Alara Resources Limited · ASX:AUQ
Alara Resources — Investor Presentation (June 2011)
31 slides from Alara Resources's investor presentation, Jun 21, 2011
Slide 1: Market Announcement: Investor Update 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 Tuesday, 21 June 2011 For personal use only MARKET ANNOU
Slide 2: Investor Update June 2011
Alara Resources Limited For personal use only Investor Update June 2011 ASX: AUQ www.alararesources.com www.alararesources.com
Slide 3: Introduction
Investor Update – June 2011 For personal use only 1 INTRODUCTION 1. • The Company: Management, Structure and Share Price Performance 2. SAUDI ARABIA • Khnaiguiyah: Targeting DFS completion Q1 2012 • M j Marjan: N New concessions i nearby b Kh Khnaiguiyah i i h 3. OMAN • Daris and Awtad: Helicopter H
Slide 4: Company Profile
Company Profile For personal use only Directors Stock ASX Code AUQ • 40+ yyears mining g experience p • Hamersley Iron, Rio Tinto, Century Zinc Market Cap (17 June 2011): $ 67.5M Ian Williams AO & Pasminco Chairman • Awarded Order of Australia for services Issued Capital to Indigenous communities -
Slide 5: Pipeline
Pipeline For personal use only Alara has a strong pipeline of base metal development projects Design / Exploration Feasibility Production Construction “In Place Minable Reserves” as reported in Alara ASX market announcement dated 5 October Saudi Arabia: Khnaiguiyah 20101a Zinc – Copper (Alara 50%) •
Slide 6: Saudi Arabia & Oman Operations
Saudi Arabia & Oman Operations For personal use only © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Introduction 5
Slide 7: Saudi Arabia: The Khnaiguiyah Project
Saudi Arabia: The Khnaiguiyah Project For personal use only The Khnaiguiyah Project comprises a Mining Licence (granted), 2 Exploration Licences and 5 Exploration Licence Applications covering 380 sq. km © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Khnaiguiyah 6
Slide 8: Previous Studies
Previous Studies For personal use only Previous Khnaiguiyah studies have confirmed the potential for commercial development of the project • “In Place Minable Reserves” as reported in Alara ASX market announcement dated 5 October 20101 • The PFS (1990’s) indicates the project was commercially viable
Slide 9: Potential
Potential For personal use only High potential exists for new discoveries along strike and depth in the various mineral zones at Khnaiguiyah © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Khnaiguiyah 8
Slide 10: Previous Work and Studies
Previous Work and Studies For personal use only Alara’s Definitive Feasibility Study (DFS) scheduled for completion in Q1 2012 is building on a considerable amount of previous work • Exploration and Pre-feasibility Study conducted by BRGM and further studies conducted by Manajem (Vendor) include the
Slide 11: Access, Camp and Drilling Activities
Access, Camp and Drilling Activities For personal use only The Khnaiguiyah Zinc-Copper Project has excellent road access and available power Two hours T h from f Riyadh Ri dh on the Riyadh-Jeddah Highway © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Khnaiguiyah 10
Slide 12: Mineralisation
Mineralisation 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 open towards the west Drill hole intersections: K97_136: 4m @ 3.58% Zn, 0.27% Cu 3m @ 3.93% Zn,
Slide 13: Mineralisation
Mineralisation For personal use only High grade thicknesses within a defined structural envelope Mineralised Zone 3 is thicker and well defined at depth, with a distinct Zinc rich zone to the east east, and is open and Copper rich to the west Drill hole intersections: K97_263: 23m @ 4.4% Zn, 0.08% C
Slide 14: Mineralisation
Mineralisation For personal use only Structural continuity demonstrated A stacked 3D model of Mineralised Zone 3 shows structural continuity Zinc Copper © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Khnaiguiyah 13
Slide 15: Mineralisation
Mineralisation For personal use only Mineralisation in Zone 2 is flat lying and shallow Mineralised Zone 2 is generally flat lying and open to the east Drill hole intersections: KZ2_180: 16m @10.3% Zn, 0.33% Cu KZ2_300: 17m @ 4.06% Zn, 0.77% Cu KZ2_170: 4m @ 3.36%Zn, 0.03% Cu 18m @ 3.87% Zn, 0.82% C
Slide 16: Mineralisation
Mineralisation For personal use only Mineralisation in Zone 2 is thick and continuous Mineralised Zone 2 is shallow and thick Drill hole intersections: 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 @ 6.5% Zn,
Slide 17: Mineralisation
Mineralisation For personal use only Recent drilling aimed at copper mineralisation and strike extensions A stacked 3D model of Mineralised Zone 2 shows the flat and shallow disposition of the mineralisation Zinc Copper © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Khn
Slide 18: Progress
Progress For personal use only Highlights of recent drilling K2DD11_001 K2DD11 001 • 27.43m @ 12.88% Zn and 0.47% Cu from 52.60m to 80.03m K2DD11_004 • 23.07m @ 10.14% Zn and 0.41% Cu from 17.91m to 40.98m – (includes 8.12m @ 17.93% Zn from 20.66m to 28.78m) K2DD11_005 K2DD11 005 (above 0.55% 0 55%
Slide 19: DFS Completion
DFS Completion For personal use only Alara is targeting completion of Khnaiguiyah DFS in Q1 2012 2010 2011 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Finalise formal JV agreements Establish office in Riyadh Log L and d analyse l samples l ffrom holes completed rece
Slide 20: Acquisition of Marjan
Acquisition of Marjan For personal use only The Marjan Project comprises three Exploration Licences that have combined area of approximately 260km2 – predominantly Gold, with associated Silver, Zinc and Copper • Alara has recently secured a 50% interest in the Marjan Project in Saudi Arabia • Histor
Slide 21: Oman: Daris Project
Oman: Daris Project For personal use only The Daris Project is located in a region with several examples of VMS Copper Deposits in the Oman Ophiolites and a nearby Copper Smelter © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Daris 20
Slide 22: Targets
Targets For personal use only New targets identified Alara is targeting discovery and treatment of copper sulphides from the Daris Project • Alara has completed a 25 drill hole programme in 2 of 12 known prospects in the project area. Results received from one of these prospects, where 3 core holes
Slide 23: Mineralisation
Mineralisation For personal use only A helicopter-borne VTEM survey has been completed over Daris and the adjoining Awtad areas. New targets have been identified • Spatial Data and Predictive Modelling of VMS potential has identified several new unexplored targets in the Daris Project • VTEM survey
Slide 24: VTEM Findings
VTEM Findings For personal use only New target areas VTEM Target Areas VTEM Target Areas © Alara Resources Limited www.alararesources.com Investor Update – June 2011 Daris 23
Slide 25: Targets
Targets For personal use only In Chile, Alara is targeting Copper-Gold prospects in an area with extensive previous workings and walk up drill targets • Definitive agreements with local partner due to be finalised June/July • Five Copper, Copper-Gold and Copper Molybdenum IOCG type and porphyry pros
Slide 26: Prospects
Prospects 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 spiral decline dug in 2008 is wi
Slide 27: Prospects
Prospects For personal use only At “Lana and Corina” Prospect, significant drill intersections confirm the prospectivity of breccia pipes, with porphyry below Two drill holes intersected greater than 130m of mineralisation, one of which intersected 180m of 0.70% Copper and up to 200ppm Molybdenum ©
Slide 28: 2011 Work Program
2011 Work Program For personal use only An extensive work program is planned for El Quillay in 2011 • Technical and legal due diligence completed • Definitive agreements with local partner due to be finalised June/July • Mapping and geophysical surveys, including magnetic and Induced Polarisation (I
Slide 29: Recent Accomplishments
Recent Accomplishments For personal use only • Experienced industry veterans added to Board of Directors • $30M capital raising completed May 2011 • Khnaiguiyah Mining License awarded in Saudi Arabia, awaiting transfer to JV company g drilling • Four rigs g in Saudi Arabia and three in Oman • Marjan
Slide 30: The Way Forward for 2011
The Way Forward for 2011 For personal use only • Completion of Khnaiguiyah DFS • Increase Copper Exposure: • Continue drilling for Zinc and Copper extensions at Khnaiguiyah • Extension of high grade Copper Sulphide and Gold mineralisation in known discovery of additional lenses in both Saudi Arabia
Slide 31: 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 iinfo@alararesources.com f @ l www.alararesources.com DISCLAIMER This presentation c