Red Rock Resources Plc · LSE:RRR

Red Rock Resources — Investor Presentation (September 2010)

35 slides from Red Rock Resources's investor presentation, Sep 28, 2010

  1. Slide 1: September 2010

    September 2010

  2. 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

  3. 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

  4. 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

  5. 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 (22%)  Share Price: 6.25 pence  Market Cap: £40.1m  Shares in Issue: 641,988,780 5

  6. Slide 6: Share Price & Volume

    Share Price & Volume Daily volume 4.4m shares on AIM 1.5m on PLUS (3m average) 6

  7. 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

  8. Slide 8: Gold: Kenya

    GOLD: KENYA 8

  9. Slide 9: 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/

  10. Slide 10: Migori: Project Overview

    Migori: Project Overview Option over further 320 sq km SPL 236 (Ngira Migori) Special Prospecting Licences 122 and 202 covering 310.5 sq km 10

  11. Slide 11: Migori: Macalder VMS Deposit

    Migori: 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/

  12. Slide 12: 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

  13. Slide 13: Migori: 2006 Gold Resource Models

    Migori: 2006 Gold Resource Models 0.25 g/t gold cut-off to demonstrate the ore bodies’ continuity along strike Wireframe images extracted from NI 43:101 Report (2006)

  14. Slide 14: Migori: KKM Prospect

    Migori: KKM Prospect 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

  15. Slide 15: Migori: Nyanza Prospect

    Migori: Nyanza Prospect 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 footwall. Nyanza gold mine was exploited to 1968 and produced more than 83,000 oz Au

  16. Slide 16: Migori: Objectives

    Migori: Objectives  Build a 2Moz resource base  Follow up high grade intersections Investigate Macalder VMS and possible new ‘Macalders’ Upgrade KKM Resource model with view to early production  Plan for gold (+ ? other elements) production from tailings

  17. Slide 17: Exploration Stages

    Migori: Exploration Stages GIS Database Geophysics Geology PHASE 1 Drilling & VTEM Field Reconnaissance Aug 2009 Soil Geochemistry Magnetics/Radiometrics Maps & Cross-Sections Sep 2010 PHASE 2 Interpretation Oct 2010 Nov 2010 PHASE 3 Drilling Programme 17

  18. Slide 18: Migori: Phase 1 Exploration

    Migori: Phase 1 Exploration 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. Samples Grade (ppm Au) 12 1–5 14 5 – 20 1 35.8 18

  19. Slide 19: Migori: Phase 1 Exploration

    Migori: Phase 1 Exploration Macalder Tailings Dam JORC Indicated Resource: 1.424 mt containing 75,084 oz Au at 1.64 g/t 19

  20. Slide 20: Migori: Tailings Project

    Migori: Tailings Project Macalder Tailings Dam  The tailings is divided into two main zones based on how the Macalder ore body was processed: Calcines and Sulphides  Gossan tailings form the base of the dam  In early 2010, 437.5 metres were drilled over 38 holes across the dam  Shell and Augur d

  21. Slide 21: Migori: Tailings Project

    Migori: Tailings Project Macalder Tailings Dam  Mid- 2010: JORC-Compliant, Indicated Resource estimated  Estimate excluded 5 holes from smaller, adjacent tailings dam 1.424 million tonnes containing 75,084 oz Au at 1.64 g/t Zone Volume (m3) Tonnes (kt) Grade Au (g/t) Gold (oz) Sulphide 412,000 816

  22. Slide 22: Migori: Tailings Project

    Migori: Tailings Project Macalder Tailings Dam Red Rock plan to upgrade resource classification:  Require DGPS survey of main dam and smaller calcines dam to the south for more precise estimate of tonnage  Reassay of representative portion of the samples at another laboratory  Use metallurgical t

  23. Slide 23: Migori: Phase 1 Exploration

    Migori: Phase 1 Exploration VTEM Survey  Helicopter and fitted loop survey completed at end of July Survey Area  278 line-kms (100m spacing) covering Macalder Mine and Macalder area and Tailings Dam greenstone extension to Bushells (to the SE)  B-field, VTEM system for locating conductive anomali

  24. Slide 24: Migori: Phase 1 Exploration

    Migori: Phase 1 Exploration Magnetics/Radiometrics Survey Fixed-wing survey completed in Aug 2010  2,295 line kilometers flown at a 200m spacing  822 infill kilometers flown at a 50m spacing (over Macalder VTEM area)  3,117 line kilometers flown at 30m height Survey flown across both licences Res

  25. Slide 25: Migori: Phase 2 Exploration

    Migori: Phase 2 Exploration Autumn 2010  Finalize database – Integrate geology (maps and sections) and assay results and interpret with geophysics and geochemistry  Outline locations for infill holes for resource drilling (KKM, MK, NY and GM) and new targets for scout drilling based on geochemistr

  26. Slide 26: Gold: Colombia

    VT, GOLD: Colombia

  27. Slide 27: Colombia: Project Overview

    Colombia: Project Overview Gold Production  Production expected to rise to over 100 tonnes per day, Nov/Dec 2010  Loan with rights to acquire up to 15% of El Limon and La Aurora Mines  Frontino gold trend, oldest gold province in Colombia  60 year production history at El Limon  Gold treatment

  28. Slide 28: Colombia: Location

    Colombia: Location Drill core from Nyanza target Mine Location: Antioquia Region, NW Colombia 28

  29. Slide 29: Colombia: Frontino Belt

    Colombia: Frontino Belt Frontino Gold Belt Zaragoza El Limon La Aurora Segovia Mineralisation in the Frontino Gold Belt is controlled by the OTU FAULT (N-S) Remedios 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

  30. 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/part

  31. 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

  32. 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

  33. 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 agreed to acquire largest open pit manganese mine at Tshipi, S. Africa  83,734,165 shares

  34. 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

  35. Slide 35: Analyst and press commentary

    ‘…..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

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