Slide 1: ASX cover letter: presentation to shareholders
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 18 May 2007 For personal use only 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: Annual General Meeting 20 May 2008
ALKANE RESOURCES LTD ABN 35 000 689 216 For personal use only Annual General Meeting 20 May 2008 www.alkane.com.au
Slide 3: Corporate Profile
CORPORATE PROFILE For personal use only ASX Code ALK (listed since 1969) Issued Capital 241m shares Cash (31/03/08) A$12.5m Investments: BC Iron A$14.7M Trading Range (1 yr) A$0.215 - $0.515 Trading Volume (1 yr) average about 10m/mth Current Market Cap ~A$114m Abottsleigh (Gandel Metals) 29.1% No D
Slide 4: Alkane Share Price – last twelve months
Alkane Share Price – last twelve months For personal use only 24hGold.com
Slide 5: Alkane People
ALKANE PEOPLE For personal use only John Dunlop Chairman Ian Chalmers Managing Director Tony Lethlean Non-executive director Ian Gandel Non-executive director Ian Cornelius Non-executive director ----------------------------------------------------------------------- --------------------------------
Slide 6: Australia – project locations
Australia – project locations For personal use only Nullagine BC Iron 9M shares = A$14M Leinster Nickel JV Central West NSW Xtrata Nickel Gold – Copper Rare metals Perth Sydney 500 km Project
Slide 7: Central West NSW Alkane Projects
Central West For personal use only Tritton Copper NSW The Peak 2Moz Alkane Projects TGP Gold Copper - gold and Syerston Ni Pt DZP major deposits Newmont JV Gold - copper Rio Tinto 2Moz 1.5Mt Cu All Alkane projects Newcrest within the 120km Barrick 30Moz 2Mt Cu diameter circle 4.5Moz
Slide 8: Tomingley Gold and Dubbo Zirconia Project Location
Tomingley Gold For personal use only Project and Dubbo Zirconia Dubbo Zirconia Project Project Location Wyoming Caloma Peak Hill 153,000 ozs produced
Slide 9: Tomingley Gold Project Geological Summary
For personal use only Tomingley Gold Project Geological Summary 58,700oz 1km New discovery Pelitic Sediments 3km Feldspar porphyry 547,700oz Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate 70,000oz historic production Epidote altered volcanics Chlorite-talc schist Andesitic v
Slide 10: Wyoming One North–South Section
Tomingley Gold Project For personal use only Wyoming One North – South Section 9m @ 12.5g/t Au 85m @ 2.15g/t Au 614075mE 6m @ 9.53g/t Au Alluvium Cotton Formation 12m @ 6.22g/t Au Feldspar porphyry Volcaniclastic sediments 18.4m @ 5.74g/t Au 12.5m @ 7.88g/t Au 7.2m @ 11.06g/t Au Graphitic mudstone V
Slide 11: Wyoming One Preliminary Pit Profile
Tomingley Gold Project Wyoming One For personal use only North – South Section 614075mE Preliminary Pit Profile Alluvium Cotton Formation Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics
Slide 12: Tomingley Gold Project Resource Summary
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec 2007 For personal use only 0.75g/t gold cut off. Excludes Caloma Measured 4.835 mt @ 2.24g/t gold 348,350 oz 58% Indicated 1.025 mt @ 2.76g/t gold 91,000 oz 15% Inferred 1.270 mt @ 4.09g/t gold 167,000 oz 27% TOTAL 7.130 mt @ 2.70g/t
Slide 13: Caloma Preliminary Geological Interpretation
Tomingley Gold Project For personal use only Caloma Preliminary Geological Interpretation Pelitic Sediments Feldspar porphyry Volcaniclastic sediments Sections Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics New RC Intersections Chlorite-talc schist 37m @ 8.63g/t Au Andesiti
Slide 14: Caloma East–West Section
Tomingley Gold Project For personal use only Caloma East – West Section 6394140 Alluvium Cotton Formation Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics
Slide 15: Caloma East–West Section
Tomingley Gold Project For personal use only Caloma East – West Section 6394120 Alluvium Cotton Formation Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics
Slide 16: Caloma RC Drilling November 2007
Tomingley Gold Project: Caloma RC Drilling November 2007 For personal use only Drilling amongst the harvest
Slide 17: Caloma RC Drilling March 2008
Tomingley Gold Project: Caloma RC Drilling March 2008 For personal use only
Slide 18: Tomingley Proposed Pit Locations
Tomingley Gold Project For personal use only Proposed Pit Locations Addition gold potential Caloma 200,000oz Æ 400,000oz Total Project potential to approach 1Moz
Slide 19: Definitive Feasibility Study Team
TOMINGLEY GOLD PROJECT Definitive Feasibility Study Team For personal use only DFS Study Manager: Fiona Morgan (Mintrex – Holtfreters Pty Ltd) Tom Kendal Project Director Drew Noble (MPC) Metallurgy Geoff Bailey (BEC) Electrical Hien Ngo Mechanical Gerard Looten Civil John Robbins Structural Design
Slide 20: Tomingley Proposed Site Layout
For personal use only Tomingley Gold Project Tomingley Proposed Site Layout Caloma Wyoming Three CIL Plant Bridge or underpass Wyoming One Highway
Slide 21: Tomingley Development Summary
TOMINGLEY GOLD PROJECT Development Summary For personal use only Definitive Feasibility Study program incl resource drill out Caloma, optimise open pits, optimise head grades and recoveries. Metallurgical work underway and +90% recoveries anticipated DFS scheduled for early 2009. Detailed design and
Slide 22: Orange Area – Newmont Joint Venture
Orange Area Regional For personal use only Location Carlin and Ridgeway type porphyry targets Newmont Joint Venture Molong and Moorilda NMA to spend $5M before Aug 2010 to earn 51% Cadia Valley +30Moz Can go to 75% by carrying all expenditures to final BFS Orogenic (structural) gold targets
Slide 23: ODEJV McPhillamys Geology and Prospects
ODEJV For personal use only McPhillamys Discovery 2006 Moorilda McPhillamys Discovery 2006 123m @ 1.96g/t Au 123m @ 1.96g/t Au 10m @ 4.08g.t Au 10m @ 4.08g.t Au 31m @ 1.64% zn 31m @ 1.64% zn Geology and Prospects 7m @ 2.85g/t Au 7m @ 2.85g/t Au Target corridor 6m @ 2.37g/t Au 6m @ 2.37g/t Au 6m @ 3.
Slide 24: ODEJV Moorilda McPhillamys Target Potential
ODEJV For personal use only Moorilda McPhillamys Mineralisation o KPD 003 with drill hole 600m locations o KPD 002 Target potential > 1Moz 200m
Slide 25: McPhillamys Drill Section 6292120mN
ODEJV Moorilda For personal use only McPhillamys Drill Section 6292120mN Strongly foliated dacitic schist Med-coarse grained dacitic volcaniclastic Coarse grained volcaniclastic conglomerate (Epiclastic) Strongly foliated dacitic schist Intensely sericite-altered schist Gold histogram Zinc histogram
Slide 26: McPhillamys Drill Section 6292220mN
ODEJV Moorilda For personal use only McPhillamys Drill Section 6292220mN Strongly foliated dacitic schist Med-coarse grained dacitic volcaniclastic Coarse grained volcaniclastic conglomerate (Epiclastic) Strongly foliated dacitic schist Intensely sericite-altered schist Gold histogram Zinc histogram
Slide 27: McPhillamys Project: Core Drilling December 2007
ODEJV McPhillamys Project: Core Drilling December 2007 For personal use only KPD 002 Collar
Slide 28: McPhillamys Project: KPD Core
ODEJV McPhillamys Project: KPD 003 Core For personal use only Terry Ransted (Alk), Peter Duerden (Alk), Wade Johnson (Newmont), Jeff Bigalow (Newmont)
Slide 29: McPhillamys Conceptual Target Size
ODEJV Moorilda McPhillamys Conceptual Target Size For personal use only Basic area currently defined at + 1g/t gold ~ 300m x 200m x 85% = 51,000m2 To vertical depth of 350m = ~18 million m3 Tonnage @ 2.9 sg = ~50 million tonnes Grade @ 1.5g/t gold = ~2.5 million oz The +0.5g/t envelope is >600m long
Slide 30: Moorilda McPhillamys 2008 Program
ODEJV Moorilda For personal use only McPhillamys 5m @ 0.6g/t Au 3m @ 3.9g/t Au 2008 Program Regional Scoping -> August 18m @ 0.22g/t Au 4km 4,000m RC + Core drilling 18m @ 0.27g/t Au IP from McP to Kings Plains ~$1.6 million 3m @ 0.95g/t Au McPhillamys Scoping -> Dec 16m @ 1.6g/t Au 5,000m RC + Core
Slide 31: Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location For personal use only
Slide 32: Resources
DUBBO ZIRCONIA PROJECT RESOURCES For personal use only Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.14% Y2O3 0.46% Nb2O5, 0.03% Ta2O5 , 0.014% U3O8, and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million
Slide 33: Key metals
DUBBO ZIRCONIA PROJECT For personal use only Key metals Light rare earths Heavy rare earths
Slide 34: Current Program
DUBBO ZIRCONIA PROJECT Current Program For personal use only AusIndustry Commercial Ready Grant of A$3.29M in April 2006 on dollar for dollar basis to complete process optimisations, and construct and operate the Demonstration Pilot Plant (DPP). Laboratory program to optimise flow sheet commenced at
Slide 35: Feasibility Study Team
DUBBO ZIRCONIA PROJECT Feasibility Study Team For personal use only DFS study manager: Steve Gilman TZ Minerals International Pty Ltd Dave McCoy Engineering TZMI Marketing: Martin Lynch TZMI Philip Murphy TZMI Special REE Consultant: Dudley Kingsnorth IMCOA DPP Engineering: Ross Hayes Worley Parsons
Slide 36: Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET For personal use only
Slide 37: Product market summary
DUBBO ZIRCONIA PROJECT Product market summary For personal use only Zirconium: drying agent in paints; primer coat of vehicle metalwork; ceramic pigments; engineering ceramics; catalysts; electronics; solid oxide fuel cells cladding in nuclear power plants; special alloys and glasses Hafnium: contro
Slide 38: Zirconia Chemical Uses
DUBBO ZIRCONIA PROJECT For personal use only Current Zirconia Zr Chemical Uses 2006 Consumption 100,000 tonnes 2010 Estimated 126,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa Ceramic pigments 8.0%pa TZ Minerals International Dec 07
Slide 39: Structure of the Zirconia Industry
DUBBO ZIRCONIA PROJECT Structure of the Zirconia Industry For personal use only Dubbo Zirconia Project Products range from US$4 to +US$20/kg (ZrO2 equ) depending upon quality and use Zirconium metal ranges from US$25/kg to US$250/kg TZ Minerals International Aug 06/Dec07
Slide 40: Niobium Industry Structure
DUBBO ZIRCONIA PROJECT For personal use only Schematic Illustration of Metallurgical Niobium Industry Structural steels Stainless and heat resistant steels Structure Pyrochlore FeNb Superalloys Super conducting magnets Columbite Tantalite Nb 2O 5 Oxides 2007 (as pentoxide) Class Ceramics AZL Nb Conc
Slide 41: Primary niobium production
DUBBO ZIRCONIA PROJECT Primary niobium production For personal use only Since early 2007, price has spiralled to US$65/kg from long term base of around US$16/kg. Currently ~US$55/kg TIC Dec 07
Slide 42: Yttrium - Rare Earth Market
DUBBO ZIRCONIA PROJECT Yttrium - Rare Earth Market For personal use only China currently produces 95% of world output of 122,500 tonnes 2007 2012 demand forecast 190,000 tonnes. China is limiting the export of raw materials Roskill 2007 IMCOA 2008
Slide 43: Yttrium - Rare Earth Market
DUBBO ZIRCONIA PROJECT Yttrium - Rare Earth Market For personal use only Big growth areas are magnets Dy-Tb-Nd-Sm and rechargeable batteries Nd (metal alloys) for electric and hybrid vehicles. Also phosphors Y-Tb-Eu (TV, computer, LCD’s), and ceramics Y-Tb and catalysts Ce Roskill 2007 IMCOA 2008
Slide 44: Yttrium - Rare Earth Market
DUBBO ZIRCONIA PROJECT Yttrium - Rare Earth Market For personal use only 200,000 200,000 175,000 175,000 Shortfall Demand tpa - REO 150,000 150,000 125,000 125,000 100,000 100,000 75,000 75,000 50,000 50,000 25,000 25,000 0 0 f f f f f f 00 01 02 03 04 05 06 07 08 09 10 11 12 20 20 20 20 20 20 20 20
Slide 45: Maglev Vertical Wind Turbines
Maglev Vertical Wind Turbines GuangZhou ZhongKe HengYuan Energy Technology Company For personal use only global-greenhouse -warming.com
Slide 46: Demonstration Pilot Plant - Shed
DUBBO ZIRCONIA PROJECT Demonstration Pilot Plant - Shed For personal use only
Slide 47: Demonstration Pilot Plant – Shed Internal
DUBBO ZIRCONIA PROJECT Demonstration Pilot Plant – Shed Internal For personal use only
Slide 48: Demonstration Pilot Plant - Kiln
DUBBO ZIRCONIA PROJECT Demonstration Pilot Plant - Kiln For personal use only
Slide 49: Demonstration Pilot Plant – Primary Filter
DUBBO ZIRCONIA PROJECT Demonstration Pilot Plant – Primary Filter For personal use only
Slide 50: Demonstration Pilot Plant – Solvent Extraction Circuit
DUBBO ZIRCONIA PROJECT Demonstration Pilot Plant – Solvent Extraction Circuit For personal use only
Slide 51: Demonstration Pilot Plant – Zirconium Recovery
DUBBO ZIRCONIA PROJECT Demonstration Pilot Plant – Zirconium Recovery For personal use only
Slide 52: ANSTO Minerals DZP Team Key Personnel
Australian Nuclear Science and Technology Organisation For personal use only ANSTO Minerals Dubbo Zirconia Project Team Key Personnel Bob Ring GM – Chemical Engineer, 30yr hydromet, esp uranium Doug Collier – Metallurgist, chemical engineer, 30yr extractive metallurgy Karin Soldenhoff – Metallurgist
Slide 53: Demonstration Pilot Plant – The DPP Crew
DUBBO ZIRCONIA PROJECT Demonstration Pilot Plant – The DPP Crew For personal use only
Slide 54: Australian Nuclear Science and Technology Organisation
Australian Nuclear Science and Technology Organisation For personal use only ANSTO is located at Lucas Heights about 30km south of the Sydney CBD and is one of Australia’s premier research facilities. For 50 years ANSTO has undertaken research in nuclear science and technology with applications whic
Slide 55: Australian Nuclear Science and Technology Organisation
Australian Nuclear Science and Technology Organisation For personal use only
Slide 56: Australian Nuclear Science and Technology Organisation
Australian Nuclear Science and Technology Organisation For personal use only
Slide 57: Process Flow Sheet – Possible developments
DUBBO ZIRCONIA PROJECT Process Flow Sheet – Possible developments For personal use only Separated yttrium and Dy Tb, Er for magnets (hybrid cars), speciality glasses and alloys, ceramics Uranium Nuclear power Separated Nd for batteries (hybrid cars), La and Ce Zirconium and Niobium and hafnium metal
Slide 58: DZP Probable Outputs
DZP Probable Outputs For personal use only Base case models of 200,000 to 500,000 tonnes per year throughput 9,000 to 22,500 tonnes of zirconium chemicals (3kt to 7.5kt zirconia equivalent) 1,000 to 2,500 tonnes of niobium-tantalum concentrate (0.6kt-1.5kt Nb equiv) 2,400 to 6,000 tonnes of
Slide 59: Resource Summary
Resource Summary For personal use only Tomingley Gold Project Wyoming One (M,Ind & Inf) 547,700 oz Wyoming Three (M,Ind & Inf) 58,772 oz Caloma Potential?? ?2-400,000 oz Total 8-1,000,000 oz Peak Hill Sulphide (Ind & Inf) 467,570 oz TOTAL 1.2 – 1.5M oz Moorilda Project McPhillamys Hill Gold Pote
Slide 60: Alkane Twelve Month Program
Alkane 12 Month Program For personal use only Resource drill out for the Caloma open pit - Revised resources by mid 2008 Complete feasibility study on TGP (Wyoming-Caloma) – early 2009 Development commence mid 2009. Production by early 2010 DZP - Operate Demonstration Pilot Plant at ANSTO Adva
Slide 61: The Project Pipeline
The Project Pipeline For personal use only PROJECT 2008 2009 2010 2011 2012 2013 TGP Wyoming Caloma Peak Hill DZP ODEJV McPhillamys ? ? ?? Wellington Galwadgere Exploration Resource Feasibility Construction Production
Slide 62: Multi Commodity Development in the Central West of NSW
ALKANE RESOURCES LTD ABN 35 000 689 216 For personal use only Multi Commodity Development in the Central West of NSW Arsenopyrite in Caloma core Disclaimer: This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production l