Alkane Resources Ltd · ASX:ALK
Alkane Resources — NSW Mineral Exploration & Investment 2011 Conference
39 slides from Alkane Resources's conference presentation, Aug 19, 2011
Slide 1: ASX cover letter for conference presentation
RESOURCES L TD ABN 35 000 689 216 19 August 2011 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of the Company’s presentation to the NSW Mineral Exploration & Investment 2011 Conference being held in Sydney to
Slide 2: Development Projects in the Central West of NSW
Development Projects in the Central West of NSW Sydney 19 August 2011
Slide 3: Corporate snapshot
Corporate snapshot Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Share Price (18 August 2011) A$1.68 Shares 269m Fully Diluted Market Cap ~A$450m C h (at Cash ( t 30 JJune 2011) ~A$18 ~A$18m Retail Top 20 ~60% No debt Institutions Directors & Management 3% 12 Month High / Low A$2.73/ $0.42 *a
Slide 4: Business Strategy
Business Strategy 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. Au Zr Nb Cu New gold
Slide 5: Dubbo Zirconia Project
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) Engineering: EPMS and Mintrex DPP Operations: ANSTO M
Slide 6: Dubbo Zirconia Project Location
Dubbo Zirconia Project Location 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 7: DZP Resources
DZP Resources 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 (0.9% TREO) Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Major world resource of zirconium, ha
Slide 8: DZP Flow Sheet
DZP Flow Sheet Niobium Heavy REs Zirconium Light REs
Slide 9: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant DPP at ANSTO in Sydney Th process is The i unique i in i the world at present and is a whole of ore sulphuric acid leach, solvent extraction separation and refining, with chemical precipitation to produce final products. The process does not produce a mineral concentrat
Slide 10: Zirconium Applications
+ Zirconium Applications ALKANE Resources LtTo PRD ov srrsvan ZIRCONIA LTO ~ APPLICATIONS FOR ZIRCONIUM MATERIALS Electronics a -Dielectrics Ceramics e Piezoelectrics -Ceramic colours ae Multi layer capacitors -Enamels & ~Oxygen sensors: -Opacifiers -Sonar Catalysts ; Automotive ra -Gasoline & diese
Slide 11: Zirconium Industry
Zirconium Industry 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 Primary Zr mineral source
Slide 12: Niobium Applications
Bow Niobium Applications ALKANE Resources LTO PD sere can: ZiMCORIA tro APPLICATIONS FOR NIOBIUM MATERIALS _ Special ste Steels - HSLA* Alloys ie stenplconde - Weight reduction for fuel efficiency ~ turbine blades -Mobile electronics - Pipelines J — - Bridges . 4 da \ as / Glass — Camera lens and TV
Slide 13: Structure of Niobium Industry
Structure of Niobium Industry 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 Tantalite Oxides CBMM f
Slide 14: REE Applications
or REE Applications ALKANE Resources LtTo LIAN ZIRCONIA LTO 17 OF ALKANE REBOURCES LO) APPLICATIONS FOR RARE EARTH MATERIALS ‘ & im : Electronics -Display phosphors al i (CRT, PDP, LCD) -Medical imaging phcechor Ceramics Catalysts PB Lasers -Capacitors Automotive catalytic converter -Fibre Optics _-
Slide 15: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand 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 130,000 tonnes ~US$2.0
Slide 16: REE Demand Drivers
REE Demand Drivers Growth 10 – 15% 5 - 10% 5 – 10% 4 - 8% 8 -12% 4 – 8% Source: IMCOA
Slide 17: DZP Marketing Developments
DZP Marketing Developments Three MOUs completed that should take all of the 1Mtpa zirconium output. output Zirconium Niobium LREE YHREE US$125 – 150M 100% 75% In Progress g In Progress g In Progress g 50% 25% 0% Several other MOUs in discussion that will cover all niobium and rare earth outputs.
Slide 18: Financial – DZP Product Output and Revenues
Financial – DZP Product Output and Revenues 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 concentrate 1,400t
Slide 19: Development pathway
Development pathway ‐> 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 Laboratory Y & REE 2009 ‐
Slide 20: DZP Production Plant Layout
DZP Production Plant Layout ALKANE Resources LtTo oO Administration complex Access road Chemical a aan i Zr-Nb storage Sulphuric r Niobium poate acid plant Product precipitation finishing Workshops — | Light rare ——earth ProcesS recovery water Solvent ar extraction a Heavy rare Workshops and earth r
Slide 21: Tomingley Project
Tomingley Project Gold Definitive Feasibility Study Mintrex Pty Ltd Study Manager: Fiona Morgan Environmental Assessment R W Corkery & Co Pty Ltd
Slide 22: Tomingley Gold Project, NSW
Tomingley Gold Project, NSW 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 current combined resou
Slide 23: TGP Infrastructure
TGP Infrastructure • 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 costs ~A$90 Million – CIL
Slide 24: TGP Financials
TGP Financials 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 Net Cash Flow* Flow $
Slide 25: Advanced Exploration
Advanced Exploration Gold ODEJV ‐ McPhillamys Newmont Australia Limited (NAL) Subsidiary of US based Newmont Mining Corporation NAL are the Managers and Operators
Slide 26: ODEJV
ODEJV 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) (Ridgeway type) and C
Slide 27: ODEJV Moorilda | McPhillamys
ODEJV Moorilda | McPhillamys 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 progress • Conceptual studi
Slide 28: Exploration
Exploration E l ti Exploration 2010 ‐ 2011 Discoveries Bodangora Glen Hollow gold – copper Wellington Galwadgere copper – gold Cudal Bowen Park gold – zinc
Slide 29: Bodangora – Glen Hollow
Bodangora – Glen Hollow Comobella Intrusive Complex 4km x 3km monzonite intrusives / skarn / hydrothermal breccias Comparable to Cadia – Ridgeway (Newcrest) system near Orange
Slide 30: Bodangora – Glen Hollow
Bodangora – Glen Hollow Is it similar to Ridgeway discovery? Resource = 44Mt @ 2.6g/t Au; 0.82% Cu Source: Newcrest
Slide 31: Wellington – Galwadgere
Wellington – Galwadgere 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
Slide 32: Wellington – Galwadgere
Wellington – Galwadgere 14m @ 11.13 13 g/t Au Au, 0 0.94% 94% Cu + 0 0.89% 89% Zn Incl 4m 0.94g/t Au, 1.69% Cu + 2.98% Zn Long g Section GAL032 intersection 200m down p plunge g and has potential p to double existing defined resource
Slide 33: Cudal – Bowen Park
Cudal – Bowen Park New style of mineralisation – structural / replacement Many exploration targets to be tested
Slide 34: Project Development Pipeline
Project Development Pipeline 2010 2011 2012 2013 2014 2015 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 Assessment / DA Project F
Slide 35: DZP + TGP “Plan Z”
DZP + TGP “Plan Z” Peak Hill Gold Mine Site Below the existing mine, Peak Hill contains a large sulphide resource grading 1.3g/t to 4.40g/t gold. This could be mined and taken to Toongi (DZP) as sulphur source for DZP sulphuric acid production. Oxidized product returned to the TGP and processes thro
Slide 36: Disclaimer
Disclaimer 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 or other trend projecti
Slide 37: TGP – Peak Hill Resource Statement
TGP – Peak Hill Resource Statement DEPOSIT MEASURED INDICATED INFERRED TOTAL No Top Cut Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold mgeol model (t) (g/t) (t) (g/t) (t) (g/t) (t) (g/t) (koz) Wyoming One 2,379,000 2.52 878,000 3.07 3,227,000 2.35 6,484,000 2.51 523.2 Wyoming Three 670
Slide 38: DZP – Galwadgere Resource Statement
DZP – Galwadgere Resource Statement Dubbo Zirconia Project Toongi g Tonnageg 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 TOTAL 73.20 1.96 0.04 0.46 0.03 0.14 0.75 0.
Slide 39: McPhillamys Resource Statement
McPhillamys Resource Statement Moorilda ‐ McPhillamys 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 Inner Ore Zone 51,650,000 1.10 0.07 23,504,000 1.1
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