Red Rock Resources Plc · LSE:RRR
Red Rock Resources — Investor Presentation (July 2010)
35 slides from Red Rock Resources's investor presentation, Jul 20, 2010
Slide 1: Red Rock Resources
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: Why Invest?
Why Invest? A new gold company: • Production starting in Colombia • 1.2m oz Indicated Gold Resource in Kenya • Moving towards production in Kenya but not a new company: • Proven capacity to generate profits • Active exploration • Strong asset backing 3
Slide 4: Summary
Summary Red Rock intends to INCREASE GOLD PRODUCTION from Colombia within the underground operation Red Rock intends to START GOLD PRODUCTION in Kenya after the project feasibility is completed 4
Slide 5: Corporate Profile
Corporate Profile • AIM Listed Company (AIM:RRR) • Assets : Gold and VMS deposits in Kenya Underground gold mine Colombia • Major Shareholder: Regency Mines (25%) Share Price: 2.08 pence Market Cap: £12.14m Shares in Issue: 583,908,812 5
Slide 6: Share Price & Volume
Share Price & Volume Daily volume 2.6m shares on AIM 0.8m on PLUS (3m average) 6
Slide 7: Management
Management Executive Directors: • Andrew Bell, MA, LLB, FGS, Chairman • Manoli Yannaghas, BA, Director Non-Executive Directors: • Michael Nott, BSc, MSc, FIMMM, FIQ, FMES • John Watkins, FCA • Robert Weicker, BSc, PGeo 7
Slide 8: Gold: Kenya & Colombia
—s whine aa" = ea] VP GOLD: KENYA & COLOMBIA
Slide 9: Kenya: Project Overview
Kenya: 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 AngloGoldin SW Kenya, 15 km north of the Tanzanian border • Located 1.89 g/t
Slide 10: Kenya: Project Overview
Kenya: Project Overview Option over further 320 sq km SPL 236 (Ngira Migori) Special Prospecting Licences 122 and 202 covering 310.5 sq km 10
Slide 11: Kenya: Gold Resources
Kenya: Gold Resources NI 43:101 2006 Resource Estimates 1.1 million ounces 0.25 g/t cut-off Models to assess blending options for KKM low grade One option currently being assessed is to blend high grade from Nyanza and MK prospects Database validation with re-estimate of resources 1.0 g/t cut-off Re
Slide 12: Kenya: Gold Resources
Kenya: Gold Resources Validates Auvista 1998 Estimate (0.75 g/t cut-off) Table from NI 43:101 Report 3D wireframes images uses 0.25 g/t cut-off
Slide 13: 2006 Gold Resource Models
2006 Gold Resource Models Use a 0.25 g/t gold cut- off to demonstrate the ore bodies’ continuity along strike Wireframe images extracted from NI 43:101 Report (2006)
Slide 14: KKM Project
KKM Project At the Kakula-Kalange Munyu project, gold mineralization is hosted by quartz porphyry and associated with: • Silification • Sericite/ chlorite alteration • Sulphides (mainly pyrite with minor arsenopyrite) • Maximum gold is associated with quartz veining
Slide 15: Nyanza Project
Nyanza Project At the Nyanza Zone project, gold mineralization is hosted within several high grade quartz veins. The confining rocks are intermediate volcanics in the hanging wall and mafic rocks in the Nyanza gold mine was exploited to 1968 footwall. and produced more than 83,000 oz Au
Slide 16: Kenya: Objectives
Kenya: Objectives • Build a 2m ounce resource • Follow up high grade intersections • Investigate Macalder and possible new Macalders • Upgrade KKM Resource model with view to early production • Plan for gold (+ ? other elements) production from tailings
Slide 17: Phase 1: Exploration
Phase 1: Exploration Reconnaissance • Due Diligence • Prospecting across both licences • New prospects • Examination of BIF and lode gold associated mineralisation 17
Slide 18: Phase 1 Exploration
Phase 1 Exploration Macalder Tailings 38 holes drilled across Macalder tailings dam (458m) on 50x50 metre grid Cu (%) Co (%) Pb (%) Zn (%) Au (ppm) Ag (ppm) Sulphide 0.33 0.07 0.17 0.76 1.56 >16.8 Calcine 0.61 0.05 0.53 0.67 1.85 >20.0 • Currently awaiting tonnage estimate and results from metallurg
Slide 19: Gossan Sampling
Gossan Sampling • Gossan body lies in the immediate vicinity of the Macalder tailings dam • 35 hand-grab samples taken directly from the gossan body • Significant grades of easily recoverable gold No. Grade Samples (ppm Au) 12 1–5 14 5 – 20 1 35.8 19
Slide 20: Exploration: Phase 1
Exploration: Phase 1 RC Drilling at the Gossan Core Logging Macalder Tailings Dam 20
Slide 21: Exploration: Phase 2
Exploration: Phase 2 Database Geophysics Mapping INTERPRETATION DRILLING PROGRAMME 21
Slide 22: Exploration: Phase 2
Exploration: Phase 2 Autumn 2010 (a) Geophysics EM airborne survey over Macalder Magnetic airborne survey over the license area (b) London Finalize database Integrate geology, sections and assay results (c) Field Local prospect geology 1:2500 (d) Receive metallurgic test work from tailings. Possible
Slide 23: Macalder VMS Deposit
Macalder VMS Deposit • Macalder is a volcanogenic massive sulphide (VMS) and was discovered by Falconbridge in the 1930s • In 1951, the pre-mining reserve base was estimated at 0.94 million tonnes (non-JORC) containing Base Metals : 2.3% Cu, 2.9% Zn Precious Metals : 3.26 g/t Au, 51.0 g/t Ag • B
Slide 24: Geophysics: VTEM Survey
Geophysics: VTEM Survey VTEM (Versatile Time-domain Electromagnetic) Survey • Geophysical survey commencing end of July • B-field, VTEM system for locating conductive anomalies • 278 line-kms (100m spacing) covering Macalder & greenstone extension to Bushells 24
Slide 25: Macalder VMS Deposit
Macalder VMS Deposit Macalder VMS Deposit Geology and Drillhole traces Main Shafts Open Cut Abandoned Mine Site
Slide 26: Macalder VMS Deposit
Macalder VMS Deposit Macalder Mine Cross-Sections – Section 0 to 600ft E Main Shaft • BIF marks the contact with the massive sulphide • BIF is contact with Greywackes & Metabasalt • Vertical shaft to 500ft & then inclined to 800ft Historic Maps in Feet
Slide 27: Colombia: Project Overview
Colombia: Project Overview Gold Production • Production expected to rise to over 100 tonnes per day, Autumn 2010 • Loan with rights to acquire up to 51% of El Limon and La Aurora Mines • Frontino gold trend, oldest gold province in Colombia • 60 year production history at El Limon • Gold treatment p
Slide 28: Colombia: Location
Colombia: Location Drill core from Nyanza target Mine Location: Antioquia Region, NW Colombia 28
Slide 29: Colombia: Frontino Belt
Colombia: Frontino Belt Zaragoza Frontino Gold Belt El Limon La Aurora Segovia Mineralisation in the Frontino Gold Remedios Belt is controlled by the OTU FAULT (N-S) The Frontino Gold Belt is one of the world’s greatest mesothermal gold fields, with estimated production of 8-9 Moz from the Segovia-R
Slide 30: Colombia: Assets
Colombia: Assets El Limon • 60-year-old mine producing 108 tonnes of ore/m and 15.3kg/m in first five months of 2010 from non- mechanised operations. • Vein-style gold deposit producing ore from 7 levels down to 380m. • Surface plant with 150 tpd capacity non-operational due to lack of equipment/par
Slide 31: Colombia: Deal Structure
Colombia: Deal Structure • 3 year $US2m loan to Mineras Four Points (MFP) 5% interest 3 year Consultancy Agreement at $200K and increasing to $350k/quarter • Option (2 yr period) to acquire 50% of MFP for $6.5m • Option (3 yr period) to acquire 1% of MFP for $1m 31
Slide 32: Colombia: Objectives
Colombia: Objectives • Looking for extensions to the vein and believe we are close to finding them • Exploring for other veins • Looking for other properties and open to deals to expand operations 32
Slide 33: Investment Holdings – The Backstop
Investment Holdings – The Backstop Jupiter Mines Ltd • ASX –listed ‘steel feed’ platform created by RRR/Pallinghurst with potential 1.3 bn ton magnetite project in WA (RRR has 1.5% royalty) • August 2010 vote on acquisition of largest open pit manganese mine at Tshipi, S. Africa • 85,734,165 shares
Slide 34: Why Invest?
Why Invest? A new gold company: • Production starting in Colombia • 1.2m oz Indicated Gold Resource in Kenya • Moving towards production in Kenya but not a new company: • Proven capacity to generate profits • Active exploration • Strong asset backing 34
Slide 35: Analyst and press commentary on Red Rock
‘Red Rock’s New Option In Colombia Takes It So Close To Production You Can Almost Smell The Gold’ Minesite, Alastair Ford, 23rd June 2010 ‘Valuation: Potentially over 20p per share’ Edison Investment Research, Charles Gibson, 12th July 2010 www.rrrplc.com 35
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