Alkane Resources Ltd · ASX:ALK

Alkane Resources — Sydney Mining Club (February 2020)

29 slides from Alkane Resources's conference presentation, Feb 6, 2020

  1. Slide 1: Sydney Mining Club

    For personal use only Sydney Mining Club Nic Earner, Managing Director 6 February 2020 © 2020 Alkane Resources

  2. Slide 2: Disclaimer

    Disclaimer For personal use only This presentation contains certain forward-looking statements and forecasts, including COMPETENT PERSON possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry gr

  3. Slide 3: Corporate profile

    Corporate profile Shareholder ownership (At 31 Dec 2019) For personal use only Capital Structure Ordinary shares 580 million Domestic Institutions Share Price (4 February 2020) A$0.82 24.1% 63.7% Foreign Institutions Market capitalisation A$467M Hedge Funds 12 Month low/high A$0.18/$0.86 1.2% Direct

  4. Slide 4: Corporate history – years of Find. Enhance. Deliver.

    Corporate history – 50 years of Find. Enhance. Deliver. For personal use only Timeline of Key Milestones (incorporated 1969) 1990s 1996-2005 1997 2001 2006 2014 2018 2019 2020 Alkane Peak Hill Gold Alkane Alkane Tomingley Tomingley Alkane Alkane Alkane announces progresses Mine in open pit acquires

  5. Slide 5: Tomingley Gold Project

    Tomingley Gold Project For personal use only • 1.0 mtpa plant (achieved run rate of 1.4mtpa on oxide ore) • 12 month construction completed in 2014 on time and budget • Production guidance for FY20 30,000 – 35,000oz Au • Treated existing low grade stockpiles in 2019 • Underground mining of ore has c

  6. Slide 6: Producer in a strong position

    Producer in a strong position For personal use only Alkane Resources – Quarterly Gold Produced and AISC 369,000 ounces produced average AISC A$1,198/oz (Feb 2014 to December 2019) Cash, bullion and investment A$91.7m FY19 - produced ~49,000 oz FY20 - production guidance - 30,000-35,000 oz @ AISC A$1

  7. Slide 7: Growth strategy

    Growth strategy For personal use only Exploration + Development + Production + Investment = Growth © 2020 Alkane Resources 7

  8. Slide 8: NSW exploration

    NSW exploration For personal use only • Alkane has an extensive tenement package in NSW and continues to seek new tenements • Our gold exploration focuses on three broad target types • Orogenic gold systems such as Tomingley • Volcanogenic Massive Sulphide (VMS) - gold systems such as McPhillamys an

  9. Slide 9: Northern Molong Porphyry Project

    Northern Molong Porphyry Project For personal use only “A game changing discovery” • Significant Gold-Copper Porphyry mineralisation at Boda and Kaiser prospects • Boda target identified by geophysics followed by RC drilling (KSRC018 311m @0.28g from surface) • Recent diamond hole demonstrates incre

  10. Slide 10: NMPP – the 'model' and Cadia Valley

    NMPP – the ‘model’ and Cadia Valley Macquarie Arc Porphyry Model Newcrest Mining’s Cadia Valley Porphyry System For personal use only Modified from Newcrest Briefing Book September 2019 Lachlan Orogen in the Central West of NSW hosts a number of world class porphyry - epithermal gold-copper orebodie

  11. Slide 11: NMPP – Boda KSDD003

    NMPP – Boda KSDD003 For personal use only • Significant Gold – Copper Porphyry mineralization at Boda and Kaiser prospects • Recent Boda diamond hole*: KSDD003 507m @ 0.48g/t Au, 0.20% Cu from 211m • incl 313m @ 0.62g/t Au, 0.17% Cu from 228m • incl 100m @ 1.06g/t Au, 0.41% Cu from 408m • incl 12m @

  12. Slide 12: Current Boda drilling

    Current Boda drilling For personal use only • Series of 5 step out holes at ~100m spacing strike and also targeting underneath the discovery hole KSDD003 (which finished in mineralisation) currently underway • Updated IP survey underway over ~5km prospective corridor • Results will be released on a

  13. Slide 13: NMPP – Boda core

    NMPP – Boda core For personal use only Outer propylitic alteration – disseminated pyrite zone Hosts +0.1 – 0.5g/t gold © 2020 Alkane Resources 13

  14. Slide 14: NMPP – Boda core

    NMPP – Boda core For personal use only Inner potassic alteration (biotite/kspar) – stringer chalcopyrite – (pyrite) zone Gold 0.3 – +1.0g/t Copper 0.1 – 0.5% © 2020 Alkane Resources 14

  15. Slide 15: NMPP – Boda core

    NMPP – Boda core For personal use only Veined and strong inner potassic alteration (biotite/kspar) – disseminated and blebby bornite - chalcopyrite zone Gold +0.5g/t Copper +0.2% © 2020 Alkane Resources 15

  16. Slide 16: Tomingley Corridor: Central West NSW

    Tomingley Corridor: Central West NSW For personal use only ~10km mineralisation adjacent to established processing infrastructure © 2020 Alkane Resources 16

  17. Slide 17: For personal use only

    For personal use only © 2020 Alkane Resources 17

  18. Slide 18: Tomingley Corridor: Exploration

    Tomingley Corridor: Exploration For personal use only • Three major target areas within 8km of mill; Roswell, San Antonio and El Paso • Infill drilling at 40m spacing of Roswell, San Antonio largely progressed • Exploration Target (San Antonio, El Paso) of ~12.5 – 17.6 million tonnes (open pit and u

  19. Slide 19: Tomingley Corridor: Plans

    Tomingley Corridor: Plans For personal use only © 2020 Alkane Resources 19

  20. Slide 20: Tomingley Corridor: Cross sections

    Tomingley Corridor: Cross sections San Antonio Roswell For personal use only © 2020 Alkane Resources 20

  21. Slide 21: Roswell 3D long section

    Roswell 3D long section For personal use only © 2020 Alkane Resources 21

  22. Slide 22: Mining in NSW

    Mining in NSW For personal use only © 2020 Alkane Resources 22 22

  23. Slide 23: Complexities of doing business in NSW

    Complexities Mining in NSWof doing business in NSW For personal use only © 2020 Alkane Resources 23 23

  24. Slide 24: Mining in NSW

    Mining in NSW The mining industry is a relatively small user of water, using just 1.5% of total water consumed in For personal use only NSW in 2016-17, compared with 70% used by agriculture and 8.7% by households. © 2020 Alkane Resources Source: ABS Water Account 2016-17 24

  25. Slide 25: Australian Strategic Materials

    Australian Strategic Materials For personal use only Dubbo Project • Critical minerals resource • Rare earths, zirconium, hafnium and niobium • Used in clean energy, electric vehicles and most modern technology • Defined resource supports 70+ year open pit operation • 400km northwest of Sydney • Ext

  26. Slide 26: Dubbo project financials

    Dubbo project financials For personal use only Dubbo Project Engineering and Financials Update (4 June 2018) 20 year Base case (1 Mtpa) Modular (4 June 2018) • 1.0Mtpa (base case) Stage 1 Stage 2 • CAPEX – A$1.3B • Revenue – A$663M • 0.5Mtpa • 0.5Mtpa • Operating Costs – A$341M • CAPEX – A$808M • CA

  27. Slide 27: Key work plan & milestones – Next months

    Key work plan & milestones – Next 6 months For personal use only • Results of step-out drilling at Boda (Q1/Q2 2020) • Inferred Resource for San Antonio in Tomingley Corridor (March 2020) • Acquisition of key land for Tomingley Corridor (some under option) • Approvals and Commencement of Tomingley C

  28. Slide 28: Alkane highlights

    Alkane highlights For personal use only Grow shareholder value by increasing production at Tomingley, Unlock the value of Australian Strategic Materials (ASM), including a pursuing organic growth through exploration potential demerger and listing in H1 2020. and development, and strategic acquisitio

  29. Slide 29: …it's what we do!

    For personal use only …it’s what we do! www.alkane.com.au @alkaneresources alkane-resources-ltd © © 2020 2020 Alkane Alkane Resources Resources 29

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