Slide 1: Corporate Presentation: Poised for significant growth
For personal use only Corporate Presentation Poised for significant growth December 2012
Slide 2: Location and Business Strategy
Location and Business Strategy For personal use only Alkane is a public company (listed on ASX since 1969) 6,100 shareholders (85% Australian) Multi commodity exploration and development in the Central West of NSW Active in region for more than 20 years with strong community recognition and
Slide 3: Equity and Ownership
Equity and Ownership For personal use only Equity Ownership Shares – 372,539,000 O i Options 4 000 000 – 4,000,000 Domestic Hedge Funds, 8% Institutions, 23% Market Capitalisation – A$250M Retail and others, Foreign Cash – A$92M (30 September 2012) 32% Directors and Institutions, 12% Inves
Slide 4: 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 currently produces 95% of world REE output • China is limiting the export of raw rare Rare metals earths materials • Brazil produces 90% of world niobium Lig
Slide 5: DZP Geology
DZP Geology For personal use only 0 200 metres Jurassic aged trachyte intrusive or lava flow 5
Slide 6: DZP Geology sections
DZP Geology sections For personal use only 20 year pit floor 6
Slide 7: DZP Resources and Reserves
DZP Resources and Reserves For personal use only Resources & Reserves Resources & Reserves – open at depth. Additional resource potential at nearby Railway deposit Life – +40 years but can support longer life and higher production rates Major world resource ‐ zirconium, hafnium, niobium, tanta
Slide 8: DZP Process Flow Sheet
DZP Process Flow Sheet For personal use only Demonstration Pilot Plant – established 2008 ANSTO – Aust. Nuclear Science & Tech. Org. Process – unique & advanced Optimization – ongoing Sulphuric acid leach whole of ore Solvent extraction, separation & refining Chemical precipitation Z
Slide 9: Demonstration Pilot Plant
Demonstration Pilot Plant For personal use only Y and HREE refiningand recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refiningand precipitation Reverse osmosis and water recycle Operating at ANSTO since 2008 9
Slide 10: DZP Location and Infrastructure
DZP Location and Infrastructure For personal use only Infrastructure Population – 80,000 Dubbo region Rail – railway hub Road – major highways intersection/hub Water – numerous sources 10km Electricity – NSW State power grid 25km Gas – NSW State gas grid 30km Industrial – substantial l
Slide 11: DZP Plant Layout
DZP Plant Layout For personal use only Office and workshops Rare earth recovery and refining Solvent extraction Sulphuric acid plant Roasting and leaching Zirconium and niobium recovery and refining Crushing and grinding 11
Slide 12: Environmental Impact
Environmental Impact For personal use only Environmental Impact Statement – key areas of focus Existing land use (agriculture) S i Socio‐economic i Air quality Noise and vibration Surface and ground water Soil stability Flora and fauna Biodiversity Visibility Rail freight movemen
Slide 13: Zirconium
For personal use only 13 Zirconium
Slide 14: Niobium
For personal use only 14 Niobium
Slide 15: Rare Earth Elements
Rare Earth Elements For personal use only 15
Slide 16: DZP Product Output
DZP Product Output For personal use only Anticipated p Production at 1,000,000 , , ore processed p per year p y Product Output ZBS, ZOH, ZBC, ZOC, ZrO2 (+99% ZrO2 + HfO2) 15,700tpa Nb -Ta concentrate / FeNb (70% Nb) 3 005tpa 3,005tpa LREE concentrate (REO) 3,772tpa YHREE concentrate (REO) 1,019tpa T
Slide 17: DZP Marketing
DZP Marketing For personal use only Off‐take Zirconium – 100% under MOU (subject to review) Niobium – 100% under MOU LREE – MOU to JV process concentrate YHREE – MOU to JV process concentrate Throughput – five MOU’s which target production at 1Mtpa Memorandums of Understandings (MOU’s) MOU
Slide 18: DZP Feasibility Studies
DZP Feasibility Studies For personal use only Definitive Feasibility Study – September 2011 DFS 0.4Mtpa ore processed Capex (incl EPCM and Contingency) A$470M Revenue per annum A$189M NPV (20 years) A$181M Scaled estimates 1.0mtpa Capex (incl EPCM and Contingency) A$893M Revenue per annum A$504M NPV
Slide 19: DZP Financing Program
DZP Financing Program For personal use only Credit Suisse (Australia) Limited (“CS”), Sumitomo Mitsui Banking Corporation (“SMBC”) and Petra Capital Pty Limited (“Petra”) to provide investment banking services, including the arrangement of project financing to fund the development of the Dubbo Zirco
Slide 20: DZP Development pathway
DZP Development pathway For personal use only 2009 2010 2011 2012 2013 2014 2015 2016 Resource definition 2001 ‐ 2002 9 Flow sheet development 2002 9 Laboratory Zr – Nb 1999 –2002 9 Pilot plant Zr – Nb 2002 9 Continued product 9 Mine Plan & Scheduling 2002 development Plant Design & Engineering 2002
Slide 21: Tomingley Gold Project
Tomingley Gold Project For personal use only Location / Infrastructure / Resources TGP located 50km south west of Dubbo on the Newell Highway 15km north of Alkane’s Peak Hill Gold Mine (467,000oz) Resource – 12.6 Mt @ 2.0g/t (812,000oz) Three deposits – Wyoming One; Wyoming Three; Caloma, wi
Slide 22: TGP Geology
TGP Geology For personal use only Geological Summary – Wyoming / Caloma Pelitic Sediments Feldspar porphyry Volcaniclastic sediments Graphitic p mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite talc schist Chlorite‐talc Andesitic volcanics Mineralisation Additional Resource Po
Slide 23: TGP Summary
TGP Summary For personal use only Current Project Activities Project approval by NSW Department of Planning and Infrastructure late July 2012. Waiting for Mining Lease approval Long lead construction items ordered (ball mill, water supply, tenders for earth works and other infrastructure) CAPE
Slide 24: Exploration
Exploration For personal use only Core drilling at Bodangora 24
Slide 25: Exploration
Exploration For personal use only Discoveries in 2010‐2011 Bodangora (100%) – NSW. Glen Hollow gold‐copper: – 46m 46 @ 00.9g/t 9 / gold ld & 0 0.25% 25% copper – 18m @ 1.7g/t gold & 0.45% copper Wellington (100%) – NSW. Galwadgere copper‐gold: – 2Mt @ 1.0% copper & 0.3g/t gold (with upside) – 14
Slide 26: Outlook
Outlook For personal use only Dubbo Zirconia Project (DZP): Global Strategic Significance – a long term, significant project in the zirconium and heavy rare earth industries, which can generate substantial cash flows Production costs – spread across the four metal outputs which will assist to insu
Slide 27: Conclusion
Conclusion For personal use only Alkane has suffered multiple negative market impacts like many of its peers Compared to Lynas Compared to Iluka The Company is in a strong financial position and is poised to grow substantially over the next four years Alkane’s current cash resources are 70% of its m
Slide 28: 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 29: Resource & Reserves: Tomingley + Peak Hill
Resource & Reserves: Tomingley + Peak Hill For personal use only Tomingley (TGP) – Mineral Resources DEPOSIT MEASURED INDICATED INFERRED TOTAL Top Cut Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold 2.5x2.5x5.0m model (t) (g/t) (t) (g/t) (t) (g/t) (t) (g/t) (koz) Wyoming One 2,316,550 2
Slide 30: Resource & Reserves: Dubbo + Galwadgere
Resource & Reserves: Dubbo + Galwadgere For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage 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 T