Inferred Mineral Resource of 2.71Mt @ 4.6g/t Au for 402,000oz of contained gold New UG mine design developed by Saracen after 6-month trial mining campaign Existing KOTH North Mine Envisions two mi
Slide 18: King of the Hills – Exploration Potential
King of the Hills – Exploration Potential For personal use only Major shear-hosted gold system King of the Hills underground remains open in all directions Recent strong drilling results demonstrate exploration upside Multiple lodes extending over 1.95km and open at depth, providing numerous
Slide 19: King of the Hills – Integration Sequence
King of the Hills – Integration Sequence Stage 1 (pre-completion) For personal use only Operational planning Delineate stope areas within existing resource base for extraction Develop a costed mine schedule Stage 2 (1-3 months) Detailed review of underground geology Determine optimal m
Slide 20: Stage 2: Increase Reserves via Regional Exploration and Assess Neighbouring Prospects
Stage 2: Increase Reserves via Regional Exploration and Assess Neighbouring Prospects Darlot Gold Operations For personal use only Binding acquisition agreement with Gold Fields Potential to establish existing plant and infrastructure as a regional processing hub King of the Hills Gold Proje
Slide 21: Experienced Operators with a Strong Track Record
Experienced Operators with a Strong Track Record Kevin Dundo – Chairman For personal use only Lawyer specialising in commercial and corporate areas with experience in the mining sector, the service industry and the financial services industry. Mark Williams – Managing Director +25 years of mining ex
Slide 22: Funding and Pro-forma Capital Structure Overview
Funding and Pro-forma Capital Structure Overview 90 million shares for KOTH Transaction consideration (plus $7m upfront and $4.5m deferred in cash or shares after 12 months) For personal use only Transaction Share 130 million shares for Darlot Transaction consideration, subject to shareholder ap
Slide 23: Indicative Timetable
Indicative Timetable For personal use only 1 KOTH Transaction and Darlot Transaction executed 3 August 2017 2 Announcement of Transactions and Rights Issue Funding 3 August 2017 3 Rights Issue Offer to be Launched 15 August 2017 4 Extraordinary General Meeting 20 September 2017 5 Close of Rights Iss
Slide 24: Key Risks
Key Risks INTRODUCTION Exchange Rate Fluctuations For personal use only Exchange rate fluctuations affect the Company's profitability, particularly AUD and USD fluctuations . There are a number of risks, both specific to the Company and of a general nature, which may, either Foreign exchange rates a
Slide 25: Key Risks (cont'd)
Key Risks (cont’d) Native Title Risk Exploration For personal use only Access to land for exploration purposes can be adversely affected by land ownership, including private The Company's ability to generate sufficient annual production of gold in the medium to long term (freehold) land, pastoral le
Slide 26: Philippines Gold Operations – Current Status
Philippines Gold Operations – Current Status Mining suspended at Siana Gold Project in April 2017 in response to For personal use only regulatory delay. Processing ceased in July 2017 New Philippines Secretary of Department of Environment and Natural Resources (DENR) appointed in June 2017, and
Slide 27: Mt Cattlin Royalty
Mt Cattlin Royalty Red 5 owns the right to receive a royalty of For personal use only $1.50 per tonne of ore processed from the Mt Cattlin mine in WA Mt Cattlin mine re-commenced processing operations in 2016 Red 5 has recently received payment of $1.0M, for production royalty entitlements for
Slide 28: Summary
Summary Outstanding opportunity for a new strategic direction focused on a portfolio of gold assets in WA’s Eastern Goldfields For personal use only The combination of Darlot and King of the Hills provides: A commanding 25,700ha footprint in the highly-endowed Leonora- Leinster gold district
Slide 29: Mark Williams, Managing Director
For personal use only Investor Presentation – August 2017 Mark Williams, Managing Director A new consolidation and growth strategy in 29 Western Australia’s Eastern Goldfields ASX Code: RED