Alkane Resources Ltd · ASX:ALK
Alkane Resources — Shareholder Meeting (May 2011)
42 slides from Alkane Resources's shareholder meeting presentation, May 17, 2011
Slide 1: Presentation cover letter to ASX
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 17 May 2011 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of the Annual General Meeting presentation to shareholders. A copy of this present
Slide 2: Annual General Meeting 17 May 2011
For personal use only …putting the pieces together Annual General Meeting 17 May 2011
Slide 3: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Share Price (16 May 2011) A$1.93 Shares 269m Fully Diluted Market Cap ~A$520m C h (at Cash ( t 31 M March h 2010) ~A$22 ~A$22m Retail Top 20 ~60% No debt Institutions Directors & Management 3% 12 Month High
Slide 4: DZP Location
DZP Location For personal use only Central West New South Wales
Slide 5: Business Strategy
Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths Au Cu Gold production from Peak Hill mine 1996 – 2005
Slide 6: Dubbo Zirconia Project
For personal use only Dubbo Zirconia Project Zirconium, niobium, yttrium, rare earth elements Definitive Feasibility Study TZ Minerals International Pty Ltd Study managers: Steve Gilman and Gavin Diener Marketing: Alister MacDonald (TCMS) and Dudley Kingsnorth (IMCOA) DPP Operations: ANSTO Minerals
Slide 7: Dubbo Zirconia Project Location
Dubbo Zirconia Project Location For personal use only D bb region Dubbo i pop 80,000 80 000 State power grid State gas grid Major mixed agriculture Transport hub Substantial light industry
Slide 8: DZP Resources
DZP Resources For personal use only Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.75% REO and 0.014% U3O8 Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Major world
Slide 9: DZP Flow Sheet
For personal use only DZP Flow Sheet
Slide 10: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant For personal use only
Slide 11: Zirconium Applications
Zirconium Applications For personal use only
Slide 12: Zirconium Definitions
Zirconium Definitions For personal use only •Zircon (ZrSiO4) ‐contains up to 66% ZrO2 ‐zirconium silicate mineral from which most zirconia, zirconia and zirconium materials are derived • Zirconia (ZrO2) ‐contains up to 99.99% ZrO2 (zirconium dioxide) ‐zirconium dioxide exists in three forms (monocli
Slide 13: Zirconium Industry
Zirconium Industry For personal use only China consumes about Chi b 50% of world’s zircon output. About 30% of that zircon is converted to downstream products. China currently produces about 90% of world’s ZOC and 60% of FZA. China has limited domestic supply of Zircon Zirconium silicate ZrSiO4 Prim
Slide 14: Zircon Supply Demand Price
Zircon Supply Demand Price For personal use only 20% shortfall by 2020 Zircon prices have escalated during 2010 and 2011 to >US$1,700/t Zircon p price and supply pp y will have a major j impact p on the cost and availabilityy off zirconium chemicals, zirconia and zirconium metal. China has declared
Slide 15: DZP Zircon - Zirconium Chemicals Pricing
DZP Zircon ‐ Zirconium Chemicals Pricing For personal use only PRODUCT O UC ZrO O2 Q2 2010 Q 0 0 US$/ US$/T Q1 2011 Q 0 US$/T US$/ April p 2011 0 US$/ US$/T Zircon (producer/trader) 65% $900 ‐$1150 $1,500 ‐$2,100 $1,700 ‐$2,600 (100% ZrO2 basis) 100% ($1,440 ‐ $1,840) ($2,400 ‐ $3,360) ($2,700 ‐ $4,
Slide 16: Niobium Applications
For personal use only Niobium Applications
Slide 17: Structure of Niobium Industry
Structure of Niobium Industry For personal use only Metallurgical Structural steels Stainless and heat CBMM in Brazil Pyrochlore FeNb resistant steels produces about 90% Superalloys of world demand. Super conducting magnets Early 2011 a Japanese Korean consortium Columbite acquired 15% of Nb 2 O 5 T
Slide 18: Niobium Demand
Niobium Demand For personal use only Niobium 2008 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$40 - 45/kg Sources: IAMGOLD / TZMI
Slide 19: REE Applications
For personal use only REE Applications
Slide 20: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand For personal use only Will rare earth supply demand be in balance from 2015 with Lynas y and Molycorp producing? High g probability p y for LREE but not HREE The DZP has a 75% LREE - 25% HREE split which gives it a demand advantage Separated rare earth products Value 2010
Slide 21: REE Demand Drivers
REE Demand Drivers For personal use only Growth 10 – 15% 5 - 10% 5 – 10% 4 - 8% 8 -12% 4 – 8% Source: IMCOA
Slide 22: DZP Rare Earth Pricing
DZP Rare Earth Pricing For personal use only Rare Earths Prices 2010 (US$/kg REO) (Source: Metal Pages© ) DZP Q2 Average Q3 Average Q4 Average Q1 Average Spot 1 April Light Rare Earth Distribution 2010 2010 2010 2011 $121 Lanthanum Oxide 19.5% $7.13 $25.75 $53.00 $95.00 $121 Cerium Oxide 36.7% $5.58
Slide 23: DZP Product Output and Revenues
DZP Product Output and Revenues For personal use only Base case of 400,000 tonnes pa and expanded 1 million tonnes pa of ore processed Potential Production and Revenues Product 400,000 tonnes per annum 1,000,000 tonnes per annum ZBS, ZOH, ZBC, ZrO2 6,000tpa US$42M* 15,000tpa US$105M* Nb -Ta concentr
Slide 24: DZP Marketing Developments
DZP Marketing Developments For personal use only Major MoU just announced: JV to develop 15,000t to 20,000t ZOC production (~6,000 – 7,000t of ZrO2 equivalent) facility using DZP intermediate zirconium feed. This JV would consume all the Base Case Zr output and almost assures the development of the
Slide 25: Development pathway
Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 2014 DZP Resource definition 2001 ‐ 2002 9 Flow sheet development 2002 9 Laboratory Zr – Nb 1999 – 2002 9 Continued product Pilot plant Zr – Nb 2002 9 development Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9 Lab
Slide 26: DZP Strategic Significance
DZP Strategic Significance For personal use only Majority of “downstream” zirconium products are derived from zircon, whose output is governed by ilmenite/rutile from mineral sands mining operations. China dominates downstream zirconium business at ~90% but feed is zircon. Niobium production dominat
Slide 27: Tomingley Project
For personal use only Tomingley Project Gold Definitive Feasibility Study Mintrex Pty Ltd Study Manager: Fiona Morgan Environmental Assessment R W Corkery & Co Pty Ltd
Slide 28: Tomingley Gold Project, NSW
Tomingley Gold Project, NSW For personal use only ALKANE RESOURCES: 100% • Three deposits under conceptual development: – Caloma (3 86Mt @ 1 (3.86Mt 1.76g/t 76g/t Au) – Wyoming One (6.59Mt @ 1.86g/t Au) – Wyoming Three (0.84Mt @ 1.75g/t Au) 947 AC, RC and core holes totalling 109,114 metres • Total
Slide 29: TGP Infrastructure
TGP Infrastructure For personal use only • Infrastructure: – water => 45km pipeline – power (State Grid) => 20km 66Kv power line – roads => primary & secondary access • Skilled local workforce – population base of 150,000 within 120km diameter area – No FIFO, no accommodation required • Capital cost
Slide 30: TGP Financials
TGP Financials For personal use only Financial Summary Based on initial 7.5 year open pit and undergound operation producing 370,000 ounces Base Case Anticipated Upside Gold Price A$1,400 / oz A$1,500 / oz A$1,600 / oz Revenue $516.97m $553.89m $590.82m Operating Cash $155.20m $192.13m $233.86m Flow
Slide 31: Advanced Exploration
For personal use only Advanced Exploration Gold ODEJV ‐ McPhillamys Newmont Australia Limited (NAL) Subsidiary of US based Newmont Mining Corporation NAL are the Managers and Operators
Slide 32: ODEJV
ODEJV For personal use only ORANGE DISTRICT EXPLORATION JOINT VENTURE (ODEJV) Gold, Copper – Orange, NSW | Alkane Resources: 49%, Newmont Australia: 51% TWO FOCUS AREAS: MOLONG • Molong Carlin & Ridgeway‐type – targeting copper‐gold porphyry‐style gold porphyry targets mineralisation (Ridgeway‐type)
Slide 33: ODEJV Moorilda | McPhillamys
ODEJV Moorilda | McPhillamys For personal use only INITIAL RESOURCES • Indicated + Inferred +0.3g/t gold 92 Mt @ 1.00g/t Au 0.07% Cu 2.96 Moz Au & 60,000t Cu • Indicated + Inferred +0.5g/t gold 61 Mt @ 1.32g/t Au 0.08% Cu 2.57 Moz Au & 48,000t Cu • Mineralisation open at depth Deep drilling in progr
Slide 34: Exploration
For personal use only Exploration 2010 ‐ 2011 Discoveries Th Team The T Terry Ransted Chief Geologist Peter Duerden Senior Geologist David Meates Senior Geologist Jim Thornton Geologist Stewart Lamond Field Technician Michael Sutherland General Manager NSW Glen Morgan Peak Hill Site Supervisor David
Slide 35: Cudal - Bowen Park
Cudal – Bowen Park For personal use only New style of mineralisation – structural / replacement Many exploration targets to be tested
Slide 36: Bodangora - Glen Hollow
Bodangora – Glen Hollow For personal use only Comobella Intrusive Complex 4km x 3km monzonite intrusives / skarn / hydrothermal breccias Comparable to Cadia – Ridgeway (Newcrest) system near Orange
Slide 37: Bodangora - Glen Hollow
Bodangora – Glen Hollow For personal use only Is it similar to Ridgeway discovery? Resource = 44Mt @ 2.6g/t Au; 0.82% Cu Source: Newcrest
Slide 38: Wellington - Galwadgere
Wellington – Galwadgere For personal use only Indicated Resource defined 2004 2.09Mt @ 0.99% Cu and 0.3g/t Au Potential to open pit mine bulk of existing resource to produce 27% Cu and 3g/t Au clean concentrate Diamond core hole GAL032 returned 14m @ 1.13 g/t Au, 0.94% Cu + 0.89% Zn Incl 4m 0.94g/t
Slide 39: Wellington - Galwadgere
Wellington – Galwadgere For personal use only Long g Section GAL032 intersection 200m down p plunge g and has potential p to double existing defined resource
Slide 40: Project Development Pipeline
Project Development Pipeline For personal use only 2010 2011 2012 2013 2014 TOMINGLEY GOLD D fi iti FFeasibility Definitive ibilit St Study d (DFS) Environmental Assessment / DC Project Financing @ $A90m Construction Production DUBBO ZIRCONIA Definitive Feasibility Study (DFS) Environmental Assessme
Slide 41: ...a perfect fit
For personal use only …a perfect fit
Slide 42: Disclaimer
Disclaimer For personal use only Disclaimer 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 o