Alkane Resources Ltd · ASX:ALK
Alkane Resources — RIU Sydney Resources Round Up 2014
24 slides from Alkane Resources's conference presentation, May 13, 2014
Slide 1: Transitioned to operations
ALKANE RESOURCES LTD For personal use only Transitioned to operations 13 May 2014
Slide 2: Corporate Profile
Corporate Profile For personal use only • Listed on ASX since 1969, also listed on OTCQX (US) • ~6,300 shareholders • Multi commodity explorer, miner and developer focused on Central West of NSW, Australia • Active in region for more than 20 years • Developed Peak Hill Gold Mine in 1996, operated to
Slide 3: Financial
Financial For personal use only Financial Equity Shares – 372,639,000 Market Capitalisation – A$110M (30 April Hedge Funds, Domestic 6.2% Institutions, 2014) 14.9% Foreign Institutions, Cash & Investments – A$18M (31 March 2014) Retail and 12.3% Debt – nil others, 40.3% Directors and managem
Slide 4: Tomingley Gold Operations
Tomingley Gold Operations Base case statistics For personal use only • Mining Lease approved February 2013 • Resource – 921,000oz of gold • Construction CAPEX – A$116M • Mine Method – open cut & underground • Mine Life – 7.5years (targeting 10+ years) • Processing plant throughput – 1.0Mtpa • 2.00g/
Slide 5: TGO Resource Expansion
TGO Resource Expansion For personal use only Additional Resource Potential Caloma Two open pit and underground Expand Wyoming One underground Caloma underground Myalls underground Wyoming Two and Three underground McLeans Caloma Two – Geological model 5
Slide 6: TGO Site Overview
For personal use only TGO Site Overview 6
Slide 7: Dubbo Zirconia Project
Dubbo Zirconia Project • A very large polymetallic resource of the metals For personal use only zirconium (hafnium), niobium (tantalum), yttrium and rare earths • Important and strategic metal mix - 25% of rare earth output is in “heavy” group • Reserve supports 35 year mine life at 1 million tonne
Slide 8: Geology
Geology For personal use only Trachyte lava or sub-volcanic intrusive Largely homogenous ore body Ore mineralogy – eudialyte, natroniobite, basnaesite – all readily soluble in sulphuric acid 20 year pit floor (40 metre depth) © 8
Slide 9: Process Flow Sheet
Process Flow Sheet For personal use only • Simple open cut mining operation • Crushing and grinding • Sulphuric acid, roast, leach whole of ore • Solvent extraction, separation & refining Shin-Etsu Agreement © 9
Slide 10: Product Value Enhancements
Product Value Enhancements For personal use only Continuing Product Development for Increased Return • Rare Earths: • MOU with Shin-Etsu Chemical to produce suite of separated rare earth oxides Sale of products to others excess to Shin-Etsu’s requirements • Further work to improve recoveries proceed
Slide 11: Demonstration Pilot Plant
Demonstration Pilot Plant For personal use only Y and HREE refining and recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refining and precipitation Reverse osmosis and water recycle © Operating at ANSTO since 2008 11
Slide 12: Product Applications
Product Applications For personal use only Zirconium Materials: • Electronics, ceramics, glass, refractories, chemicals, metal, catalysts Rare Earth Materials: • Electronics, magnets, ceramics, glass, metal alloys, phosphors, catalysts Niobium Materials: • Special steels, alloys, capacitors, g
Slide 13: Zirconium Industry
Zirconium Industry Zircon Demand by End Use For personal use only (2013 ~ 1 million tonnes) Zirconium Chemicals Output Other 3% Baddeleyite 3% ZOC Fused 26% unstabilised Foundry zirconia 12% 37% Fused Chemical stabilised Refractory Zirconia zirconia 21% 17% Ceramics 13% 47% Chemicals 21% 10 yr CAGR
Slide 14: Rare Earth Industry
Rare Earth Industry For personal use only REE DEMAND 2016 Other Catalysts • Total REE consumption 2012 115,000t 12% 15% with annual growth estimated at 5- Ceramics 10% to be 162,000t in 2016 6% • Global market US$3-5B Glass 6% • China produces about 90% of world Phosphors supply and consumed about 6
Slide 15: Niobium Industry
Niobium Industry Current use of ferro-niobium For personal use only 13% 29% Structural 10% Pipe Auto Stainless Other 24% 24% • 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels • Nb HSLA steels are primarily consumed in structural and piping,
Slide 16: DZP Estimated Product Output @ 1Mtpa
DZP Estimated Product Output @ 1Mtpa 100% 1,309t For personal use only 5% 90% 95% yttrium, dysprosium, 20% 4,665t 30% terbium 80% 28.5% of revenue 8% 1,967t 70% 90% neodymium, 60% 24% praseodymium 21.6% of revenue 50% 15,827t 40% 16% 67% 30% 20% 31% 10% 0% Production 23,768t* Revenue A$450 - 500Mpa*
Slide 17: DZP Pathway to Market
DZP Pathway to Market Agreements to secure 100% of output For personal use only Zirconium (Zr) • Leading chemical company to develop applications and markets in Asia for zirconia produced by DZP • MoU with European manufacturer /trading company to market DZP products in Europe and North America • Ce
Slide 18: DZP Funding Strategy
DZP Funding Strategy For personal use only Total Project Capex of $996m Based on April 2013 DFS to +/- 17% Includes $166m contingency Includes current FEED program to achieve BFS standard @ +/- 10% Targeted funding sources: • Government Assistance Programs/ECA style funding • Commercial Ba
Slide 19: DZP Major Milestones
DZP Major Milestones For personal use only Major Milestones 2014 2015 2016 2017 Finalise Off-take agreements Project Approval Process Project Financing Program Front End Engineering Design (FEED) CONSTRUCTION PRODUCTION Estimates of times are indicative only and are subject to change. Alkane reserve
Slide 20: Exploration
Exploration For personal use only • Bodangora gold‐copper prospect o Large monzonite intrusive complex with gold-copper mineralisation o Similarities to Newcrest’ Cadia-Ridgeway gold‐copper mine o Recent drill intercepts at new target (Kaiser) o 41m @ 1.15g/t gold and 1.24% copper o 8m @ 0.34g/t gol
Slide 21: Final Observations
Final Observations For personal use only “Reports of the demise of these industries have been greatly exaggerated” (Apologies to Mark Twain) © 21
Slide 22: 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 23: DZP Resource & Reserves
DZP Resource & Reserves 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 0
Slide 24: Resource & Reserves: Tomingley
Resource & Reserves: Tomingley Tomingley (TGP) – Mineral Resources For personal use only DEPOSIT MEASURED INDICATED INFERRED TOTAL Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Ounces (Mt) (g/t) Au (Mt) (g/t) Au (Mt) (g/t) Au (Mt) (g/t) Au Wyoming One 2 2.32 2.2 0.89 2.2 3.12 1.7 6.32 1.9
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