25/01/2008 Investor Presentation Jan 2008

Ramelius Resources Limited
Investor Presentation January 2008
Ian Gordon
Executive Director
BACKGROUND
• Exploration commenced at Spargoville in 2004
• Wattle Dam discovered in 2005
• Mining commenced in March 2006
• Burbanks Treatment Plant re-commissioned in May 2007
• Wattle Dam High Grade Zone discovered in May 2007
• Underground mining planned to commence in March Qtr 2008
ACHIEVEMENTS
• Discovery and Development of Wattle Dam Gold Mine
• Cash Acquisition of Burbanks Treatment Plant
• Refurbishment and Recommissioning of Plant
• Generation of Cash Flow Self Funding Exploration and Development
• Maiden Dividend (~$800K) and Capital Return to Shareholders (~$12m)
FUTURE TARGETS
• Define 3 years production from HGZ at Wattle Dam by 30 June 2008
• Underground Development at Wattle Dam in 2008
• Annual Production of ~75,000 oz Au p.a. by early 2009
• Discover a Nickel resource and new Gold resource by end 2008
CORPORATE STRUCTURE
DIRECTORS
• Chairman: Bob Kennedy
• Managing Director: Joe Houldsworth
• Non-Executive Director: Reg Nelson
• Executive Director: Ian Gordon
SENIOR MANAGEMENT
• CFO/Company Secretary: Dom Francese
• Operations Manager: Brian Kelty
• Process Manager: Tony Webb
• Senior Geologist (Gold): Matthew Svensson
• Senior Geologist (Nickel): Di Tily-Laurie
CAPITAL STRUCTURE
(As at 10 January 2008)
• ASX Code: RMS
• Fully Diluted Market Capitalisation: ($218m @ $1.20 per share)
• Issued Capital:
166,448,908 fully paid ordinary shares
15,568,760 bonus options ($1.00) Expire 30 June 09
RAMELIUS RESOURCES LIMITED - TOP TEN SHAREHOLDERS
at 18 January 2008
%
Beach Petroleum Limited
20,100,003
12.08
HSBC Custody Nominees (Australia) Pty Ltd
13,465,180
8.09
Citicorp Nominees Pty Ltd
11,068,410
6.65
ANZ Nominees Limited
8,965,911
5.39
Mandurang Pty Ltd
6,415,117
3.85
Aurelius Resources Pty Ltd
5,312,025
3.19
Joseph Houldsworth
4,565,318
2.74
Goldfields Hotels Pty Ltd
2,819,750
1.69
Mr. Stig Hakan Hellsing
1,925,000
1.16
Sassey Pty Ltd
1,712,706
1.03
76,349,420
45.87
* Sprott Asset Management holds 13%
RAMELIUS - BUSINESS CASE
• Large land holding with significant regional structures and
proven gold and nickel prospectivity
• Wattle Dam is a low capital / high return asset
• Resource is open at depth
• Existing milling facility and permitting in place
• Experienced management committed to returning excess funds
to shareholders
• Exploration upside along strike and in adjoining belt
SPARGOVILLE PROJECT AREA
• Tenements extend over 30
kilometres strike length
• Located along Regional Shears
• Large Mineralised System in
Mafic and Ultramafic Rocks
• Prospective for Gold and Nickel
SPARGOVILLE
PROJECT AREA
• Location of Wattle
Dam, Larkinville
West and
Eagles Nest
•
Wattle Dam Project
Target
• Large Gold
system proven by
diamond drilling
• Gold intercepts at
600m vertical depth
Wattle
Dam Pit
• Lower angle down
plunge position
to be tested in Feb
2008
WATTLE DAM DIAMOND DRILLING
• Results were encouraging and prove large gold system
• Wide zone of mineralisation discovered at 600m depth (40m @
0.7 g/t gold)
• Initial program targeted steep plunge to high grade zone
• Recent modelling suggests a more shallow plunge to HGZ
which is open at depth
• Diamond drilling to target shallow plunge will commence in
February 08
Wattle Dam
High Grade Zone
Long Section
Plunge interpreted to be
steepening
New information suggets
plunge may be much
shallower
Shallow
plunging target
Steeply
plunging target
Diamond holes
targeting steep
plunge
WATTLE DAM SCOPING STUDY
• Scoping Study identifies a high return project over 12 months
• Mining 103,000t @ 20.5 g/t for 67,000 oz
• Commencing March 2008
• Capital of $15m and Operating Costs of $9m
• Identifies areas where resource can be extended
• Expect overcall in grade – estimated uncut gold in Zones 3 & 18
is collectively 271,000 oz
WATTLE DAM SCOPING STUDY
WATTLE DAM
UNGERGROUND
MINING PLAN
BURBANKS
TREATMENT PLANT
•
Acquired 180,000 tpa
Gold Plant
•
Funded from Reserves
•
Advances Cash Flow
•
Security of Processing
Availability
•
Ready to treat Wattle Dam
High Grade Underground
ore
Discovering our Future
EXPLORATION
GOLD AND NICKEL EXPLORATION
GOLD TARGETS
• Golden Orb (800m South of Wattle Dam)
• Larkinville West (RC drilling completed)
• Eagles Nest (RC Drilling completed )
• North Widgie (south of Wattle Dam)
• Central Gold (targets Wattle Dam structure under cover to the north)
NICKEL TARGETS
• 1A North (Diamond Drilling completed )
• Hilditch (RC & Diamond Drilling completed )
• Central Nickel (RAB continuing)
GOLDEN ORB
PROSPECT
CROSS SECTION
•
•
•
•
50M Wide Mineralisation
Higher Grade zones
Open to North West
RC Drilling completed
November 07 – results
awaited
LARKINVILLE
WEST
PROSPECT
Gold in Soil Anomalies
First Pass RAB Drilling
returned 52m at 1.4g/t gold
including 32m at 2.0g/t gold
from 12m depth.
RC follow-up drilling returned
encouraging result including:
• 20 metres @ 3.1g/t Au from 30
metres within LWRC0003
• 6 metres @ 3.3 g/t Au from 34
metres within LWRC0012.
Follow-up RC Drilling planned
for early 2008
EAGLES NEST TENEMENT
Purchased in March
2007
Geological setting is
sheared ultramafics
(same as Wattle Dam)
Large alluvial gold
shed including the
famous Golden Eagle
Nugget (1135 oz)
found in 1931
EAGLES NEST
PROSPECT
Auger drilling defined
coherent gold anomaly on
western portion of the
tenement
RC Drilling at Eagle’s Nest
completed in October 2007
and results include 9m @ 2
g/t and 9m @ 2.2 g/t gold
open to south
Follow-up February / March
2008
RAMELIUS NICKEL
RIGHTS
Hilditch 90%
Wattle Dam 80%
Logans Larkinville 80%
The Spargoville Ultramafic Belt
contains historic Spargoville
Nickel mines which have produced
14,000t of Nickel
Ramelius holds 50km of
ultramafics including 10km of the
belt in which the Spargoville and
other Nickel mines are located
NICKEL
PROJECTS
Ramelius has generated 17
Nickel Sulphide targets
RAB Drilling on these targets
commenced June 2007 Highlighted areas for follow-up
Diamond Drilling completed in
November 2007 at 1A North and
Hilditch – 0.1m @ 5% Ni
Downhole EM underway
LOOKING FORWARD
• Further diamond drilling at Wattle Dam (Feb- June 2008)
• Development of Wattle Dam underground
• Follow-up drilling at Larkinville West
• Follow-up drilling at Eagles Nest
• Follow-up drilling of anomalies at Central (North of WD)
• Follow-up of Ni sulphides discovered at 1A north (EM underway)
RAMELIUS RESOURCES
Discovering the Wealth
Below