Alkane Resources Ltd · ASX:ALK
Alkane Resources — Industrial Minerals International Congress (2014)
21 slides from Alkane Resources's conference presentation, 2014
Slide 1: Dubbo Zirconia Project
ALKANE RESOURCES LTD AUSTRALIAN ZIRCONIA LIMITED Dubbo Zirconia Project NSW Australia A new source of zirconium materials and other critical metals and oxides Alister MacDonald -Technical Ceramic Marketing Services Ian Chalmers – Alkane Resources Ltd
Slide 2: Corporate Profile
Corporate Profile • Listed on ASX since 1969, also listed on OTCQX (US) • Market cap ~$120M • ~6,300 shareholders • Multi commodity explorer, miner and developer focused on Central West of NSW, Australia • Active in region for more than 20 years • Developed Peak Hill Gold Mine in 1996, operated to 2
Slide 3: Zirconium Industry
Zirconium Industry Increasing prices Increasing purity Global Market ‘Value’: US$2-3 B © 3
Slide 4: Zirconium Industry
Zirconium Industry Zirconium Chemicals Output (2011 – 194,000t ZrO2 basis) Baddeleyite 7,000t ZOC Fused 50,000t unstabilised zirconia 72,000t Fused Chemical stabilised Zirconia zirconia 40,000t 25,000t • 2013 consumer zircon inventories running down • Market expected to move back into under supply 2
Slide 5: Estimated Zirconium Demand to 2020
Estimated Zirconium Demand to 2020 Zirconium materials 2011 2012 2015f 2020f 2020f (100% ZrO2 basis) tpa tpa tpa tpa tpa Growth rate %/year 7% 5% 7% Baddeleyite 7,000 6,000 8,000 8,000 8,000 72,000 48,000 59,000 71,000 82,000 Fused unstabilised zirconia Fused stabilised zirconia 25,000 17,000 21,000
Slide 6: Zirconium Issues to 2020
Zirconium Issues to 2020 • Availability of premium zircon for fused zirconia - will require ~160-180,000t - low Al2O3 with minimal particle size < 45 micron - availability of zircon with <300 ppm U+Th • Consolidation of Chinese fused and zirconium chemical industry - production is about 75% of total
Slide 7: REE Industry in 2013
REE Industry in 2013 FORECAST REE DEMAND 2016 • Global market estimated at US$3-5B Other of ~110,000 t Catalysts 12% 15% • China produces about 90% of world supply and consumed about 65%, Ceramics with Japan 15% and the US 14% 6% Glass • The REE industry is “imbalanced” with 6% Phosphors potential o
Slide 8: REE industry in 2017
REE industry in 2017 Forecast Global Rare Earths Demand in 2017 (t REO ±20%) Demand Supply/Production Rare Earth Oxide REO Tonnes Per Cent REO Tonnes Per Cent Lanthanum 40,800 28.1% 47,800 27.4% Cerium 51,295 35.4% 75,500 43.2% Praseodymium 8,400 5.8% 8,500 4.8% Neodymium 28,925 19.9% 27,400 15.6% S
Slide 9: REE Industry in 2020
REE Industry in 2020 • Demand in 2020: 200-240,000 tpa REO • Demand trends: • Greater availability of non- Chinese products • Greater total supply chain management • Higher consumption of HREEs if available • Supply in 2020: 240-280,000 tpa REO • Supply trends: • Limited scope for pure LREE projects
Slide 10: Niobium Industry
Niobium Industry Main traded product is ferro-niobium 13% 29% Structural 10% Pipe Auto Stainless Other 24% 24% • 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels • Nb HSLA steels are primarily consumed in structural and piping, but the auto i
Slide 11: Dubbo Zirconia Project
Dubbo Zirconia Project • Very large polymetallic resource* (homogenous ore body) of the metals zirconium (hafnium), niobium (tantalum), yttrium and rare earths • Important and strategic metal mix - 25% of rare earth output is in “heavy” group • Reserve* supports 35 year mine life at 1Mtpa processing
Slide 12: DZP Ore Mineralogy
DZP Ore Mineralogy Zirconium eudialyte ZrSiO4 ± Ca, Y, < 2µm - 50µm Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30µm Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100µm rare ancylite Sr(REE)(CO3)H2O The deposit does not contain zircon; pyroc
Slide 13: DZP Process Flow Sheet
DZP Process Flow Sheet • Simple open cut mining operation • Crushing and grinding • Sulphuric acid, roast, leach whole of ore • Solvent extraction, separation & refining 13 ©
Slide 14: DZP Pilot Plant
DZP Pilot Plant Operating at ANSTO Since 2008 14
Slide 15: DZP Estimated Product Output @ 1Mtpa
DZP Estimated Product Output @ 1Mtpa 100% 5% 1,309t 90% 95% yttrium, dysprosium, 20% 4,665t 30% terbium 80% 28.5% of revenue 8% 1,967t 70% 90% neodymium, 60% 24% praseodymium 21.6% of revenue 50% 15,827t 40% 16% 67% Revenue reasonably 30% equally distributed between all four product 20% outputs 31%
Slide 16: DZP Product Applications
DZP Product Applications Multiples end uses for DZP products Zirconium Materials: • Electronics, ceramics, glass, refractories, chemicals, metal, catalysts Rare Earth Materials: • Electronics, magnets, ceramics, glass, metal alloys, phosphors, catalysts Niobium Materials: • Special steels, all
Slide 17: DZP Pathway to Market
DZP Pathway to Market Agreements to secure 100% of output Zirconium (Zr) • Leading chemical company to develop applications and markets in Asia for zirconia produced by DZP • MoU with European manufacturer /trading company to market DZP products in Europe and North America • Ceramic colours laborato
Slide 18: Funding Strategy
Funding Strategy Government Assistance Programs/ECA style funding Lead Coordinator: Sumitomo Mitsui Banking Corporation (SMBC) Attractive Project: long life low cost strategic source of critical metals long term off-take agreements with international companies Commercial Bank Debt Fina
Slide 19: DZP Major Milestones
DZP Major Milestones Major Milestones 2013 2014 2015 2016 Environmental Impact Statement Project Approval Process Project Financing Program Engineering Contract Front End Engineering Design (FEED) CONSTRUCTION PRODUCTION Estimates of times are indicative only and are subject to change. Alkane reserv
Slide 20: Disclaimer
Disclaimer 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 or other trend projecti
Slide 21: DZP Resource & Reserves
DZP Resource & Reserves Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO Deposit (Mt) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 Total 73.20 1.96 0.04 0.46 0.03 0.14 0.75 These Mineral Reso
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