Regis Resources Limited · ASX:RRL
Regis Resources — BMO Global Mining Conference 2008
24 slides from Regis Resources's conference presentation, February 2008
Slide 1: David Walker, CEO & Managing Director
David Walker CEO & Managing Director February 2008 February 2008 BMO Global Mining Conference
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements”. Such forward-looking statements may include, without limitation: ¾ Estimates of future results of exploration activities; ¾ Estimates of future cash flow; ¾ Estimates of future capital expenditure and resources; ¾ Es
Slide 3: Developing the Duketon Gold Project – Australia's Newest Gold Mine
“Developing the Duketon Gold Project – Australia’s Newest Gold Mine” February 2008 BMO Global Mining Conference
Slide 4: Company Overview
Company Overview Project - 2.8 Moz of gold in resource in 8 deposits - proposed 200koz pa project, initial 7 year life - total cost A$148m - significant exploration upside - 100% ownership of the camp Financial - A$1.5m of cash (30 December) - A$50m of tax losses on commencement of production Capita
Slide 5: 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 region ¾ Nickel – Collurabbie belt ¾ Copper Well JV (Regis manager, 50% earning 85%) ¾ Melita JV (Regis m
Slide 6: Duketon Gold Project Deposits
Duketon Gold Project Deposits 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 discovered in 2001 ¾ Dogbolter, King John unmined ¾ Eight separate deposits ¾ Moolart Well key asset ¾ All 8 deposits on granted Mining
Slide 7: Moolart Well Project – Schematic Section
Moolart Well Project – Schematic Section Looking North February 2008 BMO Global Mining Conference
Slide 8: 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 indicated resource of 462,000 ozs ¾ Further 54,000 ozs of low grade ¾ Down to 20 m vertical depth only ¾ Usually less than 5m of cover ¾ Average ore thickness of 4m ¾ Highest grade 50g/t ¾ Average 10
Slide 9: Moolart Well – Oxide Zone (20-70m)
Moolart Well – Oxide Zone (20-70m) ¾ Between 20-70m vertical depth ¾ 611,000oz in JORC Indicated + Inferred resource ¾ Further 178,000 ozs in low grade ¾ Most zones open along strike and all open at depth ¾ Significant high grade >10 oz/t ¾ 10-35% gravity gold recovery ¾ Total gold recoveries >95% ¾
Slide 10: Duketon Gold Resources
Duketon Gold Resources Duketon Gold Project Indicated Inferred Total Resources cut-off Resource Statement million grade gold million grade gold million grade gold grade tonnes g/t koz tonnes g/t koz tonnes g/t koz g/t source Moolart Well Laterite 10.3 1.39 462 10.3 1.39 462 0.5 Golder Oxide 4.8 1.44
Slide 11: Moolart Well Project – Reserves
Moolart Well Project – Reserves ¾ 3.0 mtpa optimum, 200k oz pa ¾ 7 year mine life ¾ A$875 and $1000/oz gold price ¾ 2007 industry operating costs ¾ 2 large pits about 2km long each ¾ Drives to base of drilling in several places ¾ Open and economic at depth ¾ Significant gaps in drilling, especially
Slide 12: Site Infrastructure Plan
Site Infrastructure Plan ¾ Initial site design completed ¾ Sterilisation and foundation drilling underway ¾ Airstrip location determined February 2008 BMO Global Mining Conference
Slide 13: Preliminary Plant design
Preliminary Plant design February 2008 BMO Global Mining Conference
Slide 14: Permitting
Permitting ¾ All 2.8 moz of resources now on granted Mining Leases ¾ No Native Title issues ¾ Environmental assessment process determined ¾ Part V of the EPA Act ¾ Statutory approvals follow ¾ Expected completion 2008 February 2008 BMO Global Mining Conference
Slide 15: DFS Progress
DFS Progress DFS Element % completion complete date Resources 80 May-08 Reserves and mining 75 May-08 Metallurgy 90 Mar-08 Infrastructure Design and Pre-Works Processing Plant 75 Mar-08 Water supply 30 May-08 Airstrip 80 3Q08 Village, access, communications 75 4Q08 Documentation Financial modelling
Slide 16: Project Capital Costs
Project Capital Costs Capital (contract mining + contract power) A$m Plant 62 Infrastructure 36 EPCM 10 Owners Costs 16 Working Capital 5 Contingency (15%) 20 Total 148 Feasibility Completion 5 +10% contingency 15 Total 168 February 2008 BMO Global Mining Conference
Slide 17: Exploration Upside – 1. Moolart
Exploration Upside – 1. Moolart ¾ Oxide full interpretation will increase tonnes and grade ¾ Currently 1.5 moz at 0.3g/t cut-off down to 70m (5 moz of contained gold at a 0.0 g/t cut-off grade) ¾ Potential down to 500m? ¾ Deep drilling commenced ? February 2008 BMO Global Mining Conference
Slide 18: Exploration Upside – 40km Moolart Corridor
Exploration Upside – 40km Moolart Corridor Gold in the top 1m Arsenic in 25-80m drilling February 2008 BMO Global Mining Conference
Slide 19: New Collurabbie Nickel Province
New Collurabbie Nickel Province ¾ Regis main player in the area ¾ Massive Ni sulphides at Olympia 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 in 7. ¾ Best result 3m at 2.02%Ni February 2008 BM
Slide 20: 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 BILL COWAN Anglogold Ashanti, Worsley Alumina Non-Executive Director February 2008 B
Slide 21: Capital Structure
Capital Structure Ord $0.50 opt $1.00 opt $2.00 opt RRL RRLO RRLOB RRLOA 2014 2012 2012 Newmont 55.8 42% 16 Institutions 47.0 35% 6.0 1.0 Public 28.3 22% 2.2 1.7 1.7 Directors 1.3 1% 1.3 1.2 0.9 Total 132.4 9.5 3.9 2.6 • also 4.9m $0.90, $1.40, $1.50, and $1.80 unlisted staff options February 2008 B
Slide 22: Resource Growth
Resource Growth moz Regis Resources NL Project and Equity Resources 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Nov-07 Aug-04 Jun-05 Jun-06 Jun-07 Project Resources Equity Resources M&I resources February 2008 BMO Global Mining Conference
Slide 23: RRL Market Capitalisation
RRL Market Capitalisation Regis Resources NL A$m Market Capitalisation and Share Price $ps 200 1.80 180 1.60 160 1.40 140 1.20 120 1.00 100 0.80 80 0.60 60 0.40 40 20 0.20 0 0.00 Nov-04 Nov-05 Nov-06 Nov-07 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 May-04 Sep-04 May-05 Sep-05 Ma
Slide 24: Summary
Summary ¾ 2.8 moz in resource in eight deposits ¾ 1.5 moz at Moolart Well down to 70m ¾ DFS 60% completed ¾ Reserves expected shortly ¾ Near term production ¾ Significant exploration upside ¾ Strong nickel potential at Collurabbie February 2008 BMO Global Mining Conference