Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — Mining Journal 20:20 Investor Series, Australia Day conference, London 2006
39 slides from Alkane Resources's conference presentation, Mar 13, 2006
Slide 1: ASX cover letter: Presentation to Mining Journal conference
‘A /- | ALKANE EXPLORATION LTD ‘em 2 A.B.N 35 000 689 216 wns: 13 March 2006 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 “Focused in the Central West New Sou
Slide 2: Focused in the Central West New South Wales
Focused in the Central West New South Wales London 10 March 2006
Slide 3: Corporate Profile
CORPORATE PROFILE 1 ASX Code i Issued Capital 4 Cash (31/12/05) 1 Trading Range (1 yr) 1 Trading Volume (1 yr) 4 Current Market Cap a No Debt ALK (listed since 1969) 166m shares A$2.7m A$0.13 - $0.29.5 10.2m/mth average A$40m
Slide 4: Project locations
t locations jjec —) fon oy la _ -— =F ~—riC Austral
Slide 5: Central West NSW Projects
Central West NSW Projects
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 450,000 ounce resource in sulphide deposit from 100m to 300m depth moderately refractory ore ~ subject on-going review
Slide 7: Peak Hill Gold Mine: Rehabilitation and site infrastructure
PEAK HILL GOLD MINE Rehabilitation and site infrastructure a ae, eee ey Cae co a o oe ee a ay ae ye oe ue — —
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Slide 9: Tomingley
Toming oe y Ly oe a oo a L ae ye y os Gay ‘ Lee ae he U Bo Le ay a 4 at Ay) ee ee a uo 7 Le Sci La fe _ LD ee i ve STAN eg oe ua. y : eae ae Le s : Ce : SCC MVC aR Hin SS NIN NN : ey J i ie ae Va 7 / nae
Slide 10: Wyoming Geological Summary
Wyoming Geological Summary Pelitic sediments Feldspar porphyry
Slide 11: Wyoming One Simplified Interpretation
Wyoming One Simplified Interpretation ‘otton Formation eldspar porphyry Volcanic! ediments | Carbonaceous mudstone Vineralisation
Slide 12: Wyoming One North-South Section
Wyoming One North — South Section 614075mE uvium Feldspar porphyry Volcaniclastic sediments Volcaniclastic conglomerate Chiorite-tale schist Mineralisation
Slide 13: Wyoming One East-West Section
Wyoming One East - West Section 6393300mN Alluvium | Cotton Formation Feldspar porphyry Volce stic nts Volcaniclastic conglomerate Chiorite-talc schist Mineralisation Hangingwall zone Contact zone
Slide 14: Tomingley Gold Project: 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: Resource Summary Wyoming One and Three
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec 2005 0.75g/t gold cut off Measured Indicated inferred
Slide 16: 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 17: Wyoming One 3D Model: East View
Wyoming One 3D Model with pit and u/g developments East View
Slide 18: Wyoming One 3D Model: North View
Wyoming One 3D Model with pit and u/g developments North View
Slide 19: Wyoming One 3D Model: West View
Wyoming One 3D Model with pit and u/g developments West View
Slide 20: Tomingley Gold Project Regional Exploration
Tomingley -. «A Gold Project o yy ise imu Lee ile ae esa Regional Exploration S a es a a LKANE i : . - a
Slide 21: 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 concent
Slide 22: aS
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Slide 23: 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% Y,0, 0.46% Nb,0,, 0.03% Ta,O, , 0.014% U,0, and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Wa
Slide 24: Dubbo Zirconia Project Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET
Slide 25: Mini Pilot Plant - SX Circuit
DUBBO ZIRCONIA PROJECT Mini Pilot Plant - SX Circuit _
Slide 26: Zirconium Chemicals Industry Structure and Market Entry Points
DUBBO ZIRCONIA PROJECT Zirconium Chemicals cour ovoonees Industry Structure and Market Entry Points | “Sa - . UPGRADING/CONVERSION: UPGRADING/CONVERSION: ~ 100,000t zircon ' converts to a 65,000t of Zr chemicals coe Pccan © ee Oe coe bod perepirants Fireprooting |B pnnting inks and 13,000t Zr metal
Slide 27: Niobium Industry Structure
DUBBO ZIRCONIA PROJECT Schematic Ulustration of Niobium Industry Structure Metallurgical Structural steels |. Stainiess and heat resistant steels | Superalloys Super conducting magnets Columbite Taptalite Oxides Class Ceramics Niobium 35,000t — 90% Brazil concentrate Tantalum 1,500t — 50% W Aust DZP
Slide 28: Current Zircon Uses
DUBBO ZIRCONIA PROJECT Ceramics CURRENT ZIRCON USES TV Glass Source: fluka Oct 05 A LKARBE
Slide 29: Zircon Supply / Demand Outlook
DUBBO ZIRCONIA PROJECT Zircon Supply / Demand Outlook @ a c ra 3 2 a J S Se 3 c G E a 3 ~ 7 2 a £ 5 7) Surplus / deficit (000s tonnes) ve Balance (RHS) vows Supply — Demand Source: fluka Oct 05
Slide 30: 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 vaiue zirconia and zirconium chemicals. Significant world zircon supply deficit is developing with 100,000t shortage anticpated by 2008. DZP provides a strate
Slide 31: 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 32: Dubbo Zirconia Project: Process and separated products
DUBBO ZIRCONIA PROJECT BULPHATION Renin paip AEE aanilon 2 ‘Soruge Uranium recovery Zirconium and hafnium metal Mealralinan lon on MobifePrauet | iihaePratmia Separated niobium and tantalum Separated yttrium and HREE’s
Slide 33: 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:
Slide 34: Current Strategy
DUBBO ZIRCONIA PROJECT Current Strategy Raise/inject sufficient capital to complete process optimisations, and construct and operate the Demonstration Pilot Plant ~A$4M Laboratory program scheduled to commence April 2006 with DPP to be constructed in second half of 2006 Revise and update the 2002 fe
Slide 35: Wellington Bodangora Regional Geology
Wellington Bodangora Regional Geology Great Australian Basin Permian sediments Carboniferous granite Devonian ~ Silurian sediments and Monzonite intrusives | fe intrusive: “ Bodangora mine vein system Galwadgere Ind’ cted Res Nindethana thrust zone } +20,000t Cu/+25kozAu
Slide 36: Orange Area Regional Geology
Orange Area Regional Geology Newmont Joint Venture Zz Quaternary Tertiary Carboniferous granites Siluro-Devonian granites || Siluro-Devonian sediments Ordovician monzonite and related intrusives Ordovician ultramafics | Ordovician volcanics
Slide 37: apie
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Slide 38: Nullagine Project Location and Infrastructure
Nullagine Project Location and Infrastructure Potential 150 - 220M tonnes CID pisolite iron Surface sampling Fe Si0, AlO, P LOI Fe(C) 58 3.23 3.95 0.03 9.07 63 ‘idisobi leo age al
Slide 39: A multi commodity explorer and miner
A multi commodity explorer and miner 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 Ltd, industry