Slide 1: ASX/Media Release: Investor Presentation
Alara Resources Limited Telephone | +61 8 9214 9787 A.B.N. 27 122 892 719 Facsimile | +61 8 9322 1515 Level 14, The Forrest Centre Web | www.alararesources.com 221 St Georges Terrace Email | info@alararesources.com Perth Western Australia 6000 ASX/MEDIA RELEASE For personal use only 24 May 2012 Inve
Slide 2: Investor Update Presentation May 2012
Alara Resources Limited For personal use only Investor Update Presentation May 2012 ASX: AUQ www.alararesources.com www.alararesources.com
Slide 3: Alara offers attractive base metal exposure
Alara offers attractive base metal exposure For personal use only Khnaiguiyah Zinc Copper Project (50%) • DFS on track for completion by July 2012 • 70,000tpa zinc production targeted to commence into forecast strongly rising zinc prices (+ US$2,500 per tonne) • Saudi Arabia offers significant inves
Slide 4: Company Profile
Company Profile For personal use only Directors Stock ASX Code AUQ • 40+ years mining experience Market Cap (22 May 2012) $65.3M Ian Williams AO • Hamersley Iron, Rio Tinto, Century Zinc & Pasminco Chairman • Awarded Order of Australia for services to Indigenous Issued Capital communities - Shares 2
Slide 5: Management Team
Management Team For personal use only Management Team Shanker Madan • 35+ years mining industry experience with BHP, Rio Tinto & Hamersley Iron. Managing Director John Berry • 30+ years in commercial and contracts management, feasibility studies and construction and General Manager, Saudi Arabia com
Slide 6: Saudi Arabia – Khnaiguiyah Project (50%)
Saudi Arabia – Khnaiguiyah Project (50%) For personal use only © Alara Resources Limited www.alararesources.com 5
Slide 7: Joint Venture Partner – Manajem (50%)
Joint Venture Partner – Manajem (50%) For personal use only Management Team Company Profile Founder and Owner of: United Arabian Mining Company (Manajem) Engr. Mohamad Abdalah Al Hatlani • Delta Consulting Group Founder/Board Member was established in June 2004 and is • Metals Corners Holding Co. Ch
Slide 8: Relationships – Contractors
Relationships – Contractors For personal use only • Geology Models and JORC Resources • DFS Lead Engineers • Mining Study and Ore Reserves • Process Design • Geochemical Study and Waste Rock • Process Plant Classification • Materials Handling • Study on Co-Disposal of Filtered Tails and Waste Rock •
Slide 9: Infrastructure
Infrastructure For personal use only The Khnaiguiyah Zinc-Copper Project has excellent road power and camp infrastructure Two hours from Riyadh on the Riyadh-Jeddah Highway © Alara Resources Limited www.alararesources.com 8
Slide 10: Attributes – Country & Historical Work
Attributes – Country & Historical Work For personal use only Country • Tax – 20% Corporate (nil personal tax rate) • Royalties – nil • SIDF – 75% debt available at sub-LIBOR rates with long 10 year tenure (Saudi Industrial Development Fund) • Ownership – 100% permitted • Profits & Capital – 100% rep
Slide 11: Zinc Prices Forecast
Zinc Prices Forecast For personal use only Targeting commencement of Zinc Production from Khnaiguiyah into a strongly rising market Zinc Price Forecasts 3500 3000 2500 2000 $/T Khnaiguiyah LME cash price 1500 Targeting 70,00 tpa Zinc CRU forecast production 1000 500 0 2004 2005 2006 2007 2008 2009 2
Slide 12: Achievements
Achievements For personal use only Rapid progress in <1.5 years! Projects secured – October 2010 (post successful Manajem negotiations) Mining licence – granted December 2010 Environmental licence – granted January 2012 (provisional) JORC Resource – announced February 2012 Team – establish
Slide 13: Maiden JORC Resource
Maiden JORC Resource For personal use only Summary • Resource Statement* – focused on lifting the category on Zones 2 & 3 (so as to not delay BFS) • Three Domains – Domain 1 (zinc only), Domain 2 (zinc & copper) and Domain 3 (copper only) • Category – upgraded to 75% “Measured & Indicated” with only
Slide 14: Resource – Outlook
Resource – Outlook For personal use only Further upgrades ahead • Drilling cut-off (for resource) – September 2011 • Data cut-off (for resource) – November 2011 • Metres drilled since cut-off dates – +10,000m in Zones 1 & 2 • Zone 1 – JORC resource yet to be calculated. Mineralisation drilled on 50x
Slide 15: Zones – Upgrades Ahead
Zones 1 & 2 – Upgrades Ahead For personal use only Zone 1 excluded from existing resource Zone 2 already extended 400m NE Resource Open © Alara Resources Limited www.alararesources.com 14
Slide 16: Zones – Upgrades Ahead
Zones 3 & 4 – Upgrades Ahead For personal use only Zone 3 open to the south Zone 4 remains undrilled by JV Co. © Alara Resources Limited www.alararesources.com 15
Slide 17: Resource Statement
Resource Statement – Zones 2, 3 & 4 For personal use only Zones 2 & 3 Zone 4 Cut- Measured Resource Indicated Resource M & I Resource Inferred Resource Inferred R eso urce C ut-o ff Cut-off Zn off Domain Z n (%) T o n (M t) Z n (%) C u (%) (%) Cu Tonnes Zn Cu Tonnes Zn Cu Tonnes Zn Cu Tonnes Zn Cu (
Slide 18: Mineralisation – Zone
Mineralisation – Zone 2 For personal use only Mineralisation in Zone 2 is flat lying and shallow, deepening to the east S11 Drill hole intersections: Section 11 KZ2_311: 8m @ 4.6% Zn, 0.5% Cu KZ2_351: 8m @ 7.5% Zn, 0.3% Cu KZ2_312: 18m @ 7.2% Zn, 0.1% Cu KZ2_313: 17m @ 18% Zn, 0.3% Cu KZ2_314: 18m @
Slide 19: Mineralisation – Zone
Mineralisation – Zone 3 For personal use only Mineralisation is thick, high grade, open and has good continuity Mineralised Zone 3 is thicker and close to the surface on the east limb but generally Copper rich and towards the west S7 Drill hole intersections: K97_136: 4m @ 3.58% Zn, 0.27% Cu Section
Slide 20: Mineralisation – Zone
Mineralisation – Zone 3 For personal use only Mineralisation is thick, high grade, open and has good continuity Mineralised Zone 3 is thicker and close to the surface on the east limb but generally Copper rich and towards the west S14 Drill hole intersections: Section 14 K97_263: 23m @ 4.4% Zn, 0.08
Slide 21: 3D Models for Zones
3D Models for Zones 2 & 3 For personal use only Zone 2 – Flat & shallow. Zinc mineralisation (grey) overlays copper mineralisation (red) Zone 3 – Structurally thick & continuous mineralisation (2% cut-off envelope shown below) Zone 2 Zone 3 Zinc Copper 2% Zinc © Alara Resources Limited www.alarareso
Slide 22: Recent Drilling Highlights
Recent Drilling Highlights For personal use only Zone 1: Zone 2: Hole K1DD12_221 from 24–30.8m: 6.8m at 6.02% Zn; 0.49% Cu Hole K2DD12_233 from 80.8–86m: 5.2m at 7.15% Zn; 0.14% Cu Hole K1DD12_222 from 63–66m: 3m at 7.51% Zn; 0.95% Cu Hole K2DD12_237 from 157–162m: 5m at 8.40% Zn; 0.38% Cu Hole K1DD
Slide 23: Preliminary Plant Flow Sheet
Preliminary Plant Flow Sheet For personal use only © Alara Resources Limited www.alararesources.com 22
Slide 24: Timetable
Timetable For personal use only 2011 2012 2013 2014 May May May Aug Aug Aug Nov Nov Nov Nov Sep Sep Sep Dec Dec Dec Dec Mar Mar Mar Mar Feb Jun Feb Jun Feb Jun Feb Apr Apr Apr Apr Jan Jan Jan Jan Oct Oct Oct Oct Jul Jul Jul Finalise formal JV agreements Mining Licence granted to project* E
Slide 25: Oman – Copper Gold (+50-75%)
Oman – Copper Gold (+50-75%) For personal use only The Oman Copper Gold Projects are located in a region with several examples of VMS Copper Deposits in the Ophiolites and close to a nearby Copper Smelter © Alara Resources Limited www.alararesources.com 24
Slide 26: Oman (cont'd)
Oman (cont’d) For personal use only Alara is targeting discovery and development of Copper-Gold in Oman • Drilling – +5,000m completed • Target – 3.2Mt to 5.0Mt @ 0.8-1.0% copper and 0.3 to 0.5g/t gold1 • Commenced scoping study for a 500,000tpa throughput mining and beneficiation at Washihi • Geoph
Slide 27: Oman – Washihi Drill Hole Plan
Oman – Washihi Drill Hole Plan For personal use only Area of prospective mineralisation © Alara Resources Limited www.alararesources.com 26
Slide 28: Chile – El Quillay Project (earning 70%)
Chile – El Quillay Project (earning 70%) For personal use only In the “El Quillay” Prospect, numerous workings exist over 1km strike and up to 85m depth. Outcrops and workings have been extensively sampled Recent decline Main workings Shaft and dump This hill is largely covered by oxide cap A half s
Slide 29: Chile (cont'd)
Chile (cont’d) For personal use only “Lana and Corina” – highlight prospectivity of breccia pipes, with porphyry below Two drill holes – intersected 130m & 180m @ 0.7% Copper & up to 200ppm Molybdenum Lana-Corina Lana-Corina Project Area Project Area Geology Plan Cross © Alara Resources Limited www.
Slide 30: Chile (cont'd)
Chile (cont’d) For personal use only • Ownership – earning 70% interest over three years • Targets – copper-gold with extensive previous workings and walk up drill targets • Prospects – copper, copper-gold, copper molybdenum, IOCG type and porphyry • Deep workings – along 6km strike • Target mineral
Slide 31: Summary
Summary For personal use only Alara presents great value and has a strong pipeline of base metal & gold projects Design / Exploration Feasibility Production Construction JORC Measured and Indicated Resource Saudi Arabia: Khnaiguiyah Zinc, Copper (Alara 50%) • 20.09 million tonnes @ 4.24% Zn & • Feas
Slide 32: JORC Code Competent Person Statements
JORC Code Competent Person Statements For personal use only The information in this presentation that relates to Mineral Resources within Mineralised Zones 2 and 3 of the Khnaiguiyah Project is based on information compiled by Mr Daniel Guibal, an employee of SRK Consulting (Australasia) Pty Ltd, wh
Slide 33: Alara Resources Limited
Alara Resources Limited For personal use only ABN: 27 122 892 719 ASX Code: AUQ Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 Telephone: +61 8 9214 9787 Facsimile: +61 8 9322 1515 info@alararesources.com www.alararesources.com DISCLAIMER This presentation contains