Alkane Resources Ltd · ASX:ALK
Alkane Resources — Critical Minerals 2013 Conference
24 slides from Alkane Resources's conference presentation, Jun 4, 2013
Slide 1: Dubbo Zirconia Project: The Pilot Plant
For personal use only Dubbo Zirconia Project NSW Australia The Pilot Plant: Key to Successful Process and Market Development 4 June 2013
Slide 2: Corporate Profile
Corporate Profile For personal use only • Listed on ASX since 1969, also listed on OTCQX • Market cap $200M • 6,100 shareholders (85% Australian) • Multi commodity explorer, miner and developer focused on Central West of NSW • Active in region for more than 20 years • Developed Peak Hill Gold Mine i
Slide 3: Dubbo Zirconia Project
Dubbo Zirconia Project For personal use only • Located 30 km south of Dubbo • World class resource of zirconium, hafnium, niobium, tantalum, yttrium and light and heavy rare earths elements • DFS April 2013, DZP “technically and financially robust project” • Base case of 20 year mine life and 1Mtpa
Slide 4: DZP Geology
DZP Geology For personal use only • K‐feldspar ‐ partly sericitised ~30 ‐ 40% • albite (sodic feldspar) ~30 ‐ 40% • aegerine (sodic clinopyroxene) ~15 ‐ 20% • minor calcite, siderite, quartz, rhodocrosite Weathering down to ~15 metres depth No impact on mineral assemblage 0 200 metres Jurassic aged
Slide 5: DZP sections & ore mineralogy
DZP sections & ore mineralogy For personal use only Zirconium eudialyte ZrSiO4 ± Ca, Y, < 2m - 50m Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30m Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100m rare ancylite Sr(REE)(CO3)H2O The depos
Slide 6: DZP Ore Mineralogy Zr & HREE
DZP Ore Mineralogy Zr & HREE For personal use only Zirconium Minerals Zr-silicate BSE image x 2300: HREE-rich Zr-Si hosted within Zr-silicate ANSTO March 2007 6
Slide 7: DZP Ore Mineralogy Nb
DZP Ore Mineralogy Nb For personal use only Niobium Minerals BSE image x 600: Natroniobite in Fe-Mn carbonate Natroniobite ANSTO March 2007 7
Slide 8: DZP Ore Mineralogy LREE
DZP Ore Mineralogy LREE For personal use only Light Rare Earth Minerals BSE image x 250: Ca bastnaesite Ca-bastnaesite ANSTO March 2007 8
Slide 9: Metallurgy Phase One 1999-2002
Metallurgy Phase One 1999 ‐ 2002 For personal use only Based upon earlier work program (1984 - 1988) on a different project, DZP process development work began in 1999 and the basic flow sheet trialed at mini-pilot plant stage in 2001 - 2002 • Preliminary test work on HCl, HF, NaOH leaching, and H2S
Slide 10: DZP Flow Sheet 2002
DZP Flow Sheet 2002 For personal use only PROCESS Whole of ore sulphuric acid roast leach, solvent extraction separation and chemical refining of zirconium and niobium products. No defined rare earth recovery circuit (prices very low with dominance by China) 10
Slide 11: DZP Mini Pilot Plant 2001-2002
DZP Mini Pilot Plant 2001 ‐2002 For personal use only Mini pilot plant at Mini pilot plant solvent SGS Lakefield in Perth extraction circuit Mini pilot plant Mini pilot plant roaster zirconium sulphate and off‐take gas scrubber thickener 11
Slide 12: Marketing and Feasibility 2002-2006
Marketing and Feasibility 2002 ‐ 2006 For personal use only • Zirconium and niobium products (~100g) from mini pilot plant distributed to potential international customers • Favourable feedback but larger samples needed for full technical evaluation • Feasibility without any rare earth revenue weak;
Slide 13: DZP Metallurgy Phase Two 2006-2008
DZP Metallurgy Phase Two 2006 ‐ 2008 For personal use only • 2006 program commences at ANSTO in Sydney to optimize the Zr and Nb circuit, and incorporate a rare earth recovery in the flowsheet • $3.3m grant from AusIndustry to assist funding of construction and operating of the DPP • No solvent extr
Slide 14: DZP Demonstration Pilot Plant 2008-2013
DZP Demonstration Pilot Plant 2008 – 2013 For personal use only Roaster off‐take gas scrubber Part of DPP internal at ANSTO DPP roaster when installed outside ‐ originally the ALK’s Peak Hill Gold Mine carbon regen kiln 14
Slide 15: DZP Demonstration Pilot Plant 2008-2013
DZP Demonstration Pilot Plant 2008 – 2013 For personal use only Zirconium precipitation circuit Primary pressure plate filter Heavy rare earth recovery circuit Solvent extraction circuit 15
Slide 16: DZP Flow Sheet 2013
DZP Flow Sheet 2013 For personal use only This flowsheet used in current feasibility studies. Mass balance measurements enable detailed process data to be generated. 16
Slide 17: DZP Marketing
DZP Marketing For personal use only Off‐take Memorandums of Understandings (MOU’s) / Agreements MOU Product Details 1 Zirconium Leading Chemical Company to develop applications for zirconia produced by DZP 2 Zirconium Australian Mintech Chemical Industries to produce zirconium oxychloride 3 Zirconiu
Slide 18: Zirconium
Zirconium For personal use only • Zirconium is a corrosion and heat resistant metal, many electronic uses • Multiple ceramic applications • Used in a range of components for vehicles, such as car exhausts • Many chemical applications eg replaced lead as drying agent in paints Zirconium Price Trends
Slide 19: Niobium
Niobium For personal use only • Niobium (Nb) is a soft metal which strengthens alloys, superalloys and steel • Used in pipeline construction, jet engines, heat‐resistant and combustion equipment • Makes vehicle chassis lighter, reducing overall vehicle weight by 10%, lower fuel consumption and reduc
Slide 20: Rare Earths
Rare Earths For personal use only • REEs a group of 15 (+2) elements in periodic table in two distinctive groups, LREEs and HREEs • Variable magnetic and chemical properties give rise to many applications • Used for energy efficiency, new energy sources and emissions minimisation • China currently p
Slide 21: DZP Product Output
DZP Product Output For personal use only 100% 4% 911t 90% • The DPP has produced several tonnes 18% 3,997t 30% $149.4M of product which has enabled 80% 9% 1,967t customers to test and confirm interest 70% 60% 24% $118.7M • This enabled off‐take arrangements 50% to be negotiated and potential 15,827t
Slide 22: DZP Feasibility
DZP Feasibility For personal use only DUBBO ZIRCONIA PROJECT • The DPP has determined the chemistry Financial Summary for 20 year life in A$ and engineering of the flow sheet, and enabled capital and operating costs to be Project Capacity 1,000,000 tonnes pa informed Capex – Plant $396.8M Sulphuric
Slide 23: Dubbo Zirconia Project
For personal use only Dubbo Zirconia Project A strategic and alternate supply for the zirconium, niobium and rare earths industries The DZP is an advanced world class project capable of supplying “new age metals” in to rapidly developing international markets for many years. This would not have been
Slide 24: Resource & Reserves: DZP
Resource & Reserves: DZP For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO Deposit (Mt) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 Total 73.20 1.96 0.04 0.46 0.03 0.14