Alkane Resources Ltd · ASX:ALK
Alkane Resources — Shareholder Meeting (May 2010)
25 slides from Alkane Resources's shareholder meeting presentation, May 10, 2010
Slide 1: Presentation to shareholders – ASX cover letter
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 10 May 2010 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of a presentation to shareholders immediately following the annual general meeting
Slide 2: Corporate snapshot
…putting the pieces together For personal use only Annual General Meeting 10 May 2010 Corporate snapshot Shareholder profile* Exchanges ASX: ALK Share Price (7 May 2010) A$0.29 Shares 249m Fully Diluted Market Cap ~A$73m Cash (at April 31 2010) ~A$10.0m Retail Top 20 ~60% Institutions No debt Direct
Slide 3: Business Strategy
Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths Au Cu Gold production from Peak Hill mine 1996 – 2005
Slide 4: Tomingley Gold Project, NSW
Tomingley Gold Project, NSW ALKANE RESOURCES: 100% For personal use only • Three deposits under conceptual development: – Caloma (80% open pit ore recovery) – Wyoming One (35% open pit ore recovery) – Wyoming Three (80% open pit ore recovery) 947 AC, RC and core holes totalling 109,114 metres • Tota
Slide 5: TGP Infrastructure and Current Resource Expansion
TGP Infrastructure For personal use only 45km water pipeline and 20km power line Alkane’s test bore near Narromine TGP Current Resource Expansion • South Caloma Discovery: – 3,000m aircore with several +3.0g/t intercepts – RC resource drill out planned – Potential 1Mt open pit resource • Caloma Unde
Slide 6: TGP Wyoming One Underground and Economics
TGP Wyoming One Underground For personal use only • Resource at 3.00g/t gold cut off: – 690,000 tonnes @ 5.00g/t Au (121,000 oz) • Prefeasibility study: – Decline development near base of pit – Sub level long hole open stoping – Only three ore bodies ‘376’, ‘831’ and ‘Hangingwall’ targetted – > 80,0
Slide 7: Advanced Exploration – ODEJV McPhillamys
For personal use only Advanced Exploration Gold ODEJV ‐ McPhillamys Newmont Australia Limited (NAL) Subsidiary of US based Newmont Mining Corporation NAL are the Managers and Operators ODEJV ORANGE DISTRICT EXPLORATION JOINT VENTURE (ODEJV) Gold, Copper – Orange, NSW | Alkane Resources: 49%, Newmont
Slide 8: ODEJV Moorilda | McPhillamy's
ODEJV Moorilda | McPhillamy’s For personal use only CONCEPTUAL TARGET McPHILLAMY’S A Section AA • Basic area* => +0.5g/t gold • Potential tonnage =>> ~100 100 million A AA • Grade cut off => 600m @ 0.5 g/t gold ~4.5 million oz @ 1.0 g/t gold ~3.5 million oz 150m • Mineralisation strike length over 4
Slide 9: Dubbo Zirconia Project – Rare Metals, Rare Earths
For personal use only Dubbo Zirconia Project Zirconium, niobium, yttrium, rare earth elements Definitive Feasibility Study TZ Minerals International Pty Ltd Study managers: Steve Gilman and Gavin Diener Marketing: Alister MacDonald (TCMS) and Dudley Kingsnorth (IMCOA) DPP Operations: ANSTO Minerals
Slide 10: Dubbo Zirconia Project Location and Resources
Dubbo Zirconia Project Location For personal use only Dubbo region pop 80,000 State power grid State gas grid Major mixed agriculture Transport hub Substantial light industry DZP Resources Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5
Slide 11: DZP Flow Sheet and Market Summary
DZP Flow Sheet For personal use only Market Summary Zirconium: drying agent in paints; primer coat of vehicle metalwork; ceramic pigments; engineering ceramics; auto catalysts; electronics; solid oxide fuel cells; fuel rods in nuclear power plants; special alloys and glasses Hafnium: alloys, control
Slide 12: Zircon Usage, Supply, Demand, Price
Zircon Usage For personal use only Zircon provides the feedstock for the zirconium industry 2012 Global consumption estimate 1,400,000tpa 18% = 250,000t zircon for zirconia and zirconium chemicals Source: TZMI Zircon Supply Demand Price 20% shortfall by 2020 Zircon price and supply will have a major
Slide 13: Zirconium Chemicals and Niobium Industry Structure
Zirconium Chemicals For personal use only Current Zirconia Zirconium Chemical Uses 2015 Estimated 150,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa Ceramic pigments 8.0%pa Zirconium metal for nuclear applications ? Products range from US$4/
Slide 14: Niobium Demand and Rare Earth Supply-Demand
Niobium Demand For personal use only Niobium 2008 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$35 - 40/kg Long term expected to be in US$25 - $35/kg Sources: IAMGOLD / TZMI Rare Eart
Slide 15: Rare Earth Consumption and DZP Product Output
Rare Earth Consumption For personal use only Total YREE demand 2014 estimated to be 200,000 tonnes Source: IMCOA DZP Product Output Base case model of 400,000 tonnes per year of ore processed Ore processed 400,000tpa 1,000,000tpa “Blue sky” ZBS, ZOH, ZBC, ZrO2 15ktpa (6ktpa ZrO2) 37ktpa (15ktpa ZrO2
Slide 16: Zr Applications – Metal; Zr-Nb Applications
Zr Applications ‐ metal For personal use only Zirconium metal and alloys for nuclear power plants TToday d there th are 436 reactors, t with ith 40 under d construction, 110 planned and 272 proposed. Depending upon reactor type, each uses 10 to 45 tonnes Zr metal. Fuel rod has life of 5 to 6 years,
Slide 17: Applications in the Auto Industry
Applications in the Auto Industry For personal use only Source: Rhodia Zr Applications Emission control – zirconia ceramics Catalytic converter Oxygen sensors
Slide 18: Zr REE Applications
Zr REE Applications For personal use only Source: Rhodia Zr REE Applications Source: Rhodia
Slide 19: Nb Applications; REE Applications
Nb Applications For personal use only Also the addition of 0 15k of 0.15kg f niobium i bi tto the steel content of an average car, decreases the weight by 100kg Niobec (IAMGOLD) Source: Rhodia REE Applications Source: Molycorp
Slide 20: Development pathway
Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 DUBBO ZIRCONIA Resource definition 2001 ‐2002 9 PROJECT Flow sheet development 2002 9 Laboratory Zr – Nb 1999 ‐ 2002 9 Pilot plant Zr – Nb 2002 9 Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9 Laboratory Y & REE 2
Slide 21: Community Activities
Community Activities For personal use only The Tomingley Annual Picnic Race Meeting Community Activities Gilgandra High School F1 in Schools National Final - Melbourne
Slide 22: Community Activities and Peak Hill Rehabilitation
Community Activities For personal use only Narromine Glenn McGrath Statue Peak Hill Site Rehabilitation Heap Leach Pads and Waste Rock Emplacement Kangaroos on Heap Leach Pads
Slide 23: Disclaimer
For personal use only …a perfect fit Disclaimer Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, in
Slide 24: NSW Central West Location Movie
NSW Central West Location Movie For personal use only Perth Sydney Demonstration Pilot Plant Movie
Slide 25: Nagal Plant Pinjarra WA
NAGAL PLANT PINJARRA WA Large mixer-settlers For personal use only NAGAL PLANT PINJARRA WA All mixer-settlers