Roadshow Presentation Kalongwe High Grade Copper-Cobalt Project Katanga Province, DRC

Transcription

1 Roadshow Presentation Kalongwe High Grade Copper-Cobalt Project Katanga Province, DRC March

2 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. 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. 2

3 About Regal Resources Regal Resources Limited is focused on exploring high-grade copper and gold projects in the DRC. Management have a proven track record of making significant exploration discoveries and for fast tracking exploration projects into production in the DRC. Recently entered into a strategic JV alliance with Traxys Europe SA to acquire the Kalongwe high grade Cu and Co deposit in the Katanga Province of the DRC. Aims to delineate a significant (>200kt Cu) ore resource at Kalongwe in 2014 and generate very early cash flow. Stellar drilling intersections include 4.14%Cu and 4.1% Cu. Phase I drilling program currently underway at Kalongwe with promising early results. Holds extensive acreage in Eastern DRC contiguous with operations controlled by the Banro Corp (including Lugushwa (5.6Moz), Twangiza (8.5Moz) and Namoya (2.2Moz)). Continues to search for outstanding opportunities in Africa. 3

4 Share Ownership and Capital 1-Year Share Performance $A 000s Traxys Europe SA coacquisition of Kalongwe Project announced Commencement of Phase I Drilling Program Significant Shareholders Name Holding National Nominees Ltd 6.42% Energy Infrastructure and Res. Ltd 5.27% Serec Pty Ltd 4.32% McNeil Nominees Pty Ltd 4.09% Merrill Lynch (Australia) Nominees 4.28% Capital Structure Market Cap $8.9m (as at 5 March 2014) Cash $2.47m (as at 31 December 2013) Issued shares Share price chart 114.6m* Options $0.08 (October 2017) Fully diluted 135.1m Debt Enterprise value $0.5m $7.0m * Afrimines Resources SPRL: To be issued M additional shares as deferred consideration on DRC Gold Assets 4

5 Global Copper Africa has one of the world s largest accumulation of sediment-hosted stratabound copper deposits. 19 giant deposits in the Central African Copperbelt in the Democratic Republic of Congo and Zambia. Significant undiscovered copper resources remain to be discovered (USGS). R. Sillitoe, SEG, SP No #16 5

6 DRC Copper DRC has an estimated 10% of world supply of copper. Currently a global top 10 producer of copper. Second largest producer in Africa Production ~900,000tpa (2013). High-grade copper average of %. Katanga hosts largest high grade Cu deposits in the world. World class Cu mines being developed. Revenue from Cu is transforming economy. 800, , , , , , , , F Sources: USGS Mineral Resources Program, Bloomberg 6

7 Prime location in prolific DRC Copper Belt 7

8 Prime location with infrastructure advantages 8

9 Strong strategic alliance with Traxys Europe SA Regal Resources Traxys GICC 30% 30% Kalongwe Mining SA (DRC incorporated) PR % Regal Resources is responsible for managing exploration activities. Exploration and development costs to be co-funded by Regal and Traxys. Each party will contribute up to USD400,000 for a Phase I exploration programme (currently underway) and will continue to co-fund exploration on a 50/50 basis. Regal and Traxys have a right to jointly acquire a further 20% interest in the project at BFS (recouping costs up until BFS from independently audited NPV purchase price). When the project is in production, under the current ownership structure Traxys will have offtake rights on terms to be mutually agreed based on prevailing market conditions and benchmarked on terms of similar agreements between arm s length parties. PR was issued under 2002 Mining Code. There is no Gecamines involvement. 9

10 Fast-track to Resource and Early Cash-Flow Historic drilling has focused primarily on the NE corner of the property area-kalongwe ecaille. Regal expects to be able to incorporate historic results in a resource estimate, allowing early delivery of a maiden resource in Multiple fragments of lower Roan strata over strike of 2km remain to be tested. 10

11 Stunning historic copper drill results Ivanhoe completed 12,000m of drilling that included 53 diamond holes Intercepts, all from openpittable depths, include: 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, and 2.07% Cu and 0.43% Co 11

12 Extensive Cu oxide outcropping at Kalongwe 12

13 Historic Drill Core Wide, high-grade Cu intersections 13

14 Significant exploration upside Kamoa-type target stratigraphy Roan Strike Extensions Fragments of Roan hosted mineralisation have been identified over a strike of 2.7km, while only 450m have been explored. To date only the Kalongwe Fragment tested by systematic drilling. Cu mineralisation intersected in wide spaced scout drilling on other fragments within permit and along strike. Detailed exploration programme, including drilling, planned to test these other fragments. Potential to develop significant resource base hosted in Roan sediments. Second type of exploration target in permit relates to potential for Kamoa style of mineralisation. 14

15 Exploration Programme Regal are focused on a staged exploration and development approach of Kalongwe. Phase I Programme In Progress. Activities to include: Establishment of exploration camp and administration office Analysis and interpretation of existing dataset 1,800m of diamond drilling for JORC 2012 Compliance Regional mapping and sampling Appointment of metallurgical consultant to commence sighter testwork Delivery of maiden JORC resource Evaluation of early production options Phase II Programme to follow Phase I: Planned 5,000m infill drilling programme to upgrade maiden JORC Resource Drilling to confirm geology and extent of resources potential across the project area. 15

16 Phase I diamond drilling Key Objectives Four holes to validate historic drilling. Seven holes to test for extension to mineralisation ~1,800m in total planned. If results positive they will support maiden JORC resource. 16

17 Phase I: Confirmation Drilling Highlights Core logging of holes completed so far in Phase I gives visual confirmation of the historic drill intersections. DKAL_DD010T from 70.60m to 75.4m 17

18 Phase I: Extension drilling Highlights DKAL_22T extends interpreted mineralisation up-dip. Potential to expand the interpreted zone of mineralisation. Opens opportunity to grow mineralisation envelope along strike. 18

19 Potential to Fast-track Production (DMS plant) High grade copper oxide ore, potentially well suited for upgrading by HMS process. Mineralisation outcropping, very low strip ratio. Excellent access to year round water supply for processing. HMS plants available, and can be operated by on site generators. Strong demand for Cu concentrate from smelters in Kolwezi and Lubumbashi. 19

20 Timeline 2014 Pre-Feasibility Study 20

21 Investment Highlights Management has strong track record in country at Tiger Resources. Highly prospective Cu/Co project in prolific DRC Copperbelt. Potential for near-term significant JORC Resource and for early cash flows from accelerated start up of production. Low exploration costs and potentially low production costs. Exploration upside with further acquisitions likely. Strong JV partner with financing capabilities and in-country network. Management team with DRC exploration and development experience. Low Cost entry to a high leverage opportunity Regal Resources looks extremely undervalued at its current Enterprise Value (EV) of only $7m and a significant high-grade copper discovery RFC Ambrian 21

22 In-Country Management Highly experienced with prior DRC success Regal has established a highly experienced in country team of geologists and technical staff. The key members of the team have worked together for seven years on various DRC exploration projects including Tiger Resources Kipoi project. Michael Jackson, Exploration Manger Strong background in copper and gold exploration Mr Jackson set up the Tiger Congo regional exploration office in Lubumbashi in 2006 and recruited and trained a team of local geologists to manage and coordinate regional exploration on the Tiger Congo licences. Mr Jackson also managed and coordinated the establishment of the Kipoi Camp and coordinated drilling activities at Kipoi through to through pre-feasibility. He was instrumental in the discovery of the Sase Copper- Cobalt deposit which is the second largest deposit at the Kipoi Project after Kipoi Central. Issa Ganda, KMSA Deputy Project Manager Mr Ganda holds a dual DRC/UK national passport and is a successful Finance Professional holding a MA in Accounting and Finance. He has considerable experience in the mining sector. Positions include Head of Finance at First Quantum Minerals Plc for their operations in DRC, Zambia and Mauritania, Financial Controller at Xstrata/Glencore Plc. in Republic of Congo, CFO of Mineral Invest International and Executive Director and member of the Board of Wanga Mining Company, a Swedish Gold mining company in DRC. Issa also helped Ivanplats as General Manager in charge of Finance for their operation in Kipushi Corporation. 22

23 Board of Directors Proven record of exploration and development Regal s management and team have a proven track record of exploration and development success in the DRC including Tiger Resources (ASX:TGS) David Young, Managing Director Mr Young has significant expertise in the global mining industry with over 30 years experience across the fields of exploration, feasibility and project development. He also has considerable board and corporate experience that includes capital raising and debt financing. He is the former Chief Executive Officer of Tiger Resources Limited and has held senior exploration positions with leading mining companies including CRA Exploration, Renison Goldfields and Placer Pacific. Mr Young holds a MSc in Exploration and Mining Geology and is a Member of the Australian Institute of Mining and Metallurgy. Angus Edgar, Non-Executive Director Mr Edgar as been employed in the finance / stockbroking industry for 28 years, with the majority of that time employed with various stockbroking companies. Dr Simon Dorling, Technical Director Dr Dorling is an Exploration and Structural Geologist with over 19 years of industry experience. Dr Dorling is a Principal Consultant with CSA Global Pty Ltd and for the last 10 years has provided specialist technical support and project management to a variety of clients. Dr Dorling has a MSc in Geology and a PhD in Economic Geology from the University of Western Australia. He is a member of the Australian Institute of Geoscientists (MAIG). Rohan Gillespie, Non-Executive Chairman Mr Gillespie has over 25 years experience in business building and project development in the resources and renewable energy sector. He previously held senior roles with BHP Billiton in its engineering, coal and petroleum divisions. 23

24 Appendix

25 Katanga Stratigraphy 25

26 Summary of significant historic drill results Hole ID Utm X Utm Y From (m) To (m) Intersected Thickness (m) Results from AMC Technical Report, 2008 Cu % Co % DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD DKAL_DD

27 Significant mineralized outcrop and historical drilling. 27

28 Kalongwe deposit 3D modelling 28

29 Historic Drill Core DKAL_DD011T DKAL_DD011T from m to m DKAL_DD011T from m to m 29

30 Historic Drill Core DKAL_DD010T DKAL_DD010T from 70.60m to 80.75m 30

31 REGAL SK JV: The Ngoy Gold Project Large acreage in high-potential gold belt Controls over 2,000km² of gold exploration ground in the eastern DRC. Projects represent a strong strategic foothold in one of the world s least explored orogenic gold belts. Permits contiguous with major gold discoveries and operations controlled by the Banro Corp., including: Lugushwa (5.6Moz) Twangiza (8.5Moz) and Namoya (2.2Moz) 31

32 The Katudu Gold Project Maiden Resource Estimation for Ngoy Project Ngoy Gold Project established as high-grade gold deposit. Mineralisation open to the north and at depth. Parallel soil anomalies and initial drilling result to be followed up. Continuation of drill testing of the 6km soil anomaly. Regal Resources Limited Ngoy Gold Project - Mineral Resource Estimate Deposit Classification Tonnes (Million Tonnes) Au g/t Au Oz. ('000s) Kadutu Inferred Nyamikundu Inferred Combined Total Inferred Note: The Mineral Resource was estimated within constraining wireframe solids based on a nominal lower cut-off grade of 0.4 g/t Au. The Mineral Resource is quoted from all blocks within the interpreted mineralisation zones. Differences may occur due to rounding. 32

33 The Katudu Gold Project High grade Au intercepts at the Ngoy Project Mineralisation extends over 750m of strike and to 200m vertical depth. High-grade gold is present in multiple, steeply plunging lode structures within a more extensive mineralised system (shown above). Exploration target of 2-4 g/t Au over a 1km strike down to 150m. Drilling returned significant results, including: 5.40 g/t Au, 4.01 g/t Au, 3.66 g/t Au, g/t Au, and g/t Au. 33

34 The Matala Gold Project Significant Exploration Potential 3.0 by 0.4 km soil anomaly untested 34