Slide 1: Presentation – Dubbo Zirconia Project (ASX cover letter)
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 6 November 2012 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION – DUBBO ZIRCONIA PROJECT Attached is a copy of the Company’s presentation at the TZMI Congress 20
Slide 2: Dubbo Zirconia Project
For personal use only Dubbo Zirconia Project j NSW Australia Hong Kong 6 November 2012
Slide 3: Location and Business Strategy
Location and Business Strategy For personal use only Alkane is public company (listed on ASX since 1969) 6,100 shareholders (85% Australian) Multi commodity exploration and development in the Central West of NSW Active in region for more than 20 years Developed Peak Hill Gold Mine in 1996,
Slide 4: Equity & Ownership
Equity & Ownership For personal use only Equity Ownership Shares – 372,231,500 O i Options 4 000 000 – 4,000,000 Domestic Hedge Funds, 8% Institutions, 23% Market Capitalisation – A$320M Retail and others, Foreign Cash – A$92M (30 September 2012) 32% Directors and Institutions, 12% Investm
Slide 5: Rare Metals - Rare Earths
Rare Metals ‐ Rare Earths For personal use only Rare Metals – Rare Earths • China produces 90% of world downstream zirconium chemicals • China currently produces 95% of world REE output • China is limiting the export of raw rare Rare metals earths materials • Brazil produces 90% of world niobium Lig
Slide 6: DZP Geology
DZP Geology For personal use only 0 200 metres Jurassic aged trachyte intrusive or lava flow 5
Slide 7: DZP Geology sections
DZP Geology sections For personal use only 20 year pit floor 6
Slide 8: DZP Resources & Reserves
DZP Resources & Reserves For personal use only Resources & Reserves Resources & Reserves – open at depth Life – +20 years but can support longer life and higher production rates Major world resource ‐ zirconium, hafnium, niobium, tantalum, yttrium & rare earth elements Resources Depth (m) Tonn
Slide 9: DZP Process Flow Sheet
DZP Process Flow Sheet For personal use only Demonstration Pilot Plant – established 2008 ANSTO – Aust. Nuclear Science & Tech. Org. Process – unique & advanced Optimization – ongoing Sulphuric acid leach whole of ore Solvent extraction, separation & refining Chemical precipitation Z
Slide 10: Demonstration Pilot Plant
Demonstration Pilot Plant For personal use only Y and HREE refine and recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refine and precipitation Reverse osmosis and water recycle Operating at ANSTO since 2008 9
Slide 11: DZP Location and Infrastructure
DZP Location and Infrastructure For personal use only Infrastructure Population – 80,000 Dubbo region Rail – railway hub Road – major highways intersection/hub Water – numerous sources 10km Electricity – NSW State power grid 25km Gas – NSW State gas grid 30km Industrial – substantial l
Slide 12: DZP Site Infrastructure
DZP Site Infrastructure For personal use only SRSF Solid residue storage facility LRSF Liquid q residue storage facility Land Six Call Si C ll Options O ti to t acquire i rurall properties or part of properties. One property acquired. Several Put Options for small property owners at Toongi rail sidi
Slide 13: DZP Plant Layout
DZP Plant Layout For personal use only Zirconium and niobium Sulphuric acid plant recovery Office and workshops R Roasting ti and d lleaching hi Rare earth recovery and refining Solvent extraction Crushing and grinding 12
Slide 14: DZP Products
DZP Products For personal use only Zirconium Products zirconium sulphate, hydroxide, oxychloride, oxide (zirconia) Niobium Products niobium oxide concentrate, ferro‐niobium Light g Rare Earth Concentrate lanthanum, cerium, neodymium, praseodymium, samarium chloride/oxide Heavy Rare Earth Con
Slide 15: Zirconium
For personal use only 14 Zirconium
Slide 16: Zirconium Industry Pricing
Zirconium Industry Pricing For personal use only Averaged quarterly prices as compiled from multiple sources Source: TCMS 15
Slide 17: Niobium
For personal use only 16 Niobium
Slide 18: Niobium Demand and Price
Niobium Demand and Price For personal use only Niobium 2010 (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 17
Slide 19: Rare Earth Elements
Rare Earth Elements For personal use only 18
Slide 20: Rare Earth Pricing
Rare Earth Pricing For personal use only These prices are for individual separated rare earth oxides at 99% purity, and the actual value for DZP concentrates will depend on market acceptance of the concentrate, but for this table 70% of the value has been assumed. The prices quoted above are average
Slide 21: DZP Product Output
DZP Product Output For personal use only Anticipated p Production at 1,000,000 , , ore processed p per year p y Product Output ZBS, ZOH, ZBC, ZOC, ZrO2 (+99% ZrO2 + HfO2) 15,700tpa Nb -Ta concentrate / FeNb (70% Nb) 3 005tpa 3,005tpa LREE concentrate (REO) 3,772tpa YHREE concentrate (REO) 1,019tpa T
Slide 22: DZP Marketing
DZP Marketing For personal use only Off‐take Zirconium – 100% under MOU (subject to review) Niobium – 100% under MOU LREE – MOU to JV process concentrate YHREE – MOU to JV process concentrate Throughput – five MOU’s which target production at 1Mtpa Memorandums of Understandings (MOU’s) MOU
Slide 23: DZP Environmental Impact
DZP Environmental Impact For personal use only Environmental Impact Statement – key areas of focus Existing land use (agriculture) S i Socio‐economic i Air quality Noise and vibration Surface and ground water Soil stability Flora and fauna Biodiversity Visibility Rail freight mov
Slide 24: DZP Feasibility Studies
DZP Feasibility Studies For personal use only Definitive Feasibility Study – September 2011 DFS 0.4Mtpa ore processed Capex (incl EPCM and Contingency) A$470M Revenue per annum A$189M NPV (20 years) A$181M Scaled estimates 1.0mtpa Capex (incl EPCM and Contingency) A$893M Revenue per annum A$504M NPV
Slide 25: DZP Financing Program
DZP Financing Program For personal use only Credit Suisse (Australia) Limited (“CS”), Sumitomo Mitsui Banking Corporation (“SMBC”) and Petra Capital Pty Limited (“Petra”) to provide investment banking services, including the arrangement of project financing to fund the development of the Dubbo Zirco
Slide 26: DZP Development pathway
DZP Development pathway For personal use only 2009 2010 2011 2012 2013 2014 2015 2016 Resource definition 2001 ‐ 2002 9 Flow sheet development 2002 9 Laboratory Zr – Nb 1999 –2002 9 Pilot plant Zr – Nb 2002 9 Continued product 9 Mine Plan & Scheduling 2002 development Plant Design & Engineering 2002
Slide 27: Dubbo Zirconia Project
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 Th DZP is The i a world ld class l project j t capable bl off supplying l i “new “ age metals” t l ” in to rapidly developing international mark
Slide 28: 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 29: Resource & Reserves: DZP
Resource & Reserves: DZP For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage 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