Alara Resources Limited · ASX:AUQ
Alara Resources — Investor Presentation (February 2011)
34 slides from Alara Resources's investor presentation, Feb 18, 2011
Slide 1: Market Announcement: Investor Update 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 Friday, 18 February 2011 For personal use only MAR
Slide 2: Alara Resources Limited Investor Update February 2011
For personal use only Alara Resources Limited Investor Update February 2011
Slide 3: Agenda
Investor Update February 2011 For personal use only • The Company – Structure, Structure Share Price Performance • Projects – Saudi Arabia : Targeting g g Khnaiguiyah g y DFS completion p within 12 months. – Oman : Helicopter ‐ borne VTEM Survey underway. – Chile : Planning geophysics and mapping pr
Slide 4: Company Profile
C Company P Profile fil For personal use only Directors ASX Code: AUQ Shanker Madan (MD) Market Cap (7 Feb 2011): $ 47M BHP Rio Tinto, BHP, Tinto Hamersley Iron. Iron Issued Capital: 35+ years’ mining industry experience. ‐ Shares: 126M Ian J Williams AO ‐ Options: 41M 40 plus years’ mining experien
Slide 5: Strong pipeline of base metal development projects
Alara has a strong pipeline of base metal development projects. For personal use only Design/ Exploration p Feasibilityy Production Construction “In Place Minable Reserves” as reported in Saudi Arabia: Khnaiguiyah Alara ASX market announcement dated 5 Zinc ‐ Copper October 2010 1 (Alara 50%) Feasibi
Slide 6: Saudi Arabia: Khnaiguiyah Project
Saudi Arabia: Khnaiguiyah Project Khnaiguiyah Project comprises a Mining Lease (granted), 2 Exploration Licences and 5 Exploration Licence Applications Covering 380 sq km. For personal use only 5
Slide 7: Previous studies confirm potential for commercial development
Previous Khnaiguiyah studies have confirmed the potential for commercial development of the project. For personal use only • ““In Place l Minable i bl Reserves”” as reported d in i Alara l ASX S market k announcement d dated d 5 October 2010. 1 • The PFS ((1990’s)) indicates the p project j was comm
Slide 8: High potential for new discoveries
High potential exists for new discoveries in unexplored carbonatized shears and along strike extension of explored shear zones at Khnaiguiyah. For personal use only 7
Slide 9: Previous studies can be taken to DFS standard within 12 months
Alara believes that previous BRGM and Manajem studies can be taken to Definitive Feasibility Study (DFS) standard within 12 months. For personal use only • Exploration and Pre‐feasibility Study conducted by BRGM and further studies conducted by Manajem (Vendor) include the following works: – Total d
Slide 10: Excellent road access and available power
The Khnaiguiyah Zinc‐Copper Project has excellent road access and available power. For personal use only 2hrs from Riyadh on Project site and construction Power line Riyadh‐Jeddah Highway camp Sealed Road connecting project site to Al Quwaiyah Q y 20min. from site on the high way to Riyadh Mineralis
Slide 11: Mine Layout Plan from 2009 Feasibility Study
A Mine Layout Plan for the Khnaiguiyah Zinc‐Copper Project was produced as part of the 2009 Feasibility Study. For personal use only 10
Slide 12: Mineralised Body richer in zinc with copper rich zone
Mineralised Body 3 contains majority of the identified mineralisation. It is richer in zinc with a distinct copper rich zone to the east. For personal use only Drill hole intersections K97_219 _ – 37m @ 8.51% Zn, 0.22% Cu K97_220 – 2m @ 2.93% Zn, 0.23% Cu 3m @ 4.41% Zn, 0.07% Cu 15m @ 12.18% Zn, 0.3
Slide 13: Mineralised Body thicker and close to surface on east limb
Mineralised Body 3 is thicker and close to surface on the east limb but generally copper rich and open towards the west. For personal use only Drill hole intersections K97_136 – 4m @ 3.58% Zn, 0.27% Cu 3m @ 3.93% Zn, 0.19% Cu 10m @ 3.06% Zn, 0.05% Cu K97_197 – 2m @ 3.1% Zn, 0.02% Cu K97_198 – 5m @ 3
Slide 14: Mineralised Body thicker and well defined at depth
Mineralised Body 3 is thicker and well defined at depth, with a distinct zinc rich zone to the east and is open and copper rich to the west. For personal use only Drill hole intersections K97 263 – 23m K97_263 23 @ 4 4.4% 4% ZZn, 0.08% 0 08% C Cu KHNC_76 – 8.31m @ 13.5% Zn, 0.37% Cu K97_151 – 16.78m
Slide 15: Stacked 3D Model shows structural continuity
Stacked 3D Model of Mineralised Body 3 shows structural continuity . For personal use only Zinc Copper 14
Slide 16: Mineralised Body generally flat lying and open to the east
Mineralised Body 2 is generally flat lying and open to the east. For personal use only Drill hole intersections KZ2_180‐16m _ @10.3% Zn, 0.33% Cu KZ2_300‐17m @ 4.06% Zn, 0.77% Cu KZ2_170‐ 4m @ 3.36%Zn, 0.03% Cu 18m @ 3.87% Zn, 0.82% Cu KNP_21 ‐15m @ 6.17% Zn, 0.16% Cu 6m @0.49% Zn, 0.72% Cu KZ2_173‐
Slide 17: Mineralised Body is shallow and thick
Mineralised Body 2 is shallow and thick. For personal use only Drill hole intersections KZ2 311 – 8m KZ2_311 8 @ 4.6% 4 6% Zn, Z 0.5% 0 5% Cu C KZ2_351 ‐ 8m @ 7.5% Zn, 0.3% Cu KZ2_312 – 18m @ 7.2% Zn, 0.1% Cu KZ2_313 – 17m @ 18% Zn, 0.3% Cu KZ2_314 – 18m @ 6.5% Zn, 0.25% Cu KZ2_315 – 24m @ 5.5.% Zn,
Slide 18: Stacked 3D Model shows flat and shallow ore body
A Stacked 3D Model of Mineralised Body 2 shows the flat and shallow disposition of the ore body. For personal use only Zinc Copper 17
Slide 19: Rapid progress in Saudi Arabia since December 2010
Alara has made rapid progress in Saudi Arabia since December 2010. For personal use only • Khnaiguiyah g y Zinc‐Copper pp Projectj jjoint venture company p y ((Alara 50%)) has been formed in Saudi Arabia – “Khnaiguiyah for Mining Company” (KMC). • Mining License for Khnaiguiyah awarded to Manajem (S
Slide 20: Targeting completion of Khnaiguiyah DFS
Alara is targeting completion of Khnaiguiyah DFS within 12 months. For personal use only 2010 2011 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Finalise formal JV agreements. Establish office in Riyadh. LLog and d analyse l samples l ffrom h holes l completed recentl
Slide 21: Oman: Daris Project
Oman: Daris Project The Daris Project j is located in a region g with several examples p of VMS Copper pp Deposits in the Oman Ophiolites and a nearby Copper Smelter. For personal use only Copper deposit Copper Smelter Alara Project 20
Slide 22: Targeting quick discovery and treatment of copper sulphides
Alara is targeting g g quick q discoveryy and treatment of copper pp sulphides p from the Daris Project. For personal use only • Alara has completed a 25 drill hole programme in 2 of 12 known prospects in the project j t area. Results R lt received i d from f one off these th prospects, t where h 3
Slide 23: Oxide and sulphide copper-gold mineralisation confirmed at Daris East
Oxide and sulphide copper‐gold mineralisation reported in historic drilling has been confirmed at Daris East. For personal use only Native Cu in the oxide body drill c ttings cuttings Core hole DEDC002 6m massive sulphides intersected at 37 43m 37‐43m Gossan 22
Slide 24: Helicopter borne VTEM survey underway over Daris
A Helicopter borne VTEM survey is now underway over Daris, testing new targets. For personal use only • Spatial Data and Predictive Modelling of VMS potential has identified several new unexplored l d targets in the Daris Project. • After the VTEM survey, drilling will recommence to extend known min
Slide 25: Chile: El Quillay Project
Chile: El Quillay Project In Chile, Alara is targeting copper‐gold prospects in an area with extensive previous working and walk up drill targets. For personal use only • Five copper, copper copper gold and copper molybdenum IOCG type and porphyry prospects. • Deep workings along a 6km strike are lo
Slide 26: El Quillay prospect workings
In the “El Quillay” prospect, numerous workings exist over 1km strike and up to 85m depth. Outcrops and workings have been extensively sampled. For personal use only Main workings Recent decline Shaft and dump This hill is largely covered by oxide cap A half spiral decline dug in 2008 is wide enough
Slide 27: Lana and Corina significant drill intersections
At “Lana and Corina” pprospect, p , significant g drill intersections confirm the prospectivity of breccia pipes, with porphyry below. For personal use only Two drill holes intersected greater than 130m of mineralisation, one off which hi h iintersected t t d 180 180m off 0.70% 0 70% C Cu and d up t
Slide 28: Lana and Corina shallow targets
Lana and Corina has well defined shallow targets, significantly richer than the porphyry below, presenting potential for early cash flow. For personal use only Breccia View over the area and the old shaft at Lana and Corina Current mining operations . 27
Slide 29: Extensive work program planned for El Quillay in 2011
An extensive work program is planned for El Quillay in 2011. For personal use only • Technical and legal g due diligence g p planned for completion p in March. – February holiday period in Chile has delayed progress. • Definitive agreements with local partner due to be finalised March/April. • Mappi
Slide 30: Summary: Recent accomplishments
Summary Recent accomplishments. For personal use only • Experienced industry veterans added to Board of Directors. Directors • $10m capital raising completed December 2010. • Khnaiguiyah Mining License awarded in Saudi; joint venture company and local office established. • Positive drilling results
Slide 31: The way forward for 2011
The way forward for 2011. 2011 For personal use only • Completion of Khnaiguiyah DFS. • Increase Copper Exposure: – Continue drilling for Zinc and Copper extensions at Khnaiguiyah; – Seek Further prospective tenements in Saudi Arabia with our JV partner; – Extension of high grade copper sulphide and
Slide 32: Reasons to invest in Alara
Reasons to invest i in i Alara. l For personal use only • Offers diversity in exposure to resources sector: – Copper and zinc are attractive commodities for investment. – Pipeline of base metal projects from exploration to near production. production – Geographical spread – Middle East; South Americ
Slide 33: 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, prices, reserves and resources or potential growth of Alara Resources Limited, industry growth
Slide 34: Alara Resources Limited contact details
Alara Resources Limited A.B.N 27 122 892 719 For personal use only ASX Code: C d AUQ Level 14, The Forrest Centre 221 St Georges G TTerrace Perth, Western Australia 6000 TTelephone: l h +61 61 8 9214 9787 Facsimile: +61 8 9322 1515 E il info@alararesources.com.au Email: i f @ l www.alararesources.co
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