Red Rock Resources Plc · LSE:RRR
Red Rock Resources — Investor Presentation (March 2012)
28 slides from Red Rock Resources's investor presentation, March 2012
Slide 1: Red Rock Resources – March 2012
7 ae E 2 7 \) REDROC 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: Corporate Profile
Corporate Profile Red Rock Resources Plc – developer of gold & iron ore projects Proven Explorers, Expanding Producers London Stock Exchange AIM listing: AIM:RRR Share Price: 2.65p Market Capitalisation: £21.50m Shares in Issue: 811,410,417 Major Shareholder: Regency Mines plc 16.55% Directors: Andr
Slide 4: Corporate Statistics
Corporate Statistics Financial Highlights 2011: Pre-Tax Profit of £13,973,537 EPS of 1.78p Shareholders Equity of £32m 4
Slide 5: RRR – Value Creation Strategy
RRR – Value Creation Strategy from acquisition to realisation Project Cycle Value Cycle Acquire New Project Production Dispose Expand Exploration Development Liquidity Event “Taking value out early” •Minimises risk •Enhances return 5
Slide 6: NB: Real Value vs Stockmarket Value?
NB: Real Value vs Stockmarket Value? 6
Slide 7: RRR – Current Project Pipeline
RRR – Current Project Pipeline Phase Project Metal Activity Value Driver Realization/Disposal: Jupiter Mines Ltd Fe Mn Small sales Production start Mt Ida Royalty Fe Lay off risk BFS, DTP Production: El Limon/El Mango Au Increase Scale up Buy in Cash cost down Spread overhead Liquidity events Develo
Slide 8: Migori Project Kenya (Au)
Migori Project Kenya (Au)
Slide 9: Migori Gold Project Overview
Migori Gold Project Overview Special Prospecting Licences 122 & 202 • 310 sq km in southwest Kenya, near Lake Victoria • 63 km of Archaean Greenstone Belt, extension of Tanzanian Craton • Possible comparators: Barrick’s North Mara Mine and AngloGold’s Geita mine in Tanzania Activities • Explored sin
Slide 10: Investment in Mid Migori Mining
Investment in Mid Migori Mining • July 2009 Red Rock buys 15% in Mid Migori Mining Company Ltd (MMM) 33.02% (+4.94% option) 15% 85% RRR will have 60% of MMM on completion of BFS 100% 100% SPL122 SPL202 Macalder-Migori Mid-Migori • Jan 2012: RRR takes an option over 4.94% of Kansai common stock • Mar
Slide 11: Migori Exploration: All Activities
Migori Exploration: All Activities 11
Slide 12: Macalder Tailings: Scoping Study
Macalder Tailings: Scoping Study Scoping Study Report • Completed Q1 2012 (Saint Barbara LLP) • Confirms potential for shareholder value creation from retreatment of tailings • Discounted Cash Flow (DCF) estimations for 2 base case scenarios Tailings Resource • JORC Measured resource (2011) used in
Slide 13: Migori Project Objectives and Strategy
Migori Project Objectives and Strategy Macalder Tailings Retreatment Project Plan for gold production from tailings dam • Scoping Study report and DCF completed Q1 2012 • Value creation potential confirmed • Financing options being explored Q1/Q2 2012 Mikei Gold Resources View to early production at
Slide 14: Melville Bugt Project Greenland (Fe)
Melville Bugt Project Greenland (Fe)
Slide 15: Melville Bugt Iron Ore Project
Melville Bugt Iron Ore Project Greenland – One of the Final Mineral Exploration Frontiers • Melville Bugt Licence Area: 1,570km2 (NAMA Greenland Ltd) 2011 Exploration Targets: •High grade DSO iron ore •Magnetite iron ore (Enriched Archean Algoma style Banded Iron formation) •Mesothermal gold •Rare E
Slide 16: NAMA Greenland Joint Venture
NAMA Greenland Joint Venture • March 2011 RRR signs Option agreement with North Atlantic Mining Associates Ltd. (NAMA) • Summer 2011 First Melville Bugt Field Season • December 2011 Year 1 Field Season closed, RRR receives 25% stake in NAMA Greenland Ltd. • December 2011 Year 2 Option picked up by R
Slide 17: Regional Geology
Ae, BS EN es §)/ REDROCK Regional Geology
Slide 18: Mary River: Comparator?
Mary River: Comparator? •Geological correlations with Mary River Melville Bugt Mary River Deposit, Baffin Island De Dødes •365Mt @ 64.66% Fe Havik West proven and probable DSO oxide reserves •Acquired by ArcelorMittal & Nunavut for $593m •Correlation of key geological units 18
Slide 19: 2011 Season Results and Potential 2012 Targets
2011 Season Results and Potential 2012 Targets Eastern targets Western targets 19
Slide 20: Geochemistry Results
Geochemistry Results • Results confirm the presence of extensive iron ore mineralisation • 2 distinct mineralisation styles •Eastern targets: Haematite-rich, e.g. De Dødes Fjord (DSO potential) •Western targets: Magnetite-rich, e.g. Havik (High tonnage potential) •Summary of 6 of the most prospectiv
Slide 21: Melville Bugt 2012 Exploration Programme
Melville Bugt 2012 Exploration Programme Goal: • Define JORC or NI 43-101 compliant Mineral Resource Estimate (MRE) by end 2012/ early 2013 – To be calculated by SRK Exploration Services – Generate new exploration targets 2 Phase Drilling Programme: Phase I: Wide spaced exploration holes and trenchi
Slide 22: El Limon & El Mango Gold Mines Colombia (Au)
El Limon & El Mango Gold Mines Colombia (Au)
Slide 23: Colombia: Project Overview
Colombia: Project Overview • El Limon and El Mango –gold mines in Antioquia, south of Zaragoza • RRR manages and operates under Mineras Four Points (MFP) • RRR owns 51% of MFP • MFP profitable since August 2011 • Cash cost per oz: approx $800 23
Slide 24: Colombia: Production Highlights
Colombia: Production Highlights Mine and plant operating at over 80 tonnes per day with 9g/t head grade to the mill 4th Quarter 2011 production 1425 ozs from El Limon Machuca mine production expected to contribute in 2nd Quarter 2012 increasing tonnage mined to over 100 tonnes/day Infrastructu
Slide 25: Investment Holdings
Investment Holdings
Slide 26: Jupiter Mines (Investment + Royalty)
Jupiter Mines (Investment + Royalty) 74.2m JMS Shares held by RRR c4% Market value A$15.0m (£10m) ‘Steel feed’ platform strategy Open pit manganese mine at Tshipi, South Africa - in production Q3 2012 530m ton JORC Resource of high quality magnetite at Mt Ida, WA BFS by Q4 2012 Haemati
Slide 27: Investment Holdings - Summary
Investment Holdings - Summary Jupiter Mines Ltd (ASX) (c.4%) Ascot Mining Plc (PLUS, going to AIM) (convertibles/warrants) Resource Star Ltd (ASX) (24.6%) Cue Resources Inc (TSX) (15%) Total of listed holdings: c£14m (2/3 of market capitalization) At end December 2010, value of shares available for
Slide 28: Contact Details
Contact Details Investment or Project Enquiries: General Enquiries: Andrew Bell Rasa Vaitkute Chairman Personnel Manager Email: [email protected] Email: [email protected] Marketing or CSR Enquiries: Press Enquiries: Natasha Walton Sandra Spencer Head of Marketing and Community Press and
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