Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — Excellence in Mining and Exploration, Sydney, October 2006
33 slides from Alkane Resources's conference presentation, Oct 11, 2006
Slide 1: ASX cover letter: Presentation to Excellence in Mining and Exploration
ALKANE EXPLORATION LTD A.B.N 35 000 689 216 11 October 2006 Manager Announcements Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of Alkane’s presentation to the Excellence in Mining and Exploration conference
Slide 2: Excellence in Mining and Exploration, Sydney, October 2006
LKANE EXPLORATION LTD ABN 35 000 689 216 Excellence in Mining and Exploration Sydney, October 2006 www.alkane.com.au
Slide 3: Highlights
HIGHLIGHTS Pre-feasibility study on Wyoming gold project gives encouraging results Project to proceed to definitive feasibility study Significant deep drill intercepts at Wyoming incl 66m @ 19.49g/t Au $3.28 million Commercial Ready grant from AusIndustry for Dubbo Zirconia Project - work prog
Slide 4: Corporate Profile
CORPORATE PROFILE ASX Code ALK (listed since 1969) Issued Capital 190m shares (200m after rights issue) Cash (31/07/06) A$4.5m (+A$6m after rights issue) Trading Range (1 yr) A$0.13 - $0.29.5 Trading Volume (1 yr) 10.2m/mth average Current Market Cap A$35m No Debt LKANE
Slide 5: Alkane Management
ALKANE MANAGEMENT John Dunlop Chairman Mining Engineer with 36 years in mining operations Ian Chalmers Managing Director Geologist with 36 yrs experience in mining, exploration and development Tony Lethlean Non-executive director Geologist with 10 yrs in mining and 14 yrs in finance, specialising in
Slide 6: Australia – project locations
Australia – project locations Nullagine Iron Central West NSW Gold – copper Leinster Nickel JV Zr-Nb-Ta-Y-U-REE Perth Sydney 500 km Project LKANE
Slide 7: Central West NSW Projects
Central West NSW Goldcorp 2Moz Projects DUBBO TGPGold Copper - gold Rio Tinto 2Moz 1.5Mt Cu Newmont JV Gold - copper Newcrest Barrick 30Moz 2Mt Cu 4.5Moz LKANE
Slide 8: Tomingley Gold Project Regional Outcrop Geology
Tomingley Gold Project Regional Outcrop Geology Cover Wyoming Hervey Group Myalls United Dulladerry Rhyolite Yeoval Granite Forbes Group Mungincoble Chert Cotton Formation Goonumbla (Mingelo) Volcanics LKANE
Slide 9: Tomingley Gold Project – Wyoming Geological Summary
Tomingley Gold Project Wyoming Geological Summary 58,700oz New Intersections 4m @ 2.29g/t Au 4m @ 1.70g/t Au Pelitic Sediments 4m @ 1.67g/t Au 4m @ 2.64g/t Au Feldspar porphyry 547,700oz Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc s
Slide 10: Tomingley Gold Project – South View
Tomingley Gold Project – South View Peak Hill Gold Mine Smiths 153,000 oz production, 450,000 oz in sulphides at depth McLeans Myalls United Mine 60,000oz production Wyoming One >550,000oz Myalls Deeps Caloma Wyoming Three >60,000oz Newell Highway Tomingley LKANE
Slide 11: Wyoming One Geological Interpretation
Porphyry Tomingley Gold Project Contact ‘376’ Wyoming One ‘831’ Hangingwall Geological Interpretation Pelitic Sediments Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics LKANE
Slide 12: Wyoming One North–South Section
Tomingley Gold Project Wyoming One North – South Section 9m @ 12.5g/t Au 85m @ 2.15g/t Au 614075mE 6m @ 9.53g/t Au Alluvium Cotton Formation 12m @ 6.22g/t Au Feldspar porphyry Volcaniclastic sediments 18.4m @ 5.74g/t Au 12.5m @ 7.88g/t Au 7.2m @ 11.06g/t Au Graphitic mudstone Volcaniclastic conglome
Slide 13: Wyoming One East–West Section
Tomingley Gold Project 7m @ 3.52g/t Au Wyoming One 3m @ 3.85g/t Au 32m @ 1.75g/t Au East - West Section 23m @ 2.08g/t Au 6393300mN 13m @ 3.61g/t Au 6m @ 5.69g/t Au Alluvium 17m @ 4.72g/t Au Cotton Formation 9m @ 6.70g/t Au 7m @ 9.41g/t Au Feldspar porphyry 12m @ 2.59g/t Au 6m @ 4.65g/t Au Volcanicla
Slide 14: Tomingley Gold Project Resource Summary
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec 2005 0.75g/t gold cut off Measured 4.835 mt @ 2.24g/t gold 348,350 oz 58% Indicated 1.025 mt @ 2.76g/t gold 91,000 oz 15% Inferred 1.270 mt @ 4.09g/t gold 167,000 oz 27% TOTAL 7.130 mt @ 2.70g/t gold 606,350 oz 100% LKANE
Slide 15: Wyoming Proposed Pit Locations
Tomingley Gold Project Wyoming Proposed Pit Locations Base Case May 2006 LKANE
Slide 16: Wyoming Development Summary
TOMINGLEY GOLD PROJECT Wyoming Development Summary Definitive Feasibility Study program to optimise open pits, generate detailed underground mine plan, optimise head grades and recoveries Models range from 500,000tpa open pits to produce 30-35,000oz pa to 1,000,000tpa open pits to produce 60-70,000o
Slide 17: Dubbo Zirconia Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location
Slide 18: Dubbo Zirconia Project Resources
DUBBO ZIRCONIA PROJECT RESOURCES Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.14% Y2O3 0.46% Nb2O5, 0.03% Ta2O5 , 0.014% U3O8, and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Although the or
Slide 19: Dubbo Zirconia Project Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET LKANE LKANE
Slide 20: Zirconium Chemicals Industry Structure and Market Entry Points
DUBBO ZIRCONIA PROJECT ZIRCON / BADDELEYITE ELECTRIC ARC FURNACE Zirconium Chemicals Industry Structure and CHEMICAL PROCESSING Market Entry Points AZL FUSED “INTERMEDIATES” ZBS ZOC ZIRCONIA UPGRADING/CONVERSION UPGRADING/CONVERSION AZL “END USE” Upgrading Zr Doped Current World Output ZBC ZOH ZBS Z
Slide 21: Current Zirconia Uses
DUBBO ZIRCONIA PROJECT CURRENT ZIRCONIA USES 2005 Consumption 96,000 tonnes 2010 Estimated 126,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa Ceramic pigments 8.0%pa LKANE Source: TZ Minerals International Dec 05
Slide 22: Why strategically significant? Current Zircon Uses
DUBBO ZIRCONIA PROJECT Why strategically significant? Other Foundry 2% 14% Ceramics Zirconia & 50% Zr Chemicals 12% CURRENT TV Glass ZIRCON 8% Refractory USES 14% Source: Iluka Oct 05 LKANE
Slide 23: Zircon Supply / Demand Outlook
DUBBO ZIRCONIA PROJECT Zircon Supply / Demand Outlook Surplus / demand (’000s tonnes) Surplus / deficit (’000s tonnes) 1600 600 500 1400 400 1200 300 200 1000 100 800 0 -100 600 -200 400 -300 -400 200 -500 0 -600 2011 2001 2002 2003 2008 2010 2012 2000 2007 2009 2013 2004 2005 2006 2014 2015 Balance
Slide 24: Niobium Industry Structure Schematic
DUBBO ZIRCONIA PROJECT Schematic Illustration of Metallurgical Niobium Industry Structural steels Stainless and heat Structure Pyrochlore FeNb resistant steels Superalloys Super conducting magnets Columbite Tantalite Nb 2O 5 Oxides Class Current World Output Ceramics AZL Nb Niobium Concentrate 35,00
Slide 25: Process Flow Sheet – Possible developments
DUBBO ZIRCONIA PROJECT Process Flow Sheet – Possible developments Uranium Separated yttrium Nuclear power and HREE’s for speciality glasses, magnets, alloys, ceramics Zirconium and Niobium and hafnium metal tantalum for special alloys Thorium ?? Nuclear and special alloys Acclerator driven subcritic
Slide 26: Dubbo Zirconia Project Current Program
DUBBO ZIRCONIA PROJECT Current Program AusIndustry Commercial Ready Grant of A$3.29M on dollar for dollar basis to complete process optimisations, and construct and operate the Demonstration Pilot Plant. Total of about 27 months Laboratory program commenced at ANSTO (Lucas Heights) July 2006 with DP
Slide 27: Orange Area Regional Geology
Orange Area Molong 1m @ 3.36g/t Au and 0.65% Zn Regional 550m x 150m porphyry 550m x 150m porphyry 48m @ 0.31g/t Au 0.35 % Cu 48m @ 0.31g/t Au 0.35 % Cu 1m @ 3.36g/t Au and 0.65% Zn 1m @ 9.69g/t Au and 0.20% Zn 1m @ 9.69g/t Au and 0.20% Zn 1m @ 9.91g/t Au and 0.56% Cu 1m @ 9.91g/t Au and 0.56% Cu Ge
Slide 28: Moorilda McPhillamys Discovery
Moorilda McPhillamys Discovery McPhillamys Discovery 77m @ 1.65g/t Au ODEJV 77m @ 1.65g/t Au 10m @ 4.08g.t Au 10m @ 4.08g.t Au 31m @ 1.64% zn 31m @ 1.64% zn McPhillamys 7m @ 2.85g/t Au 7m @ 2.85g/t Au Geology and Prospects 6m @ 2.37g/t Au 6m @ 2.37g/t Au 6m @ 3.52g/t Au 19m @ 1.23g/t Au and 6m @ 3.5
Slide 29: Moorilda ODEJV McPhillamys Soil Geochemistry
Moorilda ODEJV McPhillamys Soil geochemistry with drill hole locations Section LKANE
Slide 30: Moorilda ODEJV McPhillamys Drill Section
Moorilda ODEJV McPhillamys Drill Section 6292050mN LKANE
Slide 31: Moorilda ODEJV – McPhillamys Prospect
Moorilda ODEJV – McPhillamys Prospect McPhillamys Hill KPD 001 – Zinc Zone KPD 001 – Western Gold Zone LKANE
Slide 32: Wellington Bodangora Regional Geology
Wellington 18m 18m@ @0.95g/t 0.95g/tAu, Au,0.15%Cu 0.15%Cu Bodangora 450m 450mxx150m 150mAu Au++Cu Cu Regional Bodangora 0.2Moz Geology Wellington Christies Christies1.15% 1.15%Cu, Cu,14.3% 14.3%Pb, Pb, Galwadgere Galwadgere Indicated IndicatedRes Res 8.5% 8.5%Zn, Zn,410g/t 410g/tAg, Ag,7.5g.t 7.5g.
Slide 33: Disclaimer
LKANE EXPLORATION LTD This presentation contains no bull 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 Explora
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