Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — Hargreave Hale Ltd and LM Associates - European Mining Conference January 2005
31 slides from Alkane Resources's conference presentation, Jan 10, 2005
Slide 1: ASX cover letter: Presentation
ALKANE EXPLORATION LTD ABN 35 000 689 216 CORPORATE OFFICE: 129 Edward Street, Perth WA 6000 (PO Box 8178, Perth Business Centre, Perth WA 6849) Telephone +61 8 9227 5677 Fax:+61 8 9227 8178 Email: mail@alkane.com.au 10 January 2005 Manager Announcements Company Announcements Office Australian Stock
Slide 2: Dubbo Zirconia Project
LKANE EXPLORATION LTD ABN 35 000 689 216 DUBBO ZIRCONIA PROJECT New South Wales Australia Hargreave Hale Ltd and LM Associates - European Mining Conference January 2005
Slide 3: Alkane Exploration Ltd
LKANE EXPLORATION LTD ABN 35 000 689 216 Alkane is listed on the Australian Stock Exchange (ASX) - ALK A diverse exploration and mining company active in the Central West Region of New South Wales, Australia Produced 152,000 ounces of gold from its Peak Hill mine A new discovery of 500,000 ounces of
Slide 4: Corporate Profile
CORPORATE PROFILE ASX Code ALK (listed since 1969) Issued Capital 138m shares 9.8m listed opts / 9.2m unlisted Cash A$1.0m Trading Range 04 A$0.17 - $0.39 Current Market Cap A$30m No Debt LKANE
Slide 5: Central West - New South Wales
Central West - New South Wales LKANE
Slide 6: Central West NSW Projects
Dubbo Central West Bodangora Au-Cu Tomingley Au NSW Dubbo Wellin gton Wellington Cu-Au Peak Hill Au-Cu Rockley Gulgong Projects Junee Molong Volcanic Volcanic Belt Na rrowmine NORTHPARKES Belt Volcanic Parkes Molong Cu-Au Belt Orange Cudal Cu-Au Bathurst Forbes CADIA Moorilda Au-Cu Younger granites
Slide 7: Peak Hill Gold Mine
PEAK HILL GOLD MINE Conventional Open Cut Mining Agglomeration Heap Leach recovery of gold Production Commenced 1996 at Capital Cost $5 million 1996-2004 Output 152,000 ounces Cash Operating Surplus $15 million 100,000-500,000 ounces in sulphide deposit from 100m to 300m moderately refractory ore –
Slide 8: Peak Hill Gold Mine
PEAK HILL GOLD MINE LKANE
Slide 9: Tomingley Gold Project
TOMINGLEY GOLD PROJECT Wyoming One and Three Deposits 14km north of Peak Hill, discovered in 2001, drilled during 2002-2003 Total resources currently stand at 500,000 ounces of gold Further recent drilling continues to generate very positive results Feasibility study in progress for open pit/undergr
Slide 10: Dubbo Zirconia Project Summary
DUBBO ZIRCONIA PROJECT SUMMARY • One of the worlds largest zirconium, yttrium and tantalum resources (+ 100 million tonnes) - also contains significant niobium and rare earth elements • Project based upon large Jurassic aged alkaline volcanic complex with highly metal enriched vertical trachyte intr
Slide 11: Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location LKANE
Slide 12: Geology
DUBBO ZIRCONIA PROJECT Geology 0 200 metres LKANE
Slide 13: View over Toongi deposit
DUBBO ZIRCONIA PROJECT View over Toongi deposit LKANE
Slide 14: Resources
DUBBO ZIRCONIA PROJECT RESOURCES Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.14% Y 2O3 0.46% Nb2O5, 0.03% Ta2O5 and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes LKANE
Slide 15: Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET LKANE LKANE
Slide 16: Mini Pilot Plant - Roaster
DUBBO ZIRCONIA PROJECT Mini Pilot Plant - Roaster LKANE
Slide 17: Mini Pilot Plant - SX Circuit
DUBBO ZIRCONIA PROJECT Mini Pilot Plant - SX Circuit LKANE
Slide 18: Indicative Development
DUBBO ZIRCONIA PROJECT INDICATIVE DEVELOPMENT Conceptual Project at start up 200,000tpa ore processed Zirconium products 3000 tpa zirconia (ZrO2 + HfO2) equivalent ZBS Zirconium basic sulphate ZOH Zirconium hydroxide ZCO Zirconium carbonate ZrO Zirconia (calcined) Niobium - tantalum 600 tpa niobium
Slide 19: Structure of the Zirconia Industry
DUBBO ZIRCONIA PROJECT Structure of the Zirconia Industry RAW MATERIALS PROCESSED PRODUCTS END USES BADDELYITE ZIRCONIA PRODUCTS (Generally increasing purity) (5000 tonnes) FUSED Refractories ZIRCONIA Ceramic Pigments CHEMICAL Glass/Gemstones PURIFICATION Catalysts ZIRCON Oxygen Sensors SOFC (60000
Slide 20: Niobium - Tantalum Market
DUBBO ZIRCONIA PROJECT Niobium - Tantalum Market Niobium 1991 - 19,000t 2003 - 32,600t 90% Brazil Uses: 90% HSLA Steels Other: Superalloys - aerospace and gas turbines Optical glass, ceramic capacitors, superconductors (MRI etc) Tantalum 1991 - 625t 2003 - 1,500t 30% W.A. Uses: 60% Electronics -- ce
Slide 21: Yttrium - Rare Earth Market
DUBBO ZIRCONIA PROJECT Yttrium - Rare Earth Market Y/REE’s 1991 - 30,000t 2003 - ~100,000t China 80% Catalyst/Chemicals 30% - auto and petroleum, fertilisers Metallurgical 35% - hsla steels, alloys, batteries Glass/Ceramics 15% - specialty glasses, stabilized zirconias, pigments Electronics/Magnets
Slide 22: Possible future advancements
DUBBO ZIRCONIA PROJECT Possible future advancements Resource size would enable significant scale up from base case 200,000tpa to 500,000tpa or larger Annual revenue stream increased from US$25m to US$60-80m by scale up Addition revenue increase by improved (quality) base case products Production of
Slide 23: Process Flow Sheet – Possible developments
DUBBO ZIRCONIA PROJECT Process Flow Sheet – Possible developments Separated yttrium Zirconium and Separated niobium and HREE’s hafnium metal and tantalum LKANE
Slide 24: Possible future developments in zirconium stream
DUBBO ZIRCONIA PROJECT Possible future developments in zirconium stream Separation of zirconium and hafnium to prepare various metal products: ZIRCONIUM: sponge (~US$20-25/kg) Æ metal (~US$200-250/kg) Major uses: cladding in nuclear power plants, corrosion resistant piping, special alloys HAFNIUM: m
Slide 25: Preliminary Plant Layout
DUBBO ZIRCONIA PROJECT Preliminary Plant Layout Ra ilw a y 0 100 metres LKANE
Slide 26: Toongi rail siding and process plant site
Dubbo Zirconia Project Toongi rail siding and process plant site LKANE
Slide 27: View over project site
Dubbo Zirconia Project View over project site LKANE
Slide 28: Current Summary
DUBBO ZIRCONIA PROJECT Current Summary Development joint venture signed with Astron Limited October 2003 Astron is ASX listed with major zirconia, zirconium chemicals production in north east China. Currently produces 25% of world output. Astron will earn 50% by funding all expenditures including co
Slide 29: Our Operations in China
Our Operations in China AS T RON z Group headquarters (Shenyang) – Administration – Sales and logistics – Business development z Research and development (Bayuchuan) z Zirconium materials (Bayuchuan and Zibo) – Zircon Flour 15000 ton – Advanced chemicals 22000 ton – Fused Zirconia 13000 ton z Sales
Slide 30: We Are A High Technology Company
AS T RON We Are A High Technology Company z High tech processes z Mineral sands separation technology and markets z Advanced zirconium chemistry and product applications z Fused zirconia processing and product applications z Titanium chemistry and products z Vacuum furnace processing and products z
Slide 31: World Zirconia and Zirconium Chemical Production Capacity
AS T RON World Zirconia and Zirconium Chemical Production Capacity (ZrO2 Units) ‘000 World Astron % Fused Zirconia 50 13 24% Zr chemical/zirconia 72 10 14% Total 127 23 18%