Alkane Resources Ltd · ASX:ALK
Alkane Resources — Metals Pages Rare Earths 2011 Conference
31 slides from Alkane Resources's conference presentation, Sep 16, 2011
Slide 1: ASX cover letter for conference presentation
RESOURCES L TD ABN 35 000 689 216 For personal use only 16 September 2011 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of the Company’s presentation to the Metals Pages Rare Earths 2011 Conference being held
Slide 2: Dubbo Zirconia Project, NSW Australia
For personal use only Dubbo bb Zirconia Project NSW Australia An alternate l source off rare earth and zirconium p products Alister MacDonald and Ian Chalmers Rare Earths 2011 Beijing 14 ‐ 17 September
Slide 3: Project Evaluation
Project Evaluation For personal use only 1 1. The Resource – the ore minerals and the host rock 2. Process Development 3 3. L Large scale l confirmation fi i off flow fl sheet h – pilot il plant l 4. Market Development 5. Environmental Assessment 6 6. Financing 7. Production
Slide 4: Location and Business Strategy
Location and Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales Wales, Australia Region with substantial existing infrastructure Dubbo Zirconia Project – world class resource of zirconium hafnium, zirconium, hafnium niobium, ni
Slide 5: DZP Infrastructure
DZP Infrastructure For personal use only Dubbo region pop 80,000 State power grid State gas grid M j mixed Major i d agriculture i lt Transport hub Substantial light industry
Slide 6: DZP Geology
DZP Geology For personal use only 0 200 metres Jurassic aged trachyte intrusive V l Volcanic i pipe i open att depth d th
Slide 7: DZP Geology
DZP Geology For personal use only East-west cross section through centre of deposit Recent Grits SEDIMENTS Basalt Dykes TRACHYTE SEDIMENTS Siliceous Contact Niobium Zirconium Zone Horizontal Scale 0 100 m Rare earth grade identical distribution as the zirconium and niobium
Slide 8: DZP Western contact of deposit
DZP Western contact of deposit For personal use only Trachyte Sediments
Slide 9: DZP Ore Mineralogy
DZP Ore Mineralogy For personal use only Zirconium Zi i eudialyte di l t ZrSiO4 ± Ca, Ca YY, < 2μ m - 50μ m Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30μ m Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100μ m rare ancylite Sr(REE)(CO3)H2O
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 (0.9% TREO) Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Resource define
Slide 11: DZP Flow Sheet
DZP Flow Sheet For personal use only Whole of ore sulphuric acid leach, solvent extraction separation and refining, with chemical precipitation to produce final products. Unique in the world today. today The process does not produce a mineral concentrate and does not concentrate the uranium and thor
Slide 12: DZP Demonstration Pilot Plant 2008
DZP Demonstration Pilot Plant 2008 For personal use only
Slide 13: Marketing - Zirconium Applications
Marketing ‐ Zirconium Applications For personal use only
Slide 14: Zirconium Industry
Zirconium Industry For personal use only China consumes about 50% of world’s zircon output. About 30% of that zircon is converted to downstream products products. China currently produces about 90% of world’s ZOC and 60% of FZA. China has limited domestic supply of zircon and acquire from major j pr
Slide 15: Zircon Supply Demand Price
Zircon Supply Demand Price For personal use only 20% shortfall by 2020 Zircon prices have escalated during 2010 and 2011 to >US$2,300/t Zircon price and supply will have a major impact on the cost and availability of zirconium chemicals zirconia chemicals, irconia and zirconium irconi m metal. metal
Slide 16: DZP Zircon - Zirconium Chemicals Pricing
DZP Zircon ‐ Zirconium Chemicals Pricing For personal use only PRODUCT ZrO2 Q2 2010 US$/T Q1 2011 US$/T Q2 2011 US$/T Zircon (producer/trader) 65% $900 ‐$1,150 $1,500 ‐$2,100 $1,700 ‐$2,750 (100% ZrO2 basis) 100% ($1,440 ‐ $1,840) ($2,400 ‐ $3,360) ($2,720 ‐ $4,400) ZOC ((zirconium i i oxychloride)
Slide 17: Marketing - Niobium Applications
Marketing ‐ Niobium Applications For personal use only
Slide 18: Structure of Niobium Industry
Structure of Niobium Industry For personal use only Metallurgical CBMM in Brazil Structural steels Stainless and heat produces about 90% resistant steels of world demand. Pyrochlore FeNb Superalloys Super conducting Early 2011 a Japanese magnets Korean consortium acquired 15% of Columbite Nb 2 O 5 C
Slide 19: Niobium Demand and Price
Niobium Demand and Price For personal use only Niobium 2010 (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$40 - 45/kg Sources: IAMGOLD / TZMI
Slide 20: Marketing - REE Applications
Marketing ‐ REE Applications For personal use only
Slide 21: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand For personal use only Will rare earth supply demand be in balance from 2015 with Lynas y and Molycorp producing? High g probability p y for LREE but not HREE The DZP has a 75% LREE - 25% HREE split which gives it a demand advantage Separated rare earth products Value 2010
Slide 22: Financial - DZP Product Output and Revenues
Financial – DZP Product Output and Revenues For personal use only Base case of 400,000 tonnes pa and expanded 1 million tonnes pa of ore processed Potential Production and Revenues Product 400,000 tonnes per annum 1,000,000 tonnes per annum ZBS, ZOH, ZBC, ZrO2 6,000tpa US$42M* 15,000tpa US$105M* Nb
Slide 23: DZP Marketing Developments
DZP Marketing Developments For personal use only Three MOUs completed that should take all of the 1Mtpa zirconium output. output Zirconium Niobium LREE YHREE US$125 – 150M 100% 75% In Progress g In Progress g In Progress g 50% 25% 0% Several other MOUs in discussion that will cover all niobium and r
Slide 24: Development pathway
Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 2014 DZP Resource definition 2001 ‐ 2002 9 Flow sheet development 2002 9 Laboratory Zr – Nb 1999 – 2002 9 Continued product Pilot plant Zr – Nb 2002 9 development Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9 Lab
Slide 25: DZP Production Plant Layout
DZP Production Plant Layout For personal use only
Slide 26: The Summary
The Summary For personal use only 1 1. 9 The Resource – the ore minerals and the host rock 2. Process Development 9 3 3. L Large scale l confirmation fi i off flow fl sheet h – pilot il plant l 9 4. Market Development 9 5. Environmental Assessment 9 6 6. Financing 9 7. Production 9 Completed or near
Slide 27: 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. DZP is the only short to medium term substitute for zircon as a source of Zr China dominates downstr
Slide 28: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Sh Share P Price i (7 September S b 2011) A$1 93 A$1.93 Shares 269m Fully Diluted Market Cap ~A$520m Cash (at 30 June 2010) ~A$18m A$18m Retail Top 20 ~60% No debt Institutions Directors & Management 3% *at
Slide 29: Conclusion
Conclusion For personal use only Dubbo Zirconia Project A strategic t t i and d alternate lt t supply l for f the th zirconium, i i niobium and rare earths industries www.alkane.com.au lk Definitive Feasibility Study TZ Minerals International Pty Ltd Study managers: Steve Gilman and Gavin Diener Mar
Slide 30: 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
Slide 31: DZP Resource Statement
DZP Resource Statement For personal use only Dubbo Zirconia Project Toongi g Tonnageg ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 0.014 TOTAL 73.20 1.96 0.04 0.46 0.03 0.1
Alkane Resources — Metals Pages Rare Earths 2011 Conference on 6ix