Kalongwe High Grade Copper-Cobalt Project Katanga Province, DRC

Transcription

1 Kalongwe High Grade Copper-Cobalt Project Katanga Province, DRC ADU Perth, September

2 Executive Summary Company s strategic focus is on delivering value through the development of high grade Copper projects. Flagship Project is the Kalongwe Deposit, Katanga Province, DRC Advancing rapidly and delivering on key milestones Maiden Resource Estimate of 2.65% Cu =276,000T 0.69% Co = 43,000T Drilling underway designed to upgrade and expand resource Positive metallurgy results indicate HMS as potential viable option Scoping Study commenced Exploration in progress to test for new discoveries Board and management with proven track record in DRC 2

3 Kalongwe Mining SA Ownership Regal Resources Traxys, Europe La Generale Industrielle et Commerciale au Congo 30% 30% 40% Kalongwe Mining SA (DRC incorporated) PR Notes: Regal Resources responsible for managing exploration activities Exploration and development costs co-funded by Regal and Traxys Agreed formula to recover at BFS - GICC s prorataed contribution to costs calculated from start of JV 3

4 Regional Geology 4

5 PR Exploration History Copper mineralisation first identified in 1902 but no systematic exploration until 2006 Multiple fragments of Lower Mine Series rocks of the Roan Group identified from historic mapping. Ivanhoe Mines (IM) completed 12,000m of drilling over Kalongwe Fragment 2006/2007 IM transferred area now covered by PR12198 to GICC in IM moved focus to Kamoa Regal/Traxys entered into agreement with GICC November 2013 Phase 1 drilling commenced in early 2014 Acquired IM database - estimated value ~$5M Delivered Maiden JORC Resource in July 276,000t Cu Phase 2 drilling started August,

6 that rock is worth more than Voisey's Bay rock (R. Friedland, 2007) Stellar historic drill intersections: 3.38% Cu and 0.93% Co : 4.14% Cu : 3.38 Cu 2.22% Cu and 0.84% Co: 2.98% Cu and 0.46% Co 2.07% Cu and 0.43% Co: 4.14% Cu and 0.57% Co 6

7 Phase I Diamond Drilling 12 holes for 1,800m at very competitive drilling rates Twin holes validate historic drilling. Other holes test for continuity and extension of mineralisation 7

8 Validation of Exploration Model Results confirmed historic drilling Multiple thick high grade intersects Excellent continuity between holes Robust geology Strong structural control Significant near surface high grade Co zones Support JORC Resource Estimate 8

9 Geological Model 9

10 Maiden JORC Resource Prepared by independent consultants CSA Global Pty Ltd in July 2014 Based on data from 65 drill holes (12,239m) conducted 2006/2007 and 2014 Base of oxidation varies between 150 to 180m below surface Broad zones of high-grade Cu-Co extend down dip from surface exposure High grade Co intersections outline potential ore zone at shallow depth Potential to grow resource both down dip and down plunge JORC Classification Domain Tonnage (Mt) Cu (%) Co (%) Tonnes Cu Tonnes Co Inferred Cu Only ,000 - Inferred Mixed ,000 29,100 Inferred Total Cu Domains ,000 - Inferred Co Only ,400 Inferred Total Co Domains , ,100 (Co credits in Mixed zone) 10

11 Resource Block Model High-grade mineralisation start at surface Coherent wide high-grade mineralisation extends 130m be surface 11

12 Potential for Low Capital Operation Preliminary Metallurgical Testwork Undertaken by Mintek of South Africa Programme designed to evaluate capacity of copper oxide (malachite) to be upgraded by commercial HMS plant and spirals Composites of oxide samples representative of 80% of resource (DKAL_DD010T) (surface outcrop) 12

13 Positive Results Study indicates potential to produce a +20% Cu concentrate using commercial HMS plant and spirals Cobalt can be enhanced by HMS process Low level of slimes generated improved recovery rates Confirmation metallurgical testwork required via large diameter drilling 13

14 Staged Exploration Approach Phase I Programme Activities Establishment of exploration camp and administration office Analysis and interpretation of Ivanhoe database 1,800m of diamond drilling - validation of historic results Detailed preliminary metallurgical test work Development of geological model Delivery of maiden JORC Mineral Resource estimate Successful exploration campaign discovery cost of $0.003c/lb Cu Transfer of permit title to Kalongwe Mining SA Results support start of Phase 2 programme 14

15 Phase 2 Drilling Programme Commenced in August Two diamond rigs mobilised to site 5,000m of diamond drilling Tighter drill out to upgrade resource Test for extensions Dedicated metallurgical and geotechnical holes 15

16 Phase 2 Drill Targeting 16

17 Targets to Build Resource Base Fragments of Roan hosted mineralisation identified over a strike of 2.7km Only the Kalongwe fragment tested by systematic drilling. New data shows Cu intersected in scout drilling on other fragments both within permit and along strike. Untested regional soil anomalies. Second type of exploration target in permit relates to potential for Kamoa-style of mineralisation (Cu in soil results) (Co in soil results) 17

18 Kalongwe Going Forward A significant high-grade oxide Cu-Co near surface resource which has potential to be developed into a near term - low CAPEX mining operation LOW COST ENTRY TO A HIGH LEVERAGE OPPORTUNITY 18

19 Corporate Snapshot Significant Shareholders Name Holding Merrill Lynch (Australia) Nominees 6.43% JP Morgan Nominees Australia 4.85% National Nominees Ltd 4.58% Energy Infrastructure and Res. Ltd 3.94% Serec Pty Ltd 3.22% Capital Structure Market Cap $9.6m (as at 1 September 2014) Cash $2.4m (as at 30 June 2014) Issued shares 153.0m Options $0.08 (October 2017) Fully diluted 175.0m Daily stock price chart for the previous 3 months for the security RER Debt Enterprise value $0.5m $7.7m 19

20 Board of Directors Proven record of exploration and development Regal s hands on management team have a proven track record of exploration and development success in West Africa and the Democratic Republic of Congo. David Young, Managing Director David has over 30 years experience in the global mining industry across the fields of exploration, feasibility and project development. Former CEO of Tiger Resources Limited, and has held senior exploration positions with major mining groups. Dr Simon Dorling, Technical Director Simon is an Exploration and Structural Geologist with over 19 years of industry experience. Has extensive specialist knowledge of African Copperbelt, closely involved with Anvil Mining and Tiger Resources, and is a Principal Consultant with CSA Global Pty Ltd. Rohan Gillespie, Non-Executive Chairman Mr Gillespie has over 25 years experience in business building and project development. He previously held senior roles with BHP Billiton and is CEO of Red Sky Energy Limited Mark Savich, Non-Executive Mark has strong background in the technical and corporate aspects of resource companies, from explorers to producers. For last 8 years was a resources analyst and is currently an Executive Director of Global Resources Corporation Limited. Angus Edgar, Non-Executive Director Angus has been employed in the finance / stockbroking industry for 28 years. 20

21 Disclaimer & Competent Person Statement Disclaimer: The purpose of this presentation is to provide background information to assist in obtaining a general understanding of the Company's proposals and objectives. This presentation may contain some references to forecasts, estimates, assumptions and other forward looking statements. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. This presentation is not to be considered as a recommendation by Regal Resources or any of its subsidiaries, directors, officers, affiliates, associates or representatives that any person invest in its securities. It does not take into account the investment objectives, financial situation and particular needs of each potential investor. Investors should make and rely upon their own enquires and assessments before deciding to acquire or deal in the Company s securities. If you are unclear in relation to any matter or you have any questions, you should seek advice from an accountant or financial adviser. All references to dollars ($) and cents in this presentation are to Australian currency, unless otherwise stated. The results of exploration activities represented in this presentation have been previously reported to ASX via the Company s ASX Announcement Platform on 11 July 2014 and 7 August 2014 respectively. Competent Person Statement: Scientific or technical information in this release has been prepared by Mr David Young and Dr Simon Dorling, the Company s Managing and Technical Directors. Mr David Young is a member of the Australian Institute of Mining and Metallurgy (AusIMM) and Dr Simon Dorling are members of the Australasian Institute of Geoscientists (MAIG) and both have sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr David Young and Dr Simon Dorling consent to the inclusion in this report of the Information, in the form and context in which it appears. 21