Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — NSW Miners and Explorers Conference 2004
42 slides from Alkane Resources's conference presentation, Oct 18, 2004
Slide 1: NSW Miners and Explorers Conference
LKANE EXPLORATION LTD ABN 35 000 689 216 NSW Miners and Explorers Conference SYDNEY 18 – 19 October 2004
Slide 2: Corporate Profile
CORPORATE PROFILE ASX Code ALK (listed since 1969) Issued Capital 136m shares 9.8m listed opts / 9.2m unlisted Cash $1.5m Trading Range 03/04 $0.17 - $0.56 Current Market Cap $25m No Debt LKANE
Slide 3: Central Lachlan Fold Belt
Wyoming 0.5M oz Central Dubbo Lachlan Northparkes Wellin gton 1.3M oz Rockley Fold Belt Gulgong Peak Hill Volcanic Belt Mo long 0.7M oz NSW Junee Na rrowmine Volcanic Belt Volcanic Parkes Modern mines Belt Orange Lewis Ponds Cowal 0.35M oz and deposits Forbes Bathurst 3M oz Younger granites Monzonit
Slide 4: Central West NSW Projects
Dubbo Bodangora Central West Tomingley Dubbo Wellin gton Wellington NSW Peak Hill Rockley Gulgong Volcanic Projects Junee Mo long Volcanic Belt Na rrowmine Belt Volcanic Parkes Belt Molong Orange Cudal Bathurst Forbes Moorilda Younger granites Monzonitic intrusions Ordovician arc volcanics Fifield c
Slide 5: Peak Hill Gold Mine
PEAK HILL GOLD MINE PIT NOV 2002 LKANE
Slide 6: Peak Hill Cross Section
Peak Hill Cross Section PRD 2, 5, 6 LKANE
Slide 7: Peak Hill Gold Mine
PEAK HILL GOLD MINE High Sulphidation Epithermal Gold Copper System (Ordovician) Conventional Open Cut Mining, Agglomeration Heap Leach Dump Leach of Oxidised Cap Production Commenced 1996 at Capital Cost $5 million Mined 3.385Mt @ 1.91 g/t Au and 1.499Mt @ 0.78 g/t Au 1996-2004 Output 152,000 ounce
Slide 8: Tomingley Gold Project Regional Outcrop Geology
Tomingley Gold Project Regional Outcrop Geology Cover Wyoming Three Hervey Group Wyoming One Myalls United Dulladerry Rhyolite Yeoval Granite Forbes Group Mungincoble Chert Cotton Formation Goonumbla (Mingelo) Volcanics LKANE
Slide 9: 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 10: Wyoming Geological Summary
Wyoming Geological Summary Pelitic sediments Feldspar porphyry Feldspar porphyry, strongly sheared Volcaniclastic sediments Chlorite-talc schist Mineralisation LKANE
Slide 11: Wyoming One Simplified Interpretation Structure
Wyoming One Simplified Interpretation 376 Structure Pelitic sediments Volcaniclastic sediments Feldspar porphyry 200m RL (-70m) Feldspar porphyry 100m RL (-170m) Feldspar porphyry 0m RL (-270m) LKANE
Slide 12: Wyoming One East-West Section
Wyoming One East - West Section 6393350mN Alluvium Volcaniclastic sediments Feldspar porphyry Volcaniclastic conglomerate Mineralisation LKANE
Slide 13: Wyoming One North-South Section
Wyoming One North – South Section 614075mE Alluvium Volcaniclastic sediments Feldspar porphyry Mineralisation LKANE
Slide 14: Wyoming One 3D Model
Wyoming One 3D Model LKANE
Slide 15: Tomingley Gold Project Resource Summary
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec` 03 0.75g/t / 1.00g/t / 3.00g/t gold cut off Measured 4.835 mt @ 2.24g/t gold 348,350 oz 70% Indicated 1.025 mt @ 2.76g/t gold 91,000 oz 18% Inferred 0.520 mt @ 3.49g/t gold 58,500 oz 12% TOTAL(0.75) 6.380 mt @ 2.43g/t gold 497,850 oz
Slide 16: Wyoming Development Summary
TOMINGLEY GOLD PROJECT Wyoming Development Summary Pre-feas study: 1Mtpa open pits – CIL recovery -> 60-70,000ozs Base case not financially robust due to overburden - needs additional open pit ore feed Current program: Remodelling of ore system to increase o/p grade Examine u/g options based on high
Slide 17: Wyoming One High Grade Ore Shoot Targets
Wyoming One High Grade Ore Shoot Targets 376 Structure Pelitic sediments Volcaniclastic sediments Feldspar porphyry 200m RL (-70m) Feldspar porphyry 100m RL (-170m) Feldspar porphyry 0m RL (-270m) High grade targets LKANE
Slide 18: Wyoming One Hangingwall
Wyoming One Hangingwall gram/metre contours Recent hole LKANE WY 811D to be completed
Slide 19: Wyoming One '376' Structure
Wyoming One ‘376’ Structure gram/metre contours Recent hole WY 821D to be completed LKANE
Slide 20: Tomingley Gold Project Current Regional Exploration
Tomingley Gold Project Current Regional Exploration LKANE
Slide 21: Bodangora Wellington Project Location
Bodangora Dubbo Bodangora Wellington Wellin gton Wellington Rockley Project Gulgong Volcanic Belt Mo long Location Junee Na rrowmine Volcanic Parkes Volcanic Belt Belt Orange Forbes Bathurst Younger granites Monzonitic intrusions Ordovician arc volcanics Fifield complexes LKANE
Slide 22: Bodangora Wellington Regional Geology
Bodangora Wellington Comobella 18m 18m@ @0.95g/t 0.95g/tAu, Au,0.15%Cu 0.15%Cu Regional EL4022 450m 450mxx150m 150mAu Au++Cu Cu Geology Bodangora Bodangora 0.2M oz target +0.5M oz Great Australian Basin Permian sediments EL5493 Wellington Federal Carboniferous granite Devonian – Silurian sediments a
Slide 23: Wellington Project Galwadgere Geological Interpretation
Wellington Project Galwadgere Geological Interpretation with Proposed Resource Drill Holes LKANE
Slide 24: Wellington Project Galwadgere RC Drill Holes
Wellington Project Galwadgere May 2004 RC Drill Holes LKANE
Slide 25: Galwadgere Prospect Diagrammatic Long Section
Galwadgere Prospect Diagramatic Long Section GAL008 GAL00847m 47m@@0.90% 0.90%Cu Cu1.58g/t 1.58g/tAu Au incl 9m @ 0.97% Cu 6.94g/t Au incl 9m @ 0.97% Cu 6.94g/t Au GAL GAL006 00626m 26m@@1.09% 1.09%Cu Cu0.26g/t 0.26g/tAu Au GAL GAL005 00517m 17m@@0.96% 0.96%Cu Cu0.18g/t 0.18g/tAu Au G040 G0400.25m 0
Slide 26: Galwadgere Resource Potential
WELLINGTON PROJECT Galwadgere Resource Potential Previous Resources } 6.0Mtonnes @ 1.00%Cu (60,000t Cu) + ? Au (Non-JORC) to 150m} 1.7Mtonnes @ 1.66%Cu (28,200t Cu) + ? Au 1.00% @ US$1.25/lb and A$0.70 is A$40/t, equivalent to 2.26g/t Au ($550/oz) 6.0Mt @ 1.00%Cu = 436,000 ounces of gold 1.50% @ US$
Slide 27: Current Galwadgere Program
WELLINGTON PROJECT Current Galwadgere Program Drilling: 3,000m RC to test ore system over strike length of 400m and to depth of 150m by end October 50m sections to Indicated Resource status Further drilling scheduled depending upon results Data compilation and target definition High resolution aerom
Slide 28: Bodangora Mine Historic Workings & Drill Targets
Bodangora Mine Historic Workings & Drill Targets Bodangora South Bodangora Mine Historic 200,000 oz Surface workings – limited drilling ? Target + 0.5 million oz LKANE
Slide 29: Central West Conceptual Development
Wyoming 1 & 3 Bodangora 500,000 ozs Dubbo Central West Dubbo Historic 0.2M oz Target +0.5Moz Conceptual Tomingley Peak Hill Wellington Hub Wellin gton Peak Hill Rockley Development Gulgong Galwadgere Volcanic Belt +60,000t Cu Northparkes Mo long Hubs Peak HillJunee Sulphide Na ozs 450,000 rrowmine V
Slide 30: Dubbo Zirconia Project Summary
DUBBO ZIRCONIA PROJECT SUMMARY • One of the worlds largest zirconium, yttrium and tantalum resources (+ 100 million tonnes) - also contains significant niobium and rare earth elements • Project based upon large Jurassic aged alkaline volcanic complex with highly metal enriched vertical trachyte intr
Slide 31: Dubbo Zirconia Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location
Slide 32: Dubbo Zirconia Project Resources
DUBBO ZIRCONIA PROJECT RESOURCES Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.14% Y 2O3 0.46% Nb2O5, 0.03% Ta2O5 and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes LKANE
Slide 33: Dubbo Zirconia Project Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET LKANE LKANE
Slide 34: Mini Pilot Plant - Roaster
DUBBO ZIRCONIA PROJECT Mini Pilot Plant - Roaster
Slide 35: Mini Pilot Plant - SX Circuit
DUBBO ZIRCONIA PROJECT Mini Pilot Plant - SX Circuit
Slide 36: Structure of the Zirconia Industry
DUBBO ZIRCONIA PROJECT Structure of the Zirconia Industry RAW MATERIALS PROCESSED PRODUCTS END USES BADDELYITE ZIRCONIA PRODUCTS (Generally increasing purity) (5000 tonnes) FUSED Refractories ZIRCONIA Ceramic Pigments CHEMICAL Glass/Gemstones PURIFICATION Catalysts ZIRCON Oxygen Sensors SOFC (60000
Slide 37: Niobium Tantalum Market
DUBBO ZIRCONIA PROJECT Niobium Tantalum Market Niobium 1991 - 19,000t 2001 - 30,000t 90% Brazil Uses: 90% HSLA Steels Other: Superalloys - aerospace and gas turbines Optical glass, ceramic capacitors, superconductors (MRI etc) Tantalum 1991 - 625t 2001 - 2,000t 30% W.A. Uses: 60% Electronics -- cera
Slide 38: Yttrium - Rare Earth Market
DUBBO ZIRCONIA PROJECT Yttrium - Rare Earth Market Y/REE’s 1991 - 30,000t 2001 - 80,000t China 80% Catalyst/Chemicals 30% - auto and petroleum, fertilisers Metallurgical 35% - hsla steels, alloys, batteries Glass/Ceramics 15% - specialty glasses, stabilized zirconias, pigments Electronics/Magnets 20
Slide 39: Dubbo Zirconia Project Current Summary
DUBBO ZIRCONIA PROJECT Current Summary Development joint venture signed with Astron Limited October 2003 Astron is ASX listed with major zirconia, zirconium chemicals production in north east China. Currently produces 25% of world output. Astron’s financials for 2003/04: A$15.6m atp on A$105m turnov
Slide 40: Western Australian Project Locations
WESTERN AUSTRALIAN MT KEITH PROJECT LOCATIONS McDONOUGH LOOKOUT MIRANDA 9m 9m@ @0.51% 0.51%Ni Ni WELL 0.15m 0.15m@@2.9% 2.9%NiNi 0.2m 0.2m@@8.1% 8.1%Ni Ni NULLAGINE 10km 10kmkomatiite komatiite LEINSTER DOWNS Four Fourchannel channelzones zones 0.5-1.0% 0.5-1.0%Ni Niover over+m+m LKANE
Slide 41: Alkane Strategy 2004-06
ALKANE STRATEGY 2004-06 Strategic focus on Central West Region in New South Wales with the aim of developing a resource inventory and substantial production output GOLD: To build a 100,000 oz per year (or equivalent) output based upon production from Wyoming, Galwadgere and Bodangora, and possibly O
Slide 42: Thank you
LKANE EXPLORATION LTD ABN 35 000 689 216 A regionally focussed miner and explorer with a multi commodity approach to cash flow, profits and dividends Thank you
Alkane Exploration — NSW Miners and Explorers Conference 2004 on 6ix