Resource and Investment NL ASX: RNI November 2013 AGM Presentation

Transcription

1 An Emerging Western Australian Miner With a dominant copper-gold exploration portfolio Resource and Investment NL ASX: RNI November 203 AGM Presentation

2 Corporate Snapshot Chairman: Miles Kennedy 28 years corporate experience. Former Chairman of Sandfire Resources, Macraes Mining and Kimberley Diamond Co Technical Director: Albert Thamm Geologist with 24 years experience in exploration and project development in Australia, Africa and South America Director: John Hutton Former Director of Sandfire Resources. 20 years corporate experience Director: Tom Mann 30 years experience in financial markets Capital Structure Share Price A cents 5.3 Shares on Issue 2 M Market Cap A$m 5.8 Cash A$m 3 Debt 3 A$m 3 Enterprise Value A$m 25.8 Shareholders 5% 6% 7% 72% BlueCrest Miles Kennedy Peter Newton Other As at 20 November Plus 27.9m unlisted options exercisable at between 2c and $.00 3 $2 million of RNI s$5 million facility with Taurus remains undrawn 2

3 Project Overview NEAR-TERM PRODUCTION PATHWAY: RNI is pursuing a low-cost and near-term production pathway for the Grosvenor and Peak Hill gold projects, which have combined resources of ~2Moz STRATEGIC INFRASTRCTURE: 00% ownership of the Mtpa Grosvenor gold processing plant and supporting infrastructure. Potential to unlock stranded deposits in the region EXPLORATION UPSIDE: Dominant,800km 2 tenement holding in the highly-prospective Bryah Basin, one of Western Australia s exploration hot-spots. Ongoing review of extensive historical data set continues to generate priority gold and copper exploration targets 3

4 Current Gold Inventory 00% owned Grosvenor Project includes JORC compliant gold resources of ~.4Moz Option to acquire the historic Peak Hill gold project (~550Koz) from Montezuma Total resource inventory = ~2Moz Significant scope for additional near-mine gold resources in proven mineralised province limited historical drilling below 00m Refer ASX announcement November 203 for option conversion details 4

5 Near-Term Gold Production Pathway Updated feasibility studies completed in November 203 using a range of independent consultants Feasibility studies confirm low-cost and near-term gold production pathway for Grosvenor and Peak Hill projects Studies confirm robust and sustainable returns 5

6 Feasibility Studies Key Outcomes Gold production of ~850Koz over 8 years Multiple processing options including conventional CIL through Grosvenor gold plant and heap leach processing of lowergrade material Includes resources from Grosvenor and Peak Hill 6

7 Feasibility Studies Financial Model Weighted average cash costs of ~$A990/oz over life of mine Life of mine revenues of $. billion using $A,400 gold price Net Present Value (pre-tax) of $49m 2-year payback on pre-production capex of $40.5m 82% internal rate of return 7

8 Feasibility Studies Mining Plan 8

9 Grosvenor Gold Plant Mtpa nameplate Grosvenor CIL gold processing plant Low completion capex - ~$3.5m required to restart Permitting processes well advanced Supporting infrastructure in place Potential to increase production capacity Strategically located in historic but expanding gold province north of Meekatharra 9

10 Exploration Upside Dominant Holding Dominant,800km2 holding in the Bryah Basin, one of Western Australia s exploration hotspots Favourable geological setting prospective for gold and base metal discoveries. Includes ~80km strike of Narracoota Volcanics host rocks for the DeGrussa copper-gold discoveries Extensive historical geological database covering ~25 years of exploration ongoing interrogation highlighting multiple new opportunities Five major project areas: Grosvenor, Peak Hill, Cashmans, Horseshoe and Morck s Well 0

11 Exploration Upside Key Objectives Ongoing review of historical database generates fresh pipeline of priority exploration targets significant upside Key exploration objectives include: Discovery of high-value gold deposits: Minimum target size: >3g/t Au Fast-track into production schedule: near surface open pits Define the potential for a large Gold Camp at Grosvenor Discovery of company-maker copper-gold deposit: Targeting +200,000t of contained copper Targeting VMS Deposits (Cu-Au / Zn-Cu-Pb-Ag) Targeting large-scale structural replacement deposits (Cu + Au, Zn, Pb, Ag) Significantly enhance value of regional exploration projects: Demonstrate prospectivity of ground by identifying high priority targets Application of systematic exploration methodologies

12 Exploration Upside Grosvenor Project Priority gold exploration area potential remains to develop into a major gold camp Close to existing mine infrastructure opportunities on granted Mining Leases Key targets include: Forrest Gimp Eastern Jasperoids Yarlarweelor South Erics Cheyenne Big Billy Carlyon Daylight Starlight Deeps 2

13 Exploration Upside Grosvenor Project FORREST GIMP High-priority gold target Wide oxide gold intercepts returned in RAB drilling over 50m strike 2km south of Grosvenor gold plant Open down-plunge and along the strike trend to north and south Design of Pre-Feasibility study underway Results include: FGRB05 2.g/t Au FGRB06 2.4g/t Au FGRB09 2.6g/t Au FGRB024 Au FGRC02 2.9g/t Au ERICS Example of opportunities within the existing drilling data base Shallow, good grade, open along strike Located ~km north of Grosvenor gold plant Follow-up drilling required Results include: FGB28 2.7g/t Au FBB g/t Au (EOH) FGB283 Au 3

14 Exploration Upside Cashmans Project Priority copper-gold exploration area; Targeting VMS and structural replacement-style deposits Orient Prospect has highlighted a major VMS mineralised trend (~20km strike) Other key targets include: Newport, Clancy s, Seaview, Left Bank, Telegraph Focus of concerted exploration initiative in 204: Detailed mapping of identified horizon Geophysical surveys Systematic geochemical soil sampling Drilling (if warranted) 4

15 Exploration Upside Morck s Well Project Priority copper-gold exploration area adjoining Sandfire Resources flagship Doolgunna project; Targeting VMS and structural replacement-style deposits 40km strike of prospective Narracoota Formation and regionally significant structures Focus on collection and utilisation of quality regional data sets Data sets include: VTEM, gravity and regional geochemical sampling Second stage targeting in 204 5

16 Exploration Upside Morck s Well Project Collection of High Quality Regional Data Sets VTEM Channel 47 (late-time) + Anomalies AIRBORNE ELECTROMAGNETIC SURVEY REVIEW Review focussed on identifying discrete, late-time VTEM anomalies only i.e. those most likely associated with strongly conductive targets 5 target zones identified - within Narracoota Formation and adjacent to regional structures Follow-up with ground based detailed electromagnetic surveys GRAVITY SURVEY DATA COLLECTION & REVIEW Fundamental physical data Identification of strong, fundamental structural controls High gravity (density) domain identified for first time GEOCHEMICAL SURVEY DATA COLLECTION & REVIEW Reconnaissance program over a transported terrane Number of multi-element anomalies that require additional work 6

17 Summary Near-term gold production pathway for Grosvenor and Peak Hill projects 850koz over 8 years Robust independent financial model weighted average cash costs of $A990/oz; pre-tax NPV of $49m; life of mine revenues of $. billion (@ $A,400 gold price); 2-year payback on pre-production capex of $40.5m Scope for additional near-mine resources in proven mineralised province limited drilling below 00m Grosvenor gold plant strategically located - potential to unlock stranded gold deposits in the region Dominant,800km2 regional exploration portfolio prospective for copper and gold. Pipeline of priority exploration targets Significant tax losses which can be applied against future gold production earnings 7

18 RESOURCE AND INVESTMENT NL ABN BAGOT ROAD SUBIACO WESTERN AUSTRALIA 6008 PO BOX 298 WEST PERTH WESTERN AUSTRALIA 6872 TEL (+6 8) FAX (+6 8) WEBSITE Competent Person s Statement The information released in this presentation that relate to exploration results and geo-metallurgy is reported in accordance with the requirements of the 202 JORC Code. The Company s mineral resources are currently reported as defined by the 2004 JORC Code. The information that relates to Exploration Results and Geometallurgy is based on information compiled by Mr Albert Thamm, who is a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Mr Thamm is Director of Resource and Investment NL and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 202 Edition of the Australasian Code of Reporting of Mineral Resources and Ore Reserves. Mr Thamm consented to the inclusion in the presentation of the matters based on information in the form and context in which it appears. The information relates to Mineral Resources is based on information compiled by Mr Albert Thamm, who is a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Mr Thamm is Director of Resource and Investment NL and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting of Mineral Resources and Ore Reserves. Mr Thamm consented to the inclusion in the presentation of the matters based on information in the form and context in which it appears. Forward-Looking Statements This presentation has been prepared by Resource and Investment NL. This document contains background information about Resource and Investment NL and its related entities current at the date of this announcement. This is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation. This presentation is for information purposes only. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This applies to those jurisdictions where resource reporting is not codified where also reserves only are reported. Metrics reported here are not reserves until explicitly reported as JORC compliant reserves. This document does not constitute investment advice and has been prepared without taking into account the recipient s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. No responsibility for any errors or omissions from this document arising out of negligence or otherwise is accepted. This document does include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Resource and Investment NL. Actual values, results, outcomes or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. The information relating to project targets should not be considered as an estimate of Ore Reserves. Hence the term Reserve(s) has not been used in this context. Any forward-looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and ASX Listing Rules, Resource and Investment NL does not undertake any obligation to update or revise any information or any of the forward-looking statements in this document or any changes in events, conditions or circumstances on which any such forward-looking statement is based. 8

19 RESOURCE AND INVESTMENT NL ABN BAGOT ROAD SUBIACO WESTERN AUSTRALIA 6008 PO BOX 298 WEST PERTH WESTERN AUSTRALIA 6872 TEL (+6 8) FAX (+6 8) WEBSITE Appendix - Grosvenor Project Resources - JORC 2004 Summary of Project Resources, Resource Classification and metrics November 203 Project Cutoff (g/t) Tonnes (kt) Grade (Au g/t) Measured Yarlarweelor Tonnes (kt) Grade (Au g/t) Indicated Tonnes (kt) Grade (Au g/t) Tonnes (kt) Grade (Au g/t) Inferred Au Troy Ounces Total 0.5 5,498.6,5.6 7, ,500 Starlight, , ,500 Starlight Hanging Wall Twilight ,500, , ,700 Ricks ,800 Midnight ,400 Dougies ,500 Eldorado , , , ,400, , ,600,08.9, ,900 2,326.43, , ,000 45,400 Toms & Sams Horseshoe, Cassidy & Pod Nathans 0.75 Callies North Labouchere Regent 0.6 TOTAL ,300 22,36 2.0,409,800 3,834 8,484 Peak Hill Project Resources at 0.8 g/t cut off JORC 2004 Harmony, Enigma, Durack and Main Pit-Five Ways Classification INDICATED Material type Tonnes (kt) Au (g/t) Au Ounces Oxide Transitional Fresh,270 2,940 4,960 9, ,50,750 0, ,000 28, , ,000 5,000 3,000 76,000 84,000 54,000 Au (g/t) Au Ounces 6,300 40,500 46,800 TOTAL INDICATED INFERRED Oxide Transitional Fresh TOTAL INFERRED SUBTOTAL Jubilee Deposit Mineral Resources at.0 g/t cut-off Classification INDICATED INFERRED SUBTOTAL Material Tonnes (kt) Combined Global Mineral Resources Estimated for the Peak Hill Project Classification INDICATED 9 INFERRED TOTAL Tonnes (kt) 9,270 Au (g/t).5 Au Ounces 436,000 2, ,000, ,000