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ROX RESOURCES LIMITED — Investor Presentation 2018
Sep 25, 2018
65741_rns_2018-09-25_12ae7bff-00cc-4e78-99f0-ccef631bac39.pdf
Investor Presentation
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ASX: RXL
Cashed Up Nickel Explorer Rox Resources Limited RIU Investor Roadshow 25 & 27 September 2018
ASX: RXL www.roxresources.com.au
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Disclaimers
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Forward-Looking Statements
This presentation has been prepared by Rox Resources Limited. This document contains background information about Rox Resources Limited current at the date of this presentation. The presentation is in summary form and does not purport be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.
This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.
This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.
This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
Competent Person Statements
Resource Statements
The information in this report that relates to nickel Mineral Resources for the Olympia deposit was reported to the ASX on 18 August 2017 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 18 August 2017 , and that all material assumptions and technical parameters underpinning the estimates in the announcement of 18 August 2017 continue to apply and have not materially changed.
The information in this report that relates to nickel Mineral Resources for the Fisher East project was reported to the ASX on 5 February 2016 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 5 February 2016, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 5 February 2016 continue to apply and have not materially changed.
The information in this report that relates to gold Mineral Resources for the Mt Fisher project was reported to the ASX on 28 March 2018 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 28 March 2018 , and that all material assumptions and technical parameters underpinning the estimates in the announcement of 28 March 2018 continue to apply and have not materially changed.
Exploration Results
To the fullest extent permitted by law, Rox Resources Limited, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.
This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Rox Resources Limited. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Rox Resources Limited does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.
Exploration Results herein are based on information compiled and released to the ASX as follows:
Fisher East and Mt Fisher (ASX:RXL Between 1 April 2011 and the present)
Collurabbie (ASX:FCN 17 August 2004, 10 November 2004, 3 December 2004, 8 March 2005, 5 July 2010, and 8 July 2011, ASX:RXL 10 October 2017).
In the case of the Exploration Results reported under the 2004 JORC Code, they have not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
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It’s All About Nickel
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“Valuation of peers is higher per resource tonne of Ni”
*See Appendix for resource details
“WA is a stable and reliable jurisdiction”
High Grade Nickel “Amongst the highest Sulphide Resources grade Ni in in WA WA”
“Ni price is up 70% in last year”
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Major Re-rating of
Rox share price
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4.8 Mt @ 2.0% Ni; 91,000t Ni*
Scoping Study Revision Underway
Upswing in Ni price underway
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Scoping Study Update
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Updated Scoping Study based on a new Conceptual Mining Study – stope optimisations, detailed mine schedule – optimum mining rate was 500 ktpa 1 Other parameters same as previous Scoping Study in 2015 1 ASX:RXL 17 February 2015 Three possible cases to be examined:
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Build a concentrator on site (Concentrator Case) Truck ore to nearby plant (Toll Mill Case)
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Increase mineable material by 50% with concentrator on site (Blue Sky Case) – based on Exploration Targets
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Amount of mineable material in Scoping Study expected to be > ~90% Indicated Resources
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Previous Scoping Study
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Low technical risk project :
o Toll milling – truck ore to nearby plant (two plants within 200km)
o Build a plant on site – truck concentrate for sale Decline to underground mine ~70-100m depth Standard underground mining techniques and costs Simple process flow sheet and logistics
Metallurgical recoveries, 80 – 99%, and saleable concentrate grades, 10 - 14% Ni, acceptable Fe:MgO ratios, low As (no penalties) Straight forward project dependent on nickel price Increased resources will increase mine life and project value
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Nickel Sulphide Discoveries
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Two exceptional high grade nickel sulphide resources in WA’s northern goldfields 70km apart
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150km from established infrastructure
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Fisher East Resources
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Total Mineral Resource of 4.2 Mt @ 1.9% Ni , for 78,000 tonnes Ni metal* Drilling to increase current resources and explore to identify new discoveries
* See Appendix for Mineral Resource details
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Resource Extensions
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MFED076: 7.7m @ 1.4% Ni, incl. 1.4m @ 2.9% Ni MFED076W1: 2.4m @ 2.4% Ni
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Blue Sky Achievable
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Sabre Exploration Target - - 1.5 2Mt @ 1.6 1.8% Ni
This Exploration Target is conceptual in nature, but is based on reasonable grounds and assumptions. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource
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Exploration ongoing on several targets along 25km of strike
Exploration Target of 1.5 – 2Mt @ 1.6 – 1.8% Ni at Sabre
Fresh sulphides in aircore at Mt Tate and Sholl Range to follow up
Over 40km of strike
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Collurabbie
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167 km2 of prospective tenure Main discovery at Olympia deposit Only 70km from Fisher East Widespread Ni-Cu-PGE mineralisation over ~15km strike length on multiple stratigraphic horizons
Underdone previous exploration Extensive and quality datasets of drilling and geophysics Drill targets for Ni-Cu-PGE and Au Counter-cyclical high quality acquisition at a relatively cheap* price
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- $25,000 cash + 7.5 million RXL shares (~$150K)
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Exploration Potential
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New exploration results at Olympia potentially extend mineralisation
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Olympia Mineral Resource of 573,000 tonnes @ 1.6% Ni, 1.2% Cu, 0.08% Co and 2.3 g/t Pt+Pd, 2.3% NiEq High grade drill intercepts Open at depth* Exploration potential over 15km of strike Metallurgical test work planned
* See Appendix for Mineral Resource details
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Nickel Deficit is Coming
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Graphic from Panoramic Resources (PAN) presentation 19 July 2018 (page 12)
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Key Points
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Fisher East Scoping Study Update underway Concentrator, Toll, and Blue Sky Cases being examined Large shallow mineral systems (over 10km in strike length, open at 700m depth, sulphides at 60m depth) Aggressively exploring tenements covering > 500km2 Straight forward underground mining & processing Excellent metallurgy and concentrate specs Strong treasury of cash & receivables = $12.8 million*
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* NPV of $3.75m receivable is A$2.4, plus $10.4m cash (as at 30 June 2018) Equipment and mine shown in top right photograph not owned by Rox
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Corporate Information
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| Capital Structure | Capital Structure | Capital Structure | Capital Structure |
|---|---|---|---|
| ASX Code: | RXL | ||
| Shares on Issue: | 1,259M | ||
| Share Price: | A$0.010 | ||
| Unlisted Options: | 65.8M | ||
| Market Cap: | $12.6M | ||
| Cash & Receivables* (at 30 Jun 2018): |
$12.8M | ||
| Debt: |
Nil |
||
| EV: | Trading at ~Ca ~~k~~ |
sh | $ - 0.2M |
| Top 20: ~~Bacing~~ |
22% | ||
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Rox Share Price, Last 12 Months
$0.04 40,000,000
Volume Share Price
$0.03 30,000,000
$0.02 20,000,000
$0.01 10,000,000
$0.00 0
Sep-17 Oct-17 Jan-18 Feb-18 Apr-18 May-18 Aug-18
Volume
Share Price $
Nov-17 Dec-17 Mar-18 Jun-18 Jul-18
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* NPV of A$3.75 million deferred payment from Teck for Reward sale is A$2.4 million
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Value Proposition
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Two relationships between EV/kt Ni and Ni grade – explorers and developers RXL EV/kt Ni is ~$300/kt Ni = $27 million
Cash & receivables have an NPV ~$13m
Rox’s market cap should be ~ $40m (>3 cents/share)
Independent research* has valued Rox at just that
*e.g. Bell Potter, Stock Analysis
Bubble size relates to amount of contained nickel
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Thank You
Rox Resources Limited Level 1, 34 Colin Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: [email protected] W: www.roxresources.com.au
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Appendix – Mineral Resources
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Fisher East Nickel, ASX:RXL 5 February 2016
| Deposit | Category | Tonnes (Mt) | Ni% | Ni (kt) |
|---|---|---|---|---|
| Camelwood | Indicated | 1.7 | 2.0 | 34.0 |
| Inferred | 0.3 | 1.5 | 5.0 | |
| Total | 2.0 | 1.9 | 39.0 | |
| Cannonball | Indicated | 0.24 | 2.9 | 7.0 |
| Inferred | 0.02 | 1.9 | 0.3 | |
| Total | 0.26 | 2.8 | 7.3 | |
| Musket | Indicated | 1.8 | 1.7 | 30.0 |
| Inferred | 0.1 | 1.5 | 1.5 | |
| Total | 1.9 | 1.7 | 31.6 | |
| TOTAL | Indicated | 3.7 | 1.9 | 71.0 |
| Inferred | 0.5 | 1.5 | 7.0 | |
| Total | 4.1 | 1.9 | 78.0 |
Olympia Nickel-Copper-PGE, ASX:RXL 18 August 2017
| Tonnes (kt) |
Ni % | Cu % | Co ppm | **Pd ppm ** | **Pt ppm ** | *NiEq % ** | NiEq (kt) | Pd+Pt (koz) |
|---|---|---|---|---|---|---|---|---|
| 573 | 1.6 | 1.2 | 820 | 1.5 | 0.85 | 2.4 | 13.5 | 43.0 |
*NiEq = (Ni grade x Ni price x Ni recovery + Cu grade x Cu price x Cu recovery) / (Ni price x Ni recovery) Where Ni price = US$10,300/t, Ni recovery = 85% (assumed), Cu price = US$6,322/t, Cu recovery = 85% (assumed)
Olympia: 1.0% Ni block cut-off grade. Values may not sum due to rounding.
Fisher East: 1.0% Ni block cut-off grade. Values may not sum due to rounding.
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