Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (October 2011)
22 slides from Arafura Rare Earths's investor presentation, Oct 5, 2011
Slide 1: Mining the Territory
For personal use only Mining the Territory Neil Graham General Manager - Operations 5th October 2011
Slide 2: Disclaimer
Disclaimer Important Notice For personal use only This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 3: Contents
Contents For personal use only Introduction to Arafura Rare Earths Introduction Rare Earths Market Nolans Project Summary Page 3
Slide 4: Introduction to Arafura
Introduction to Arafura Corporate Summary Business Model - Adding Value in Australia For personal use only Australian Public Company – formed 1997 Listed on ASX in 2003 (code ARU) Nolans Project for Rare Earths Own technology developed Bankable Feasibility Study due H2 2012 Project Finan
Slide 5: Rare Earths Introduction
Rare Earths Introduction An exciting market outlook in new high technology applications and clean and efficient For personal use only energy uses, with increasing demand driven by consumers, society & regulators ….. Specialty Chemicals Critical components of end products Small cost item No s
Slide 6: Market Overview
Market Overview For personal use only China currently produces 97% of global supplies Global REO Production Future demand growth very strong: two to five times GDP 2009 Australia depending on application Brazil China CIS India China production declining – closure of unsustainable Malaysia USA
Slide 7: Supply and Demand
Supply and Demand For personal use only Total Rare Earth Oxide (REO) supply growth does not keep Global REO Supply - Demand Balance Metric tons % Cap. Util. up with demand growth 400,000 200% rates in any year! 350,000 180% Capacity utilizations bottoms 300,000 160% out in 2015 at 107% 250,000 1
Slide 8: Price trends
Price trends Prices in real terms have returned to long term levels prior to low price ‘Chinese era’ …… For personal use only 1990 to 2005 low priced era driven by unsustainable low cost Chinese production 2006 prices begin to rise with first Chinese export quotas 2007 to 2008 prices fall due
Slide 9: Project – Key Information
Nolans Project – Key Information For personal use only Excellent support from Federal, Northern Territory and South Australian governments Strong support from local communities in both NT and SA locations – community engagement ongoing Major project status from South Australian Government Te
Slide 10: Project: world-scale
Nolans Project: world-scale Arafura will act as a catalyst and ’critical mass’ for value creation in Northern Territory For personal use only and South Australia … The Nolans Bore Mine and its supporting infrastructure The Whyalla Rare Earths Complex will be a very will act as a catalyst for busines
Slide 11: Building a Sustainable Business for the Future
Building a Sustainable Business for the Future Long life deposit 20 years + resource with expansion For personal use only possibility. Australian based business model, low sovereign risk. Australian developed & proven flowsheet not dependant on others. Environmental Guidelines of the highest
Slide 12: Bore exploration summary 1999-2011
Nolans Bore exploration summary 1999-2011 For personal use only 1999 COMPREHENSIVE SURFACE ROCK CHIP SAMPLING SAMPLES AVERAGE ABOUT 7% REE COSTEANS RC CORE RAB WIDE DIAMETER TOTAL IDENTIFIED MINERAL YEAR m RESOURCES n m n m n tails m n m n m 2000 6 890 890 3.82 Mt @ 4.0% REO 2001 12 856 856 for 152,
Slide 13: Bore mineralisation and resource
Nolans Bore mineralisation and resource For personal use only Massive apatite Massive apatite, allanitic apatite, calcsilicate alteration This example contains about 6.5% REO This example contains about 3.3% REO Statement of Identified Mineral Resources1 Million Tonnes %REO Tonnes REO Measured 5.1 3
Slide 14: Bore preliminary pit designs
Nolans Bore preliminary pit designs Statement of Identified For personal use only Mineral Resources Million Tonnes %REO Tonnes REO Measured 5.1 3.2 163,200 Indicated 12.3 2.8 344,400 Inferred 12.8 2.6 332,800 TOTAL 30.3 2.8 848,400 Page 14
Slide 15: Bore 2011 expansion drilling program
Nolans Bore 2011 expansion drilling program For personal use only Sampling Samplingfacilities facilities Nolans Bore Drill rig Nolans Bore Drill rig Drill rig 500m Drill Drill rigsrigs Drillrigrig Drill N Page 15
Slide 16: Bore drilling 2001-2010
Nolans Bore drilling 2001-2010 For personal use only Direction of photo
Slide 17: Bore all drilling (including 2011)
Nolans Bore all drilling (including 2011) For personal use only Direction of photo
Slide 18: Where are we now?
Where are we now? We are here Completed with project For personal use only finance in place by end 2012 Exploration Prefeasibility Study Bankable Feasibility Study Construction Operations Approx 15 years for a rare earths project At time of completed BFS: Exploration Began 2000 Approx 100km of
Slide 19: Technology development
Technology development The flow sheet has been proven as shown and is now undergoing demonstration and optimization to For personal use only de-risk further, focus on rare earths, customize products for target customers, provide detailed design data, confirm EIS data and capture more of intrinsic va
Slide 20: Demonstration plant
Demonstration plant Process validation, de-risking; verification of design, mass balance & EHS data, For personal use only and performance guarantees Ore to Rare Earth Intermediate ALS-Ammtec and ANSTO leading to continuous piloting of Rare Earth Oxide production
Slide 21: Summary
Summary For personal use only Arafura has a long-life strategic resource to develop in regional NT The Nolans Project progresses down the value chain to add more value in Australia Potentially a catalyst for further development Products utilised in high growth high technology applications fo
Slide 22: Thank you
For personal use only Thank you Neil Graham General Manager - Operations 5th October 2011
Arafura Resources — Investor Presentation (October 2011) on 6ix