Alara Resources Limited · ASX:AUQ
Alara Resources — Investor Presentation (October 2010)
38 slides from Alara Resources's investor presentation, Oct 6, 2010
Slide 1: Market Announcement - Investor Presentation
Alara Resources Limited Telephone | +61 8 9214 9787 A.B.N. 27 122 892 719 Facsimile | +61 8 9322 1515 Level 14, The Forrest Centre Web | www.alararesources.com.au 221 St Georges Terrace Email | info@alararesources.com.au Perth Western Australia 6000 Wednesday, 6 October 2010 For personal use only MA
Slide 2: Moving from Junior Explorer to Base Metals Developer
For personal use only Alara Resources Limited Moving from Junior Explorer to Base Metals Developer 6th October 2010
Slide 3: Executive Summary
Alara Resources ‐ Base Metal Developer p Executive Summary For personal use only • Alara has recently secured three base metal projects at varying stages of development, of which the most advanced is Khnaiguiyah (Saudi Arabia): – Advanced zinc‐copper project with historical “In place minable reserve
Slide 4: Executive Summary (continued)
Executive Summary (continued) For personal use only • Daris (Oman): Cyprus Type VMS copper‐gold target; 25 drill‐holes completed in 2 out of 12 mapped copper occurrences occurrences. In 3 diamond core holes holes, intersections include: – 17.20m at 8.05% copper, as copper sulphides and 2.67 g/t gold
Slide 5: Company Profile
Company Profile For personal use only Directors Shanker Madan ((MD)) ASX Code: AUQ BHP, Rio Tinto, Hamersley Iron. Market Cap (5 Oct 2010): $18M 35+ years’ industry experience. Issued Capital: ‐ Shares: 80.5M FFarooq Kh Khan ‐ Options: 41M 20+ years capital markets experience. Cash* $5.4M Management
Slide 6: Portfolio of early to advanced stage base metal projects
Alara has Al h recently tl securedd an exciting iti portfolio tf li off early l tto advanced d d stage base metal exploration and development projects For personal use only Location Commodity Project Description Alara Interest Saudi Arabia Zinc ‐ Khnaiguiyah Project 50% Copper In Place Minable Reser
Slide 7: Strong pipeline of base metal development projects
These three Th th projects j t provide id Al Alara with ith a strong t pipeline i li off base b metal development projects For personal use only Design/ Exploration Feasibility Production Construction Saudi Arabia: Khnaiguiyah Zinc ‐ Copper Feasibility study substantially completed . Will take Alara
Slide 8: Projects
For personal use only PROJECTS • Khnaiguiyah Kh i i h Zi Zinc ‐ Copper C : SSaudi di A Arabia bi • Daris Copper ‐ Gold : Oman • El Quillay Copper : Chile 6/10/2010 7
Slide 9: Saudi Arabia: Khnaiguiyah Zinc – Copper
Saudi Arabia: Khnaiguiyah Zinc – Copper Project Summary For personal use only Previous Work Feasibility study in advanced stages of completion. “Historical in place Minable Reserves” of 10.3Mt @ 7.46% Zn and 0.8% Cu1 Production 55,000 Tpa zinc production within 18 months of BFS completion. Target Fu
Slide 10: Khnaiguiyah located 2 hours drive from Riyadh
The Kh Th Khnaiguiyah i i h Zi Zinc C Copper P Prospectt iis llocated t d 2 hours h d drive i ffrom the capital, Riyadh For personal use only Riyadh Khnaiguiyah Zinc‐ Copper Project 170km from Riyadh on Ar Riyadh Highway 6/10/2010 9
Slide 11: Khnaiguiyah licences covering 380 sq km
Khnaiguiyah Project comprises a Mining Lease Application, 2 Exploration Licences and 5 Exploration Licence Applications Covering 380 sq km For personal use only Riyadh Khnaiguiyah Zinc‐ Copper Project 170km from Riyadh on Ar Riyadh Highway 6/10/2010 10
Slide 12: Advanced development project with completed Pre-Feasibility
Khnaiguiyah Kh i i h is i an advanced d dd development l t project, j t with ith completed l t d Pre‐Feasibility and well‐advanced Feasibility Studies For personal use only • Exploration and Pre‐feasibility Study conducted by BRGM and further studies conducted by Manajem (Vendor) include the followi
Slide 13: Previous studies confirmed commercial development potential
Previous P i Khnaiguiyah Kh i i h studies t di have h confirmed fi d the th potential t ti l for f commercial development of the project For personal use only • “In Place Minable Reserves” of 10.23Mt @7.46% zinc and 0.80% copper at 4% Zn Cut‐off and 0.50m dilution at true grade and density within an
Slide 14: Mineralisation structurally continuous and thick zones
Khnaiguiyah g y mineralisation is structurallyy continuous,, ppartlyy stratiform and consists of thick zones, so mining is likely to be relatively straightforward For personal use only • Mineralisation is controlled in carbonatized shear zones in volcano sedimentary tuffaceous rocks containing carbo
Slide 15: Project landscape flat and easily accessible
The Khnaiguiyah g Project j landscape is flat and easily accessible with a history of ancient mining For personal use only Ore bodyy 2 Sample piles from p shaft bulk sample Historic Pit – from where metals were previously recovered, yet to be drilled drilled. Ore Zone 2 ‐ Zinc and Copper Mineralisat
Slide 16: Mineralisation controlled by carbonatized shears
Khnaiguiyah Project – Mineralisation is controlled by carbonatized shears. Potential for further discoveries in unexplored shears and along strike extension of explored shear zones is high For personal use only 6/10/2010 15
Slide 17: Mineralised zone copper rich and open to the east
There are 4 mineralised zones. Mineralised Zone 2 is generally copper rich and open to the east For personal use only 6/10/2010 16
Slide 18: Mineralised Zone is shallow and thick
Mineralised Zone 2 is shallow and thick For personal use only 6/10/2010 17
Slide 19: Mineralised zone thicker close to surface on east limb
Mineralised Mi li d ZZone 3 is i thicker thi k and d close l tto surface f on th the eastt lilimb bbbutt generally copper rich and open towards the west For personal use only 6/10/2010 18
Slide 20: Zone contains majority of identified mineralisation
Mineralised Zone 3 contains the majority of the identified mineralisation. It is richer in zinc with a distinct copper rich zone to the east For personal use only 6/10/2010 19
Slide 21: Mineralised zone thicker and well defined at depth
Mineralised Zone 3 is thicker and well defined at depth. p It is has a distinct zinc rich zone to the east and it is open and copper rich to the west For personal use only 6/10/2010 20
Slide 22: Khnaiguiyah – Alara's 12 month plan
Khnaiguiyah – Alara’s 12 month plan For personal use only 2010 2011 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Finalise formal JV agreements. Establish office in Riyadh. Log and analyse samples from holes completed recently to extend mineralisation. Obtain Mining License. Licens
Slide 23: Saudi Arabia – Other Prospects
Saudi Arabia – Other Prospects For personal use only Project Location Manajem (Vendor) is one of the largest private holder of exploration concessions throughout Saudi Arabia Arabia. Previous Work Almost 20 years of exploration and preliminary evaluation by BRGM as consultant to the Government of Sa
Slide 24: Oman – Exposure to large copper belt area
Oman ‐ Exposure O E to t a large l area with ith copper occurrences in i a wellll known Copper Belt. Initial drilling by Alara shows good results. For personal use only Oman Copper has been mined and processed in Oman for over 6,000 years. Project Location Within h known k Copper belt b l with h cur
Slide 25: Oman Copper – Daris Prospect
Oman Copper – Daris Prospect For personal use only 1 4.75Mt @1.4%Cu & 10.1Mt @1.94% Cu Copper‐Gold Resource Targets in Block 7 JV prospect 1. http://mawaridmining.com/exploration_business_development_ghuzayngeology.shtml. 6/10/2010 24
Slide 26: Mapped Copper Occurrences in Daris Project Oman
M Mapped d Copper C O Occurrences iin D Daris i Project P j O Oman For personal use only 6/10/2010 25
Slide 27: Oman Copper – Well Established and Underexplored Copper Belt
Oman Copper – Well Established and Underexplored Copper Belt For personal use only • The +800km long Semali Ophiolite belt in Oman has a history of copper mining dating back to Bronze age more than 6000 years ago. • In recent times several discoveries of Cyprus Type VMS Copper Deposits mainly in the
Slide 28: Oman Copper Exploration - Drilling Results
Oman Copper Exploration ‐ Drilling Results For personal use only • Alara has completed a 25 drill hole programme in 2 of the 12 known prospects. Results received from one of these prospects, where 3 core holes were drilled to test previously i di t d massive indicated i sulphide l hid mineralisation
Slide 29: Chile - El Quillay Copper-Gold Project
Chile ‐ El Quillay Copper ‐ Gold Project For personal use only Chile Chile produces one third of the world’s copper, is highly prospective and has low sovereign risk. Project Location 330Km north of Santiago and 20km north of Cambarbala City. City Close to port and infrastructure, including a toll s
Slide 30: El Quillay Project
El Quillay Project El Quillay Norte For personal use only Main workings Recent decline Shaft and dump This hi hill iis largely l l covered by oxide cap A half spiral decline dug in 2008 is wide enough to take regular trucks and p loaders to sulphide Decline Entrance mineralisation below the oxide 6/
Slide 31: El Quillay Project – several walk up drill targets
El Quillay Project – comprises several walk up drill targets For personal use only • El Quillay Project comprises • El Quillay Norte ‐ Copper prospect along the El Quillay regional fault zone (has a recent decline). • El Quillay Central – Copper prospect along the El Quillay fault zone. • El Quillay
Slide 32: Lana and Corina breccia pipes and porphyry below
Lana and Corina breccia pipes and porphyry below Two drill holes intersected greater than 130m of mineralisation, one of which intersected 180m of 0.70% Cu and up to 200ppm Mo show excellent potential to build an early JORC resource. For personal use only 6/10/2010 31
Slide 33: Lana and Corina walk up targets with demonstrated mineralisation
Lana and Corina breccia pipes and porphyry below are walk up target with demonstrated mineralisation For personal use only Current mining operations Breccia View over the area and the old shaft Lana and Corina are well defined shallow targets significantly richer than the p porphyry p y y below and
Slide 34: Pipeline of projects with potential positive cash flow by 2011-12
Alara’s pipeline of projects includes potential for positive cash flow by 2011‐12 For personal use only 2010 2011 2012 2013 Saudi Arabia – Khnaiguiyah Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 D illi Drilling Feasibility Validation Design C Constructioni Oman Potential for near Drilling 1000m
Slide 35: Conclusions
Alara Resources Al R ‐ Base B M Metal t lDDeveloper l Conclusions For personal use only • Alara has recently secured three base metal projects at varying stages of development. • All three projects have significant production potential. • Small scale copper production could commence in 2011. The End
Slide 36: Disclaimer
DISCLAIMER For personal use only This presentation contains certain forecasts and forward‐looking information including regarding possible or assumed future performance, costs, production levels or rates, rates prices, prices reserves and resources or potential growth of Alara Resources Limited, ind
Slide 37: Alara Resources Limited contact details
Alara Resources Limited A.B.N 27 122 892 719 For personal use only ASX Code: AUQ Level 14, The Forrest Centre 221 St Georges Terrace Perth Western Australia 6000 Perth, Telephone: +61 8 9214 9787 F i il +61 Facsimile: 61 8 9322 1515 Email: info@alararesources.com.au www.alararesources.com.au 6/10/20
Slide 38: Notes - Competent Person Statement
20101006 AUQ ASX Investor Presentation - Moving From Junior Exploerer to Base Metals Developer For personal use only NOTES: The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves has been compiled by Mr Hem Shanker Madan who is a Member of The Aus
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