The next gold producer May 2011
Company highlights Target production Sept 2011 quarter at Siana Gold project Construction 0% complete, all plant equipment in country Forecast cash costs sub $400 per ounce, low relative to peers 10 year mine life based on current LOM plan of 849,000 ounces with future exploration potential Early drilling at Mapawa project has confirmed the potential for a significant porphyry gold-copper project Management has a long established presence in the Philippines, allowing Red to capitalise on future growth opportunities Top tier shareholder base
Red at a glance... ASX: 17.0 cents (A$ cents) Red Share performance vs. re-based S&P/ASX Gold Market Cap: A$218m 2 Issued Shares: 1,284m Cash (no debt): A$6.4m 20 Red Enterprise Value (post construction, per LOM plan ounce): US$211/oz 1 S&P/ASX Gold Hedge/FX positions nil 10 Substantial Shareholders Mathews Capital: 17.7% Baker Steel Capital Managers: 8.1% Sprott Asset Management:.2% Lujeta:.1% 0 17-Feb-10 19-Mar-10 18-Apr-10 18-May-10 17-Jun-10 17-Jul-10 16-Aug-10 1-Sep-10 1-Oct-10 14-Nov-10 14-Dec-10 13-Jan-11 12-Feb-11
The Philippines Resource rich area - providing a number of key growth opportunities Third largest gold mineral endowment Fourth largest copper mineral endowment 12 2 Fault 12 3 Road PHILIPPINES 0 10 Manila kilometres Mindanao Surigao City The Philippines has strong investment ratings Standard & Poor s rating: BB+ Fraser Institute: Safest Countries to Invest Australia ranked 31 Philippines ranked 34 Government support is allowing expansion and foreign investment from several global miners; Xstrata Tampakan project - $.2B Sumiatio Coral Bay project - $2B Medusa Mining Co-O Gold project King King Copper Gold Project 9 4 9 3 Sison Tubod Mainit Lake Mainit Alegria Placer
Siana gold mine fast facts Red beneficial Interest 100% Location Capital cost to first gold Production commencement date Resources Reserves Life-of-mine Mine type/output Other comments Project milestones Major permitting Finanacing Philippines Mindanao Island US$79.1million (US$49.6million forecast to be invoiced) September 2011 quarter Total contained gold of 1,122,000 ounces Total contained silver of 2,09,000 ounces Total contained gold of 708,000 ounces Total contained silver of 1,46,000 ounces 10 year operating life producing 849,000 ounces at US$364per ounce, average grade 4.6 g/t Open pit at 70,000 tpa, underground phased in at 400,000tpa Existing infrastructure: grid power highway, ports Completed Completed Pre-strip commenced January Quarter 2011 Dewatering commenced January Quarter 2011 Plant completion June Quarter 2011 First gold production September Quarter 2011
Siana site layout
Siana in construction Site construction activities restricted due to abnormal wet season 4.0 metres of rain (+200%) Jan to March Off-site activities on schedule delivery of mill, crusher, apron feeder, agitators all in country Fabrication of steel and plate work on schedule Grid power connected On-site the ROM pad, crusher and SAG mill concrete pours have been postponed awaiting improved weather Six CIL tanks 7% completed Dewatering of pit proceeding at 1,400 litres a second Capital cost estimate US$79.1 million $49.6 million forecast to be invoiced.
Siana long term initial mine plan Tonnes (M) Au g/t Ounces Au Ag g/t Ounces Ag Stockpile 0.08 1.33 3,49 10.67 28,000 Open Pit 3.10 3.42 341,000 8.71 870,000 Underground 3.36.83 630,000 9.12 986,000 Total 6. 4.6 97,000* 8.9 1,88,000 Data base comprises 88 drill holes for 37,840 metres 14,600 specific gravity measurements 88 >1,000 geotech measurements 28,00 samples assayed (seven elements) * Only to 400 metres vertical
Underground mining Underhand cut and fill (top down) Road header in ore (more productive in soft ground than conventional drill and blast) - additional benefit less explosive on site Active stope level Drill and blast for hard material Paste fill ground support - cement available locally
Siana long section unfinished business SOUTH Surface 4800N 000N 200N 400N NORTH 0m RL Historic Pit BFS Design Pit -100m RL SMDD13 3m at 31.6 g/t Au (completed post-resource) -200m RL Open Open -300m RL SMDD134 m at 2.4 g/t Au (completed post-resource) -400m RL -00m RL Open Open pit reserve Indicated resource Inferred resource Open 0 metres 200 Open
Resource panels upside potential? Panels 1-3 represent 89% of LOM plan Panels 4 10 insufficiently drilled from surface due to length of angled hole and cost. Will be drilled from underground in project year 3
Siana growth opportunities Further Siana underground extensions 3 metres at 31.6 g/t (180 metres vertical), metres at 2.4 g/t (380 metres vertical) (neither in resource data base). Drilling September 2011 quarter Panels 4 to 10 drill out below 400 metres vertical Mapawa satellite ore 3-4 Mt potential near surface oxide material plus copper-gold porphyry potential. Drilling on-going Siana bi-product credit potential from zinc concentrate production (years onwards)
Mapawa exploration Red Interest Location Exploration Exploration Budget Status 100% beneficial Philippines (30km north of Siana project) Initial shallow drilling has confirmed gold cap above gold-copper porphyry US$10 million quarantined will be results driven Promising initial copper-gold porphyry intersections. Rain, slow turnaround on assays and poor drill rod availability have slowed progress. Strategy may change as recent results show zinc implying re-targeting of holes necessary.
Mapawa surface mineralisation
Mapawa IP interpretation
600 metres vertical extent of gold copper mineralisation Mapawa geological cross-section Other Mapawa Intersections 3 metres at 0.8 g/t MDD004 from surface 69 metres at 0.8 g/t MDD00 from surface 149 metres at 0.8 g/t MDD007 from surface 23 metres at 0.8 g/t MDD008 from surface 76 metres at 0.7 g/t MDD009 from surface 6 metres at 0.7 g/t MDD011 89 metres at 0.6 g/t MDD012 269 metres at 0.7 g/t MDD013 each intersection with 0.1% copper
Production target profiles Mapawa Oxide Material Siana Resource Conversion Open Pit Production
On-going community support Red has taken an active role in local community relations Projects include: Clean water project Health assistance Education programs Welfare programs Agricultural assistance
Financing Project fully funded by equity Cash as at 30 March 2011 $6.4 million Remaining forecast build spend $48.1 million Sprott Resource Lending Partnership Technical, financial and legal due diligence completed US$8 million standby credit facility in place Non-revolving 24 months to 31 March 2013 - No penalty of early repayment
Summary Expected share price re-rating as Red moves into production Low cash costs relative to peers Resource growth potential at Siana extending current mine life Early drilling at Mapawa confirmed the potential for a second project in close proximity to Siana Strong relationships and acknowledgement in the Philippines providing growth opportunities Company fully funded as it moves toward production
Competent Persons Statement The information in this Public Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on, and accurately reflects, information compiled by Mr G C Edwards who is a full-time employees of Red and who are Members of The Australasian Institute of Mining and Metallurgy. Mr Edwards has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Edwards consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Contact details Australia Level 2, 3 Ventnor Avenue West Perth, Western Australia 600 PO Box 1911 West Perth, WA 6872 Ph: + 61 8 9322 44 Fax: + 61 8 9481 90 Greg Edwards (Managing Director, CEO) Colin G Jackson (Chairman) Philippines Greenstone Resources Corporation Level, NOL Tower Commerce Ave, cnr Acacia Ave Madrigal Business Park Muntinlupa City, Manila, Philippines 1770 Ph: + 63 2 807 2790 Fax: + 63 2 807 668 Web Site: www.redlimited.com Email: info@redlimited.com
Additional Information Appendix
Siana Resources & Reserves Resources Category* Tonnes (M) Au g/t Ounces Au Ag g/t Ounces Ag Indicated.1 4.6 769,000 9. 1,23,000 Inferred 1.4 7.1 33,000 11. 73,000 Total 6.69.2 1,122,000 9.7 2,09,000 Reserves Category* Tonnes (M) * to 00 metres vertical, and in accordance with JORC guidelines Au g/t Ounces Au Ag g/t Ounces Ag Stockpiles 0.08 1.33 3,00 10.7 28,00 Open Pit 3.11 3.42 341,000 8.7 870,000 Underground 1.94.82 363,000 9.1 66,000 Total.13 4.3 708,000 8.9 1,46,000
Summary Production Schedule Year 1 Year 2 Year 3 Year 4 Year -10 Total Ore milled ( 000 tonnes) 94 70 921 1,092 3,199 6,6 Grade (g/t) gold 2.88 3.48 3.6 4.21.90 4.63 Plant recovery (gold %) Gold produced (ounces) Silver produced (ounces) 83.0 8.9 8.7 86.1 88.3 87.1 4,700 72,200 90,300 127,100 13,600 849,000 24,800 191,900 120,000 134,600 70,300 1,443,000
The permitting process All Free major and Prior permits Informed Consent in place Certificate Environmental Compliance Certificate Notice to Proceed Plant Discharge Permit... achievements recognised by other miners and explorers keen to start activities in the country
Abnormal rain season February 2011