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ROX RESOURCES LIMITED — Investor Presentation 2012
Sep 25, 2012
65741_rns_2012-09-25_d762c0e7-665d-407d-8ffc-0b0c0b7549e6.pdf
Investor Presentation
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ASX: RXL
ROX RESOURCES LIMITED PRESENTATION
Ian Mulholland, Managing Director Wednesday, 26 September 2012
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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.
Exploration Targets
The potential quantity and grades of the exploration targets listed in this presentation are conceptual in nature, although they are based on reasonable expectations, but insufficient exploration to define a Mineral Resource has been carried out at this point in time, and it is uncertain whether further exploration will result in the determination of a Mineral Resource.
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Company Snapshot
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| Rox Resources Capital Structure | Rox Resources Capital Structure |
|---|---|
| ASX Code: | RXL |
| Issued Shares: | 398.4m |
| Market Cap: | $8.8m_(At 2.2c)_ |
| Cash (as at 30 June 2012): | $1.3m |
| Enterprise Value: | $7.5m |
Investment Rationale
Three large scale projects covering gold, nickel, zinc, lead and phosphate Tremendous exploration value upside Experienced Board and management team skilled in exploration, project development and operations
Experienced Board
Managing Director: Ian Mulholland (Geologist)
Chairman: Jeff Gresham (Geologist)
Finance Director: Brett Dickson (Accountant)
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Current Core Projects
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Myrtle/Reward Zinc Project, NT
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Myrtle/Reward Zinc Project
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Within 20km of McArthur River Mine Extensive infrastructure in place
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Resource[+] at Myrtle of 15.3 Mt @ 5.45% Zn, 1.40% Pb, 6.85% Zn+Pb, 1.0 Mt zinc + lead metal
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Within a larger resource[++] of 43.6 Mt @ 4.05% Zn, 0.95% Pb, 5.04% Zn+Pb, 2.2 Mt zinc + lead metal
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Myrtle/Reward
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Strong historic drilling results from Teena prospect ~ 10% Zn+Pb
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Resource still to be defined at Teena Exploration Target* 100-200 Mt @ 1012% Zn+Pb
- Indicated: 1.2 Mt @ 5.38% Zn, 1.42% Pb, Inferred: 14.1 Mt @ 5.45% Zn, 1.39% Pb
++ Indicated: 5.8 Mt @ 3.56% Zn, 0.90% Pb, Inferred: 37.8 Mt @ 4.17% Zn, 0.95% Pb
- Refer to Statement about Exploration Targets on Slide 2
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Major Zinc Projects
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6 of the 8 major zinc projects are in Australia
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3 of the 10 major zinc projects are in Canada, and 1 in China
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Most zinc production is in the range 8-15% Zn+Pb from smaller deposits, 20-100 Mt
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Multiple Prospects
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Significant Zn-Pb mineralisation
at Myrtle and Teena
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Rox has drilled ~5,000m at
Myrtle to define current resource of 43.6 Mt @ 5.0% Zn+Pb
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Discovery cost of ~ $1.80/t Zn (equiv. to $1.60/oz Au)
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Earn-in and Joint Venture (JV) with Teck signed in October 2010
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Teena prospect: 5,000m of drilling uncovered in 2012 - $2M worth of drilling for free!
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Many more prospects to be tested
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Myrtle Deposit
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Teena Deposit
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Teena Drill Core
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Drill core, 35 years old
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Sphalerite
Sphalerite
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Myrtle/Reward Joint Venture
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Teck is 3[rd] largest Zinc producer in the world
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Financial & technical strength ($16B market cap)
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~$2.5M already spent
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$5M to earn initial 51% by August 2014
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$15M to earn 70% by August 2018
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Myrtle drilling completed – results announced – further work being planned
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Field work at Teena and drill core processing in progress
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Why Zinc?
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CRU price prediction is from
$2,125/t (96 cents/lb) in 2012 to,
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$2,455/t in 2015, and
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$3,305/t (161 cents/lb) in 2016, a 67% increase
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Current global zinc market 12.5 Mtpa
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Global zinc supply will contract by 12% (1.5 Mtpa) from mine closures
Market will switch from surplus to deficit sometime in 2014 Xstrata spending $360 million to double McArthur River mine output
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Mt Fisher Gold Project, WA
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Mt Fisher Location
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17 Moz
10 Moz 5-10
Moz?
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Highly prospective location Norseman-Wiluna Belt, northern end 10 Moz Yandal Belt 17 Mozs Mt Fisher Belt (5-10 Moz?) Current JORC resource of 86,080 Au ounces – and growing 4 treatment plants within 150kms Nickel sulphide potential
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Mt Fisher Resources
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| Deposit | Tonnes | Grade (g/tAu) |
Gold (ozs) |
|---|---|---|---|
| Moray Reef | 31,800 | 7.50 | 7,664 |
| Mt Fisher | 215,200 | 3.57 | 24,707 |
| Damsel | 726,000 | 2.30 | 53,710 |
| TOTAL | 973,000 | 2.75 | 86,080 |
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Fisher East Ni
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Three different geological settings Numerous geochemical and structural targets
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Ni geochemistry over EM anomaly Large landholding of ~ 800km[2]
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The Mineral Resources quoted herein were released to the ASX on 10 February 2012.
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Measured: 171,900t @ 4.11 g/tAu; Indicated: 204,900t @ 2.82 g/tAu; Inferred: 596,200t @ 2.34 g/tAu
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Mt Fisher Mine Area
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Ultramafic
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Chert
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Similar geological sequence to Bronzewing deposit (3.6 Moz) Drilling indicates extension for at least 300m down plunge Current resource of ~25,000 oz and still open at depth
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Dam-Dirks
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Three parallel structures Multiple “hot spots” Damsel
- Shallow resource of ~54,000 oz , open at depth
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Dam Central
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Drill intercepts* include:
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9m @ 7.1 g/t
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3m @ 17.4 g/t
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4m @ 9.0 g/t, and
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8m @ 4.1 g/t
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Dirks
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Drilling intercepts* include:
- 2m @ 13.7 g/t
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Drawn from the Company’s 120,000m, 3,500 hole database
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Why Rox
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Growth through: Multiple strong projects Increasing mineral resource base Secure investment location (Australia) Proven track record of management and exploration success
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