Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Singapore Asia Mining Conference 2008
24 slides from Arafura Rare Earths's conference presentation, Apr 4, 2008
Slide 1: Arafura Resources Limited - Singapore Asia Mining Conference
For personal use only Arafura Resources Limited Singapore g p Asia Mining g Conference Alistair J Stephens Managing Director A il 2008 April
Slide 2: Important Notice
Arafura Resources Ltd For personal use only Important Notice This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance
Slide 3: Topics
Topics For personal use only 1. Presentation overview 2. What are rare earths? 3. Overview of the Nolans project 4. Project opportunities 5 Proposed business structure 5. 6. Whyy Arafura?
Slide 4: Overview
Overview For personal use only ASX listed ASX:ARU ASX:ARUO Principle project – Nolans phosphate hosted rare earth-uranium Rare earths essential to products with environmental benefits Exploration projects Magnetite hosted vanadium, nickel, gold Strong Board and management team Experienced E i dBBoar
Slide 5: Rare earths – history and future
Rare earths – history and future For personal use only Market driver Industry Structure 1900s Emerging market in flint Emerging g g market 1950s Polishing & glass 1960s Oil Industry Catalyst Strong growth 1970s CRT TV era 1980s Batter era Battery Industry reforms 1990s Magnet era 2000 Electronics &
Slide 6: Rare earths - metals for the future
Rare earths - metals for the future For personal use only ©Arafura Resources Ltd
Slide 7: Rare earths – the source of energy
Rare earths – the source of energy For personal use only
Slide 8: Rare earths - our lifestyle needs
Rare earths - our lifestyle needs For personal use only
Slide 9: Nolans project location
Nolans project location For personal use only Nolans project 135 km north of Alice Springs 5km to gas line 10km to Stuart Highway 15km to Aileron Roadhouse 60 km to rail line 1200 km north to Darwin 1300 kkm south th tto P Portt Pi Pirie i
Slide 10: Nolans project location
Nolans project location For personal use only Small shallow open pit mine +20 year mine life Close to infrastructure On a Pastoral lease Aboriginal Anmatjerre Country
Slide 11: Nolans Project Flowsheet
Nolans Project Flowsheet ewe See ae aegis gi RR sina EO Chemical Separation | . Calcium Chloride Residue (By-Product)
Slide 12: Nolans resource
Nolans resource For personal use only 18.6 mt of indicated & Inferred resources - JORC compliant 577,000 tonnes REO (3.1%) and 2.1mt P2O5 (14%), 4,000 t U3O8 (0.47lb/t). Only drilled to 100m below surface – open at depth Current drilling looking for the lateral closure – still open along strike Expo
Slide 13: Simple mining
Simple mining For personal use only • Mining 1.7M tpa for about 800,000 tpa ore • Conventional drill & blast open cut operation using excavator and truck • Crush, screen, wash ore by heavy media separation • Transport about 500,000 tpa concentrated ore using truck and rail • Low power and water dema
Slide 14: Heavy media separation (HMS)
Heavy media separation (HMS) For personal use only HMS Demonstration plant results • 35% rejection of waste and 85% recovery of REO and Phosphate • Will upgrade the resource from 3.1% REO to a process feed grade of +5.8% HMS Demonstration plant optimisation • looking to improve recovery • optimise t
Slide 15: Pre-feasibility estimates capital ±30%
Pre-feasibility estimates capital ±30% For personal use only PFS Capital costs accurate to ±30% Equipment costs ±30% AUD$ million Mine site capital costs - mine, HMS and site offices 75 Processing plant* 215 Total 290 Direct costs ±30% Civil, concrete, pipes, electrical etc 160 Indirect costs ±30% E
Slide 16: Pre-feasibility estimates Opex ±30%
Pre-feasibility estimates Opex ±30% For personal use only PFS Operating costs accurate to ±30% AUD$ million per annum Administration, mining and transport, and labour 50 Chemicals 150 Power and maintenance 50 Sub-total operating costs 250 Transport of imported chemicals 100 Excludes royalties or cor
Slide 17: Nolans revenues – at March 2008
Nolans revenues – at March 2008 For personal use only Production per Current price Total revenue annum (tonnes) (t ) ($US) US$ million pa Rare earths 20,000 *15,000/tonne 300 Phosphoric acid 150,000 1,000/tonne 150 Calcium chloride 400,000 100/tonne 40 Uranium 150 75/lb 25 Total revenue US$515 Total
Slide 18: Project timeline
Project timeline For personal use only Project Schedule Activity 2008 2009 2010 2011 2012 2013 Mine NOI Mine Studies for Mine approval Mine approval Pilot Plant Studies Definitive Feasibility Study Process Plant Approval Pre-ordering & Construction Production 50% Production 75% Production 100%
Slide 19: Rare earths supply chain
Rare earths supply chain For personal use only China Japan & Europe India & Russia China dominates supply & controls the supply chain
Slide 20: Demand for our products is strong
Demand for our products is strong For personal use only Rare Earths 1. Chemical catalysts Market outlook moderatelyy strong g at 5% to 10% p per annum 2. Magnets Strong growth in the hybrid car market – wind power is the sleeper Current production of NdFeB = 50,000t to double to 100,000t by 2010 Mar
Slide 21: Nolans markets
For personal use only Nolans markets
Slide 22: Nolans business structure
Nolans business structure For personal use only Mining & Phosphoric acid Rare Earths Processing Plant Plant 100% Arafura Looking for offtake Looking for Partner • Autocatalysts Rare Earth • FCC catalyst in oil Catalysts Phosphoric acid • Electronics Magnet • HEV motor market • Plasma Pl di display l
Slide 23: Why invest in Arafura?
Why invest in Arafura? For personal use only Strong Management Team Experienced and motivated A reputation of delivering Nolans Project A open resource to support long life, strategic growth opportunities Community endorsement of the project Strategically important with strong industry interest in t
Slide 24: Arafura Resource Limited - Singapore Mining Conference
For personal use only Arafura Resource Limited Singapore g p Mining g Conference Alistair J Stephens Managing Director A il 2008 April
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