Red Rock Resources Plc · LSE:RRR
Red Rock Resources — Investor Presentation (April 2011)
29 slides from Red Rock Resources's investor presentation, Apr 16, 2011
Slide 1: April 2011
April 2011
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 AIM Listed Company (AIM:RRR) Interests: Migori gold project in Kenya Two gold mines in Colombia Two gold mines in Costa Rica Major Shareholder: Regency Mines (20%) Share Price: 11.25 pence Market Cap: £78.1m Shares in Issue: 694,006,109 3
Slide 4: Share Price & Volume
Share Price & Volume Share Price: 11.25p 4
Slide 5: Gold: Kenya
GOLD: KENYA 5
Slide 6: Migori: Project Overview
Migori: Project Overview Mid Migori Mining (MMM) Company Limited operates the Migori gold and base metals project RRR owns 15% of MMM with farm in to raise to 60% Historic gold and base metals mining between 1930s-60s Geita • Located in SW Kenya, 15 km north of the Tanzanian border AngloGold 1.89 g/
Slide 7: Migori: Project Map
Migori: Project Map Option over further 320 sq km SPL 236 (Ngira Migori) Special Prospecting Licences 122 and 202 covering 310.5 sq km 7
Slide 8: Migori: Current Gold Resources
Migori: Current Gold Resources Tonnes Grade Contained Prospect Category (kt) (g/t) Au (oz) KKM Indicated 22,110 0.96 680,000 Gori Maria Indicated 8,600 0.87 240,000 MK Indicated 1,450 2.32 108,000 Nyanza Indicated 840 5.32 144,000 2006 Subtotal: Indicated 33,000 1.10 1,172,000 NI 43:101 Macalder Tai
Slide 9: Migori: Tailings Project
Migori: Tailings Project Macalder Tailings Dam Mid- 2010: JORC-Compliant, Indicated Resource estimate Estimate excluded 5 holes from smaller, adjacent tailings dam Metallurgical test work currently under assessment 1.424 million tonnes containing 75,084 oz Au at 1.64 g/t Zone Volume (m3) Tonne
Slide 10: Migori: Exploration
Migori: Exploration Dec2009 Resource drilling on Scout drilling the Macalder Tailings RC 507 metres Jan2010 Jul2010 VTEM helicopter Magnetic and Aug2010 survey over Macalder Radiometric survey Mine block across both licences Nov2010 Diamond Coring 2000+ metres Infill resource drilling Exploration Dr
Slide 11: Migori: VTEM Results
Migori: VTEM Results VTEM Targets T1 and T3 largest anomalies T1 East and west Macalder Mine Extensions T3 North of MK prospect. Anomaly over BIF outcrop T2 Smaller anomaly over Bushells prospect Drilling planned at both targets to investigate deep conductors Other anomalies - cultural
Slide 12: Migori: Objectives
Migori: Objectives Build a 2 – 3 Moz resource base Follow up high grade intersections Drill Macalder VMS and other Cu target Upgrade KKM Resource model with view to early production Upgrade confidence in the tailings resource. Plan for gold production Explore new targets
Slide 13: Gold: Colombia
VT, GOLD: Colombia
Slide 14: Colombia: Project Overview
Colombia: Project Overview Investment in two Colombian gold mines on Frontino Gold Belt – oldest in Colombia $2m loan plus 51% of operating company El Limon 60 year old production history – production infrastructure in place Operations began Dec 2010/Jan 2011 Ore production objective: rais
Slide 15: Colombia: Gold Geology
Colombia: Gold Geology Frontino Gold Belt Mineralisation in the Frontino Gold Belt, Antioquia is controlled by the OTU FAULT The Frontino Gold Belt is one of the world’s great mesothermal gold fields, with estimated production of 8-9 Moz from the Segovia-Remedios region alone. 15
Slide 16: Colombia: Assets
Colombia: Assets El Limon 60-year-old mine Vein-style gold deposit produced ore from 7 levels down to 380m. Plant with 150 tpd capacity re-opened December 2010 Running in – up to 50 tpd so far Machuca (La Aurora) Further south on same trend. Initial shaft to depth of 180m in place; infrast
Slide 17: Colombia: Objectives
Colombia: Objectives Looking for extensions to the vein Expansion of plant capacity Exploring for other veins Expanding property portfolio in order to grow production 17
Slide 18: Gold: Costa Rica
VT, GOLD: Costa Rica
Slide 19: Costa Rica: Deal Structure
Costa Rica: Deal Structure Investment in Ascot Mining Announced on 19th November 2010 £1.5million investment @20p (now 47.5p) Ascot [ASMP] quoted on PLUS market Enables Ascot to meet payment obligations for producing Chassoul gold mine 2/3 other mines Convertible + options give up to 23%
Slide 20: Costa Rica: Location
\§)) REDROCK a “e ~ Costa Rica: Locat
Slide 21: Costa Rica: Gold Geology
Costa Rica: Gold Geology Chassoul Gold Mine Ascot's wholly owned Mina Chassoul now in operation and pouring gold. Construction of infrastructure and plant carried out in 2010. One explored vein and eight yet unexplored veins. Two other mines now contributing ore. 21
Slide 22: Financial Summary
VT, FINANCIAL SUMMARY
Slide 23: Investment Holdings
Investment Holdings Jupiter Mines Ltd ASX –listed ‘steel feed’ platform created by RRR/Pallinghurst with potential 1.3 bn ton Mt Ida magnetite project in WA (RRR has 1.5% royalty) August 2010- agreed to acquire open pit manganese mine at Tshipi, South Africa Jan 2011 – JORC Resource at Mt Ida
Slide 24: Investment Holdings 2
Investment Holdings 2 Ascot Mining plc Two operating gold mines in Costa Rica; two or three potential mines Plan to move listing from PLUS to AIM early 2011 RRR holds loan stock convertible to 7.5m shares, 1.54m shares, and 9.5m options Market value of holdings (net) £7.1m Cue Resources Inc
Slide 25: Investment Holdings 3 – Jupiter – Mt Ida Camp
Investment Holdings 3 – Jupiter – Mt Ida Camp 25
Slide 26: Summary
SUMMARY 26
Slide 27: Key Points
Key Points A new gold company: Production started in Colombia 1.2m oz Indicated Gold Resource in Kenya Plans for production in Kenya Increase in production in Costa Rica but not a new company: Proven capacity to generate profits Active exploration Strong asset backing 27
Slide 28: 2010 – 2011 Key Objectives
2010 – 2011 Key Objectives INCREASE GOLD PRODUCTION/ CAPACITY in Colombia START GOLD PRODUCTION in Kenya initially from tailings INCREASE GOLD PRODUCTION in Costa Rica 28
Slide 29: Analyst and press quotes
‘...analysts believe the shares are worth over 20p…investors looking for a way to benefit from current enthusiasm for gold should have a punt.’ Daily Mail – Midas Column, Joanne Hart, 26th Sept 2010 ‘Top-end scenario: NAV 61.59p per share’ Edison Investment Research, Charles Gibson, 22nd Sept 2010 w
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