Alkane Resources Ltd · ASX:ALK
Alkane Resources — NSW Resources and Energy Investment Conference (July 2015)
21 slides from Alkane Resources's conference presentation, Jul 28, 2015
Slide 1: Tomingley Gold Project, Dubbo Zirconia Project
For personal use only Tomingley Gold Project Dubbo Zirconia Project
Slide 2: Disclaimer
Disclaimer For personal use only 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 tre
Slide 3: For personal use only
For personal use only © 2015 Alkane Resources Ltd 3
Slide 4: Tomingley Gold Operations
Tomingley Gold Operations For personal use only • Resource – 830,000oz of gold (30 June 2014)* • Construction CAPEX – A$116M • Mine Method – open cut & underground • Mine Life – 7.5 years (targeting 10+ years) • Processing plant throughput – 1.0Mtpa • 2.00g/t Au and 93% recovery standard CIL • Gold
Slide 5: TGO Resource Expansion
TGO Resource Expansion Caloma Two – Geological model For personal use only Additional Resource Potential • Caloma Two open pit and underground • Expand Wyoming One underground • Caloma underground • Myalls underground (historic 70,000oz) • Wyoming Two and Three underground • McLeans Initial Undergro
Slide 6: Dubbo Zirconia Project
Dubbo Zirconia Project For personal use only • A very large polymetallic resource of the metals zirconium, hafnium, niobium (tantalum), yttrium and rare earths. • Important and strategic metal mix. • Reserve supports 35 year mine life at 1 million tonne ore processing per annum with defined resource
Slide 7: DZP Discovery and Development
DZP Discovery and Development For personal use only Recognition Exploration Resource Process • 1960’s • Drill holes 1990 • 1999-2002 Development • Initial drilling • Preliminary • Mini pilot plant • Metallurgy 1983 for Cu-Au metallurgical 2006 - present work • Feasibility study Demonstration EIS Off
Slide 8: Geology and Resources
Geology and Resources For personal use only Trachyte lava or sub-volcanic intrusive Largely homogeneous ore body Ore mineralogy: • eudialyte (“like” Zr silicate +Y and HRE) • natroniobite (Nb-Ta) 20 year pit. • bastnaesite (LRE) Waste to ore 0.2:1.0 All readily soluble in sulphuric acid forms basis
Slide 9: Flow Sheet with "new" Hafnium Recovery
Flow Sheet with “new” Hafnium Recovery For personal use only © 2015 Alkane Resources Ltd 9
Slide 10: DZP Product Output
DZP Product Output For personal use only Light rare earth chemical 4,665 tpa 99% REO (LREO units) concentrate Heavy rare earth chemical 1,309 tpa 95% REO (HREO units) concentrate Product Output Zirconium as ZBC (carbonate) & 15,827 tpa 99% ZrO2 (ZrO2 units) zirconia Hafnium as HfO2 (process being As
Slide 11: Rare Earth Industry
Rare Earth Industry For personal use only REE Demand 2016 by Application • US$3-5B Global market Other • 136,000t Annual consumption 2014 8% Catalysts • 5-10% Annual growth estimates 18% • 85-90% REE produced by China Ceramics 5% Glass 6% Phosphors 5% Polishing Magnets 12% 27% Metal Alloys 16% © 201
Slide 12: Zirconium Industry
Zirconium Industry For personal use only Zircon Demand by End Use (2014 ~ 1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% • Global market US$2-3B • China dominates downstream • 2014 consumer zircon inventories running down zirconium industry (85-90%) • Market expecte
Slide 13: Niobium Industry
Niobium Industry For personal use only 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels. World production estimated at 80,000t Nb in 2012. CBMM in Brazil accounts for 85%. Global market US$3-4B. Price stability since 2008, including GFC. CAGR
Slide 14: Hafnium Industry
Hafnium Industry For personal use only Super Alloys - 73% of 2015 supply By-product from zirconium metal • Depends on nuclear industry Prices escalating through demand by aerospace industries 2014 into 2015 © 2015 Alkane Resources Ltd Source: Modified after Lipmann Walton & Co Ltd 2015 14
Slide 15: Financial Summary
Financial Summary For personal use only Definitive Feasibility completed April 2013 – BFS with updated capex and opex being compiled. BFS scheduled for completion Q3 2015. DFS Base Case ~A$1B capex and 20 year NPV A$1.2B* Zr-Nb-Pr-Nd-Tb-Dy-Y Zr-Hf-Nb-Pr-Nd-Tb-Dy-Y Anticipated revenue at current Chin
Slide 16: Funding Strategy
Funding Strategy For personal use only Investment at Project Government Commercial Bank Equity Capital Level Assistance Programs Debt Markets (ALK) • Strategic • ECA Style Funding • Advisors: SMBC & • Advisors: Credit Investment(s) • Lead coordinator: Credit Suisse Suisse & Petra • Advisors: SMBC &
Slide 17: Timetable
Timetable For personal use only State approval received 29 May 2015 ML and EPL anticipated by end of September Estimates of times are indicative only and are subject to change. Alkane reserves the right to vary the timetable without notice. © 2015 Alkane Resources Ltd 17
Slide 18: Producing the Metals of the Future
Producing the Metals of the Future For personal use only Internationally strategic DZP with supply of several critical metals from non-Chinese sources Diversified DZP output gives robust revenues, even at current Chinese domestic RE and Zr prices Full spectrum of rare earth magnet materials – neodym
Slide 19: Thank You
THANK YOU For personal use only TGO CIL Plant DZP Demonstration Pilot Plant © 2015 Alkane Resources Ltd 19
Slide 20: DZP Resources and Reserves
DZP Resources and Reserves For personal use only 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 0.1
Slide 21: Resource & Reserves: TGO
Resource & Reserves: TGO For personal use only TOMINGLEY GOLD PROJECT MINERAL RESOURCES (as at 30 June 2014) MEASURED INDICATED INFERRED TOTAL Total DEPOSIT Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Koz) Open Pittable Resour
Alkane Resources — NSW Resources and Energy Investment Conference (July 2015) on 6ix