Alkane Resources Ltd · ASX:ALK

Alkane Resources — Mining & Energy Services Council of Australia Presentation (June 2013)

16 slides from Alkane Resources's conference presentation, Jun 6, 2013

  1. Slide 1: Dubbo Zirconia Project

    Dubbo Zirconia Project NSW Australia Mining & Energy Services Council of Australia Presentation Newcastle 6 June 2013

  2. Slide 2: Today's Team

    Today’s Team Alkane – Australian Zirconia Limited Michael Sutherland General Manager NSW Tony Wright Commercial Manager TZ Minerals International Pty Ltd Gavin Diener Managing Consultant – Chemical Engineer Alex Ryan Senior Consultant – Metallurgical Engineer Engineering and Project Management Servi

  3. Slide 3: Corporate Profile

    Corporate Profile • Listed on ASX since 1969, also listed on OTCQX in US • 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 in 1996, operated

  4. Slide 4: Dubbo Zirconia Project

    Dubbo Zirconia Project • 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 production gives NPV o

  5. Slide 5: DZP Process Flow Sheet

    DZP Process Flow Sheet  Demonstration Pilot Plant – established 2008  ANSTO – Aust. Nuclear Science & Technology Organisation  Process – unique & advanced  Optimization – ongoing  Simple open cut mining operation  Crushing and grinding  Sulphuric acid leach whole of ore  Solvent extraction,

  6. Slide 6: Zirconium

    ALKANE Zirconium GD sesteacian ZIRCONIA LTD (A SUBSIDIARY OF ALKANE RESOURCES LTO! APPLICATIONS FOR ZIRCONIUM MATERIALS Electronics . -Dielectrics Ceramics Ss ev -Piezoelectrics -Ceramic colours Ie -Multi layer capacitors -Enamels & -Oxygen sensors” -Opacifiers y -Sonar ' Catalysts -Automotive -Gaso

  7. Slide 7: Niobium

    ALKANE RESOURCES LTD GD vustesrian ZIRCONIA LTD (A SUBSIDIARY OF ALKANE RESOURCES LTO! “sill APPLICATIONS FOR NIOBIUM MATERIALS =a Ford 500 Special Steels - HSLA* - Weight reduction for fuel efficiency 7 Superconducting Magnets - Particle accelerators - Maglev transport - Magnetic Resonance Imaging

  8. Slide 8: Rare Earth Elements

    ALKANE Rare Earth Elements AUSTRALIAN ZIRCONIA LTD (A SUBSIDIARY OF ALKANE RESOURCES LTO! APPLICATIONS FOR RARE EARTH MATERIALS , Electronics i -Display phosphors (CRT, PDP, LCD) -Medical imagin: 5 i a Ceramics Catalysts F -Lasers E -Capacitors -Automotive catalytic converter -Fibre Optics -Sensors

  9. Slide 9: Environmental Impact

    Environmental Impact Environmental Impact Statement – key areas of focus  Existing land use (agriculture)  Socio-economic  Air quality  Noise and vibration  Surface and ground water  Soil stability  Flora and fauna  Biodiversity  Visibility  Rail freight movements  Road traffic  Aborigin

  10. Slide 10: Financing

    Financing • $1 billion DZP finance package being arranged by: o Credit Suisse (Australia) o Sumitomo Mitsui Banking Corporation o Petra Capital • Finance sources: o Possible sale of a strategic minority stake in DZP o International Government funding (ECA) o Commercial debt facility o Public equity

  11. Slide 11: DZP Plant Layout

    DZP Plant Layout N Roasting and leaching Solvent extraction Crushing and grinding Zirconium and niobium recovery and refining Rare earth recovery and refining Sulphuric acid plant Office and workshops 11

  12. Slide 12: DZP Construction Packages

    DZP Construction Packages Major Packages will include: Earthworks supply and install Concrete supply and install Structural supply and fabrication Steel platework off site fabrication Steel platework on site fabrication SMP install Electrical install Piping supply Valve supply 132kV powerline Water

  13. Slide 13: DZP Supply Packages

    DZP Supply Packages Equipment Supply will include: Crushers Grinding mill Conveyors Roasters Feeders Pumps Cooling towers Agitators Dust collectors Pressure filters (various packages) Gas fired boilers Sulphuric acid plant Dryers SX plant Fume scrubbers Water treatment / Demineralisation / Sewage Ch

  14. Slide 14: DZP Cost Estimates

    DZP Cost Estimates Approximate package value: Earthworks ~$90miliion Concrete foundations ~$50million Structural steel ~$25million Steel platework ~$50million Mechanical equipment ~$390million Piping and valves ~$36million Electrical and instrumentation ~$65million Road and rail* upgrades ~$22millio

  15. Slide 15: DZP indicative timetable

    DZP indicative timetable 2013 2014 2015 2016 Environmental Impact Statement Project Approval Process ? Project Financing Program EPC / EPCM expressions of interest / tender EPC / EPCM proposals EPC / EPCM award Detailed Design IFC Long Lead (Acid Plant +) tender Long Lead (Acid Plant+) award Civils

  16. Slide 16: Dubbo Zirconia Project

    Dubbo Zirconia Project A strategic and alternate supply for the zirconium, niobium and rare earths industries What next? The Company will establish a specific DZP portal within the existing web site at www.alkane.com.au This should enable potential contractors / supplies to lodge relevant expression

Alkane Resources — Mining & Energy Services Council of Australia Presentation (June 2013) on 6ix