Alkane Resources Ltd · ASX:ALK
Alkane Resources — Australian Uranium and Rare Earth Conference 2012
33 slides from Alkane Resources's conference presentation, Jul 19, 2012
Slide 1: Presentation to Australian Uranium and Rare Earth Conference (ASX cover letter)
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 19 July 2012 Manager Announcements ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of a presentation being made to the Australian Uranium and Rare Earth Conference in F
Slide 2: Dubbo Zirconia Project
For personal use only DUBBO ZIRCONIA PROJECT NSW Australia An advanced strategic and alternate supply for the zirconium, niobium and rare earths industries 19 July 2012 Australian Uranium and Rare Earth Conference , Fremantle
Slide 3: Equity & Ownership
Equity & Ownership For personal use only Equity Ownership Shares – 372,231,500 O i Options 4 000 000 – 4,000,000 Domestic Hedge Funds, 8% Institutions, 23% Market Capitalisation – A$350M Retail and others, Cash – A$105M (30 April 2012) 32% Foreign Institutions, 12% Directors and Debt – nil
Slide 4: Location and Business Strategy
Location and Business Strategy For personal use only Location Multi commodity explorer and miner – focussed in the Central West of New South Wales, Wales Australia Region with substantial existing infrastructure. Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tanta
Slide 5: Rare Metals - Rare Earths
Rare Metals ‐ Rare Earths For personal use only Rare Metals – Rare Earths • China produces 90% of world downstream zirconium chemicals • China currently produces 95% of world REE output • China is limiting the export of raw rare Rare metals earths materials • Brazil produces 90% of world niobium Lig
Slide 6: DZP Location & Infrastructure
DZP Location & Infrastructure For personal use only Infrastructure Population – 80,000 Dubbo regional Rail – railway hub Road – major highways intersection/hub Water – numerous sources Electricity – NSW State power grid Gas – NSW State gas grid Industrial – substantial light industry
Slide 7: Regional Geology
Regional Geology For personal use only Regional Geology 6
Slide 8: Geology
Geology For personal use only 0 200 metres Jurassic aged trachyte intrusive or lava flow 7
Slide 9: Geology section
Geology section For personal use only East-west cross section through centre of deposit Recent Grits SEDIMENTS Basalt Dykes TRACHYTE SEDIMENTS Siliceous Contact Niobium Zirconium Zone Horizontal Scale 0 100 m Rare earth grade identical distribution as the zirconium and niobium 8
Slide 10: Resources & Reserves
Resources & Reserves For personal use only Resources & Reserves Resources & Reserves – open at depth Life – +20 years but can support longer life and higher production rates Major world resource ‐ zirconium, hafnium, niobium, tantalum, yttrium & rare earth elements Resources Depth (m) Tonnes (
Slide 11: Process Flow Sheet
Process Flow Sheet For personal use only Processing Demonstration Pilot Plant – established 2008 ANSTO – Aust. Nuclear Science & Tech. Org. Process – unique & advanced Optimization – ongoing Sulphuric acid leach whole of ore Solvent extraction, separation & refining Chemical precipitat
Slide 12: Demonstration Pilot Plant
Demonstration Pilot Plant For personal use only Operating at ANSTO since 2008 11
Slide 13: Product Output
Product Output For personal use only 1 million tonnes pa of ore processed Anticipated Production 1,000,000 tonnes per annum Product Output % World ZBS, ZOH, ZOC, ZrO2 15,700tpa ~10% Nb -Ta conc / Ferro-Niobium 3,005tpa ~3% LREE concentrate 3,050tpa ~2% YHREE concentrate 1,120tpa ~8% TOTALS 22,875tpa
Slide 14: Zirconium
For personal use only 13 Zirconium
Slide 15: Zirconium Pricing
Zirconium Pricing For personal use only 12000 Zirconium Price Trends 10000 8000 6000 US$/T 4000 2000 0 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 Zircon 65% ZrO2 Fused Zirconia 99.0% ZrO2 Chemical Zirconia 99.5% ZrO2 ZOC 36.0% ZrO2 Source: TCMS 14
Slide 16: Niobium
For personal use only 15 Niobium
Slide 17: Niobium Demand and Price
Niobium Demand and Price For personal use only Niobium 2010 (Ferroniobium units) Consumption ~85,000t 90% sourced from Brazil Estimate for 2012 ~100,000t Sources: IAMGOLD / TZMI 16
Slide 18: Rare Earth Elements
Rare Earth Elements For personal use only 17
Slide 19: Rare Earth Element Prices (LREE)
Rare Earth Element Prices For personal use only DZP LREE US$/kg $180 $ $160 $140 $120 $100 US$/kg $80 $60 $40 $20 $‐ 2Q 2010 4Q 2010 2Q 2011 4Q 2011 1Q 2012 2Q 2012 DZP LREE DZP LREE Concentrate DZP DFS LREE Concentrate These prices are for individual separated rare earth oxides at 99% purity, and t
Slide 20: Rare Earth Element Prices (YHREE)
Rare Earth Element Prices For personal use only DZP YHREE US$/kg $350 $300 $250 $200 US$/kg $150 $100 $50 $‐ 2Q 2010 4Q 2010 2Q 2011 4Q 2011 1Q 2012 2Q 2012 DZP YHREE DZP YHREE Concentrate DZP DFS YHREE Concentrate These prices are for individual separated rare earth oxides at 99% purity, and the ac
Slide 21: DZP Marketing
DZP Marketing For personal use only Off‐take ZIRCONIUM ~35% revenue – 100% under three separate MOUs 2011. One major zirconium company NIOBIUM ~20% revenue – 100% under MOU 2011. Major European metal alloy company RARE EARTHS ~45% revenue ‐ recently completed MOU with Shin‐Etsu Chemical which
Slide 22: DZP DFS Financials
DZP DFS Financials For personal use only Definitive Feasibility Study September 2011 DUBBO ZIRCONIA PROJECT Financial Summary (A$) Base case – 0.4Mtpa (superseded) Project j Capacity p y 0.4Mtpa p 1.0Mtpa p C Current case – 1.0Mtpa 1 0M (base (b case)) Capex – Plant1 $278M $543M CAPEX – $893M
Slide 23: DZP Site Infrastructure
DZP Site Infrastructure For personal use only Solid residue SRSF storage facility Liquid residue LRSF storage facility 22
Slide 24: DZP Plant Layout
DZP Plant Layout For personal use only Zirconium and niobium Sulphuric acid plant recovery Office and workshops R Roasting ti and d lleaching hi Rare earth recovery and refining Solvent extraction Crushing and grinding 23
Slide 25: Environmental Impact
Environmental Impact For personal use only Environmental Impact Statement – key areas of focus Existing land use (agriculture) S i Socio‐economic i Air quality Noise and vibration Surface and ground water Soil stability Flora and fauna Biodiversity Visibility Rail freight movemen
Slide 26: NORM Radiation Doses
NORM Radiation Doses For personal use only Naturally Occurring Radioactive Materials (NORM) are in the ground, food and air 20.0mSv Annual dose limit for radiation workers 1.5-2mSv Average Australian natural 6.9mSv CT Scan background radiation annual dose (per adult) 0.6-1.1mSv radon 1 0mSv 1.0mSv A
Slide 27: DZP Process NORM
DZP Process “NORM” For personal use only NORM Management • Does NOT produce a mineral concentrate. • Does NOT concentrate the uranium & thorium at the front end. • All wastes are contained within the project site. • Waste products are neutralised with limestone. • Stored in the residue storage facil
Slide 28: DZP Development pathway
DZP Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 2014 2015 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 2
Slide 29: The DZP Team
The DZP Team For personal use only Alkane – Australian Zirconia Limited General Manager NSW: Michael Sutherland Chief Geologist: Terry Ransted Commercial Manager: Tony Wright Marketing: Alister MacDonald / Dudley Kingsnorth Feasibility Study TZ Minerals International Pty Ltd: Gavin Diener, Steve Gil
Slide 30: 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
Slide 31: Resource & Reserves: Dubbo + Galwadgere
Resource & Reserves: Dubbo + Galwadgere For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 0.014 T
Slide 32: Resource & Reserves: Tomingley + Peak Hill
Resource & Reserves: Tomingley + Peak Hill For personal use only Tomingley (TGP) – Mineral Resources DEPOSIT MEASURED INDICATED INFERRED TOTAL Top Cut Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold 2.5x2.5x5.0m model (t) (g/t) (t) (g/t) (t) (g/t) (t) (g/t) (koz) Wyoming One 2,316,550 2
Slide 33: McPhillamys Resource Statement
McPhillamys Resource Statement For personal use only Moorilda – McPhillamys – Mineral Resources DEPOSIT INDICATED INFERRED TOTAL McPhillamys Tonnage Grade Grade Tonnage Grade Grade Tonnage Grade Grade k Ounces tonnes 0.3g/t Au cut-off (t) (g/t) % Cu (t) (g/t) % Cu (t) (g/t) % Cu gold copper I Inner
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