Rox Resources Presentation, Resources Roadshow June 2013

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1 1 ASX: RXL Ian Mulholland, Managing Director Symposium Events Resources Roadshow – 18/19 June 2013 On The Road to Success

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Presentation from June Resources Roadshow 2013 in Sydney and Melbourne. Presentation given by Managing Director Ian Mulholland

Transcript of Rox Resources Presentation, Resources Roadshow June 2013

Page 1: Rox Resources Presentation, Resources Roadshow June 2013

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ASX: RXL

Ian Mulholland, Managing Director

Symposium Events Resources Roadshow – 18/19 June 2013

On The Road to Success

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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

Rox Resources Capital Structure

ASX Code: RXL

Issued Shares: 590.8m

Market Cap: $21.9m (at 3.7c)

Cash: $5.3m (31 March)

Enterprise Value: $16.6m

Managing Director: Ian Mulholland (Geologist) Chairman: Jeff Gresham (Geologist) Finance Director: Brett Dickson (Accountant) Exploration Manager: Will Belbin

Experienced Board & Management

Major Shareholders

HSBC Nominees 4.4% Avoca Resources 3.4% Rox Directors 3.1% Top 20 27.9%

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Investment Highlights

Significant nickel sulphide discovery at Fisher East

$15m Earn-in zinc partnership with Teck

Exposure to nickel, zinc, lead, copper, gold & silver

Tremendous exploration upside in all projects

Experienced Board and Management

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Rox Projects

• Mt Fisher Gold, & Fisher East Nickel Project acquired from Avoca in 2011, plus Option to Purchase deal

• Reward Zinc Project, Earn-in by Teck for $15m

• Bonya Copper Project earn-in by Rox for $1.5m

• Marqua Phosphate Project pegged in 2009

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Drilling has discovered a significant new body of nickel sulphides: 6.4m @ 3.8% Ni from 282.6m, from 11.4m @ 2.9% Ni 6.3m @ 2.5% Ni from 211.7m, from 16.3m @ 1.8% Ni 6.2m @ 3.3% Ni from 341.1m 2.7m @ 5.2% Ni from 483.0m

Fisher East Nickel Project

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Fisher East Nickel Location

Ni Occurrences

Mt Fisher Project located 150km north-east of Leinster, WA in North Eastern Goldfields of WA

Mt Fisher Greenstone Belt, 300km long, 655km2 tenement area

Agnew-Wiluna Belt, major nickel mines (55% of WA Ni total; 7Mt out of 12.7Mt), 10 Moz gold,

Nickel sulphide discovery at Fisher East – Opens up a major new area for nickel exploration

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VTEM flown over 3 areas: 2 gold belts and the Fisher East ultramafic belt Large VTEM anomalies along Fisher East Ultramafic 2 stages of RAB drilling

VTEM Targets

1st 2nd

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Recognition of nickel gossan in RAB drilling by Rox geologists

RC drilling on 50m and 100m spacing has defined nickel sulphide mineralisation along over 1.2km of strike

Diamond holes are hitting massive, semi-massive and disseminated sulphides down to over 450m deep, with grades such as 3.8% Ni over 6.4m

Mineralisation still open along strike and also open at depth

Southern Zone defined by new RC drilling

The Story So Far

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A Bit of Geology

Massive nickel sulphides coincident with EM conductor – occur at “basal contact”

Classic komatiite-hosted (Kambalda-type) nickel sulphide deposit type

Variable grade and thickness is typical

Basal contact is over-turned structural complications likely

Lower ultramafic unit hosts disseminated zone

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What’s Coming Up

Mineralisation is starting to be defined in a number of separate zones (shoots)

Intervening holes have hit nickel sulphides, but either thin or low grade

Main Zone is still open at depth in a number of directions

So far Rox has drilled 5,200m RC (33 holes) and 11,500m DD (32 holes)

Drilling on the Main Zone is being conducted using two strategies:

Infill at 50 x 50m

Down dip & plunge extensions at 100 x 100m

Downhole EM in deeper holes

Deeper drilling of new potential Southern Zone

Main Zone Northern Zone

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Drill Density

Drill Density is fairly low for this type of deposit

Mainly 100 x 100m with some infill to 50 x 50m

Compare this to Nova, which is now drilled to over 25 x 25m density

Camelwood is different to Nova – thinner, similar nickel grade but no copper, different types of deposits

Still very early days at Camelwood – more than half of the main conductor is yet to be drilled

Main Zone Northern Zone

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Longer than the length of the Sydney Harbour Bridge and roughly 3x the height.

Deposit Scale

1.2km

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Exploration Potential

Fixed loop ground EM survey along 8km of Fisher East Ultramafic belt identified a series of EM conductors

Strong EM anomalies confirmed at Camelwood, Corktree and Silverbark, and also between Camelwood and Silverbark ( over 3-4km)

Very sparse drilling to date on other EM targets - still to follow up

8km

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Gold Targets

VTEM flown over 3 areas:

2 Gold belts and the Fisher East ultramafic belt

Gold mineralisation at Mt Fisher mine has an associated EM anomaly due to sulphidic host rocks

Dam-Dirks area, major gold-in-regolith anomaly

Gold resource of 973,000 t @ 2.75 g/tAu* (86,000 ounces) defined at Mt Fisher, Moray Reef and Damsel

* Measured: 171,900 tonnes grading 4.11 g/t Au, Indicated: 204,900 tonnes grading 2.82 g/t Au, Inferred: 596,200 tonnes grading 2.34 g/t Au

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Gold Potential

Strong anomalies > 5 g/tAu

Three parallel structures

Multiple “hot spots”

Damsel

Shallow resource of ~54,000 oz, open at depth

Dam Central

High grill intercepts* including:

9m @ 7.1 g/t, 3m @ 17.4 g/t, 4m @ 9.0 g/t, and 8m @ 4.1 g/t

WA DME funding for 2 deep diamond holes

* Drawn from the Company’s 120,000m, 3,500 hole database

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But Wait…There’s More!

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Reward Zinc Project

SEDEX style zinc deposits

Adjacent to McArthur River Mine

Airport, gas pipeline, concentrate loader and port infrastructure all in place

Teck in a $15M Earn-in JV (to 70%)

Myrtle Deposit Resource* 43.6 Mt @ 4.05% Zn, 0.95% Pb, 5.04% Zn+Pb, 2.2 Mt zinc + lead metal

Strong drilling results from Teena prospect incl. 11.3m @ 10.9% Zn+Pb

* Indicated: 5.8 Mt @ 3.56% Zn, 0.90% Pb; Inferred: 37.8 Mt @ 4.17% Zn, 0.95% Pb

Myrtle/Reward

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Multiple Prospects

Significant Zn-Pb mineralisation at Myrtle and Teena

Rox has drilled ~5,000m at Myrtle

Discovery cost of ~ $1.80/t Zn (equiv. to $1.60/oz Au)

Teck to spend $5 million to earn 51% and a further $10 million for 70%

Teena prospect: 5,000m of drilling uncovered in 2012 - $2 million worth of drilling for free!

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Teena Model

4,500m diamond drilling about to start at Teena – fully funded by Teck ($2.75m budget for 2013)

Distance between drill holes 1.2km E-W and 800m N-S

Dimensions of Teena Basin, 1.5 x 1.0 km = Teck size target

First results in 3-4 weeks!

T4A: 22.2m @ 7.18% Zn+Pb, 19g/t Ag, incl. 8.6m @ 9.84% Zn+Pb, 23g/t Ag

T6: 7.3m @ 7.98% Zn+Pb, 5g/t Ag

T4: 11.3m @ 10.9% Zn+Pb, 14g/t Ag

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Bonya Copper Project

Similar in style to nearby Jervois deposits (13.5 Mt @ 1.3% Cu, 25 g/tAg)

279km2 tenement package

Outcrops of visible copper mineralisation at numerous locations, with assays up to 33% Cu and 55 g/tAg

Walk up drill target at old Bonya mine

Very little prior exploration for copper

Farm-in deal, Rox can earn 51% for $500K (2 years) and 70% for extra $1 million (further 2 years)

Geophysical (VTEM) survey in second half of 2013

Drill targets generated

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The Road Ahead

Diamond drilling ongoing at Fisher East Nickel project –diamond drilling currently underway – results ongoing

Drilling at Teena Zinc (4,500m) about to start – first results in 3-4 weeks

Bonya Copper VTEM survey and maybe drilling in second half of 2013

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Contact Rox Resources Level 1, 30 Richardson Street,

West Perth, WA, 6005 T: (08) 9226 0044 F: (08) 9322 6254

E: [email protected] W: www.roxresources.com.au