Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — Excellence in Exploration and Mining Conference 2005
47 slides from Alkane Resources's conference presentation, Oct 17, 2005
Slide 1: ASX cover letter for presentation
‘A /- | ALKANE EXPLORATION LTD ‘em 2 A.B.N 35 000 689 216 wns: 17 October 2005 Manager Announcements Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of a presentation entitled “Advancing Several Projects” being
Slide 2: Advancing Several Projects
KANE EXPLORATION LTD dvancing Several Projects Excellence in Exploration and Mining . Sydney October 2005 Soin : ET
Slide 3: Corporate Profile
CORPORATE PROFILE a ASX Code 4 Issued Capital a Cash (30/09/05) 4 Trading Range (12 mths) a Current Market Cap a No Debt ALK (listed since 1969) 156m shares A$2.0m A$0.13 - $0.26 A$30m
Slide 4: Australia location map
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Slide 5: Central West NSW Projects
Central West [ae «ee NSW [@xemme'st Projects NORTHPARKES sae | Cudal Cu-Au _ vn ilk nger granites Monzonitic intrusions Ordovician are volcanics Fifield complexes
Slide 6: Peak Hill Gold Mine
PEAK HILL GOLD MINE Conventional Open Cut Mining Agglomeration Heap Leach recovery of gold Production Commenced 1996 at Capital Cost $5 million 100,000-500,000 ounces in sulphide deposit from 100m to 300m moderately refractory ore ~ subject on-going review ALxane
Slide 7: Tomingley Gold Project Regional Outcrop Geology
Tomingley Gold Project Regional Outcrop Geology Hervey Group Dulladerry Rhyolite Yeoval Granite Forbes Group ELSG75. . aia! Cotton Formation : . Peak Hil. se Py L _ Mine Site| Goonumbia (Mingelo) Volcanics
Slide 8: Bee
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Slide 9: Wyoming Geological Summary
Wyoming Geological Summary CL elitic sediments Feldspar porphyry Volcaniclastic sediments desite lava la Chlorite-talc Mineralisation
Slide 10: Wyoming One Simplified Interpretation
Wyoming One Simplified Interpretation Cotton Formation Feldspar porphyry sediments Carbonaceous mudstone ; { Mineralisation
Slide 11: Wyoming One North-South Section
Wyoming One North - South Section 614075mE Alluvium Feldspar porphyry Volcaniclastic sediments Co Volcaniciastic conglomerate Chiorite-talc schist Pa) [ Mineralisation
Slide 12: Wyoming One East-West Section
Wyoming One East - West Section 6393300mN Alluviurn Cotton Formation Feldspar porphyry sediments Volcaniclastic conglomerate Chlorite-talc schist 5 | Mineralisation Hangingwall zone Contact zone
Slide 13: Tomingley Gold Project Resource Summary
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec’ 04 0.75g/t gold cut off piel Measured indicated inferred
Slide 14: Wyoming History
TOMINGLEY GOLD PROJECT Wyoming History Acquisition: Separate production royalties Compass March 2001; Golden Cross August 2001; Climax January 2004 Area: 366km2 Drilling: First intercept May 2001 — Wyoming One 2001 — 13,939m (223) - exploration 2002 — 24,871m (279) — evaluation - Wyo Three discov Ju
Slide 15: Wyoming Development Summary
TOMINGLEY GOLD PROJECT Wyoming Development Summary Current program: Remodelling of ore system optimise open pit grade Examine u/g options based on high grade shoots Drilling down dip - down plunge extensions at Wyoming One in HWZ, Porphyry Structural modelling with pmd*CRC (CSIRO) Regional assessmen
Slide 16: Wyoming One 3D Model with pit and u/g development
Wyoming One 3D Model with pit and u/g development S
Slide 17: Wyoming One 3D Model with pit and u/g development
Wyoming One 3D Model with pit and u/g development S
Slide 18: 3D Model with pit and u/g development
ith pit and u/g development S 3D Model wi
Slide 19: Tomingley Gold Project Regional Exploration
Tomingley Gold Project Regional Exploration a My De a DM Lae Lo an oe LD ae es i Von U | Lp oe a. yy ay Ds ue 7 o Lo ue ly
Slide 20: Dubbo Zirconia Project Summary
DUBBO ZIRCONIA PROJECT SUMMARY * Avery large : and resource (+ 100 million tonnes) ¢ Project based upon large Jurassic aged alkaline volcanic complex with highly metal enriched vertical trachyte intrusive * Feasibility study to produce high quality zirconia-zirconium chemicals; niobium- tantalum con
Slide 21: Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location
Slide 22: Dubbo Zirconia Project Resources
DUBBO ZIRCONIA PROJECT RESOURCES Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr0,, 0.04%HFO,, 0.14% YO, 0.46% Nb,O,, 0.03% Ta,0, and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres 73.2 million tonnes The ore body is weakly radioactive (U a
Slide 23: Uranium Resources
DUBBO ZIRCONIA PROJECT URANIUM RESOURCES Measured Resource : 35.7 million tonnes grading 0 - 55 metres 0.014% U,0, Inferred Resource : 37.5 million tonnes @ 0.014% U,0O, 55 - 100 metres TOTAL : 73.2 million tonnes @ 0.014% U,0, ~ 23 million pounds
Slide 24: Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET
Slide 25: Structure of the Zirconia Industry
DUBBO ZIRCONIA PROJECT Structure of the Zirconia Industry RAW MATERIALS PROCESSED PRODUCTS END USES BADDELYITE ZIRCONIA PRODUCTS 5,000 tonnes (Generally increasing purity) FUSED ; Refractories ZIRCONIA Ceramic Pigments CHEMICAL Glass/Gernstones PURIFICATION Catalysts ZIRCON Oxygen Sensors SOF! 100,0
Slide 26: Niobium - Tantalum Market
DUBBO ZIRCONIA PROJECT Niobium - Tantalum Market 90% HSLA Steels Superalloys - aerospace and gas turbines Optical glass, ceramic capacitors, superconductors (MRI etc) 60% Electronics -- ceramic capacitors Superalloys - turbines hard tools, Ta chemicals
Slide 27: The strategic value of the DZP
DUBBO ZIRCONIA PROJECT The strategic value of the DZP? Current world zircon production (2004) = 1.165Mtpa, about 10 - 15% converted to higher value zirconia and zirconium chemicals. Significant world zircon supply deficit is developing with 100,000t shortage anticpated by 2008. DZP provides a strate
Slide 28: Current zircon uses
DUBBO ZIRCONIA PROJECT >, Ceramics CURRENT ZIRCON TV Glass USES Source: fluka Oct 05 A LKANE
Slide 29: Zircon Supply / Demand Outlook
DUBBO ZIRCONIA PROJECT Zircon Supply / Demand Outlook Surplus / deficit (000s tonnes) w & < < ° £ a 2 = 2 3 < q E é 3 = ® 5 a £ 3 wn x Balance (RHS) o=«x Supply — Demand Source: fluka Oct 05
Slide 30: Possible future advancements
DUBBO ZIRCONIA PROJECT Possible future advancements Resource size would enable significant scale up from base case 200,000tpa to 500,000tpa or larger Annual revenue stream increased from US$25m to US$60-80m by scale up Additional increase by improved (quality) base case products Production of separa
Slide 31: Process Flow Sheet - Possible developments
DUBBO ZIRCONIA PROJECT Process Flow Sheet - Possible developments ation | i Retunak Pe Uranium recovery Separated yttrium Zirconium and Separated niobium and HREE’s hafnium metal and tantalum
Slide 32: Possible future developments in zirconium stream
DUBBO ZIRCONIA PROJECT Possible future developments in zirconium stream Separation of zirconium and hafnium to prepare various metal products: ZIRCONIUM: sponge (~US$20-25/kg) > metal (~US$200-250/kg) Major uses: cladding in nuclear power plants, corrosion resistant piping, special alloys HAFNIUM: m
Slide 33: Current Strategy
DUBBO ZIRCONIA PROJECT Current Strategy Alkane proceeding to float 50% of AZL (the holding subsidiary) on AIM and ASX, and/or consider new JV with existing producer/end user Raise/inject sufficient capital to complete process optimisations, and construct and operate the Demonstration Pilot Plant ~A$
Slide 34: Wellington Bodangora Regional Geology
Wellington Bodangora Regional Geology Great Australian Basin Permian sediments Carboniferous granite Devonian ~ Silurian sediments and volcanics Ordovician volcanics and sediment Monzonite intrusives Bodangora mine vein system | Nindethana thrust zone A || Galwadgere Ind’cted Res | +20,000t Cu/+25ko
Slide 35: Galwadgere Geological Interpretation with Recent Resource Drill Holes
Wellington Project Galwadgere Geological Interpretation with Recent Resource Drill Holes Permian sediments Devonian sediments Urian volcanics
Slide 36: Galwadgere October 2004 RC Drill Holes
Wellington Project Galwadgere October 2004 RC Drill Holes ce ; — — a Permian sediments Devonian sedim Devinian secrete. oe ae Silurian volcanics ee
Slide 37: Galwadgere Long Section
Permian sediments Galwadgere Devonian sediments Long Section Silurian volcanics
Slide 38: Galwadgere conceptual pit
Galwadgere 350mRL Conceptual pit | Permian sediments Devonian sediments Siturian volcanics
Slide 39: Galwadgere - project site
Galwadgere - project site
Slide 40: Wellington Project Galwadgere Program
WELLINGTON PROJECT Galwadgere Program Scoping study: Basic open pit concept and flotation concentration To 350mRL (110m deep) 7.8:1 waste ore ratio Recover 1.5Mt @ 1.00% Cu and 0.26q/t Au Met work generated basic clean concentrate 20 — 27% Cu and 1.59 — 3.38g/t Au with 85% recovery of Cu Model gave
Slide 41: Orange Area Regional Geology
Orange Area Regional Geology Newmont Joint Venture za Quaternary WI t=iary Carboniferous granites Siluro-Devonian granites || Siluro-Devonian sediments Ordovician monzonite and related intr Ordovician Ordovician volcanics
Slide 42: Nullagine
Nullagine ee ae Ce eg. 7 a LD ; . a fe a a : | Ue i 2A Ee cal yl g (RATA TN ey NE sic, i Mm Jy ae i a : 2 . aaa vs SNM : a de i Mo ‘i le se iis a) Siti, ae a i
Slide 43: Nullagine Project — satellite image
Nullagine Project — satellite image | ™) Bonnie Creek Palaeochannel
Slide 44: Nullagine Project — Bonnie Creek Palaeochannel
Nullagine Project — Bonnie Creek Palaeochannel Mesa deposits
Slide 45: Nullagine Project - Tertiary Palaeochannel
Nullagine Project - Tertiary Palaeochannel Bonnie Well Drill Traverse
Slide 46: Nullagine Project Channel Iron Deposits
Nullagine Project Channel Iron Deposits Bonnie Creek System | | Tertiary Palaeochannels Potential 150 - 220M tonnes CID pisolite iron Surface sampling Fe Sid, ALO, P LOI Fe(C) 58 3.23 3.95 0.03 9.07 63
Slide 47: Disclaimer
ILKANE EXPLORATION LTD . Bho soo, yen www.alkane. Disclaimer: This presentation contains certain forward looking staternents and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Exploration L
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