Regis Resources Limited · ASX:RRL
Regis Resources — Investor Presentation (May 2008)
24 slides from Regis Resources's investor presentation, May 2008
Slide 1: David Walker, CEO & Managing Director, May 2008
David Walker CEO & Managing Director May 2008 May 2008
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. This presentation does not constitute an offering memorandum or an offer to sell or a solicitation to buy securities of Reg
Slide 3: Highlights
“Highlights” ¾ Advanced stage development project ¾ Measured and Indicated gold resource of over 1 million ounces at Moolart Well1 ¾ Mostly contained in oxide and laterite cover ¾ Commissioning planned for mid 2009 ¾ Significant exploration potential ¾ Additional 2.5 million ounces inferred resource
Slide 4: Board and Management
Board and Management MICHAEL FOLIE Shell Australia, Billiton, Acacia Res Non-Executive Chairman DAVID WALKER CRA, CS First Boston, ABN AMRO CEO PAUL DOWD Newmont Australia, Macquarie Resources Non-Executive Director May 2008 4
Slide 5: Project Location – Western Australia
Project Location – Western Australia ¾ Eastern Goldfields region ¾ Laverton area ¾ Laverton South – significant deposits identified and in production ¾ Western Australia is mining friendly, elephant country May 2008 5
Slide 6: Attractively located along prolific Greenstone Belt
Attractively located along prolific Greenstone Belt Duketon Greenstone Belt ¾ Surrounded by multi-million ounce Centenary Centenary deposits Agnew Agnew Thunderbox Thunderbox ¾ Sunrise Dam is one of the largest producing gold mines in Australia Wallaby Wallaby Sunrise SunriseDam Dam ¾ Potential for
Slide 7: WA Properties – Gold and Nickel
WA Properties – Gold and Nickel ¾ The major landholding in the Duketon Belt ¾ Over 630 granted mineral licences and applications ¾ In excess of 4,000 sq km of prospective ground ¾ Gold – Duketon region1 ¾ Nickel – Collurabbie belt1 ¾ Copper Well JV (Regis manager, 50% earning 85%) ¾ Melita JV (Regis
Slide 8: Duketon Gold Project
Duketon Gold Project ¾ Duketon gold area ¾ Southern area mined by Aurora in the 1990’s ¾ Erlistoun mined 1900’s ¾ Rosemont extended in 1998 ¾ Moolart Well key asset Moolart well discovered in 2001 Moved to 100% ownership in Dec 06 ¾ Dogbolter, King John unmined ¾ 8 separate deposits, all on gran
Slide 9: Moolart Well Project – Ore Body Open at Depth
Moolart Well Project – Ore Body Open at Depth Looking North May 2008 9
Slide 10: Moolart Well – Laterite Zone (to 20m)
Moolart Well – Laterite Zone (to 20m) ¾ + Five kilometre mineralised zone ¾ Up to 1.5 km wide ¾ JORC measured and indicated resource of 488,000 oz (additional 8,000 oz inferred)1 Based on 2,755 holes drilled generating 255,470 gold assays ¾ Further 54,000 oz of low grade2 ¾ Down to 20m vertical de
Slide 11: Moolart Well – Oxide Zone (20-70m)
Moolart Well – Oxide Zone (20-70m) ¾ Between 20-70m vertical depth ¾ 263,000 oz in JORC measured and indicated resource (additional 314,000 inferred)1 ¾ Most zones open along strike and all open at depth ¾ Significant high grade >10 oz/t intercepts ¾ 10-35% gravity gold recovery2 ¾ Total gold recove
Slide 12: Moolart Well Resources
Moolart Well Resources ¾ Total Measured and Indicated resource of over 1 million ounces ¾ 751 koz of Measured and Indicated resources in Laterite and Oxide zones Measured Indicated Inferred Duketon Gold Project million Gold million million Gold grade g/t grade g/t Gold koz grade g/t tonnes koz tonne
Slide 13: Moolart Well Project – Feasibility study
Moolart Well Project – Feasibility study Underway1 ¾ Targeting 3.0 mtpa, 200 koz pa ¾ Current industry operating costs ¾ 1 large pit about 5km long ¾ Drives to base of drilling in most places ¾ Open at depth ¾ Significant gaps in drilling, especially in the north ¾ Initial reserve calculation underw
Slide 14: Site Infrastructure Plan & Preliminary Plant Design
Site Infrastructure Plan & Preliminary Plant Design ¾ Initial site layout completed ¾ Access permits underway ¾ Water borefield development advanced Abundant groundwater available May 2008 14
Slide 15: Permitting
Permitting ¾ All Resources on granted Mining Leases ¾ No Native Title issues ¾ Environmental permitting process commenced (2 stages of 7 stage process complete) ¾ Part V EPA Act process determined ¾ Clearing permit lodged, site access expected June 08 May 2008 15
Slide 16: Moolart Well – Start-up Project Timeline
Moolart Well – Start-up Project Timeline 1 2008 2009 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Resources Reserves Metallurgy Infrastructure Feasibility Design Water supply Village Airstrip Permitting Environmental Government Feasibility Study Financing Construction First Gold Pour 2 May 2008 1. Subje
Slide 17: Project Capital Costs
1 Project Capital Costs Capital (contract mining+power) A$m Plant 62.1 Infrastructure 36.4 EPCM 9.7 Owners Costs 15.7 Working Capital 5.0 Contingency (15%) 19.4 Total 148.4 Feasibility Completion 5.0 +10% contingency 15.0 Total Capital Costs 168.4 Comprising: Contingency 34.4 Capital Costs 134.0 May
Slide 18: Exploration Upside – Duketon
Exploration Upside – Duketon ¾ Oxide full interpretation should increase tonnes and grade M+I: Moolart M+I: MoolartWell Well 1,017 1,017koz koz ¾ Ore body open at depth Inferred: Inferred: 1,204 1,204koz koz ¾ Nearby satellite deposits virtually unexplored Dogbolter Dogbolter 87 87koz koz11 ¾ Infill
Slide 19: Further drilling required to support satellite deposits
Further drilling required to support satellite deposits ¾ An additional 2.5 Moz of Inferred resources to be further delineated through additional infill drilling ¾ All resources on granted mining leases Measured6 Indicated6 Inferred6 Duketon Gold Project million grade Gold million grade Gold million
Slide 20: Ongoing Resource Definition
Ongoing Resource Definition ¾ Measured and Indicated resources have grown at a CAGR of 309%1 since June 2005 3.0 2.5 2.0 Million Oz Gold 1.5 1.0 0.5 0.0 Jun-2005 Jun-2006 Jun-2007 May-2008 2 Measured and Indicated Inferred 1. Compound Annual Growth Rate (“CAGR”) Calculated from 30 June 2005 to 7 May
Slide 21: New Collurabbie Nickel Province
New Collurabbie Nickel Province ¾ Regis main player in the area ¾ Massive Ni sulphides at adjacent Olympia prospect ¾ Numerous other nickel results ¾ Regis have 35 line kms of prospective strike, plus new areas ¾ Completed regional exploration coverage in WUZ ¾ 8 sulphide targets drilled, sulphides
Slide 22: Beltra Prospect - Collurabbie
Beltra Prospect - Collurabbie ¾ Prospect located from regional geochemical drilling ¾ Poor TEM penetration ¾ 3m @ 2.02% Ni in AC1377 ¾ 6m @ 1.42% Ni in AC1325 ¾ 7m @ 1.46% Ni in AC1330 ¾ Pt-Pd anomaly along the ultramafic contact May 2008 22
Slide 23: Financial Summary
Financial Summary Ticker: RRL AUD Share Price (16 May 2008): A$0.30 Shares Outstanding: 142.3m Market Capitalization: $42.7m Options: 20.9m (Average strike A$0.90) Net Debt1 $1.4m Total Enterprise Value $44.1m Major Shareholders Newmont (39%), Drawbridge (7.7%) TEV2 /Resources (M+I)3 $US 40/oz TEV2
Slide 24: Summary
Summary ¾ Large resource base in eight deposits ¾ Near-term production at Moolart Well down to 70m ¾ Feasibility Study well underway ¾ Reserves expected shortly ¾ Gold exploration upside at Moolart Well and in the Moolart Corridor ¾ Strong nickel potential at Collurabbie ¾ Undervalued – Attractive B