Copyright RESOURCE GOLD PTY. LTD. Gold Recovery From Processing Of - Mill Site Materials - Alluvial Gold Deposits - Hard Rock Resources NOVEMBER, 2009 REVISION 3 1
Disclaimer! This presentation contains only a brief overview of the proposed Resource Gold Pty Ltd activities and operations. The contents of this presentation may rely on various assumptions and subjective interpretations which it is not possible to deal with in this presentation and which have not been subject to any independent verification.! This presentation contains a number of forward looking statements. Known and unknown risks and uncertainties and factors outside of Resource Gold control, may cause the actual results, performance and achievements of Resource Gold to differ materially from those in this presentation.! To the maximum permitted by law, Resource Gold does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Resource Gold and will not be responsible for any loss or damage arising from the use of this information.! The Information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Resource Gold Pty Ltd or it s activities. 2
Preamble! The resource boom created a scenario of high capital and operating costs. Cash costs to produce gold have not decreased substantially in line with the international financial crisis. Despite the current high gold price many gold producers have had to close operations and many junior exploration companies cannot raise funds to advance exploration and develop mines.! Resource Gold however has very low capital costs and very low operating costs. The company can operate profitably at virtually any gold price and pay royalties to cash strapped junior explorers or major companies -in particular to owners of mill sites sitting on substantial gold resources that would not otherwise be developed. In addition to cash flow for exploration companies RGL also meets annual expenditure commitments on mining tenements to enable a company to keep it s projects in good standing with the Department of Mines.! Much of the company s business is also derived from administrators and liquidators of failed exploration companies. Administrators welcome proposals from RGL to treat mill sites to generate cash flow for companies whilst in receivership. Accordingly adverse market conditions can increase opportunities for the company to secure mill site contracts and/or hard rock and alluvial gold resources. 3
Project Overview! Resource Gold Pty Ltd was set up to recover gold from old mill sites, alluvial gold resources and hard rock resources amenable to gravity separation. The initial focus has been Australia and the Rand Goldfields of South Africa.! The company commenced gold production in late September 2009 on its first Tribute Agreement with Montezuma Mining Company Ltd at Peak Hill approximately 130 km North West of Meekatharra. Current gold production is 3-5 Kg a week with anticipated production of 7-10 Kg a week as plant modifications and process circuitry is refined.! A second Tribute Agreement has been signed with Convergent Minerals Ltd on the old Bounty Mill Site plant and machinery with a larger second stage agreement on the entire mill site area pending the results of the first stage program.! Many other mill sites and large high grade alluvial resources in Western Australia and South Africa are being discussed some of which are at an advanced stage of negotiation. 4
Management Team! Ken Watson Founder and ex Managing Director of AIM listed Regency Mines plc and Red Rock Resources plc. Over 40 years experience in company directorships mining equipment manufacture exploration mining and gold production. Managing Director of Resource Gold Pty Ltd.! Chris Longmuir over 30 years of on site experience in mining quarrying and gold processing. Operations Manager Resource Gold Pty Ltd.! Susan Steele 35 years of company management accounting and secretarial experience. Director and Company Secretary of Resource Gold Pty Ltd. 5
Key Financials - Australia GOLD PRODUCTION:! A standard RGL wet gravity plant processes 50tph. Bigger plants to 150 200tph are optional.! Gold recovery rates are high with modern efficient wet gravity plants. RGL plants utilize design features gained from extensive operating experience.! Gold grades are highly variable especially mill sites. Tonnages processed are not constant nor is plant availability however experience has demonstrated that a standard plant can consistently produce a minimum of 1Kg (32.15 on Troy) of gold per day. This represents approx A$38,000 of gross gold per day at current gold prices! Target production per standard plant with continuity of contracts is 10,000 ozs per annum.! Current gold price A$1,150/oz. Total revenue A$11,500,000.! Cash costs are less than A$200/oz Mill site materials and alluvial materials are not crushed or milled hence very low operating costs.! Total Cash Cost for 10,000 oz approx A$2,000,000.! Royalties are generally 25% of gross gold sold approx A$2,875,000.! Net profit before tax for one operating plant A$6,625,000. 6
Key Financials - Australia IMPORTANT NOTE:! Mill Site material currently being processed at Peak Hill is averaging 5 7 g/t. Notwithstanding reduced throughput capacity of 30 TPH due to the quantity of steel in the circuit 1Kg of gold is being produced every 5 hours. STEEL PRODUCTION:! Mill sites on average in Western Australia contain from 2,000 tonnes to 5,000 tonnes of cast alloy high carbon mill balls (L2B) currently fetching A$325 A$350 tonne.! Mill ball production from mill sites which are removed from materials processed by magnetic scalping conveyors are a valuable by-product of RGL gold processing plants.! It is estimated in South Africa individual mill sites will contain up to 20,000 tonnes or more of mill balls and that there is at least A$500 million in unreclaimed mill balls on the Rand. 7
South Africa The Rand Goldfields! There is an estimated 200 300 old mill sites on the Rand Goldfields. No total mill site gold reclamation program as carried out by RGL has ever been conducted on these sites.! Much of the entire plants including crushing milling leach tanks thickeners gold rooms and associated mine infrastructure is still in situ. Historical gold production at many of the mine sites on the Rand are many times that of historical gold production of Western Australian mines. Accordingly we estimate there is 1,000,00 to 2,000,000 oz of gold (US$1 2 billion) within Rand Goldfields mill sites available for recovery.! RGL intends to set up a fixed plant in Johannesburg with no less than 4-5 large 150tph mobile plants treating mill sites and feeding concentrates to the nearby gold smelting facility within the central fixed plant operations.! Planned production on the Rand Goldfields will be 20,000oz in the first year of production with similar costs and profitability as the Australian operation. 8
Manufacturing Gold Production Plant.! Modern engineering and manufacturing facilities have been leased at 2/14 Moriarty Street, Welshpool, Western Australia with a 10 ton gantry crane and modern office facilities.! The first RGL 50tph wet gravity gold processing plant was constructed at the above premises! Construction is well advanced on a second large processing plant with a third plant in the design stages for a large alluvial gold resource. Note: 1 oz (troy) = 31.1034 grams. 9
RGL Wet Gravity Plant Peak Hill WA 10
RGL Wet Gravity Plant Peak Hill WA 11
Gold Bullion Production Peak Hill WA Gold in Scats Peak Hill WA 12
Manufacturing Equipment Sales! An important part of the Resource Gold business strategy is manufacture of gravity separation equipment for the gold industry.! Gravity gold processing equipment is increasingly being used in large CIP/CIL plants even to the extent of processing crushed ore ahead of ball mill grinding circuits.! The Directors of RGL expect that equipment sales will eventually represent a very strong source of revenue for the company. 13
Mining Division! Resource Gold Pty Ltd is well advanced in planning to develop a Mining Division within the company.! There are hundreds of small high grade near surface ore bodies which have a high percentage of gravity gold in the ores which are amenable to simple crushing and milling before treatment through high capacity RGL wet gravity plants. Many ores carry up to 90% free gold recoverable by gravity methods.! RGL sees this as a logical extension of it s gold production business and will have specialist mining engineers capable of assessing and progressing mining contracts for such resources. 14
Conventional Process Crushing & Grinding Gravity gold separation Cyanide-carbon and Lime added Leaching & adsorption Tailings Smelting RGL Process Scrubber and Trommel No crushing OR grinding Gravity gold Separation with Jigs and Concentrators NO CYANIDE Smelting 15
Peak Hill Mill Site 16
TARMOOLA 2005 GRAVITY PLANT OPERATION 3,000ozs recovered from area shown Tarmoola Gravity Plant Water Supply Dam Water Pipeline TARMOOLA 2005 GRAVITY PLANT IN OPERATION Material Feed Stockpiles Gravity Plant Tailings Dam Hopper Conveyor Scrubber - Jigs Scrap steel in drums production from gravity plant 80 tonne per day 17
Typical West Australian Mill Site 18
Typical Rand Mill Site Potential 10,000 ozs plus recoverable from such large old mill sites. 19
Rand Mill Sites Old and New in close proximity. New Mill Site 20
Plant Manufacture 21
Plant Manufacture Pump Modules 22
Plant Manufacture - Concentrators 23
Gold Pour - Open Pit Project 24
CIP Plant 25
Small Open Pit Depth 37 mtrs 26
Summary! Low capex Low cash cost gold production business model.! Recession proof - Depression proof! Not Sensitive To The Gold Price! No competition Little expected! No less than 1,000 mill sites world wide containing millions of ozs of unrecovered gold.! Backed by a strong team with extensive exploration and mining experience. Gold recovered from materials inadvertently enriched by the mining process. 27