Slide 1: ASX/Media Release: Investor Presentation
Alara Resources Limited Telephone | +61 8 9214 9787 A.B.N. 27 122 892 719 Facsimile | +61 8 9322 1515 Level 14, The Forrest Centre Web | www.alararesources.com 221 St Georges Terrace Email | info@alararesources.com Perth Western Australia 6000 ASX/MEDIA RELEASE For personal use only 15 August 2012 I
Slide 2: Investor Update Presentation August 2012
Alara Resources Limited For personal use only Investor Update Presentation August 2012 ASX: AUQ www.alararesources.com www.alararesources.com
Slide 3: Alara offers attractive base metal exposure
Alara offers attractive base metal exposure For personal use only Khnaiguiyah Zinc Copper Project (50%) P Draft DFS report received. Review is in progress P DFS completion expected in Q4 2012 P 70,000tpa zinc production targeted to commence into forecast strongly rising zinc prices (+ US$2,500 per t
Slide 4: DFS Status
DFS Status For personal use only P Draft DFS report received. Review is in progress P DFS comprises 17 volumes and approximately 3,000 line items of bill of quantities P Initial review indicates that: P Plant, equipment and mine designs are fundamentally sound P Mine scheduling required further opti
Slide 5: Company Profile
Company Profile For personal use only Directors Stock ASX Code AUQ P 40+ years mining experience Market Cap (13 August 2012) $54.7M Ian Williams AO P Hamersley Iron, Rio Tinto, Century Zinc & Pasminco Chairman P Awarded Order of Australia for services to Indigenous Issued Capital communities - Share
Slide 6: Management Team
Management Team For personal use only Management Team Shanker Madan P 35+ years mining industry experience with BHP, Rio Tinto & Hamersley Iron. Managing Director John Berry P 30+ years in commercial and contracts management, feasibility studies and construction and General Manager, Saudi Arabia com
Slide 7: Saudi Arabia – Khnaiguiyah Project (50%)
Saudi Arabia – Khnaiguiyah Project (50%) For personal use only © Alara Resources Limited www.alararesources.com 6
Slide 8: Timetable
Timetable For personal use only 2011 2012 2013 2014 May May May Aug Aug Aug Nov Nov Nov Nov Sep Sep Sep Dec Dec Dec Dec Mar Mar Mar Mar Feb Feb Feb Feb Jun Jun Jun Apr Apr Apr Apr Jan Jan Jan Jan Oct Oct Oct Oct Jul Jul Jul q Finalise formal JV agreements ü q Mining Licence granted to project* ü
Slide 9: Joint Venture Partner – Manajem (50%)
Joint Venture Partner – Manajem (50%) For personal use only Management Team Company Profile United Arabian Mining Company (Manajem) Founder and Owner of: was established in June 2004 and is Engr. Mohamad Abdalah Al Hatlani Founder/Board Member P Delta Consulting Group comprised of a group of success
Slide 10: Relationships – Contractors
Relationships – Contractors For personal use only P Geology Models and JORC Resources P DFS Lead Engineers P Mining Study and Ore Reserves P Process Design P Geochemical Study and Waste Rock P Process Plant Classification P Materials Handling P Study on Co-Disposal of Filtered Tails and Waste Rock P
Slide 11: Attributes – Country & Historical Work
Attributes – Country & Historical Work For personal use only Country P Tax – 20% Corporate (nil personal tax rate) Two hours from Riyadh on the Riyadh-Jeddah P Royalties – nil Highway P SIDF – 75% debt available at sub-LIBOR rates with long 10 year tenure (Saudi Industrial Development Fund) P Owners
Slide 12: Maiden JORC Resource
Maiden JORC Resource For personal use only Summary P Resource Statement* – focused on lifting the category on Zones 2 & 3 (so as to not delay BFS) P Three Domains – Domain 1 (zinc only), Domain 2 (zinc & copper) and Domain 3 (copper only) P Category – upgraded to 75% “Measured & Indicated” with only
Slide 13: Resource Statement
Resource Statement – Zones 2, 3 & 4 For personal use only Zones 2 & 3 Zone 4 Cut- Measured Resource Indicated Resource M & I Resource Inferred Resource Cut-off Zn off C ut-‐o ff Infe rre d R e s o urc e Domain Z n (% ) T o n (M t) Z n (% ) C u (% ) (%) Cu Tonnes Zn Cu Tonnes Zn Cu Tonnes Zn Cu Tonn
Slide 14: Zinc Prices Forecast
Zinc Prices Forecast For personal use only Targeting commencement of Zinc Production from Khnaiguiyah into a strongly rising market © Alara Resources Limited www.alararesources.com 13
Slide 15: Achievements
Achievements For personal use only Rapid progress in <1.5 years! ü Projects secured – October 2010 (post successful Manajem negotiations) ü Mining licence – granted December 2010 ü Environmental licence – granted June 2012 ü JORC Resource – announced February 2012 ü Team – established in Saudi
Slide 16: Resource – Outlook
Resource – Outlook For personal use only Further upgrades ahead P Drilling cut-off (for resource) – September 2011 P Data cut-off (for resource) – November 2011 P Metres drilled since cut-off dates – +10,000m in Zones 1 & 2 P Zone 1 – JORC resource yet to be calculated. Mineralisation drilled on 50x
Slide 17: Upgrades Ahead
Zones 1 & 2 – Upgrades Ahead For personal use only Zone 1 excluded from existing resource Zone 2 already extended 400m NE Resource Open 17 Section 9 Section Drilling Highlights: Drilling Highlights: Hole K1DD12_221 from 24–30.8m: 6.8m at 6.02% Zn; 0.49% Cu Hole K2DD12_233 from 80.8–86m: 5.2m at 7.15
Slide 18: Upgrades Ahead
Zones 3 & 4 – Upgrades Ahead For personal use only Zone 3 open to the south Zone 4 remains undrilled by JV Co. Drilling Highlights: Hole K3DD11_037 from 78–82m: 4m at 11.02% Zn; 0.07% Cu Hole K3DD11_044 from 187–209.1m: 22.1m at 6.87% Zn; 0.14% Cu and 214–221m: 7m at 6.69% Zn; 0.65% Cu Hole K3DD11_0
Slide 19: Mineralisation
Mineralisation – Zone 2 For personal use only Mineralisation in Zone 2 is flat lying and shallow, deepening to the east S11 Drill hole intersections: Section 11 KZ2_311: 8m @ 4.6% Zn, 0.5% Cu KZ2_351: 8m @ 7.5% Zn, 0.3% Cu KZ2_312: 18m @ 7.2% Zn, 0.1% Cu KZ2_313: 17m @ 18% Zn, 0.3% Cu KZ2_314: 18m @
Slide 20: Mineralisation
Mineralisation – Zone 3 For personal use only Mineralisation is thick, high grade, open and has good continuity Mineralised Zone 3 is thicker and close to the surface on the east limb but generally Copper rich and towards the west S7 Drill hole intersections: K97_136: 4m @ 3.58% Zn, 0.27% Cu Section
Slide 21: Mineralisation
Mineralisation – Zone 3 For personal use only Mineralisation is thick, high grade, open and has good continuity Mineralised Zone 3 is thicker and close to the surface on the east limb but generally Copper rich and towards the west S14 Drill hole intersections: Section 14 K97_263: 23m @ 4.4% Zn, 0.08
Slide 22: 3D Models for Zones
3D Models for Zones 2 & 3 For personal use only Zone 2 – Flat & shallow. Zinc mineralisation (grey) overlays copper mineralisation (red) Zone 3 – Structurally thick & continuous mineralisation (2% cut-off envelope shown below) Zone 2 Zone 3 Zinc Copper >2% Zinc © Alara Resources Limited www.alarares
Slide 23: Plant Flow Sheet
Plant Flow Sheet For personal use only © Alara Resources Limited www.alararesources.com 22
Slide 24: Oman – Copper Gold (+50-75%)
Oman – Copper Gold (+50-75%) For personal use only The Oman Copper Gold Projects are located in a region with several examples of VMS Copper Deposits in the Ophiolites and close to a nearby Copper Smelter © Alara Resources Limited www.alararesources.com 23
Slide 25: Oman (cont'd)
Oman (cont’d) For personal use only Alara is targeting discovery and development of Copper-Gold in Oman P Drilling – +5,000m completed P Target – 3.2Mt to 5.0Mt @ 0.8-1.0% copper and 0.3 to 0.5g/t gold1 P Commenced scoping study for a 500,000tpa throughput mining and beneficiation at Washihi P Geoph
Slide 26: Oman – Washihi Drill Hole Plan
Oman – Washihi Drill Hole Plan For personal use only Drill hole locations at the Washihi Copper Gold Prospect Result highlights from nine drilling holes totalling 1,615m include: P Hole WH12DD005 72m @ 1.3% Cu, 0.15g/t Au P Hole WH12DD007 18m @ 1.4% Cu, 0.21g/t Au © Alara Resources Limited www.alara
Slide 27: Chile – El Quillay Project (earning 70%)
Chile – El Quillay Project (earning 70%) For personal use only In the “El Quillay” ” Prospect, numerous workings exist over 1km strike and up to 85m depth. Outcrops and workings have been extensively sampled Recent decline Main workings Shaft and dump This hill is largely covered by oxide cap A half
Slide 28: Chile (cont'd)
Chile (cont’d) For personal use only “Lana and Corina”” – highlight prospectivity of breccia pipes, with porphyry below Two drill holes – intersected 130m & 180m @ 0.7% Copper & up to 200ppm Molybdenum Lana-Corina Lana-Corina Project Area Project Area Geology Plan Cross © Alara Resources Limited www
Slide 29: Chile (cont'd)
Chile (cont’d) For personal use only P Ownership – earning 70% interest over three years P Targets – copper-gold with extensive previous workings and walk up drill targets P Prospects – copper, copper-gold, copper molybdenum, IOCG type and porphyry P Deep workings – along 6km strike P Target mineral
Slide 30: Summary
Summary For personal use only Alara presents great value and has a strong pipeline of base metal & gold projects Design / Exploration Feasibility Production Construction JORC Measured and Indicated Resource Saudi Arabia: Khnaiguiyah Zinc, Copper (Alara 50%) P 20.09 million tonnes @ 4.24% Zn & P Feas
Slide 31: JORC Code Competent Person Statements
JORC Code Competent Person Statements For personal use only The information in this presentation that relates to Mineral Resources within Mineralised Zones 2 and 3 of the Khnaiguiyah Project is based on information compiled by Mr Daniel Guibal, an employee of SRK Consulting (Australasia) Pty Ltd, wh
Slide 32: Alara Resources Limited
Alara Resources Limited For personal use only ABN: 27 122 892 719 ASX Code: AUQ Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 Telephone: +61 8 9214 9787 Facsimile: +61 8 9322 1515 info@alararesources.com www.alararesources.com DISCLAIMER This presentation contains