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ROX RESOURCES LIMITED — Investor Presentation 2011
Jun 15, 2011
65741_rns_2011-06-15_3e450dde-ebec-4849-86cd-c3ceb58bbfae.pdf
Investor Presentation
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ASX: RXL
ROX RESOURCES LIMITED
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A Diversified and Well Funded Explorer
Ian Mulholland, Managing Director Gold Coast Resources Showcase, 16 June 2011
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Competent Person Statement
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ian Mulholland BSc (Hons), MSc, FAusIMM, FAIG, FSEG, MAICD, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Mulholland has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Mulholland is a full time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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Rox Strategy
• Potentially large projects • Favourable locations • Always looking for opportunities
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Project Locations
Myrtle Zinc
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Current resource contains 40Mt @ 5% Zn+Pb
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Potential for major zinc deposit, just 20km from established mine
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$15M JV with Teck Resources
Marqua Phosphate
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Potential for large phosphate deposit
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• Surface samples up to 39% P2O5
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• Drilling results include 6m @ 19.9% P2O5, and 5m @ 23.7% P2O5
Mt Fisher Gold-Nickel
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785km[2] of the Mt Fisher Greenstone Belt
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High Grade drill intercepts
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• Significant gold-in-regolith anomalies up to 7km long
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Myrtle Location
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20km south of McArthur River Pb-Zn mine
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700km by air from Darwin, 900km by road
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On pastoral lease – limits NT
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Northern Territory Government very “prodevelopment”
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Adjacent to existing mine infrastructure at McArthur River (e.g. airport, road, gas pipeline, port)
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• Favourable for SEDEX (very large) style Pb-Zn deposits
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McArthur River mine is world class size
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Rox owns 100% of 669 km[2 ] tenement area
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Number of exploration prospects
Geology
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20km
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Current Resource
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• 43.6 Mt @ 4.1% Zn, 0.9% Pb* (3% Zn+Pb cut-off)
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Indicated 5.8 Mt @ 3.6% Zn, 0.9% Pb
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Inferred 37.8 Mt @ 4.2% Zn, 1.0% Pb
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2.2 Mt contained Zn + Pb metal (4.8 B lbs)
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15.3 Mt @ 5.5% Zn, 1.4% Pb* (5% Zn+Pb cut-off)
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Indicated 1.2 Mt @ 5.4% Zn, 1.4% Pb
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Inferred 14.1 Mt @ 5.5% Zn, 1.4% Pb
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There may be small rounding errors due to the use of significant figures. Cross-section polygonal resource estimation method used.
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Myrtle Basin Potential
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New Eastern
Zone discovered
High Grade Nov 2009
Target Current Resource
43.6 Mt @ 5.0% Zn+Pb
IP Anomalies
High Grade
Target
Open pit potential
confirmed over 700
metres strike
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Myrtle Basin Potential
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Open Pit
Potential
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McArthur River Model
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After Ireland et. al.
New drill holes to test
High Grade Target
Central Zone of High
Grade (1 x 2km) Existing drill holes
surrounded by Nodular located in fringe
Nodular Carbonate
Carbonate Zone
Zone
1km
Section
Plan
2km
Ireland et. al., 2004, Econ Geol. v.99, p 1687-1709, Figures 13 and 18
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* Ireland et. al., 2004, Econ Geol. v.99, p 1687-1709, Figures 13 and 18
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Joint Venture
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Teck is world’s 2[nd] largest Zinc producer production expertise
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US$9B Mkt Cap Financial strength long term funding
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• Minimum spend of $1M, including 2,000 metres of drilling (will be completed in 2011)
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$5M to earn initial 51% over 4 years
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$15M to earn 70% over 8 years
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Teck want to investigate “all prospects”, not just Myrtle long term involvement
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Giant Zn Deposits - Australia
| Deposit | Owner | Mt | Mt |
|---|---|---|---|
| Ore | Pb+Zn | ||
| Broken Hill | Perilya, CBH | 280 | 51.8 |
| (BHP) | |||
| McArthur River | Xstrata | 227 | 30.4 |
| Mount Isa | Xstrata | 150 | 19.5 |
| Hilton | Xstrata | 120 | 20.3 |
| George Fisher | Xstrata | 107 | 17.7 |
| Myrtle (target) | Rox/Teck | 100-120 | 10-12 |
| Century | MMG | 95 | 14.1 |
| Dugald River | MMG | 48 | 6.8 |
| Cannington | BHP | 44 | 7.0 |
| Myrtle (current) | Rox | 44 | 2.2 |
| Lady Loretta | Xstrata | 14 | 3.1 |
Myrtle
Apart from Myrtle, all owned by MAJORS
20% of the world’s zinc reserves are contained in the Northern Australian Zinc province
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Mt Fisher Location
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Greenstone belt prospective for gold and nickel
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About 450km north of Kalgoorlie
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Several multi-million ounce deposits on adjacent belts (e.g. Yandal Belt 17 Mozs)
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Mt Fisher greenstone belt hasn’t had a major discovery yet – similar to Yarmarna belt
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Several known gold occurrences, so no reason it won’t contain large deposits
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Small scale mining has occurred at Mt Fisher, so economic deposits are known
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Nickel potential along eastern ultramafic belt, demonstrated further north at the AK47 prospect
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Gold Anomalies
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Rox tenement area is 615 km[2,] acquired from Avoca Resources
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Three main prospect areas: Moray Reef, Dam-Dirks, Mt Fisher East
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High grade drill hits at Moray Reef, including 3m @ 67 g/t, 1m @ 187 g/t and 3m @ 8 g/t
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Gold-in-regolith anomaly at Dam-Dirks is 7km long with many high grade drill hits
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Gold-in-regolith anomaly at Mt Fisher East is 2-3km long
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Option to acquire 170 km[2] more ground including Mt Fisher gold mine
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14 km of ultramafics, prospective for nickel sulphides
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Large areas still unexplored
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Dam-Dirks
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Three parallel structures
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Each structure has several “hot spots” which could relate to cross-cutting structures and/or sub-parallel splays
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Dam is the main prospect, although Dirks not drilled as extensively
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Drill intercepts at Dam include:
9m @ 7.1 g/t 3m @ 17.4 g/t 1m @ 45.6 g/t 4m @ 9.0 g/t 2m @ 16.6 g/t, and 8m @ 4.1 g/t
- Drilling at Dirks includes:
2m @ 13.7 g/t
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Regolith Patterns
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300m
200m
Bronzewing (3.6 Moz) Mt Fisher (Dam Prospect)
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Surficial enrichment & dispersion around Base of Overburden
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Zone of depletion to just above Base of Oxidation (also gold enrichment here)
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• Structures in fresh rock need to be located and followed down with drilling
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Mt Fisher Mine Area
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Similar geological sequence to Bronzewing, basalt sulphidic chert ultramafic
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• Mineralisation is plunging to south open at depth
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Still a lot of potential at Mt Fisher
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Targets Along Strike
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Host to mineralisation at Mt Fisher is sulphidic chert
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Coincident magnetic and EM anomalies at Mt Fisher
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Magnetic anomaly at Moray Reef also
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Plan to fly detailed aeromagnetics and VTEM
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Several targets already
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VTEM also along ultramafic nickel sulphide targets
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450 km ENE of Alice Springs
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Adjacent to NT-QLD border
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Gravel road access from Alice Springs (and through to Mt Isa)
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Located on pastoral leases limits NT
Marqua Location
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Georgina Basin, NT
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Georgina Basin is the main hard rock phosphate province in Australia
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86% of Australia’s current phosphate resources
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Only operating mine is at Phosphate Hill (QLD) @ 2 Mtpa
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Other advanced phosphate projects are Wonarah , and D-Tree (Paradise)
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Marqua phosphate project is 250 km from western QLD gas pipeline and nearest railhead at Phosphate Hill (south of Mt Isa)
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Marqua Project
25 km
3m @ 16.9% P2O5
5m @ 23.7% P2O5
3m @ 21.0% P2O5
5m @ 26.1% P2O5
Limited Previous Exploration
•Rock chips (up to 39% P2O5)
•Soil Sampling
•Air core drilling
Border
NT-QLD
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Company Snapshot
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ASX Code: Issued Shares: Market Cap: Options:
RXL 371,432,767 $13.0 million (at 3.5 cents)
30,160,238 $0.10 30 June 2011 29,886,277 $0.015 31 July 2011 3,750,000 $0.038 26 Sep 2012 Cash: (at 31 March 2011): With Teck share placement and Options exercise Directors & Executive: Chairman: Jeff Gresham Managing Director: Ian Mulholland Finance Director: Brett Dickson
Listed RXLO Listed RXLOA Unlisted $4.5 million $5.4 million (Geologist) (Geologist) (Accountant)
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Share Price
| $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 Share Price $ |
0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 01-Jun-10 01-Jul-10 31-Jul-10 30-Aug-10 29-Sep-10 29-Oct-10 28-Nov-10 28-Dec-10 27-Jan-11 26-Feb-11 28-Mar-11 27-Apr-11 27-May-11 Volume Rox Share Price 1 June 2010 to 31 May 2011 Announce deal with Rio to remove $1/tonne payment Announce $15 million JV with Teck Announce Capital Raising Japan Tsunami |
||
|---|---|---|---|
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Rox Share Price Drivers • Drilling at Myrtle 2,700 metres in 2011
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• Drilling at Mt Fisher 3,500 metres in JuneJuly 2011
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Follow-up drilling at Mt Fisher later in 2011
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• Drilling at Marqua 2,000 metres
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3[rd] / 4[th] Quarters 2011
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Summary
Projects in known areas for world class deposits
Myrtle
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JV funding secured with major zinc company
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• High grade targets ready to be tested by drilling
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• Large mineral resource and will get bigger
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• Myrtle look-a-likes on tenements for exploration
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Mt Fisher
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Potential to establish high grade gold resource/s
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Marqua
• Potential to establish large resource in new phosphate area
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Thank You!
Ian Mulholland Managing Director Rox Resources Limited Level 1, 30 Richardson St, West Perth WA 6005 Australia Ph: +61-8-6380-2966 www.roxresources.com.au
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