25 Nov

Investor Presentation - AGM

1 1 Investor Presentation Annual General Meeting 25 November 2021 ASX:RXL Alex Passmore | Managing Director 2 Forward - Looking Statements This presentation has been prepared by Rox Resources Limited . This document contains background information about Rox Resources Limited current at the date of this presentation . The presentation is in summary form and does not purport to be all inclusive or complete . Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation . This presentation is for information purposes only . Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction . This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction . Recipients should inform themselves of the restrictions that apply in their own jurisdiction . A failure to do so may result in a violation of securities laws in such jurisdiction . This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons . Recipients should seek professional advice when deciding if an investment is appropriate . All securities transactions involve risks, which include, amongst others, the risk of adverse or unanticipated market, financial or political developments . To the fullest extent permitted by law, Rox Resources Limited, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation . No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted . This presentation may include forward - looking statements . Forward - looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Rox Resources Limited . Actual values, results or events may be materially different to those expressed or implied in this presentation . Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements . Any forward looking statements in this presentation speak only at the date of issue of this presentation . Subject to any continuing obligations under applicable law and the ASX Listing Rules, Rox Resources Limited does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based . Disclaimers Competent Person Statements Exploration Results The information in this report that relates to previous Exploration Results, was either prepared and first disclosed under the JORC Code 2004 or under the JORC Code 2012 and has been properly and extensively cross - referenced in the text to the date of original announcement to ASX . In the case of the 2004 JORC Code Exploration Results and Mineral Resources, they have not been updated to comply with the JORC Code 2012 . Resource Statements The information in this report that relates to gold Mineral Resources for the Youanmi Gold project was reported to the ASX on 23 June 2021 (JORC 2012 ) . Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 23 June 2021 , and that all material assumptions and technical parameters underpinning the estimates in the announcement of 23 June 2021 continue to apply and have not materially changed . The information in this report that relates to gold Mineral Resources for the Mt Fisher project was reported to the ASX on 11 July 2018 (JORC 2012 ) . Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 11 July 2018 , and that all material assumptions and technical parameters underpinning the estimates in the announcement of 11 July 2018 continue to apply and have not materially changed . 3 Since the last AGM…… • CORNERSTONE investment by Hawkes Point • RESOURCE GROWTH (~ 40%) at flagship project, Youanmi (1.7Moz at 2.85 g/t) (1) • Strong EXPLORATION SUCCESS , with all 2021 drilling to be incorporated into a new resource update in 2022 • Metallurgical testwork showing IMPROVED RECOVERY of 96% from Youanmi (2) • Successful demerger of nickel assets into Cannon Resources, UNLOCKING SIGNIFICANT SHAREHOLDER VALUE • COMMENCED AIRCORE program on regional Youanmi tenure, first major program since Rox acquired 50% • Mt Fisher - Mt Eureka Project, renewed focus with VMS PROSPECTIVITY identified • STUDIES COMMENCED into production at Youanmi Notes: (1) Refer ASX announcement 23 June 2021 : (2) Refer ASX announcement 6 October 2021 4 Strategy “Applying modern exploration and mining technologies to historic assets and data to grow existing resources and return to production.” Exploration - Youanmi Near Mine Exploration - Youanmi Regional Exploration - Mt Fisher/Mt Eureka Existing data studies Build Rox capacity Commence studies and progress options for restart Investigate early cash flow opportunities Ongoing exploration Progress studies Final Investment Decision Funding Execution Ongoing exploration 2020 - 2021 2021 - 2022 2022 - + 5 Corporate Information Capital Structure ASX Code RXL Shares on Issue 157.6M Share Price A$0.39 Unlisted Options 20.9M Market Capitalisation $61.5M Cash (as at 30 September 2021) $10.7M Debt Nil About Rox Resources Rox Resources Limited (ASX : RXL) is a West Australian focused gold exploration and development Company . It is the 70 % owner and operator of the historic Youanmi Gold Project near Mt Magnet, approximately 480 kilometres northeast of Perth, and wholly owns the Mt Fisher Gold Project approximately 140 kilometres southwest of Wiluna . 13% 2% 85% Hawke's Point 13% Directors & Management 2% Retail & Other 85% Top 20 Holders 27% Top 70 Holders 40% Shareholders $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 RXL Share Price History 6 Experienced Team Stephen Dennis Non - Executive Chairman Alex Passmore Managing Director John Mair Non - Executive Director Gregor Bennett Exploration Manager Matthew Antill General Manager - Operations Board Management Chris Hunt Chief Financial Officer 7 Comparable Gold Companies (1) Notes: (1) Refer Appendix 3 for support 8 Youanmi Gold Project Penny Gold Deposit (335k oz Au at 13.8 g/t) Mine Area 9 O verview • Rox holds a 70% interest in the Youanmi Gold Mine (OYG Joint Venture) and is Manager of the JV • Previously produced 670,000 ounces at 5.4g/t Au; closure in 1997 when gold price was A$400/oz – A$450/oz • Last parcel of ore mined underground at Youanmi (Nov 1997) was at 14.6g/t Au grade • Existing decline in place – to approx. 600 metres below ground • Quality, high - grade resource (1.7Moz at 2.85 g/t) (1) Notes: (1) Refer ASX announcement 23 June 2021 10 Mineral Resource - June 2021 • Youanmi Total Mineral Resources increased by 466 koz (+39%) to 1,656 koz of contained gold (Au). • Junction and Link mineralisation to be incorporated in later models. • $16 per ounce discovery cost for this addition to the resource, well below industry averages. • Grace Maiden Resource defined to contain 109koz of contained gold at 7 g/t Au with upside potential remaining. • Near Surface Resource increased by 50% to 800koz Au • Deeps Resource shows impressive growth (+30%) to 856koz Au with high grades preserved (7.9g/t Au resource average) • Increase in Au metal ounces per vertical metre for Youanmi Deeps over key potential mining depths Note • Refer ASX Announcements dated 17 April 2019 and 23 June 2021 for full details of Youanmi mineral resources Change in Previously (Widenbar 2018) Area Classification Cut-Off Tonnes Au Grade Au Metal Au Metal Tonnes Au Grade Au Metal (dmt) (g/t) (oz) (%) (dmt) (g/t) (oz) Near Surface Indicated 0.5 g/t* 7,470,000 1.81 434,000 up 63% 4,720,000 1.76 266,200 Deeps Indicated 4.0 g/t 1,097,000 8.23 290,200 up 38% 808,000 8.1 210,200 SubTotal Indicated 8,567,000 2.63 724,200 up 52% 5,528,000 2.68 476,400 Near Surface Inferred 0.5 g/t* 7,240,000 1.57 366,000 up 37% 5,360,000 1.55 266,500 Deeps Inferred 4.0 g/t 2,279,000 7.73 566,200 up 26% 1,605,000 8.7 447,700 SubTotal Inferred 9,519,000 3.05 932,200 up 31% 6,965,000 3.19 714,200 Near Surface Ind + Inf 0.5 g/t* 14,710,000 1.69 800,000 up 50% 10,070,000 1.65 532,700 Deeps Ind + Inf 4.0 g/t 3,377,000 7.89 856,300 up 30% 2,413,000 8.48 657,900 Near Surface + Deeps Ind + Inf 18,087,000 2.85 1,656,300 up 39% 12,483,000 2.97 1,190,600 * Grace 1.5 g/t Cutoff Youanmi Resources Remaining June 2021 Indicated Indicated Inferred Inferred 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2018 2021 Contained Au Metal (koz) Indicated Indicated Inferred Inferred 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2018 2021 Tonnes (000 t) 11 Resource Observations • Resources start from surface and in many cases do not require a pit cutback (Grace, Plant Zone, Hill End) • Opportunity for a high grade starter pit (Grace, and potentially Hill End) followed by a high grade underground (using 1990’s decline as a starting point) • Parallel lodes in the hanging wall a key growth opportunity and adds ounces per vertical metre (lower capital cost to access) • Longer term – larger scale open pit expansion opportunity • Exploration is ongoing with Resource growth likely to continue 12 • Youanmi Total Mineral Resources currently 1,656 koz of contained gold (Au) • Near Surface Resource approximately 800koz Au in total • Deeps Resource approximately 856koz Au with high grades • Approximately 20% of Deeps Resource is refractory ore • September 2021 testwork (1) showed substantial improvement in gold extraction for Youanmi Deeps • Historical production averaged 86.8% gold recovery, with new testwork improving extraction to 95.6% using Pressurised Oxidation Leach Process (POX) • Alternative processes being tested in parallel with POX studies Metallurgy Notes: (1) Refer ASX announcement 6 October 2021 13 Infrastructure • Access roads (sealed roads 90km from mine gate) • Airstrip • Core shed and workshop • Borefield • Tailings disposal facility • Mine offices • Process water available from local aquifers • Mine village - well equipped for exploration crews. The Youanmi Project includes a developed underground mine (dewatering required) and surface infrastructure including: - Spur line to Mount Magnet has a 4.1TJ/D capacity (APA Group) - State road network established to/through Youanmi. Sealed road to 90 km from Youanmi Site - Close to mining service towns - Very good state roads accessing the site Midwest Pipeline & Road Infrastructure • Environmental approvals for development a straightforward process • Well understood mining considerations (wall stability, angles etc.) With a history of mining Youanmi is classified as a disturbed site and is on existing mining leases Youanmi Camp 14 Progress to Date • More than 50,000 metres drilled in the past 18 months • Substantial 39% increase in resource to 18.1M tonnes @ 2.85g/t Au for 1.7 million ounces (1) • Low discovery cost of just $16 per resource ounce, well below industry averages • Cash injection from major international funds manager Hawke’s Point (A$11m), cornerstone 13.3% holding • Experienced management team appointed • Progressing studies into Youanmi restart • Metallurgical testwork showing improved recovery from 86.8% to 95.6% from Youanmi (2) • Commenced Aircore program on regional tenure, first major program since Rox acquired 50% Notes (1) Refer ASX Announcements dated 17 April 2019 and 23 June 2021 See Appendix 1 for full resource details (2) Refer ASX Announcement date 6 October 2021 Youanmi Gold Project View of Youanmi Main Pit looking northwest - RC and diamond drill rigs operating at Junction. 15 Resource Growth to Continue • Multiple drill rigs working on near mine extension drilling at Youanmi • Targeting the intersection of north - west trending mafic rocks and north - south accommodation structures • Resource growth momentum building with recent positive results • Adding mineable ounces near existing infrastructure • Link Prospect; and • Junction Prospect Plan View of Youanmi Mine Area (ASX: 18 November 2021) 16 Regional Targets - Upside • 424 holes, 22,337m Aircore drilling program recently completed on Youanmi Regional JV tenements • Program targets an 18.5km long highly - prospective greenstone corridor between the Youanmi and Penny deposits • 4 high - priority target areas identified from recently completed data review I. Numerous demagnetised zones representing alteration and seven HTDEM conductors associated with major WNW subsidiary structures II. 9 HTDEM conductors and numerous demagnetised zones associated with multiple WNW structures. Low - level Au anomalism present in historic shallow RAB drilling. III. 8 HTDEM conductors and numerous demagnetised zones within the Penny Shear corridor and subsidiary structures. IV. Untested granite - greenstone contact and major WNW structure proximal to Penny West. • Targets are new / not tested by historic drilling (shallow RAB) 17 17 • Studies into optimal production scenarios including: o Metallurgical test work; o Processing plant design; o Pit optimisation; o Dewatering and geotechnical studies; o Waste rock characterisation; and o Environmental baseline testing • Focused on growing the resource base and progressing feasibility studies with the aim of restarting production at the Youanmi gold mine • In parallel undertaking extensive regional and near - mine drilling in parallel with these studies – resource growth is expected to continue • Exploring for Penny West style deposits regionally with Rox managing regional JVs o Target reviews have identified compelling regional anomalies o 22,337m of Aircore drilling completed Next Steps 18 Mt Fisher - Mt Eureka Gold Project Penny Gold Deposit (335k oz Au at 13.8 g/t) Mine Area 19 19 Highlights • 850km 2 ground position in one of the least explored greenstone belts in the prolific Yilgarn Craton • Targeting orogenic gold mineralisation and strata - bound VMS style mineralisation • VMS prospectivity identified through extensive project review • Immediate work programs Aircore drilling, RC drilling and high resolution airborne magnetic survey • Mt Fisher Project includes a Gold Mineral Resource of 1.0Mt @ 2.7 g/t Au for 89,000 ounces of gold (1) • Strong potential to add gold resources Notes: (1) ASX on 11 July 2018 (JORC 2012) 20 Project Location - Yilgarn Craton • Mt Fisher - Mt Eureka Project is located in the Eastern Goldfields Superterrane of the Yilgarn Craton • Yilgarn Craton is one of the World’s great gold provinces • The project’s landholding is 850km 2 in one of the least explored greenstone belts in the prolific Yilgarn Craton 21 21 • Current work programs: • 160 holes, 7,300 metre Aircore drilling program completed at Mt Fisher Gold Project, all assays outstanding; • RC program circa 4,000 metres to commence; and • High resolution airborne magnetic survey to commence early December 2021 Work Programs Mt Fisher Mine Long Section Looking West 22 Investment Highlights • Quality high grade resource at flagship project, Youanmi (1.7Moz at 2.85 g/t) (1) • Strong potential for resource growth • Feasibility studies commenced into restart of Youanmi • Mt Fisher - Mt Eureka Project, renewed focus with VMS prospectivity identified • Attractive entry price ($45 per attributable resource ounce) • Cornerstone investment by Hawkes Point Notes: (1) Refer ASX announcement 23 June 2021 23 The information in this report that relates to gold Mineral Resources for the Youanmi Gold project was reported to the ASX on 23 June 2021 (JORC 2012 ) . Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 23 June 2021 , and that all material assumptions and technical parameters underpinning the estimates in the announcement of 23 June 2021 continue to apply and have not materially changed . The ASX release can be viewed at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02387031 . Rox is of the view that as the resource estimate is JORC 2012 compliant, was prepared in the last 12 months, indicates the Modifying factors which remain relevant, and the estim ate was prepared by well - known and industry respected Competent Persons for the Youanmi Near Surface Deposits and Youanmi Deeps Mineral Resource, the Mineral Resource estimate can be relied upon. Area Classification Cut - off (g/t) Tonnes ( dmt ) Au Grade (g/t) Au Metal (oz) Near Surface Indicated 0.5* 7,470,000 1.81 434,000 Deeps Indicated 4.0 1,097,000 8 .23 2 90,200 Sub - total Indicated 8 ,567,000 2 .63 7 24,200 Near Surface Inferred 0.5* 7,240,000 1 .57 3 66,000 Deeps Inferred 4.0 2,279,000 7 .73 5 66,200 Sub - total Inferred 9 ,519,000 3.05 9 32,200 Near Surface Ind + Inf 0.5* 1 4,710,000 1 .69 8 00,000 Deeps Ind + Inf 4.0 3 ,377,000 7 .89 8 56,300 Total Ind + Inf 1 8,087,000 2 .85 1 ,656,300 Youanmi Resources Remaining June 2021 (ASX:RXL 23 June 2021) Notes * Grace 1.5 g/t cutoff Appendix 1 - Youanmi Mineral Resources 24 Appendix 2 - Mt Fisher Gold Mineral Resources Mt Fisher Gold (ASX:RXL 11 July 2018) 0 . 8 g/tAu block cut - off grade . Values may not sum due to rounding . Deposit Category Tonnes Grade (g/t Au) Gold (oz) Moray Reef Measured 25,521 8.02 6,577 Indicated 4 ,930 5 .95 943 Inferred 1 ,242 3 .87 155 Total 3 1,693 7 .53 7,675 Mt Fisher Measured 125,605 3.61 14,569 Indicated 59,533 3.63 6,948 Inferred 40,934 3.41 4,494 Total 2 26,073 3.58 26,011 Damsel Measured 23,712 2.59 1,974 Indicated 151,464 2.27 11,060 Inferred 5 91,820 2.23 42,339 Total 766,697 2.25 55,373 TOTAL Measured 174,838 4.11 23,121 Indicated 2 15,928 2.73 18,951 Inferred 6 33,997 2.31 46,987 Total 1 ,024,762 2.70 89,059 25 Appendix 3 - Comparable Gold Companies Companies selected are considered comparable to Rox Resources as they are in exploration and/or study phase Company name ASX Code Musgrave Minerals Ltd MGV Degrey Mining Ltd DEG Alto Metals Ltd AME Apollo Consolidated Limited AOP Breaker Resources NL BRB Black Cat Syndicate Limited BC8 Horizon Gold Limited HRN Item included in calculations Calculation date Closing share price 18 November 2021 Cash and debt balances As per 30 September 2021 Quarterly Reports Resource information 18 November 2021 Market capitalisation 18 November 2021 Shares on issue 18 November 2021 26 26 Rox Resources Limited Level 2, 87 Colin Street, West Perth, WA, 6005 T: (08) 9226 0044 E: admin@roxresources.com.au W: www.roxresources.com.au Follow Rox : ASX:RXL
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from Rox Resources Limited (ASX:RXL) when you join Listcorp.