Alkane Resources Ltd · ASX:ALK

Alkane Resources — Investor Presentation (July 2010)

20 slides from Alkane Resources's investor presentation, Jul 14, 2010

  1. Slide 1: Presentation cover letter to ASX

    R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 14 July 2010 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of a corporate presentation for investors. A copy of this presentation will also

  2. Slide 2: Corporate snapshot

    …putting the pieces together For personal use only Corporate Presentation July 2010 Corporate snapshot Shareholder profile* Exchanges ASX: ALK Share Price ( 12 July 2010) A$0.30 Shares 249m Fully Diluted Market Cap ~A$75m Cash (at 30 June 2010) ~A$8.5m Retail Top 20 ~60% Institutions No debt Directo

  3. Slide 3: Business Strategy

    Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths Au Cu Gold production from Peak Hill mine 1996 – 2005

  4. Slide 4: Tomingley Gold Project, NSW

    Tomingley Gold Project, NSW ALKANE RESOURCES: 100% For personal use only • Three deposits under conceptual development: – Caloma (3.86Mt @ 1.76g/t Au) – Wyoming One (6 59Mt @ 1 (6.59Mt 1.86g/t 86g/t Au) – Wyoming Three (0.84Mt @ 1.75g/t Au) 947 AC, RC and core holes totalling 109,114 metres • Total

  5. Slide 5: TGP Current Resource Expansion

    TGP Current Resource Expansion For personal use only • South Caloma Discovery: – 3,000m aircore with several +3.0g/t intercepts – RC resource drill out planned – Potential 1Mt open pit resource • Caloma Underground – Seven core holes 3,500m – Numerous mineralised intercepts – Geological modelling fo

  6. Slide 6: TGP Economics

    TGP Economics For personal use only PRODUCTION OUTCOMES BASE CASE EXPANDED CASE Mine Life 7 Years 8 ‐ 10 Years Throughput Open Pit 6.0 Million tonnes 1.0 million tonnes Underground 0.6 million tonnes 1.0 Million tonnes Production 400,000oz 150,000oz Method conventional CIL circuit conventional CIL c

  7. Slide 7: ODEJV – McPhillamys

    ODEJV For personal use only ORANGE DISTRICT EXPLORATION JOINT VENTURE (ODEJV) Gold, Copper – Orange, NSW | Alkane Resources: 49%, Newmont Australia: 51% TWO FOCUS AREAS: MOLONG • Molong Carlin & Ridgeway‐type – targeting copper‐gold porphyry‐style gold porphyry targets mineralisation (Ridgeway‐type)

  8. Slide 8: ODEJV Moorilda Regional Targets

    ODEJV Moorilda Regional Targets For personal use only MULTIPLE TARGET AREAS: • Exploration – Detailed regional aeromagnetic survey – Regional Induced Polarisation – Regional gravity – Regional soil sampling – Detailed geological mapping – Specific aircore, RC and limited core drilling • Drill result

  9. Slide 9: Rare Metals - Rare Earths

    Rare Metals ‐ Rare Earths For personal use only Rare Metals – Rare Earths • China produces 90% of world downstream zirconium chemicals • China is limiting the export of raw rare earths materials • China currently produces 95% of world Rare metals REE output • Brazil produces 90% of world niobium Lig

  10. Slide 10: DZP Resources

    DZP Resources For personal use only Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.75% REO and 0.014% U3O8 Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Major world

  11. Slide 11: DZP Demonstration Pilot Plant

    DZP Demonstration Pilot Plant For personal use only Zirconium Applications

  12. Slide 12: Zirconium Chemicals Industry

    Zirconium Chemicals Industry For personal use only ZIRCON / BADDELEYITE ELECTRIC ARC FURNACE 2008 ~ 160,000t zircon converted to 96,000t of CHEMICAL PROCESSING zirconia (equivalent) products and 10,000t Zr metal ZBS ZOC FUSED “INTERMEDIATES” ZIRCONIA UPGRADING/CONVERSION UPGRADING/CONVERSION “END US

  13. Slide 13: Zircon Usage

    Zircon Usage For personal use only Zircon provides the feedstock for the zirconium industry 2012 Global consumption estimate 1,400,000tpa 18% = 250,000t zircon for zirconia and zirconium chemicals Source: TZMI Zircon Supply Demand Price 20% shortfall by 2020 Zircon price and supply will have a major

  14. Slide 14: Niobium Applications

    Niobium Applications For personal use only Structure of Niobium Industry Metallurgical Structural steels Stainless and heat resistant steels Pyrochlore FeNb Superalloys Super conducting magnets Columbite Nb 2 O 5 Tantalite Oxides Class Ceramics AZL Nb Concentrate Nb Raw Materials Intermediate Produc

  15. Slide 15: Niobium Demand

    Niobium Demand For personal use only Niobium 2008 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$35 - 40/kg Long term expected to be in US$25 - $35/kg Sources: IAMGOLD / TZMI REE Appli

  16. Slide 16: Rare Earth Supply - Demand

    Rare Earth Supply ‐ Demand For personal use only Source: IMCOA Rare Earth Consumption Li ht Rare Light R Earth E th Average as REOs ~US$15/kg Yttrium Heavy REs Average as REOs ~US$25/kg Total YREE demand 2014 estimated to be 200,000 tonnes Source: IMCOA

  17. Slide 17: DZP Product Output

    DZP Product Output For personal use only Base case model of 400,000 tonnes per year of ore processed Ore processed 400,000tpa 1,000,000tpa “Blue sky” ZBS, ZOH, ZBC, ZrO2 15ktpa (6ktpa ZrO2) 37ktpa (15ktpa ZrO2) Nb-Ta concentrate 2ktpa (1.4ktpa Nb2O5) 5ktpa (3.5ktpa Nb2O5) LREE concentrate 1,980tpa (

  18. Slide 18: DZP Strategic Significance

    DZP Strategic Significance For personal use only Majority of “downstream” zirconium products are derived from zircon, whose output is governed by ilmenite/rutile from mineral sands mining operations. China dominates downstream zirconium business at ~90% 90% but feed is zircon. Niobium production dom

  19. Slide 19: Project Development Pipeline

    Project Development Pipeline For personal use only 2010 2011 2012 2013 TOMINGLEY GOLD Definitive Feasibility Study (DFS) Environmental Assessment / DA Project Financing @ $A90m Construction Production DUBBO ZIRCONIA Definitive Feasibility Study (DFS) Environmental Assessment / DA Project Financing @

  20. Slide 20: Disclaimer

    Disclaimer For personal use only Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth o

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