Investor Update May 2017 an emerging gold miner 0
Corporate overview Capital Structure Development Timeline ASX code REZ 2014 Acquired Mount Mackenzie leases and commenced resource evaluation Shares on issue 95.6m Maiden JORC (2012) resources reported 2015 Options on issue 43.0m Purchased key property over project area Market capitalisation (@14c) $13.4m Acquired Radio project 2016 12 month price range(cps) 10-17 Raised equity $1m and 12 month VWAP (cps) 12 project development notes $3.7m Radio site works put in place and gold Shareholders processing equipment acquired. Completed Top 20 Shareholders 61.4% site investigations at Mount Mackenzie for project scoping studies Number of shareholders 396 Radio mine shaft dewatered. Head Frame 2017 Major Shareholders installed, project management plan Arthur Phillip Pty Ltd 13.3% approved, face sampling commenced. & related entities Mount Mackenzie Metallurgical testing Terra Capital 9.1% completed, scoping studies to assess development options commenced. 1
Key investment points Corporate Focus on brown field gold opportunities, two sites currently being developed • Emphasis on low upfront development costs with potential for organic growth beyond historic areas • • Actively reviewing numerous gold opportunities in the 25,000 to 200,000 ounce range Experienced and engaged board • Radio Historic mine shaft refurbished and dewatered • Face sampling of exposed lodes include grades of 12 to 54 grams/tonne* • Bulk sampling at Radio mine to commence in June-July 2017 • Validation of resource model in progress with view to determining a JORC (2012) resource • Mount Mackenzie Resource totals 100,000 ounces of contained gold and 634,000 of contained silver (JORC 2012)**, comprising • Indicated 49,000 ounces (1.1m tonnes 1.3grams/tonne) and ; • Inferred 51,000 ounces (1.2m tonnes 1.2grams/tonne) • • Scoping study for low capital cost start-up option is progressing 2
Mt Mackenzie Project summaries Radio Radio Gold 9.8km 2 Lease area REZ interest 100% Tenement Standing Granted mining lease, expiry 2036 Resources Historical resource estimates are being evaluated with a view to conversion to contemporary JORC 2012 standards Project status Mine dewatering and refurbishment of shaft completed. Headframe and winder installed, and underlay egress underway. Face sampling commenced and mine operations scheduled to commence in June 2017 Mt Mackenzie 26 km 2 Lease area REZ interest 100% Tenement Standing Granted Exploration Permits with ability to convert to Mineral Development License Resources (JORC 2012)** Indicated 49,000 oz au (1.1m tonnes 1.3grams/tonne) Inferred 51,000 oz au (1.2m tonnes 1.2grams/tonne) Project status Scoping studies for Mine Development Options have commenced 3 Geochemical survey over Clive Creek Prospect completed-positive results.
Radio – background and historic performance Radio mine privately owned for 50 years to • 1974. Mining ceased in 1970’s after gold prices fell to low of <A$200/oz Historic mining extended to 100 meters below • surface, and produced 71,000 ounces of gold at a grade of 38.5g/tonne (700 ounces per vertical meter) Product rates of up to 3,900 ounces per annum • were achieved with small scale, handheld mining techniques Acquired by REZ May 2016 • Figures provided by previous, private owners of Radio mine 4
Radio – site overview Radio leases are located within Southern Cross • Province of Achaean Yilgarn Craton. Region is a highly productive gold bearing greenstone belt which includes the Copperhead Gold Mine (1 million ounces gold produced to date) Regulatory approvals granted for mine operations • Dewatering of mine completed to level 10 and • inspected. Workings are in good condition and minor remedial work is underway • Site preparation including shaft refurbishment and placement of head frame completed Assembly of processing plant due for completion • June-July 2017 Bulk sampling of main lode expected to commence • June-July 2017 Face sampling and survey of workings targeting • 5 locations for bulk sampling commenced
Radio – site equipment • As a part of the Radio acquisition, REZ acquired most of the required components for a site specific10tph gravity gold plant. This plant is being refurbished and configured to accept bulk sample material • Tailings material from the gravity process will be stored onsite for subsequent treatment Head frame and winding equipment have been installed • at low cost. Permit for man-riding expected by June 2017 Fully functional camp facilities on site • Compact drilling equipment purchased to test load • extents ahead of development 6
Radio Project – site equipment Ball mill 10tph and Radio mine shaft entrance Dewatering dam 7
Radio Project – on site processing plan Extraction of 5,000 ounces per annum is • expected with a minimum operating period of 4 years. Expected cash operating costs of • $700/ounce (or less) At current gold price of approximately • A$1,600/ounce, net ash flow of $900/ounce expected $18m positive cash flow • 8
Radio Project – underground access Preliminary rock chip sampling undertaken in • development faces, • stoping areas, • loose rock in mine drives • Systematic lode sampling program being developed to • pin point initial bulk stoping mining locations Mine services installed underground • • Shaft refurbishment completed and skip installed in shaft Head frame and man-riding hoist undergoing final • Main Shaft Sump level 10 commissioning in preparation for final regulatory approval Services from previous workings at level 10 9 Main Shaft Bottom looking Up
Radio Project – underground sampling Isometric View of Radio Mine Workings recent sample results 10
Radio Project – underground sampling Systematic and safe access being established to old • work areas for the purpose of sampling Old workings contain considerable quantities of blasted • rock, pending assays this material may prove beneficial to the commissioning of the Radio gravity plant Reconnaissance sampling undertaken from selected • lode exposures and broken floor rock immediately adjacent to the 10 level shaft access included the following assays*: Stope Toms at Level 9 showing 54.2g/t – 9 Level Footwall Lode • dip of lode and support 34.3g/t – 8 Level East Lode • 26.0g/t – 9 to 10 Level Chute grabs • 12.6g/t – 9 Level Footwall Lode • East Lode Ore Chute at Level 9 11 Lode at Level 10 showing exposed ore showing broken rock
Radio Project – upside potential • Other prospects that exist within the mining lease include: Radio Repeater • Radio Deeps • Manxman • • Queenslander Inspiration South • Maries Find • Magpie • • Once mine operations and gold extraction has commenced, exploratory drilling of other prospects will be undertaken to investigate potential for additional resources. • Particular attention at confirming down dip and strike extents of existing Radio Lodes-which have yet to be closed off by drilling Exploration costs expected to be low and will utilize • equipment and staff currently on site 12
Mount Mackenzie – background Mount Mackenzie (MM) comprises 3 Exploration Permits for Minerals (EPM) known as EPM 10006, EPM 17515, and EPM 12546. EPM 10006 is in advanced stage of exploration, and application for higher level of title (ML or MDL) will be lodged during 2017. These permits are prospective for high sulphidation epithermal Gold and Silver mineralisation. Breccia and porphyry style Gold mineralisation with a poly-metallic (Pb, Zn, Ag, Cu) association has been identified as well. Drilling Investigations completed by the company in 2015-2016 has has resulted in a Mineral Resource (JORC 2012) estimate comprising 2.37Mt for approximately 100,000 oz of contained gold and 634,000 oz of contained Silver** which includes; • Indicated Resources: 49,000 oz of Gold, and 455,000 oz of Silver Inferred Resources : 51,000 oz of Gold, and 179,000 oz of Silver • The resource is amenable to shallow open cut mining at very favourable strip ratios of 2:1. Mineralisation has not been closed off below current pit floor extents The tenement package is also host to 3 prospects, which have scope to deliver additional resources to the project inventory, these are known as Instinct, Clive Creek, and Coppermine Creek. Scoping study targeting shallow oxide and transitional ore for a low capital cost start-up mining option is progressing 13
Mount Mackenzie – site location • MM is approximately 110km northwest of Rockhampton on the Bruce Highway, and then 50km west of the township of Marlborough on the inland road to Sarina. • In geological context the MM is located within the Connors Magmatic Arc of the New England Fold Belt (NEFB) The NEFB has supported most major gold mine • development in NE Queensland with over 50 million ounces of gold as well significant amounts of copper and silver produced. Significant mines include Mount Carlton, Mount • Leyshon, Pajingo, Kidston, Mount Wright, Mount Rawdon, Mount Morgan and Cracow. 14
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