Alkane Resources Ltd · ASX:ALK
Alkane Resources — Rare Earths and Strategic Metals 2011 conference
39 slides from Alkane Resources's conference presentation, Jun 21, 2011
Slide 1: Presentation cover letter to ASX
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 21 June 2011 For personal use only Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of presentation to the Rare Earths and Strategic Metals 2011 conference being hel
Slide 2: Dubbo Zirconia Project, NSW Australia
For personal use only Dubbo Zirconia Project NSW Australia An example of the process required to take a next generation polymetallic rare metal and rare earth deposit i t production into d ti
Slide 3: The Process in Summary
The Process in Summary For personal use only 1 1. The Resource – the ore minerals and the host rock 2. Process Development 3 3. L Large scale l confirmation fi i off flow fl sheet h – pilot il plant l 4. Market Development 5. Environmental Assessment 6 6. Financing 7. Production
Slide 4: Location
Location For personal use only Central West New South Wales Perth Sydney
Slide 5: Dubbo Zirconia Project Location
Dubbo Zirconia Project Location For personal use only 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 6: DZP Geology
DZP Geology For personal use only 0 200 metres J Jurassic i aged d trachyte t h t intrusive i t i
Slide 7: DZP Geology: East-west cross section
DZP Geology 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
Slide 8: DZP Western contact of deposit
DZP Western contact of deposit For personal use only Trachyte Sediments
Slide 9: DZP Ore Mineralogy: Zirconium Minerals
DZP Ore Mineralogy For personal use only Zirconium Minerals BSE image x 2300: HREE-rich Zr-silicate Zr-Si hosted within Zr-silicate ANSTO March 2007
Slide 10: DZP Ore Mineralogy: Niobium Minerals
DZP Ore Mineralogy For personal use only Niobium Minerals BSE image i x 600: 600 Nb mineral in Fe-Mn carbonate Natroniobite ANSTO March M h 2007
Slide 11: DZP Ore Mineralogy: Light Rare Earth Minerals
DZP Ore Mineralogy For personal use only Light Rare Earth Minerals BSE image i x 250: 250 Altered Ca-bastnaesite Ca bastnaesite ANSTO March 2007
Slide 12: DZP Ore Mineralogy
DZP Ore Mineralogy For personal use only Zirconium Zi i eudialyte di l t ZrSiO4 ± Ca, Ca YY, < 2μ m - 50μ m Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30μ m Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100μ m rare ancylite Sr(REE)(CO3)H2O
Slide 13: DZP Host Rock Mineralogy
DZP Host Rock Mineralogy For personal use only • K feldspar - partly sericitised ~30 K-feldspar 30 - 40% • albite (sodic feldspar) ~30 - 40% • aegerine (sodic clinopyroxene) ~15 - 20% • minor calcite, calcite siderite siderite, q quartz, art rhodocrosite Weathering down to 10-15 metres depth No impa
Slide 14: DZP Resources
DZP Resources For personal use only 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 Resource define
Slide 15: Process Development - DZP Metallurgy
Process Development ‐ DZP Metallurgy For personal use only • Preliminary test work on HCl, HF, NaOH leaching, and H2SO4 roasting and leaching • Preliminary flotation to assess potential for pre-concentration • Scan of various physical separation processes • Definitive flotation test work for pre-con
Slide 16: DZP Flow Sheet
DZP Flow Sheet For personal use only Niobium Heavy REs Zirconium Light REs
Slide 17: DZP Mini pilot plant 2002
DZP Mini pilot plant 2002 For personal use only
Slide 18: DZP Demonstration Pilot Plant 2008
DZP Demonstration Pilot Plant 2008 For personal use only
Slide 19: Marketing - Zirconium Applications
Marketing ‐ Zirconium Applications For personal use only
Slide 20: Zirconium Industry
Zirconium Industry For personal use only 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 Prim
Slide 21: Zircon Supply Demand Price
Zircon Supply Demand Price For personal use only 20% shortfall by 2020 Zircon prices have escalated during 2010 and 2011 to >US$2,300/t Zircon price and supply will have a major impact on the cost and availability of zirconium chemicals zirconia chemicals, irconia and zirconium irconi m metal. metal
Slide 22: Marketing - Niobium Applications
Marketing ‐ Niobium Applications For personal use only
Slide 23: Structure of Niobium Industry
Structure of Niobium Industry For personal use only 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 T
Slide 24: Niobium Demand
Niobium Demand For personal use only Niobium 2008 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$40 - 45/kg Sources: IAMGOLD / TZMI
Slide 25: Marketing - REE Applications
Marketing ‐ REE Applications For personal use only
Slide 26: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand For personal use only Will rare earth supply demand be in balance from 2015 with Lynas y and Molycorp producing? High g probability p y for LREE but not HREE The DZP has a 75% LREE - 25% HREE split which gives it a demand advantage Separated rare earth products Value 2010
Slide 27: DZP Rare Earth Pricing
DZP Rare Earth Pricing For personal use only Rare Earths Prices 2010 (US$/kg REO) (Source: Metal Pages© ) DZP Q2 Average Q3 Average Q4 Average Q1 Average Spot 8 June Light Rare Earth Distribution 2010 2010 2010 2011 Lanthanum Oxide 19.5% $7.13 $25.75 $53.00 $95.00 $149 Cerium Oxide 36.7% $5.58 $24.5
Slide 28: DZP Marketing Developments
DZP Marketing Developments For personal use only Major MoU just announced: JV to develop 15,000t to 20,000t ZOC production (~6,000 – 7,000t of ZrO2 equivalent) facility using DZP intermediate zirconium feed. This JV would consume all the Base Case Zr output and almost assures the development of the
Slide 29: DZP Environmental Monitoring Stations
DZP Environmental Monitoring Stations For personal use only z Noise Monitoring Site Dust Monitoring Site z z z Water Monitoring Site z Permanent Weather Station Environmental Studies Completed 2002 and now z being updated Flora Fauna Transport z S
Slide 30: DZP Radioactive Elements
DZP Radioactive Elements For personal use only All rare metal – rare earth deposits contain some radioactive elements such as uranium and thorium. The Toongi deposit contains low levels of radioactive elements, uranium and thorium, and has low level natural emissions. The DZP flow sheet does not pro
Slide 31: Financial - DZP Product Output and Revenues
Financial – DZP Product Output and Revenues For personal use only 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
Slide 32: Construction - DZP Site aerial Image
Construction ‐ DZP Site aerial Image For personal use only Toongi deposit Proposed plant site
Slide 33: DZP Plant Layout
DZP Plant Layout For personal use only Administration Product recovery Kilns Solvent Extraction
Slide 34: Development pathway
Development pathway For personal use only ‐> 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 Lab
Slide 35: The Summary
The Summary For personal use only 1 1. 9 The Resource – the ore minerals and the host rock 2. Process Development 9 3 3. L Large scale l confirmation fi i off flow fl sheet h – pilot il plant l 9 4. Market Development 9 5. Environmental Assessment 9 6 6. Financing 9 7. Production 9 Completed or near
Slide 36: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Sh Share P Price i (17 June J 2011) A$2 40 A$2.40 Shares 269m Fully Diluted Market Cap ~A$650m Cash (at 31 March 2010) ~A$22m A$22m Retail Top 20 ~60% No debt Institutions Directors & Management 3% *at 30 j
Slide 37: Conclusion
Conclusion For personal use only Dubbo Zirconia Project A strategic t t i and d alternate lt t supply l for f the th zirconium, i i niobium and rare earths industries www.alkane.com.au lk Definitive Feasibility Study TZ Minerals International Pty Ltd Study managers: Steve Gilman and Gavin Diener Mar
Slide 38: 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 39: DZP Resource Statement
DZP Resource Statement For personal use only 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 0.1
Alkane Resources — Rare Earths and Strategic Metals 2011 conference on 6ix