Alkane Resources Ltd · ASX:ALK
Alkane Resources — Non-Deal Roadshow (November 2010)
33 slides from Alkane Resources's roadshow presentation, Nov 23, 2010
Slide 1: ASX cover letter: Presentation
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 23 November 2010 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a presentation to be delivered in Sydney and Melbourne to the Symposium Resources Ro
Slide 2: Corporate Presentation: putting the pieces together
For personal use only …putting the pieces together Corporate Presentation Sydney 23 November 2010 Melbourne 24 November 2010
Slide 3: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK ADR: ANLKY Share Price (19 November 2010) A$0.74 Shares 249m Fully Diluted Market Cap ~A$185m C h (at Cash ( t 30 SSeptember t b 2010) ~A$6 8 ~A$6.8m Retail Top 20 ~60% Institutions No debt Directors & Management 3% 12
Slide 4: 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
Slide 5: Dubbo Zirconia Project
For personal use only Dubbo Zirconia Project Zirconium, niobium, yttrium, rare earth elements Definitive Feasibility Study TZ Minerals International Pty Ltd S d managers: Steve Study S Gilman Gil and d Gavin G i DiDiener Marketing: Alister MacDonald (TCMS) and Dudley Kingsnorth (IMCOA) DPP Operation
Slide 6: 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
Slide 7: Rare Metal – Rare Earth Businesses
Rare Metal ‐ Rare Earth Businesses For personal use only ZIRCONIUM Zircon Zirconium silicate ZrSiO4 Primary Zr mineral source 2010 1.4 million tonnes ~US$1.6 billion Æ US$2B Zirconium products Zirconia ZrO2 , Zirconium chemicals, metal 2010 120 000 tonnes 120,000 ~US$0 7 billion Æ US$1B ~US$0.7 NIOB
Slide 8: DZP Program
DZP Program For personal use only Resource drilling completed 2001. Flow sheet developed 1999 to 2002, with trials t mini to i i pilot il t plant l t scale. l Detailed D t il d feasibility f ibilit study t d completed l t d in i 2002. 2002 AusIndustry Commercial Ready Grant of A$3.29M in April 2006
Slide 9: Dubbo Zirconia Project Location
Dubbo Zirconia Project Location For personal use only D bb region Dubbo i pop 80,000 80 000 State power grid State gas grid Major mixed agriculture Transport hub Substantial light industry
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
Slide 11: DZP Flow Sheet
For personal use only DZP Flow Sheet
Slide 12: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant For personal use only
Slide 13: DZP Products
For personal use only DZP Products
Slide 14: Zirconium Applications
Zirconium Applications For personal use only
Slide 15: Zirconium Chemicals
Zirconium Chemicals For personal use only Current Zirconia Zirconia, Zirconium Chemical Uses 2015 Estimated 150,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa C Ceramic i pigments i t 8.0%pa 8 0% Zirconium metal for nuclear applications ? Pr
Slide 16: Niobium Applications
For personal use only Niobium Applications
Slide 17: Niobium Demand
Niobium Demand For personal use only Niobium 2008 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t F Ferroniobium i bi price i spiralled i ll d to t US$60/kg US$60/k iin M March h 07 and d is i currently tl around d US$35 - 40/kg 40/k Long term expected to be in US$
Slide 18: REE Applications
REE Applications For personal use only Source: Molycorp
Slide 19: Rare Earth Consumption and Pricing
Rare Earth Consumption and Pricing For personal use only Light Rare Earth DZP Average as REOs US$10/kg Q1 2010 US$12/kg Q2 2010 US$16/kgg July y 2010 US$28/kg 9 August 2010 US$31/kg Q3 2010 US$58/kg mid Nov 2010 spot Yttrium Heavy REs DZP Average as REOs US$33/kg Q1 2010 US$42/kg Q2 2010 US$55/kg $
Slide 20: DZP Product Output
DZP Product Output For personal use only Base case model of 400,000 tonnes pa and expanded 1 million tonnes pa of ore processed Production Outputs Product 400,000tpa 1,000,000tpa ZBS, ZOH, ZBC, ZrO2 15,000tpa (6ktpa ZrO2) 37,000tpa (15ktpa ZrO2) Nb -Ta concentrate 2,000tpa (1.4ktpa Nb2O5) 5,000tpa (
Slide 21: DZP Potential Revenues
DZP Potential Revenues For personal use only Potential Revenues November 2010 Product 400,000tpa (Base Case) ZBS, ZOH, ZBC, ZrO2 6,000tpa ZrO2 @ $5/kg = $30Mpa @ $7/kg = $35Mpa Nb -Ta concentrate 1,4000tpa Nb2O5 @ $25/kg = $35Mpa @ $35/kg = $49Mpa LREE concentrate 1,980tpa (REOs) @ $31/kg = $43Mpa*
Slide 22: 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% but feed is zircon. Niobium production dominat
Slide 23: Development pathway
Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 DUBBO ZIRCONIA Resource definition 2001 ‐2002 9 PROJECT Flow sheet development 2002 9 Laboratory Zr – Nb 1999 ‐ 2002 9 Pilot plant Zr – Nb 2002 9 Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9 Laboratory Y & REE 2
Slide 24: Tomingley Project
For personal use only Tomingley Project Gold Definitive Feasibility Study Mintrex Pty Ltd Study Manager: Fiona Morgan Environmental Assessment R W Corkery & Co Pty Ltd
Slide 25: Tomingley Gold Project, NSW
Tomingley Gold Project, NSW For personal use only ALKANE RESOURCES: 100% • Three deposits under conceptual development: – Caloma (3 86Mt @ 1 (3.86Mt 1.76g/t 76g/t Au) – Wyoming One (6.59Mt @ 1.86g/t Au) – Wyoming Three (0.84Mt @ 1.75g/t Au) 947 AC, RC and core holes totalling 109,114 metres • Total
Slide 26: TGP Infrastructure
TGP Infrastructure For personal use only • Infrastructure: – water => 45km pipeline – power (State Grid) => 20km 66Kv power line – roads => primary & secondary access • Skilled local workforce – population base of 150,000 within 120km diameter area – No FIFO, no accommodation required • Capital cost
Slide 27: TGP Economics
TGP Economics For personal use only PRODUCTION OUTCOMES BASE CASE EXPANDED CASE Mine Life 7 Years 8 ‐ 10 Years Throughput Open Pit 5.9 Million tonnes 1.5 million tonnes Underground 0.7 million tonnes 0.5 Million tonnes Production 370,000oz 150,000oz Method conventional CIL circuit conventional CIL c
Slide 28: Advanced Exploration: ODEJV McPhillamys
For personal use only Advanced Exploration Gold ODEJV ‐ McPhillamys Newmont Australia Limited (NAL) Subsidiary of US based Newmont Mining Corporation NAL are the Managers and Operators
Slide 29: ODEJV
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)
Slide 30: ODEJV Moorilda | McPhillamys
ODEJV Moorilda | McPhillamys For personal use only INITIAL RESOURCES • Indicated + Inferred +0.3g/t gold 92 Mt @ 1.00g/t Au 0.07% Cu 2.96 Moz Au & 60,000t Cu • Indicated + Inferred +0.5g/t gold 61 Mt @ 1.32g/t Au 0.08% Cu 2.57 Moz Au & 48,000t Cu • Mineralisation open at depth Deep drilling in progr
Slide 31: Project Development Pipeline
Project Development Pipeline For personal use only 2010 2011 2012 2013 TOMINGLEY GOLD Definitive fi i i Feasibility ibili Study d (DFS) ( ) Environmental Assessment / DA Project Financing @ $A90m Construction Production DUBBO ZIRCONIA Definitive Feasibility Study (DFS) Environmental Assessment / DA
Slide 32: …a perfect fit
For personal use only …a perfect fit
Slide 33: 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