Transcript Acknowledgement & Disclosure

Investor Presentation
November 2011
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Acknowledgement & Disclosure
This presentation may contain certain statements and projections provided by or on behalf of Red Gum Resources Ltd
(RGR) with respect to the anticipated future undertakings. These forward-looking statements reflect various
assumptions by or on behalf of RGR. Accordingly, these statements are subject to significant business, economic and
competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control
of RGR which could cause actual results or trends to differ materially, including but not limited to price fluctuations,
exploration results, ore reserve and mineral resource estimation, environmental risks, physical risks, legislative and
regulatory changes, political risks, project delay or advancement, ability to meet additional funding requirements, factors
relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price
volatility, approvals and cost estimates. Consequently, there can be no assurance that such statements and projections
will be realised. Neither RGR, or any of its affiliates, advisers, consultants, agents or any of their respective officers or
employees (Relevant Parties) make any representations as to the accuracy or completeness of any such statement of
projections or that any forecasts will be achieved.
Additionally, RGR makes no representation or warranty, express or implied, in relation to, and to the fullest extent
permitted by law, no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted
by RGR as to or in relation to the accuracy or completeness of the information, statements, opinions or matters
(express or implied) arising out of, contained in or derived from this Presentation or any omission from this Presentation
or of any other written or oral information or opinions provided now or in the future to any Recipient or its advisers. In
furnishing this presentation, RGR undertakes no obligation to provide any additional or updated information whether as
a result of new information, future events or results or otherwise. Nothing in this material should be construed as either
an offer to sell or a solicitation of an offer to buy or sell securities.
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Company Overview
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Targeting Base and Precious Metals
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Diverse Portfolio of Assets
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Geochemically & Geophysically well defined targets- COMPANY MAKER POTENTIAL OF LA NEGRA
Exploration Target of 10Mt-70Mt at La Negra
Targeting $3b+ AUD in-ground metal prospects across multiple tenements
Participation in at least 15,000m of drilling p.a. readily achievable
Strong Board of Directors
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High value exploration ground held in Chile and Peru
Includes drill-ready prospects (‘La Negra’ & ‘Cerro Huancash’)
100% ownership or right to ownership of tenements
Drill ready targets
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Zinc / Lead / Copper / Silver / Gold
Multi commodity exposure protects against fluctuations in any one commodity
Extensive Public Company experience
Proven track record with member s of the board founding and managing companies such as Queensland Gas Company,
Earth Heat Resources Ltd, China Yunnan Australia Copper Ltd and Bandanna Energy Ltd
Corporate Strategy
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Explore and Develop multi commodity assets
Provide risk diversification and potential short term re-rating
Grow through organic and inorganic means
Under the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources (Paragraph 18) the Company is required to make the following statement with
regard to Exploration Targets – the potential quantity and quality is conceptual in nature, and that there has been insufficient exploration to define a Mineral Resource or Ore
Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource or Ore Reserve.
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Company Structure
Red Gum
Resources Ltd
Red Gum Resources
Peru Pty Ltd
Red Gum Resources
Chile Pty Ltd
Central Peru Resources
SAC
Chilean Local Subsidiary
• Chongos A (100%)
• La Negra (100%) *
• Chongos B (100%)
• Chongos C (100%)
• Cerro Huancash (100%)
* Option to acquire
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Board of Directors
Dr Raymond Shaw – Non-Executive Chairman
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Proven public company experience including foundation Managing Director of Great Artesian Oil and Gas
(ASX:GOG), Director of Hillgrove Gold NL, and Currently Managing Director of Bandanna Coal Ltd ASX:(BND)
and Chairman of Earth Heat Resources (ASX:EHR)
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Substantial management experience in building and running private and public companies
Dr Paul Pearson – Managing Director
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Over 25 years experience with large companies such as Mt Isa Mines, North Ltd & Teck Cominco, and juniors
such as El Misti and Alturas Minerals. Involved in the exploration and evaluation of projects in Peru, Mexico, Chile,
Argentina, Brazil, Bolivia and Ecuador
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Bilingual, having lived in Latin America for 14 years
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Considerable corporate experience as a founder and eventual CEO of TSXV -listed Alturas Minerals
Norman Zillman – Non-Executive Director
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Responsible for forming China Yunnan Australia Cooper Limited (ASX:CYU- current co-Chairman), Ancon Drilling
(current Chairman). Also currently Chairman of Burleson Energy Ltd (ASX:BUR), Non Exec Director of Earth Heat
Resources (ASX: EHR)
Strong public company experience including, founding MD of Queensland Gas Company Limited (QGC), founding
Director of Planet Gas Limited, founding Chairman of Great Artesian Oil and Gas (ASX:GOG), Chairman of Blue
Energy Limited (ASX:BUL)
Torey Marshall – Executive Director
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Experienced in multiple commodities as exploration geologist having worked in Australia, South America and East
Africa. Founder and Managing Director of Earth Heat Resources Ltd (ASX:EHR) & African Power and Coal Pty
Ltd
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Chile
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Flagship project ‘La Negra’
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Substantial Exploration target of between 10Mt-70Mt*
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Targeting Zinc, Lead and precious metals
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Drill Ready
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Drill targets identified
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Drilling to commence shortly after listing
Historical workings, and surface mineralisation
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Mapped and inspected
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Samples of up to 20% contained metal verified
Substantial Geochemical surveying
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Conforms to surface mapping and is a significant anomalous halo
3D induced Polarisation Survey
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Conforming to the general shape and area of the geochemical and
surface anomalism, indicates a potentially large sulphide resource
target underneath the shallow oxide
* Under the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources
(Paragraph 18) the Company is required to make the following statement with regard to Exploration Targets –
the potential quantity and quality is conceptual in nature, and that there has been insufficient exploration to
define a Mineral Resource or Ore Resource and that it is uncertain if further exploration will result in the
determination of a Mineral Resource or Ore Reserve.
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La Negra - Location
Yellow stars are major
copper (-molybdenum-gold)
deposits
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100
kms
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La Negra - Geology
6551710N
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La Negra - Geophysics
MAGNETICS
RESISTIVITY
CHARGEABILITY
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Reprocessing of IP survey data and
integration with geology and
geochemistry currently in progress
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The strike extent of the mineralisation,
if proven by drilling, could extend over
1500m in length and greater than 400m
wide
Maps showing reprocessed geophysical anomalies with
soil geochemistry anomalies
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La Negra - Geophysics
MAGNETICS
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Strong correlation of metal
anomalies with chargeability
and magnetic anomalies
revealed
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Large volume of hidden
sulphide-rich mineralisation
suggested in 3D modelling
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Subsurface intrusive stocks
inferred; possible porphyry
link
CHARGEABILITY
RESISTIVITY
Cross-section 6551710N showing
reprocessed geophysics and interpreted
intrusive stocks
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La Negra - Geochemistry
Metal
Zn (%)
Pb (%)
Cu (%)
Ag (ppm)
Au (ppm)
Results
0.52 – 16.4
1.42 – 12.4
0.25 – 1.3
41 - 139
0.05 -0.5
Underground sampling taken by
Pudahuel in 1985
La Negra Project Soil Geochemical Zinc Plot
(provided by Andale)
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Metal
Zn (%)
Pb (%)
Cu (%)
Ag (ppm)
Au (ppm)
Results
0.21 – 11.55
0.21 – 11.75
0.03 – 1.11
15 – 87.8
0.05 – 0.28
New World results provided by Andale
on underground rock chip sampling
La Negra Project Soil Geochemical Lead Plot
(provided by Andale)
La Negra Project Soil Geochemical Silver Plot
(provided by Andale)
La Negra’s main attraction
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Close to coast and infrastructure
Excellent “lead in” data reduces project risk
Substantial polymetallic exploration target of 10Mt-70Mt*
Known high grade zinc-lead-silver mineralisation outcrops; large
volume of sulphides inferred at depth in geophysics
Possibly linked to concealed copper porphyry system
Potentially very high value project if a substantial resource is
confirmed
Various development options available to the Company if a resource
is delineated
Large mining companies (eg. Vale) operating nearby
* Under the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources (Paragraph 18) the
Company is required to make the following statement with regard to Exploration Targets – the potential quantity and quality is
conceptual in nature, and that there has been insufficient exploration to define a Mineral Resource or Ore Resource and that it is
uncertain if further exploration will result in the determination of a Mineral Resource or Ore Reserve.
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RGR & Chile today
 Sharing office space with CYU in Santiago – expanding
presence in Chile
 Reprocessed IP geophysical data
 Repair of road access ways completed
 Community Access Agreement signed for two years
 Geological mapping underway
 Metallurgical test work underway
 Diamond drilling rig contract signed
- Expected to commence Q4 2011
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Peru
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Located within the proven Central Peruvian
Polymetallic belt and hub of booming exploration
activity
Close to infrastructure including road, rail, refineries
and processing plants
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CERRO DE PASCO
-11 °
PACIFIC
CERRO
HUANCASH
OCEAN
LA OROYA
KEY
-12 °
LIMA
SMELTER
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MAJOR MINE/ DEPOSIT
RAILWAY
kms
HUANCAVELICA
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-75 °
100
-77 °
0
-76 °
CHONGOS
HIGHWAY
-13 °
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Neighbours include Glencore,
Pan American Silver, Chinalco
Two projects over four
licences
Red Gum interests are 100%
Cerro Huancash Project
Map showing mineralized trend, Ariana Norte and Ariana Sur Prospects, plus Red Gum
Resources claim (light blue) and claims controlled by Pan American Silver (light green). The
darker green claims are subject to an option agreement with a third party.
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One license of 575.6 ha
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Zinc, lead & precious
metals exploration
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Limited exploration
performed on the
tenement, however within
surrounding area a zone
of approx. 8km in length
has been reported with
very strong zinc, copper,
lead, silver and gold
anomalies - Cerro
Huancash covers over
3km of prospective belt
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Cerro Huancash will be
the initial focus in Peru,
with surface exploration in
early 2012 followed by
drilling towards Q2 of
2012 subject to favourable
results
Chongos Project
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Located 180 kilometres southeast of Lima
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Comprises three separate blocks covering approx. 9
kms strike length of very strong zinc and lead
anomalism in an iron- and manganese-stained
sequence of folded mid- to upper-Cretaceous
limestones
Use of Funds - IPO
INFLOW
Year 1
Total
4,000,000
4,000,000
7,000,000
120,000
69,617
189,617
210,000
136,500
346,500
Total Inflow
4,120,000
69,617
4,189,617
7,210,000
136,500
7,346,500
Year 1
0
Maximum Subscription incl $1m Oversubscription
$7,000,000
Year 1
Year 2
Total
Funds Raised IPO
Interest
EXPENDITURE
Exploration
Activity
Year 2
Geological
Geophysical
60,000
Geochemical
99,445
Total
65,000
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Year 1
125,000
-
0
Year 2
100,000
-
7,000,000
Total
94,445
194,445
100,000
100,000
99,445
100,000
36,000
136,000
Drilling
520,000
700,000
1,220,000
1,000,000
2,500,000
3,500,000
Total Exploration
Expenditure
679,445
765,000
1,444,445
1,200,000
2,730,445
3,930,445
555,555
555,555
555,555
555,555
1,000,000
1,000,000
2,000,000
1,250,000
1,250,000
2,500,000
1,679,445
2,320,555
4,000,000
2,450,000
4,536,000
6,986,000
Option Payments
Working Capital &
Administration
TOTAL
EXPLORATION
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Minimum Subscription
$4,000,000
Year 2
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Contact
Level 7 Ferrari House
28-30 Grenfell St
Adelaide, SA, 5000
Paul Pearson, MD
[email protected]
Tel: 08 8212 5724
www.redgumresources.com
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